Impact of HRM Practices on Organizational Success

This assignment delves into the significant influence of Human Resource Management (HRM) practices on an organization's overall success. It examines various HRM strategies, policies, and initiatives that contribute to achieving organizational goals. The analysis considers factors such as talent acquisition, employee development, performance management, compensation and benefits, and workplace culture. The aim is to understand how effective HRM practices can enhance productivity, employee engagement, customer satisfaction, and ultimately lead to a thriving and sustainable organization.

4.4 The topical human resource issues at company
MANAGING HUMAN RESOURCE

4.4 The topical human resource issues at company
TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Explaining guest model of HRM adopted at Nestle..............................................................3
1.2 Comparing the difference between Storey's definition of Personnel management, HRM
and IR practices by considering the HRM practices at company ..............................................4
1.3 Implications for Line managers and employees of developing a strategic approach to
HRM at Nestle.............................................................................................................................5
Task 2...............................................................................................................................................7
2.1 Explaining how a model of flexibility can be applied within company................................7
2.2 The kind of flexibility that can be developed by the company .............................................7
2.2 The implication of flexible working practices from both the employer and employee view
points of Nestle............................................................................................................................8
2.4 The impact of changes in the labor market due to flexible working practices at Nestle......9
TASK 3............................................................................................................................................9
3.1 Detailing out the different types of discrimination that may take place within Nestle.........9
3.2 Describing the practical implications of equal opportunities legislation practiced in Nestle
....................................................................................................................................................10
TASK 4..........................................................................................................................................11
4.1 Comparison various methods of performance management................................................11
4.2 The use of contrasting approaches for managing the practice of employee welfare...........12
Conclusion ....................................................................................................................................14

INTRODUCTION
Managing human resources is an important aspect that relates to management of human
inventory within the corporation. This function is specifically designed to enhance the worth of
employees within the company by developing, guiding, inspiring, appraising and controlling
them (Dimba, 2010). It can also be defined as method in which human resources are appointed
and mobilized in such a manner that is assist in accomplishing the purpose of the company.
Management of human resources is broad aspect that involve functions like, recruitment and
selection, motivation, performance appraisal, compensation, development and maintenance of
employees in a company. The main purpose of this function is to maximize the performance and
productivity of employees. It also focus on maintaining the employee satisfaction level so as to
retain them for long run.
In this report, contrasting aspects of managing human resources will be studied with
reference to provided case study of Nestle. It is leading company of UK that was formed in 1860.
It is renowned company that provides nutrition product, baby food, dairy products, coffee,
chocolates etc. In this report,learning will be shown about Guest model of HRM. Also, the
explanation regarding the kinds of discrimination that can take place in the company will be
provided. Thereafter, different methods of performance management will be explained.
TASK 1
1.1 Explaining guest model of HRM adopted at Nestle
The guest model of HRM was provided by Professor David Guest. This model emphasis
on the strategic management functions for the management of human resources. Therefore, it s
different from that of personnel management (Fried, 2011). The Guest model is based on six
main dimensions of analysis which are explained as follows:
 HRM strategy: It is important aspect that will help in developing strategy so as to retain
maximum employees within the company or to ensure their high productivity. Such as,
differentiation strategy can be used to stimulate employees to focus on innovation,
creativity etc.
 HRM practices: It is important aspect that enable management to take various actions to
ensure management of effective human resources inventory. In this respect, functions like

staffing, training and development, managing compensation, industrial relation and
rewards are performed by HR executives (Edgar and et.al., 2015). The management of
Nestle should emphasis of meeting different needs of employees such as they must be
provided better remuneration, security, status, responsibility etc.
4

