Benefits of HRM Practices for Employer and Employee

This article discusses the benefits of different HRM practices for both employers and employees. It explores how HRM practices can enhance productivity and profitability in Scottish Power Ltd. Topics covered include recruitment and selection, training and development, performance management, and compensation and benefits.

Human Resource
Management

Table of Contents

INTRODUCTION
Human Resource Management (HRM) is a strategic approach of negociate the staff
operative in structure so as to maximize employee performance to accomplish the goals of the
firm(Albrecht and et. al., 2015). . It basically involves personnel, employee recompense and
welfare and /scheming work. HRM is occupied not only in assured and processing the talents of
all the workers but also utilize programs that enhance connection and group action between the
staff for overall organisational development (Albrecht and et. al., 2015). This report is based on
Scottish Power Firm in Central London which is an international energy company and
incorporated in the year of 1950. Moreover, they mainly deal into delivering sustainable and
greener energy future across the globe. In this study, it includes the intention and aim of HRM
applicable to workforce planning and resourcing so as to enable an organisation to achieve its
goals and objectives. Various formulation to recruitment and selection along with their strengths

and weaknesses are also discussed. The effectiveness of various HRM practices in terms of
raising organisational profits and productivity and the importance of employee engagement in
decision-making are also discussed.
P1 Purpose and functions of HRM for workforce planning and resourcing an organisation
HRM is the component of organisation that is concerned with efficient management of
group in the business. It involves hiring, motivating and maintaining the workforce; developing
organisational culture; maintaining performance standards thereby increasing productivity and
profitability of the organisation and creating a healthy and safe work culture for the staff. “The
concept of HRM involves planning, organising, directing and controlling functions of procuring,
developing, maintaining, and utilizing a labour force.”
Some of the major functions and purposes of HRM are as follows: Recruitment and selection: Recruitment is the procedure of enchanting, screening and
choosing possible and well-qualified candidates based on subjective criteria for a peculiar
job. Scottish Power uses interview method for short-listing the personnel who are eligible
for the job (Albrecht and et. al., 2015). Training and development : It is an endeavor to amend circulating or approaching
execution of an worker by instructing and teaching them about the content of technical
cognition related to their jobs. These can be on-job or off-job programmes. Scottish
Power gives off-job training programme like Scottish Financial Advisor Development
Program (FADP) which is configured to evolve critical skills and noesis essential to
acquire clients, enhance relationships, provide tailored strategies and more. Performance management : It is a strategical and incorporate plan of attack to gain the
effectualness of establishment by rising and enhancing the show of the staff. Scottish
Power uses 360-degree feedback for developing work skills and behaviours of the
employees.
 Compensation and benefits : It refers to compensation/salary both in monetary system
and non-monetary terms that is granted to manpower in return of their services to the
organisation which helps it in achieving its goals and objectives. Scottish Power gives its
employees with insurance benefits, retirement benefits and compensations based on their
performance.
Nature and scope of strategic HRM

HRM is permeant in nature i.e. existing in all organization. It focuses on results rather
than rules. It encourages employees to give their best to organisation. The scope for HRM is very
wide and spreads to personnel aspect concerned with recruitment, selection, lay-off etc.; welfare
aspect which deals with education, health, safety etc.; industrial relations aspects which includes
settlement of disputes, collective bargaining etc (Cascio, 2015).
M1 Functions of HRM that provide talent and skills appropriate to fulfil business objectives
HRM helps the organisation to attain right type and number of workforce to accomplish
operational and strategic goals of an arrangement. It also aid in developing a conductive state of
affairs for pertsonnel that help in utilization and development of their skills. HRM also helps in
enhancing performance and productivity of employees through feasible job design, sufficient
orientation, performance based feedback and efficient communication. A harmony between the
employer and employee can be created which creates a friendly environment and the stress of
work can be reduced. HRM functions ensures safety and a healthy surroundings for the
manpower.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment refers to the activity of pull in, selecting and delegating best qualified
candidate for a job vacancy in a timely and cost effectual manner. It consider analysing the
requirement of job, attracting employees for applying for the job, screening and selecting
applicants, hiring and integrating new employees in the organisation. In regard of Scottish Power
Ltd., it implies several form of entry level for hiring a skilled and trained personnel but there are
two most methods which Scottish Power Ltd uses in their recruitment process and that is given
below:
Apprentice level: Apprenticeships helps an employee to gain a good amount of income
by learning varied skills. It is a kind of on-the-job training where one can learn and earn at the
same time. There are two levels present this: Level 2 means getting standard marks while Level
3 means higher marks. The period of apprenticeship can go for 3-4 years and helps a lot to an
individual to gain new skills. To apply for this program, an online form has to be filled, then the
applicants are called at a centre where they are assessed by written tests. Finally, an interview is
conducted where they are checked upon their present abilities and skills and final check is
completed by medical and fitness test of an individual (Cascio, 2015).

