Benefits of HRM Practices for Organizational Profit and Productivity

This article discusses the benefits of HRM practices in raising organizational profit and productivity. It covers topics such as training and development, performance management, and reward systems. The effectiveness of these practices in achieving business objectives is also explored.

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Table of Contents
1.0 INTRODUCTION..........................................................................................................................4
TASK 1.................................................................................................................................................4
Purpose and functions of HRM, applicable to workforce planning and resourcing an
organisation......................................................................................................................................4
Strength & Weakness different approaches of recruitment and selection.......................................5
Functions of HRM to meet business objectives...............................................................................7
Strength & weakness of methods.....................................................................................................7
Strength & weakness different approaches of recruitment & selection of several approaches.......8
TASK 2.................................................................................................................................................8
P3 Briefly discuss benefits of HRM practices.................................................................................8
Various approaches of HRM practices...........................................................................................10
States evaluation of practices of HRM & application...................................................................10
Effectiveness of various HRM practices in regards of raising organisational profit and
productivity....................................................................................................................................11
TASK 3...............................................................................................................................................11
Importance of employee relations in respect of influencing HRM decision making....................11
Elements of employment legislation & impact upon HRM decision making..............................12
PART 2................................................................................................................................................13
TASK 4...............................................................................................................................................13
Application of HRM practices.......................................................................................................13
Rationale for application of specific HRM practices.....................................................................15
Employee relations & application of HRM practices & influence decisions making in enterprise
.......................................................................................................................................................15
CONCLUSION..................................................................................................................................16
REFERENCES...................................................................................................................................17
Books & Journal:...........................................................................................................................17

1.0 INTRODUCTION
In organisation, human resource is an important function which is to be carried out in
proper manner. HRM is wider and broader which is required to be carried out with proper
consideration (Ahammad, 2017). Main aim of this report is to understand the importance of HRM
in organisation. Sainsbury, a supermarket chain headquartered in U.K. It is located at global scale
and has many competitors such as Tesco, Asda, Morrisons etc. Main vision of a firm is to be most
trusted retailer where people work and shop. Main mission of Sainsbury is to be customer’s first
choice for food and deliver higher quality. Core objective of firm is to provide quality of food at
affordable price. This report comprises of purpose and function of HRM, strength and weakness of
recruitment and selection, benefits of HRM practices, effectiveness of HRM practices, importance
of employee relations, key components of employment legislation and application of HRM
practices.
TASK 1
Purpose and functions of HRM, applicable to workforce planning and resourcing an organisation.
In this contemporary business, HR play important role in development of business goals and
objectives. It is crucial to have appropriate information about HRM & activities so that strategies
are implemented in proper manner. Workforce planning is also important which is to be done with
proper considerations. In relation of Sainsbury, HRM purpose and functions are discussed as
follows-
Objectives
 Main objective of HRM is to increase the productivity of organisations.
 To adopt appropriate strategy with aim to achieve competitive benefits.
 To access employee behaviour to examine the impact of external forces.
Functions
Recruitment and selection
It is crucial function of HRM in which main work is to hire, recruit and select the
subordinates within in a firm (Barlow, 2019). The human resource of Sainsbury executes this
function with proper considerations and with use appropriate tools as well as techniques. Both
recruitment as well as selection is essential to be focused so those enterprise goals are
accomplished. Main benefit of this function is that it helps in achieving of skilled employees in
easier way.