 HR outcomes: This aspect highlights the different results of HR practices and strategy.
Such as by managing human resources strategically the company will gain benefits in
terms of increased employee commitment, improved quality of work etc.
 Behavioural results: It is important aspect that provides understanding about individual
behaviour at workplace. The HR practices have positive outcomes on the employees.
Therefore, they lead to increased motivation, loyalty and cooperation among employees.
The HR practices help in reducing employee turnover by maintaining the satisfaction
level of employees (Guest, Paauwe and Wright, 2012).
 Performance outcomes: With the effective implementation of HR strategies and
practices, the management of Nestle ensure maximum performance of its employees.
This further results into their improved productivity, creativity, quality of work
performed by employees etc. The overall effectiveness of employees is enhanced with the
help of various human resource functions.
 Financial outcomes: The effective management of human inventory have favourable
impact on the financial position of company (Liebowitz, 2010). This is because the
productivity of employees is increased constantly resulting into improved profits of
business. It will improve the position of Nestle in market leading to high ROI.
1.2 Comparing the difference between Storey's definition of Personnel management, HRM and
IR practices by considering the HRM practices at company
The Storey is renowned author that provided provided significant knowledge about
human resources, personnel management and IR practices etc. As per the Storey all these terms
are significantly different from each other. In accordance with the definition provided by Storey ,
the human resource management is a group of interrelated policies with an philosophical and
ideological underpinning. Therefore, HRM model is based on 27 constituents which assist in
stating how it is different from that of personnel management. As per the HRM definition of
Storey, more emphasis must be given on improving the capability and commitment of employees
(Lindström and Vanhala, 2013). Therefore the objectives of NESTLE can be attained with the
help of effective contribution of employees. Since, HRM is of strategic significance it is
important to have proper involvement of top executives so they can integrate the HRM policies
into overall strategy of company. The main purpose of company using HRM practices is to
5

enhance the commitment of employees instead of focusing on compliance.
Therefore,management provide proper knowledge of values and mission of company which act
as guide to overall efforts of employees. Further, the definition of Storey state that HRM is broad
concept that involve personnel management. It further means development of different policies
that manage the employees (Pilbeam and Corbridge, 2010). The focus of this approach is on
ensuring proper follow up of rules and regulations laid down by Nestle. It ensure close
supervision on employees and controlling different activities performed by them. On the other
hand, Industrial relation is important aspect that emphasis on improving relationship between
labor union and management.
Dimensions Personnel management/ IR HRM
Contract The close description and
follow up of written contract
The objective is to go beyond
the contract
Management To manage employees they are
supervised closely
The employees ensure self
management
Role of management To monitor employees To develop employees.
Communication There is indirect flow of
information
The communication between
management and employees is
more direct.
Job design The division of work is used
for job design.
The team work is used for
designing the job.
1.3 Implications for Line managers and employees of developing a strategic approach to HRM
at Nestle
The line manager holds influential position in the company and help in developing
strategic approach towards the human resource management. The line manager help in routine
management of employees and thus ensure right person on the right job. It support the HR
department in recruitment,selection, development of employees. It ensure maximum productivity
of employees by providing them training and development opportunities (Psychogios And et.al.,
2016). It also assist in maintaining the strong human inventory by retaining the committed staff
within the organization. The main concern of line manager is to develop the skills and
knowledge of each employee so as to enhance their job performance. The line manager ensure
positive work environment by assuring maximum involvement of employees in business
6

decisions etc. For this aspect, it focuses on employee engagement which empowers each and
every employee. It also foster smooth communication between line manager and employee so
that they can discuss different issues, creative ideas, change required in business etc. Thereafter,
the line manager assure close supervision on employees and work performed by them. On the
basis of its findings it provide them guidance which help in better performance and quality of
work in future (Guest, 2011). The line manager also prepare appraisal report on the basis of
performance and behavior of employees. Other than this, line manager takes disciplinary actions
against employees not following the rules and regulations of company so as to maintain positive
work environment.
7

