Benefits of HRM Practices for Employer and Employee

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