Graduate trainee: The graduate programmes are especially conducted for individuals
having a degree from a university. It last up to two years and is customized as per individual
requirements and dreams as well as business needs. The procedure to apply for this is: An
application form has to be filled and students have to mention their skills and why they are
pursuing for the job. The students who fulfils the needs of Scottish Power are then called to
attend a session at the centre. The selection procedure include a group activity, presentation,
competency interview and finally a psychometric test. All students are treated equally and are
given equal opportunities to grow and develop.
However, some more selection methods which Scottish Power Ltd applies in its
functional unit are attend group exercise, single demonstration, psychology examination,
competence supported interview. Due to which, it help them to hire highly skilled or talented
workforce who can put their best attempt towards an acquirement of organisational goal or
objective in a better mode.
Selection is a operation of distinguishing and hiring applicants for filling up a vacancy in
the organisation. It involves matching the requirement of the job vacancy with the skills and
qualifications of the applicants. Some selection processes which Scottish Power Ltd implies in its
business function and it is discussed in various stages are as follows:
Vacancies advertised on websites or other media: This is the initial stage in Scottish
Power selection procedure in which they advertise regarding vacant position as well as their
requirements by making use of various social media platforms and newspaper or magazines.
Through this, organisation are able to acquire large pool of skilled manpower who can contribute
their best effort for an achievement of company's goal.
Screening of applicants: After advertising several applicants, then Scottish Power's HR
makes an initiative in screening the applicants in which they choose best personnel who can lead
establishment to obtain impressive profitability ratio.
Interview: After choosing the best manpower, HR some across with successful and
unsuccessful candidates. However, firm's HR invite successful personnel to attend face to face
interview (Cingano and et. al., 2015).
Attempting job related test:Once after finishing with interview process, the next stage is
attending test in which HR ask all questions related to job profile for which they are applied.

Final decision: In this, Scottish Power's HR makes a final decision and provide offer
letter to selected candidate and expect them to put best endeavor towards an attainment of
company's pre defined objective in a improved way.
M2 Evaluation of strengths and weaknesses of different approaches to recruitment and selection
Various recruitment methods help to search for latent nominee with wanted
psychological feature and education. Selection process create a pool of applicants who are best
fit for the job requirement. Apprentice level can be done through different learning approaches.
This method is cost-effective, helps in retaining top talent, can boost employee morale and
reduces employee turnover. However, it limits the amount of expected applicants and ideas of
new applicants. Workplace conflicts may arise. Graduate trainee requirement obviate these
difficulty but is more costly and time-consuming. Selection methods like assessment tests and
interview enable HR managers to evaluate candidate's skills. However, a complete analysis of
candidates cannot be done as they may be dishonest about their actual abilities and skills.
TASK 2
P3 Benefits of different HRM practices for both employer and employee
HRM of Scottish Power have many responsibilities as they defend curiosity of both
employer and employees. For superior , they manage workers social relation and determine
methods to reduce labour costs. For manpower, they assist their rights and ensures that
employers direct within the range of occupation and working class laws. Following are the
welfare of different HRM functions for both employer and employee:
Basis Benefit to Scottish Power Benefit to employees
Recruitment and
Selection
 Helps in attaining a pool of
qualified and highly skilled
employees for wealth
management and investment
services for its clients.
 Helps in enriching efficiency
and effectualness of its
 A proper procedure of
recruitment and selection
gives candidates a fair chance
to apply for a particular job.
 Employees become
competitive and enhances
their skills to be eligible for a