TASK 2
2.1 Explaining how a model of flexibility can be applied within company
UK Unilever business was expanding, there is lots of new technology are arrived which
is most challenging every day. When organization expand it then long working hour are required
for managing all business activity. Moreover, in growing organization there is lot of burden of
works and its make workers more stressful and frustrated (Posthuma, Wagstaff and Campion,
2012). Management take much time of employees in work due to this they don't get time for
their personal work. For solving this problem, UK Unilever applied flexible working model for
their employee benefits and for work process also not stop. Flexible in working hour comprises
of three types such as variation in work, time off and flexible work arrangements.
Employees are given facility to take paid and unpaid leave. They also gets flexibility in
time arrangement. It helps in managing their personal and professional life too. In flexibility it
also includes given break hours to workers so that they feel relaxed from work. Manager should
make sure that their personal priorities not disturbed at any level (Roberts, Davies and Jupp,
2014). However in company employee wants productive work workforce so that their work not
stop at any cost. On the other hand employee want to balanced their work life too. In company if
employee are feel stress full then quality of work will be affected. Hence, it effects the company
overall profitability. So management adopted this flexibility model.
Employee in company are free to communicate with other workers. Employee are also
provided facility of work from home it helps them it make easier to maintain their work life
balanced (Trombetti, Hars and Ferrari, 2013.). The organization also kept employee for
temporary work in case, in absences of any employee temporary workers work for them. By
doing this company work is going on and stop in the absence of any employee.
2.2 The kind of flexibility that can be developed by the company
UK Unilever adopted flexibility model in their there are various type of flexibility such as
part time work, job sharing, flexible working hour etc. this all types of flexibility are discussed
below for employee comfort:
 Compressed working schedule: In their type of flexibility it allow workers to work for
longer hour on some days and meet its required on weekly hours. Their are mainly
facility to take a part day off and work form home (Hémery, Pra Robin, and Marty,
8

2014.). In common facility their are 4 days in which employee works in a weeks and 9
days fortnight. It is separated depend on employee they want to work in night shift or in
day shift.
 Flexible working hour: In this type of flexibility it included two type Staggered and
accrued type. In staggered start type it includes start and finish time . This provide a
facility for employee to choose their time of arrival and departure in office within a given
limit. It is set by UK Unilever (Arena, Ardolino and Di Gregorio, 2015). On the other
hand in accrued time it is and authorized hour of the workers in excess of an employee
standard requirement. For example 6 hour a day. For attracting employee to work more
they give extra money on overtime.
 Job sharing: Job sharing is best type of flexibility which is adopted by UK Unilever. In
this type employee in in company share their work with others when their is work load. it
is mainly for those who want to work part time (Posthuma, Wagstaff and Campion,
2012). Job sharing is also divided into two basis that is half or split day or half or split
week. It helps in reducing the burden of work from employees.
 Telecommuting: In telecommuting employee who cannot reach office due to some
reason it provide facility to work from home. Through it employee can contact to their
manger by sitting at home (Roberts, Davies and Jupp, 2014). At the time of traveling
employees can also work. Employee can manage their work by staying far away from
organization.
2.2 The implication of flexible working practices from both the employer and employee view
points of Nestle
As discussed above all this type of flexibility are adopted by UK Unilever. This all are
very beneficial for the employees and employers perspective which are as follow:
 Employer perspicacity: At the time of adopting this flexibility at Unilever it is very
advantageous their business. It helps in expanding their business easily. Origination
productivity and profitability also increases. Employee are working with more efforts due
to flexibility in time it reduce their stress of work. Job sharing make employee work easy
they are working hard for company (Trombetti, Hars and Ferrari, 2013.). Employee are
9

producing good quality of work. Ii increases the sales of company because employees
are producing quality of work.
Employee perspective: At UK Unilever it is a best practices for their employees. It
provides employee a balance in their work life,. Employee feel stress free because there is
flexibility in working hour. At the time of burden of work workers can share their work with
other members. Employee are allow part time off it helps them in managing their work.
Employee in company given some relaxation hour it makes them stress free (Arena, Ardolino
and Di Gregorio, 2015.). Flexibility in working hour allow employee to work any time but with
condition to deliverer work on given time. It motivates them to work hard and they give more
efforts to the Unilever.
2.4 The impact of changes in the labor market due to flexible working practices at Nestle
There are various changes in labor market and it has great impact on flexible working
practices of UK Unilever are as follow
Changes occur in labor market due to changes in economy of UK. Decreases in
manufacturing jobs and growth in service sector. In organization there are less full time
manufacturing jobs due to great changes in labor market (Hémery, Pra and Marty, 2014).
Moreover. Their are many positive and negative impact on company and employees. New
technologies are taken place in company which effects the employee work. It is because there are
less employees are required because of new technology. It has great impact employee demand
for the more less working hour. Flexible working practices enable labor to work part time in
their company.
TASK 3
3.1 Detailing out the different types of discrimination that may take place within Nestle
There are various types of discrimination that can take place at workplace resulting to
negative work environment, low morale of employees etc. The term discrimination can be
characterized as situation where one individual or group is favored over others. Therefore, it
means biased treatment of various categories of individual due to factors like, gender, age, race,
religion, sexual orientation, political beliefs etc. The government takes strict actions against
individuals or entities indulged in discriminating practices so as to safeguard the interest of
individuals at workplace (Hendry, 2012). There are many situations where discrimination can
10