Performance management
It is also important function of HRM which is to be executed with aim of analysing and
accessing performance of subordinates. It is essential to access performance management so that
better decisions are being undertaken. The manager of Sainsbury makes assure that performance is
analysed at appropriate level. By accessing to performance management, it is easy to assign
complex duties to employees in effective manner (Benabderrahmane, 2017).
Significance that HR plays in acquiring talent to meet business objectives
HR plays important role in acquisition of talent and meeting business objectives. It is
essential to be well aware about HR roles in hiring talent which is further described as follows-
 HR act as strategist and hire new talent so that productivity and performance is increased at
higher scale. In relation of chosen company, company's human resource makes ensure that
effective strategy is being used to hire new talent.
 HR act as visionary person as because they provides a new change in business and on the
basis of which it is easy to access new opportunities (D'Silva, 2020).
Workforce planning
Workforce planning refers to process which is used to analyse and access and future staffing
needs. It is duty of HR of selected entity, to make assure that workforce planning is being done in
appropriate level. It is time consuming process which is to be carried out with effective manner.
So, it is analysed that it is essential for HR of company to be well aware of purpose and
functions of HRM so that goals are accomplished in easy way. Moreover, it is too examined that
with use of analysis, HRM functions are to be used properly (Heilmann, 2020).
Strength & Weakness different approaches of recruitment and selection
Recruitment and selection are crucial to be access and performed by entity so that talent
employees are being hired within firm. The work role of human resource is broader and which is to
be executed in correct way. So, evaluation of such type of approaches are further given below-
Recruitment
It refers to process and procedure of hiring, analysing and identifying candidates with
purpose of achieving objectives of company (Iqbal, 2019). In regards of chosen firm, recruitment is
done with various methods which are explained below-
Internal recruitment

It is kind of method which is used by entity in which recruitment is done on basis of internal
referral and sources. In relation of Sainsbury, HR of entity uses this method to fill the vacant posts
as soon as possible.
Strength
 Main strength of this approach is that it is less cost expensive and human resource is able to
achieve deserving candidates.
 Strength is that it HR is already aware about targetted employees who can be hired easily
and research is not have to be done (Jirjahn, 2018).
Weakness
 As the source is used internally, chances of favouritism and biasness are more.
Talent pool data bases-
It is kind of method in which recruitment is done through accessing to data base of talent
pool. In relation of selected organisation, they can use this source of method to hire talented
candidates easily.
Strength
 Main strength of this approach is that HR of Sainsbury is able to access the deserving
candidates easily (Koster, 2020).
Weakness
 The database of talent pool is large and it is not possible to access every employee and select
candidate.
Selection
It is defined as process through which candidates are being selected by human resource on
basis of their skills and qualification. In relation of chosen firm, the selection process carried out by
HR is long and time consuming.
Preliminary screening
It refers to method in which selection is done basis of qualification and experience who is
able to increase the profitability of firm (Mahadevan, 2017).
Strength
 Main strength of this approach is that every employee gets equal chances when screening is
being used.

Weakness
 This limits the potential and inner capabilities of candidates because it selection is done on
academic qualification rather than inner capabilities.
Development and training
Development and training and important part of HRM as because these are the methods
which are used with aim of accessing and increasing the capability of employees. Development and
training is defined as process of imparting new knowledge and skills within subordinates. In
relation of selected entity, they too uses this method which leads to improvement in employees
capabilities (Merga, 2021).
Performance management and reward system
Performance management and rewards system are also crucial methods which are needed to
be used so that appropriate employees are being hired. Performance management is process through
which performance is analysed and accessed of every subordinate. Reward system is also used by
human resource of firm in which reward is being given to employees who perform better at
workplace.
Functions of HRM to meet business objectives
Functions of HRM are important which are to be executed so that it is easy to Sainsbury to
meet firm objectives within period of time. It is often seen that there are various types of functions
such as recruitment, selection, training and development that are performed by HR of company.
Strength & weakness of methods
Recruitment- strength
 Strength of this method is that it helps in identifying and examining of employees that can
fulfil the needs of organisation (Potnuru, 2021).
Weakness
 Main weakness of this method is that it is time consuming and cost expensive process.
Selection- strength
It is defined as approach in which selection is done through short listing of candidates.
Strength is that it assists in analysing of deserving candidates (Subat, 2020).
Weakness
It is negative process as employees who are not selected gets demotivated in the process.