employees (Dany and Torchy,
2017).
particular job.
Training and
development
 Employee performance can be
improved and goals can be
achieved in an efficient
manner.
 Organisational sustainability
can be increased through
employee development.
 Employees can gain additional
experience through such
trainings.
 The employees become more
efficient at providing services
leading to customer
satisfaction (Noe and et. al.,
2017).
Compensation  Competition and productivity
among the employees
increase which gives
advantage of getting new and
innovative ideas.
 Projects get completed within
deadline and problem solving
becomes efficient.
 Hard working employees get
paid-off fairly based on their
performance.
 It motivates the employees to
work with more efficiency.
Job analysis and
work design
 Helps in recruiting employees
with skills required for
investment management,
credit and lending solutions,
tax investment strategies to its
clients.
 Job design makes work more
interesting and challenging
which motivates them for
better job performance.
P4 Effectiveness of different HRM practices for raising Scottish Power profit and productivity
HRM helps an arrangement to attain its strategic goals by draw in, continue and
processing employees. Various HRM practices helps in business budget control by setting
competitive and realistic wage-setting, employee conflict resolution, training and developing
employees so that their efficiency can be enhanced for the achievement of business goals and

increase employee satisfaction which improves their performance and business success can be
sustained (Ekwoaba, Ikeije and Ufoma, 2015).
Scottish Power is a prima supplier of encompassing wealth management and investment
services for respective and concern worldwide. It uses various HRM practices effectively and
efficiently that leads it in making high profits and productivity. Training and development
system is one of the HRM activity in Scottish Power which enhances the capabilities of the
employees so that they can use their skills efficaciously to achieve organisational goals. The
company conducts dedicated programs for some of its specialised roles like Global Banking &
Markets (GBAM) and Wholesale Credit analysts, Retail Banking contact centres and Consumer
Collections. One such important training and development program is Financial Advisor
Development Program (FADP) which is designed to evolve captious skills and knowledge
necessary for edifice a successful wealth management business with acquiring clients, enhancing
customer relationships, providing tailored strategies to the clients etc. Training and development
programmes thus helps in addressing employee weaknesses and improving their performance. It
also ensures improved quality of services given by them to the customers which help in customer
satisfaction and their retention in the company. It also reduces the cost of supervision thus
increasing the productivity and profitability of the company.
M3 Different methods of HRM practices used in Scottish Power Ltd.
Different HRM practices are used in Scottish Power Ltd. which helps in building a
friendly, healthy and safe environment for the workers of the company. For example, training
and development program conducted by Scottish Power like FADP under which the employees
are trained in a way that enhances their advisory skills so that they can provide better financial
advises related to investment decisions and strategic wealth management to the clients. Customer
satisfaction and retention of their trust in the company increases. Scottish Power also offers
flexible working arrangements for the employees with which healthy work-life balance can be
maintained. This encourages the employees to give their best to their company and makes them
enthusiastic towards work. This enhances their performance and goals of the business can be
achieved in an efficient manner (Karanges and et. al., 2015).
D2 Critical evaluation of HRM practices and their application in Scottish Power
The HRM practices in Scottish Power Helps in increasing the productivity and
profitability of firm. Manpower are the most important assets in an organisation and if their skills

are used in an efficacious mode by introducing HRM practices that helps in building a friendly
organisational culture, they can help in improving organisational performance. Training and
development programmes, flexible working arrangements, fair and performance based
compensation, various healthcare and insurance benefits, parental leaves etc. are various
practices through which the staff of the company is managed and motivated to work within an
organisation
TASK 3
P5 Importance of employee relations in HRM decision-making
Employee relation refers to the mode in which administration addresses and act with the
personnel. Holding up positive employee dealings aid to cut down workforce conflicts, boost the
morale of the staff and increase the whole execution of staff which ultimately helps in obtaining
establishment goal. (Larsen, 2017). Workforce symbolize a origin of knowledge and ideas which
can be used for problem solving and decision-making. Moreover, involvement in such process in
give personnel an possibility to voice their opinions and share their noesis which improves
relations at the workplace. Involving employees can also reduce the cost of outsourcing of
decision-making process which saves money, time and offers the company long-term dependable
source of intellect. Actively engaging employees increases overall company morale. When
employees are involved in business activities, endow them to impart towards the prosperity of
the company. Further this improves client satisfaction and personnel retention in the company.
At Scottish Power . employees are highly involved in decision-making which can clearly be seen
from job satisfaction of employees, creative and innovative ideas on retaining clients, customer
satisfaction, employee retention and increasing client base who are taking advises from the
company for managing their wealth and investments. Performing as a team intensify learning and
conflict resolution, consequent in better decision-making and sensitiveness (Marler and Parr,
2016).
Employee engagement means analysing qualitatively and quantitatively the cause of
relation between an organisation and its mnapower (What is Employee Engagement, 2019). It is
the emotional attachment employees feel towards their work, enthusiasm, level of motivation,
involvement and commitment towards the organisation. At Scottish Power the communication
between the managers and employees is two-way which breaks down communication barriers