take place in Nestle. Such as during recruitment and selection process, the HR personnel can
give more preference to specific candidates due to component like, age, religion, belief etc. it
will however restrict the growth opportunities for others. Thereafter, discrimination can be done
during the performance appraisal where more pay can be provided to specific individual or group
over other. However, this may result into dissatisfaction among employees and result into high
employee turnover. The government can also take legal actions against company for doing
discrimination and violating the provisions of Equality Act 2010. This will result into negative
image of company in market. Thereafter, the major type of discrimination are such as gender
identity where specific gender like male is given preference over females and also provided more
pay. Another discrimination is disability based where physically fit candidates are provided job
opportunities or more pay as compared to those physically impaired (Horwitz and Jain, 2011).
3.2 Describing the practical implications of equal opportunities legislation practiced in Nestle
Being a prestigious organization of UK and globally recognized company, Nestle
is needed to assure the fact that no favoritism takes place in the company. Due to discrimination,
the company will not only loose its valuable employees but also attract legal consequences.
Therefore, it is important for company to develop stern rule, regulations and code of conduct at
workplace. It is important for management to take actions against managers or supervisors that
support favoritism in the company. Therefore, the provisions of Equality Act must be strictly
followed (Khan and Ahmad, 2011). It is important act that forbids discrimination among
employees on the basis of age, sex, sexual orientation, physical disability, religion, political
orientation, martial status, pregnancy etc. By following the regulations,company can maintain
the interest of employees and prevent them from physical, financial or mental harassment. In this
respect, a special committee can be prepared that will ensure the employee problems related with
discrimination are addressed. The committee will assure proper and fair remuneration is
provided to employees doing same kind and quality of work. All the organizational members
must be given alike and equal treatment. This will help in reducing employee turnover and
improve their morale as they will be fair treatment.
11

3.3 Compare the different approaches adapted by Nestle to managing equal opportunities and
diversity
There are different approaches that are used by Nestle to ensure equal opportunities for
all the employees and also for managing diversity within company. In this respect, human
resource department of company specifically concentrate on employing various laws within the
practices and operations. This will also help company in effective management of the diversity
within the workplace. Therefore, management focuses on the appointment of individuals from
different backgrounds, culture etc (Larson, 2015). The another concept adopted by Nestle is to
focus on integrating anti-discriminatory practices within their HR practices. Therefore,
consideration must be given on avoiding discrimination in during performing various HR
functions such s recruitment, performance appraisal, career development etc. Further, the
approaches for managing equal opportunities and diversity have significant amount of
difference. Therefore, for management of equal opportunities the growth and development
possibilities must be equal for all the employees. On the other hand, for diversity management
emphasis must be on appointing individuals from different culture, race and religion etc.
TASK 4
4.1 Comparison various methods of performance management
Performance management can be stated as procedure used by management to enhance the
performance of employee so that organizational objectives can be attained smoothly. It can also
be refereed as method by which executives and employees work collaboratively to plan, monitor
and review the performance of individual (Mark, Vandivort-Warren and Miller, 2012). This
method also help in reassessment of the work of employee and its individual objectives and total
contribution to the company. This is an important method as it ensure the objectives are
constantly being met in best possible manner. On the basis of performance management, the pay
structure, bonus and other benefits that are offered to employee are decided. Therefore, for
performance management following methods can be used by company:
 Management by objectives: It is effective method used for assessing the performance of
executives and supervisors. The main purpose is to amend the performance of a entity by
providing clear description of objectives that are determined by both company and
management (Simpson and Yinger, 2013). It is effective method that focuses on what can
12