Strength & weakness different approaches of recruitment & selection of several approaches
There are various methods that are used HR of firm such as recruitment and selection that
are used by HR to achieve business goals.
External recruitment
Strength
Main strength of process is that it assist in accessing to deserving candidates in effective
manner (Suksod, 2020).
Weakness
Weakness of this approach is that it is time consuming and cost expensive method.
Preliminary screening
Strength
Main strength of this method is that it helps in selecting of a deserving candidates relying
on academic qualification (Suksod, 2020).
Weakness
Preliminary screening is a kind of method which is known as negative process (Subat,
2020).
TASK 2
P3 Briefly discuss benefits of HRM practices
In this competitive world, it is crucial to use different types of strategies and tactics so that
goals are accomplished appropriately. In case of Sainsbury, the human resource manager of
company makes assure that practices and strategies are being adopted by scanning of business
environment. To use effective practices, it is essential to be well aware about the employees and
other market situations so that most appropriate type of HRM practices are used. So, in context of
selected organisation, HRM practices are used of various types and are discussed below-
Training and development
It is to be viewed as most appropriate practices that is adopted by HR of Sainsbury. As
because training & development refers to approach which are used to enhance and improve the
capabilities of employees.
Advantages to employees-

Main benefit of this approach is that it improves the employee’s motivation level at higher
scale. In relation of selected organisation, they conduct training as well as development on weekly,
hourly basis.
Advantages to employers
When employee’s skills are improved, entity is able to maximise its level of productivity at
higher scale.
Limitations to subordinates
This process is a time consuming process which distracts employees from their core
activities.
Limitations to employers
 Drawback is that it is cost expensive procedure which is to be carried out with proper
research and analysis (Merga, 2021).
Performance management
It refers to practice which is used with aim of access employees performance. Performance
management is defined as process through which progress level of subordinate is analysed.
Advantages to employers
 A main benefit of performance management is that it helps in accessing of employees
progress level (Potnuru, 2021).
Benefits to subordinates
 Through this, subordinates become aware about strong capabilities of their own which are
used by them efficiently.
Disadvantages to subordinates
 Limitation of this practice is that it leads to negative employees become aware about their
performance and it leads to stress which impact on their performance.
Drawback to employers
 When performance of subordinate is weak, organisation need ti change their processes and
work structure which is cost expensive.
Reward system
It refers to system in which it provides a reward to employees on the basis of their
performance level and skills.

Benefits to subordinates
 Main advantage of this system is that it enhances and increases the performance level of
employees and motivation too.
Benefits to organisation
 Advantage is that it help firm in analysing employees motivation factors.
Limitations to employees
 Drawback is that it makes employees greedy and work only some reward is given to them.
In context of chosen firm, sales person of entity only works.
Drawback of employers
 Organisation has to terminate the low performance employees which can even increase
employee turnover rates.
Various approaches of HRM practices
The approaches of HRM are crucial to be used so that effective practices are being
adopted . It is important to use these practices so that goals are accomplished. With of HRM, it is
easy to be well aware about such methods are discussed as follows-
Soft Model
It is a kind of model which is adopted by HR with aim of self-regulated behaviour,
commitment that are used within firm. Through use of this model, it is easy to access employee’s
behaviour and attitude (Mahadevan, 2017).
States evaluation of practices of HRM & application
The practices of HRM are necessary to be adopted in proper manner so that objectives are
achieved in effective manner. In context of selected entity, HR of company makes assure that at
every aspect practices are being used with proper considerations. Applications as well as practices
are required to be used with effective manner (Koster, 2020).
Effectiveness of various HRM practices in regards of raising organisational profit and productivity
HRM practice is essential to be adopted within business without which it is not easy for
organisation to achieve set goals or objectives. Main focus of company is to enhance as well as
increase the productivity level of business at higher scale. In relation of selected firm, they use