and helps in communicating updates, announcements, policies and procedures freely which helps
in building a healthy relationship among all the members. It also enables employees to freely ask
questions which makes them more engaged and improve communication in the workplace (Noe
and et. al., 2017).
P6 The key elements of employment legislation and its impact on HRM decision-making
The central component of employment legislation are – Equal employment opportunity
for those who search job, assentient action’s favouring all, sexual harassment interference for
better working culture, working time regulations i.e. fixing working hours, trade unions and
other industrial relations and etc. Moreover, these policies regularize relationship between
employers and employees. It governs what employers can demand from manpower regarding
what to do and their rights at workplace. UK labour laws regulates relations between workers,
employers and trade unions. Every employee is entitled to a written statement of employment
contract which are bound by various employment laws (Srivastava and Dhar, 2015).
Human resource practices pertain rights and action secure by employment laws that
consult employee precise and enforce legal obligation on superiors. Federal laws impact HRM
decision-making on topics such as records holding, labour dealings, employee condemnable
evidence checks and compensation postulate for personnel. In UK some of the employment
legislations followed are mentioned below : Equality Act, 2010 : This act covers workplace discrimination against gender, age,
religion, disability etc. Victims of discrimination and harassment at work can make a
claim to an Employment Tribunal. Any loss or damage suffered by the employee will
have to be compensated. This act comprises of several other acts such as Equal Pay Act,
1970; Sex Discrimination Act, 1976; Disability Discrimination Act, 1995 etc. Scottish
Power . Treats all its employees equally and gives an equal chance to all the applicants
who are interested in working in the organisation and have the necessary skills required
for fulfilling the needs of the job (Noelke, 2015).
 Data Protection Act, 1998 : This act prevent personal data in the form of storing in files
as well as on computer. This act regulates way in which information about customers
are stored and used. This act ensures that the information such as biometrics, criminal
records, ethnic backgrounds and religious beliefs etc. about a person are used for limited
and specific purposes and should be handled in a way that ensures an appropriate level of

security and protects against unlawful and unauthorized use. Scottish Power . ensures
security and safety of information of their employees by providing them a secure and safe
network to upload their information on company's software.
M4 Evaluation of key aspects of employee relations management and employment legislation
that affect HRM decision-making
Employees are the most essential possession of an establishment. If the workforce work
collectively and have a healthy relationship with their employers, they help in achieving
organisational goals quickly and effectively ( Srivastava and Dhar, 2015). HRM is affected by
employee relations as their involvement in decision-making can help in knowing about the
opinions of employees and use their knowledge and skills which leads in forming accurate
decisions. The HRM of a company also needs to follow employment laws which ensures in
forming decisions that are legally bound. HRM decisions are affected by occupation legislations
such as equality act, data protection act etc.
TASK 4
P7 Application of HRM practices in work-related context
A person specification describes the personal attributes whcih is required in a potential
employee. It describes qualifications, skills, cognitive content, knowledge and other attributes
which a manpower must possess to perform a job duty (Stone and Deadrick, 2015). The
specification is made in relation to job description and forms the basis of recruitment procedure.
Short-listing of candidates, forming questions to be asked in an interview, level of assessment
tests is all based on person specification.
Person Specification
 Post: Chef
 Department: Administration
 Key: This demonstrates what is needful as an evidence:
 (A): Application form, (I): Interview, (R): Role
Attributes Essential Desirable
Qualification
&
 NVQ level 2/3 in food
preparation and cookery or
 Level 2 Award in food safety
or equal qualification.

Experience equivalent qualification.
 Past experience of cooking
and food preparation.
 Basic apprehension of health
and safety standards.
Skills or
knowledge
 The potentiality to work by
personal initiative.
 Organisation and time
management skills.
 The formulation and
cooking of different
varieties of food in order to
hnadle sales.
 Fundamental IT skills
consider Word and Excel.
 Able to work under pressure
level.
 Negotiable mental state to
working hours.
A person specification is important as it form interviewing procedure in a civilized and smooth
manner from beginning. A personnel who seek Job also can evaluate themselves with the
requirements of the job and match their suitability and skills. For the employer it elucidate two
kind of personal qualifications, essential and desirable. A person specification ensures that
candidates are assessed based on their cognition affiliated to the duty. All candidates are
evaluated and their abilities can be compared on the basis of same set of priority list. This aid
take out partiality, disfavour and individual involvement of the employer among the candidates.

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What is Employee Engagement?. 2019 .[Online]. Available
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employee-engagement.asp>