be done in a company to attain objectives of Nestle. This method will also help in
improving commitment of employee for accomplishing the business objectives.
 Rating scale: It is method that enable supervisor to provide rating to the performance of
employee (What Is Human Resource Management?. 2015). Therefore, executives are
needed to assign a value to the work performed by the employee considering the factors
like, complexity of work, quality and quantity of work done by it. The performance of
individual is therefore rated on bipolar scale having different parameters ranging from
excellent, good to poor.
4.2 The use of contrasting approaches for managing the practice of employee welfare
The term employee welfare refers to effective approach that involve different services,
advantages and benefits that must be provided by employer to assure convenience among its
workforce (Khatri, 2001). This further help in maintaining their interest within the company.
The employee welfare means different actions that are taken by management of Nestle to assure
effective working conditions for all its employees. This benefit is provided to employee over and
above the remuneration. Nestle is performing various functions that emphasis on assuring the
welfare of employees. Moreover, it is ethical and legal responsibility of company to consider the
welfare of its human resources. In this respect, following actions can be taken by management of
entity. Such as:
 The company ensures that employees are paid in accordance with the prevailing wage
rate only. Therefore the employee above age 25 are provided £7.20 while those between
21 to 24 are given £6.70 .
 The management of the organization assure availability of working conditions for
employee (Lane and Kangulec, 2010). Therefore, consideration is given on maintaining
clean and hygienic surroundings at workplace, proper lightening, sanitation facility, safe
drinking water etc.
 The HR department of Nestle assure the employees are not forced to work more than the
stipulated working hours. They must be provided with holidays, resting hours or breaks
etc.
13

 The management must assure actions are taken to reduce the different kinds of risk at
workplace. Such as there must be safety measures taken to avoid risk from fire,
earthquake and other accidents (Linn, 2008).
 The entity also focuses on assuring financial and physical security of its employees.
Therefore, it must provide pension, retirement benefits etc to its employees. In addition to
this life insurance coverage, contribution to provident funds are some actions taken by
company in favor of its employees.
 The Nestle have first aid facility which help the employees in case of accident that may
occur at workplace.
 In order to avoid stress and depression among employees they must be allowed to
participate in their social activities by giving them time off from work etc.
 The maternity and paternity leaves must be provided to parents so they can fulfill their
social obligations (Mason and Sanders, 2009).
4.3 Significance of health and safety legislation on human resources practices of Nestle
In order to assure physical well being of employees at workplace, it is important for
employer to follow the rules and regulations laid down by government. The main consideration
of UK government is to ensure employees are not harassed. According to the health and safety
act it is the responsibility of employer to take action to mitigate the risk for employees.
Therefore, employee must be provided with hygienic surroundings (Importance of Human
Resource Planning in Organizational Success. 2014). Also, there must be proper availability of
safety devices at workplace. Such as, fire alarm, extinguisher, helmet, gloves etc. Therefore the
disinfectants used for cleaning the premises must be kept safe. Thereafter, company should also
focus on implication of health and safety legislation in its HR practices. Therefore, during
recruitment and selection process, company can do medical test of candidate so as to assure it is
physically fit to perform specific job.
14

4.4 The topical human resource issues at company
In the contemporary scenario, employees are experiencing variety of issues at workplace
and sometimes it impacts their personal health as well. Hence, considering the present ear, it has
been analyzed that due to improper management of work, employees are unable to keep time for
their personal and professional life. They keep themselves busy in their professional life and as a
consequence, it generates issues related to work life balance. From personal context, they are
unable to give time to the family members which causes distress and disappointment. Similarly,
most of the workforce of Nestle are also facing these issues where in they are unable to provide
sufficient time to their families.
Considering this aspect, government has also made several framework in which working
hours are specified for the employees. This is useful for the purpose of providing healthy
environment at the workplace. Moreover, the employees of Nestle are also complaining about
the improper allocation of work in which they get maximum work load even after having number
of employees. This issue affects not only the employee morale but also the overall organizational
environment. Therefore, it can be said to protect the workforce from improper balance of work
life, Nestle should maintain flexible working hours for them.
CONCLUSION
Summing up the entire research study, it can be said that human resource management
plays very important role within enterprise. This is because with the help of their effective HR
strategies only retention of competent employees can be carried out by Nestle. The study has
identified diverse aspects of HRM along with the role of line managers in the organization.
From this current research, it is evident that the managers of Nestle are required to guide the
employees in prominent manner so as to develop competitive environment. However, on the
other hand managerial department should also encourage talented people to grow in their
specialized field as that also boosts employee morale.