different HRM practices in order to increase organisational profit and productivity which are further
explained as follows-
 Retention of employees- It is most effective strategies which is needed to be used as
because by retaining employees for longer period can help firm in improving their level of
productivity at higher aspects.
 Group discussions and brainstorming- This is another form of HRM practice which can
be adopted as because it assist in making decisions within entity with effective manner and
develop mutual cooperation within workplace.
The above discussed are some of the HRM practices which are used in with aim of increasing
productivity as well as profit of business at higher scale.
TASK 3
Importance of employee relations in respect of influencing HRM decision making
In enterprise, it is essential to establish positive employee relation so that it is easy to
achieve business goals in appropriate manner. Employee relations help in accessing to effective
HRM decision making. In context of Sainsbury, they focus on developing of relations through
fulfilling needs of employees at all aspects.
Importance of employee relation
 Increases productivity- Employee relation is important because when positive relations are
developed they work more effectively which leads to higher productivity. In relation of
selected entity, they are located globally and have well positive relations among employees
(Jirjahn, 2018).
 Goals are easily achieved- It is another reason for establishing of employee relation as it
helps in achieving of goals and objectives in proper manner. In case of chosen firm, they it is
easy for them to fulfil goals within period of time.
Effectiveness of employee relations & engagement
When employee relations are developed and established, it is easy for firm to understand
the behaviour and personal goals of subordinates in appropriate manner. Both employee relations
and engagement are crucial on the basis of which it is easy to achieve positive outcomes. Employee
engagement leads to accessing to subordinates mind and making them more responsible towards
their roles as well as responsibilities.

Influencing HRM decision making
HRM decision making is important which is needed to be carried out in effective so that it is
easy to achieve positive output. Employee relations are essential and it have direct impact on
decision making at wider scale. In relation of selected entity, they conduct group discussions and
brainstorming session on basis of which it is easier to make appropriate decisions. The human
resource of company makes assure that it is critically important to be well aware of situations so
that positive decisions are being undertaken.
So, above explained matter shows that it is necessary to use manage and maintain employee
relations so that better output is achieved. Also, it have been stated that proper internal and external
analysis is needed to be done so that strategies to develop relation is adopted in correct way.
Moreover, by focusing on employee relations it is easy to access business goals within a time
interval (Iqbal, 2019).
Elements of employment legislation & impact upon HRM decision making
Employment legislation refers to set of rules and regulations that consists of rights of
workers and which reflects relationship with employers. It is critical essential to focus on
employment legislation so that it is easy to execute activities in proper without facing an issue or
problem. In corporate sector, it is necessary to have appropriate information about such legislation
so that decision making in HRM is taken effectively. In context of Sainsbury, different types of
legislations are described below-
Health and safety act- 1974
According to this act, it states about the health and safety requirements and standards that
are to be focused by enterprise (Heilmann, 2020). In reference of selected entity, human resource of
company make ensure the safety and health of employees as they provide health insurance, wages,
bonuses as a means of safety. Health as well as safety is first most important thing which is focused
by employees at workplace. So, by focusing on the measures entity need to provide safety to their
employees so that goals are accomplished and work is done in appropriate manner.
Impact on decision making
It does affect the decision making of HRM because any issue faced by employee in terms of
health and safety than company has to face issues. Also, Sainsbury of HR has to increase their level
of knowledge regarding legislation (D'Silva, 2020).
Human rights act -1998

According to this act, it specifies that every individual has equal rights on the basis of which
they need to be treated by others. With consideration of this act, selected entity hires both men and
women, with equal process and procedures of hiring and selecting. Human rights act is important
which is needed to be focused in proper manner so that better relations are developed between both
employer & employees.
Impact on decision making
It also impact on decision making because it every person is different from each other and it
is necessary for HR of chosen company to be well aware about the way how employees are being
treated (Benabderrahmane, 2017).
Employee relations & employee legislations on decision making
Both employee relations and legislations are crucial to be adopted with proper
considerations so that HR of organisation is able to make decisions in well organised way. In
relation of selected firm, they adopt focuses on these both which assist them in accomplishing of
positive benefits. When organisation adopts these both it allows them to access opportunities and
execute business functions as well as operations in proper manner (Barlow, 2019).
Therefore, above discussed paragraph shows that employment legislations are required to be
adopted on basis of which it is become easy for firm to execute their organisational activities in
effective manner. In viewpoint of selected entity, legal department of firm is well aware about all
the legislations which are needed to be focused by firm & those regulations are properly considered.
PART 2
TASK 4
Application of HRM practices
Job Specifications
It is defined as a written documents and statement of qualifications, experience, qualities
which is possessed by an individual to perform job requirements. It is essential to be well aware
about hob specialisations so that jobs are searched and acquired by individual accordingly.
Job Specification
Organisation: = Sainsbury
Job Designation: Marketing Manager
Job purpose: Retail industry is growing and with increase of competition skilled workforce is