4.4 The topical human resource issues at company
REFERENCES
Books and Journals
Dimba, A. B. 2010. Strategic human resource management practices: effect on performance.
African Journal of Economic and Management Studies. 1(2). pp.128-137.
Edgar, F. and et.al., 2015. Mutual gains or conflicting outcomes? How HRM benefits
professionals. International Journal of Manpower. 36(8). pp.1248 – 1265.
Fried, Y., 2011. Guest Editors' Note: The role of HR practices in managing culture clash during
the postmerger integration process. Human Resource Management. 50(5). Pp.565-570.
Guest, D. E, Paauwe, J., and Wright, P., 2012. HRM and Performance: Achievements and
Challenges. John Wiley & Sons,
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human Resource Management Journal. 21(1). pp.3-13.
Hendry, C., 2012. Human resource management. Routledge.
Horwitz, F.M. and Jain, H., 2011. An assessment of employment equity and broad based black
economic empowerment developments in South Africa. Equality, Diversity and Inclusion:
An International Journal. 30(4). pp.297-317.
Khan, M.A. and Ahmad, N.S.A., 2011. Modeling link between internal service quality in human
resources management and employees retention: A case of Pakistani privatized and public
sector banks. African Journal of Business Management. 5(3). p.949.
Khatri, P., 2001. HRM in Context: The applicability of HRM models in India. International
Journal of Cross Cultural Management. 1(3): 333–356.
Lane, B, and Kangulec, S., 2010. Integrated Offendor management workforce development.
Safer Communities. 11(3).pp. 154-158.
Larson, L.K., 2015. Employee Health--AIDS Discrimination (Vol. 10). Larson on Employment
Discrimination.
Liebowitz, J., 2010. The role of HR in achieving a sustainability culture. Journal of Sustainable
Development. 3(4). pp.50.
Lindström, S. and Vanhala, S., 2013. Performance in local government HRM: the role of external
customers. Baltic Journal of Management. 8(3).pp.252 – 268.
Linn, M., 2008. Planning strategically and strategic planning. Bottom Line: Managing Library
Finances. 21(1). pp.20 – 23
Mark, T.L., Vandivort-Warren, R. and Miller, K., 2012. Mental health spending by private
insurance: implications for the Mental Health Parity and Addiction Equity Act. Psychiatric
Services.
Mason, A., and Sanders, G., 2009. Strategic Management: A Dynamic Perspective. 2nd ed. New
Jersey: Prentice Hall.
Pilbeam, S. and Corbridge, M., 2010. People Resourcing and Talent Planning: HRM in
Practice. Financial Times Prentice Hall.
Psychogios, A. And et.al., 2016. A three-fold framework for understanding HRM practices in
South-Eastern European SMEs. Employee realtions. 38(3). pp.310 – 331.
Simpson, G.E. and Yinger, J.M., 2013. Racial and cultural minorities: An analysis of prejudice
and discrimination. Springer Science & Business Media.
Online

4.4 The topical human resource issues at company
Importance of Human Resource Planning in Organizational Success. 2014. [Online]. Available
through: <http://www.hrcsuite.com/human-resource-planning/>. [Accessed on 30th Sep
2016].
What Is Human Resource Management?. 2015. [Online]. Available through:
<http://humanresources.about.com/od/glossaryh/f/hr_management.htm>. [Accessed on
30th Sep 2016].

4.4 The topical human resource issues at company

4.4 The topical human resource issues at company

4.4 The topical human resource issues at company