needed to access knowledge and solve problems and increase productivity. Job purpose is to
examine the impact of market on business operations.
Roles and responsibilities:
 Should be able to access the complex problems in effective manner.
 Need to be active in market and access relevant data.
 Should provide higher profitability and efficiency.
Required skills and experiences:
 B.tech from known university and college.
 Masters in operations and logistics.
Job Offer letter
It is defined as written statement in which employee joining date, and other details of
employment is given.
Offer Letter
Organisation Name Sainsbury
Job position Marketing manager
Location UK
Reporting person HOD of industry
Roles & Responsibilities  Solving problems
 Making effective decisions
 Identify customers problems & generate interest
Working Duration 9.30 am to 5:30 pm
Accommodations for employees Positive work environment with improved employee
relations.
Rationale for application of specific HRM practices
The application of HRM practices are needed to be adopted in proper manner so that it is
easy to achieve goals in appropriate manner. It is crucial to be well aware about these practices so
that goals are accomplished easily.
Rationale

 Main reason for using of HRM practices is that they help in achieving of competitive
benefits easily (Ahammad, 2017).
 Another benefit of this practice is that it is easy to access business opportunities in easy way.
In context of selected entity, it is seen that it is necessary to use this practice with effective
manner so that it is easy to increase the effectiveness of employees within workplace.
Employee relations & application of HRM practices & influence decisions making in enterprise
In this competitive market, it has been examined that it is important to focus on developing
positive relations and engagement on the basis of which it is easy to achieve benefits easily.
Employee relations are beneficial as they makes it easier for both employer and employees to
access to most appropriate decisions. In relation of Sainsbury, through using of these practices as
well as application, company of human resource is able to develop effectiveness of employees at
workplace.
From above discussed matter, it has been analysed that it is important for organisation to
adopt effective strategies. It is often seen that it is crucial to be well aware about how relations
between organisations and employees can be improved. So, in relevance of selected firm, they also
conduct group activities and other functions which help them in establishing of positive relations in
appropriate way.

CONCLUSION
After a brief analysis of above report, it has been concluded that it is important to be well
aware of human resource management so that goals are accomplished. So, discussions have been
made about purpose and functions of HRM, recruitment and selection of HR, employee relations,
and HRM practices. Further, HRM application is also discussed briefly in report. It is essential for
HR of a company to make ensure that appropriate type of HR system and tools used by
management so that talented employee are hired at all aspects. It is also examined that it is
necessary to states about achieving of competitive benefits and objectives in proper manner.

REFERENCES
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Benabderrahmane, 2017. Smart4job: A big data framework for intelligent job offers broadcasting
using time series forecasting and semantic classification. Big Data Research, 7, pp.16-30.
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of Research in Engineering, Science and Management, 3(8), pp.205-213.
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pp.1291-1306.
Iqbal, 2019. Unveiling the relationship between e-HRM, impersonal trust and employee
productivity. Management Research Review.
Jirjahn, 2018. Nonunion employee representation: Theory and the German experience with
mandated works councils. Annals of Public and Cooperative Economics, 89(1), pp.201-
233.
Koster, 2020. Innovative human resource management: measurement, determinants and outcomes.
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Mahadevan, 2017. Muslim minorities, workplace diversity and reflexive HRM. Taylor & Francis.
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Bangladesh. The Journal of Management Theory and Practice (JMTP), 1(3), pp.21-27.
Suksod, 2020. The Effects of Human Resource Practices on Employee Organizational
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