HRM Practices and Firm Performance

The assignment provided is a detailed analysis of HR line management relations, covering topics such as performance management, employee engagement, and organizational performance. It also delves into the importance of effective communication in resolving conflicts within employee relationships, making it an essential resource for students studying human resources or business-related fields.

Assignment Title
LEARNER
DECLARATION:

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and Purpose of HRM in ASDA........................................................................1
P2 Strengths and Weaknesses of different approaches used by Asda in recruitment and
selection..................................................................................................................................2
TASK 2............................................................................................................................................4
P3 Advantages of different HRM practices in ASDA for both the employer and employee`4
P4 Evaluate the effectiveness of different HRM practices in ASDA.....................................6
TASK 3............................................................................................................................................7
P5 Analysis of the importance of employee relations to ASDA............................................7
P6 Key elements of employment legislation and their impact on HR decision making........8
TASK 4............................................................................................................................................9
P7 Application of HRM practices in work related context....................................................9
CONCLUSION..............................................................................................................................13
REFERNCES.................................................................................................................................14

INTRODUCTION
Human resource management refers to a discipline which is developed to assist
manufacturers and service providers in managing the most dynamic element that exist in the
internal environment and that is human resource. There are various tools and techniques which
are formulated and used by managers for making sure each person needs are taken care off.
Basically, this is a field which focuses planning, organising, staffing, directing and motivating.
The prime aim of this discipline is to enhance people performance and ensure that each task is
completed in a set period of time (Armstrong and Taylor, 2014). There are different set of
polices and plans which are developed by the HR manager for making sure that each issues is
addressed and there is a discipline within organisation. This report is focused on ASDA which is
second largest grocery and general merchandise retailer in UK. It is at present going through a
higher rate of employee turnover. There are different types of issues which are existing within
organisation and a strategic approach is required to solve them. this will be done by human
resource department. The functions and scope will be stated in the report as well as strengths and
weakness of various methods are covered.
TASK 1
P1 Functions and Purpose of HRM in ASDA
ASDA is known to be second largest company in retailing which is operating in United
Kingdom. It is a subsidiary of Walmart and follows the same theory in serving consumers which
is Bigger and cheaper. It is very vital for a company to develop a better and efficient workforce
for future (Boxall and Purcell, 2011). The HR department is engaged in stating about roles and
responsibilities of each individual who is working for company. There are certain functions
which are performed by HR manager and they are as stated below: Planning: The HR manager in ASDA has to ensure that they prepare a plan which states
about all future recruitment and selection process. There are various [post which are
vacant in the company with a proper plan they will be filled. Organising and Staffing: There are different resources which will be organised and used
to recruit people within company. It assists in completing task and issues in more
effective manner.
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 Compensation and benefits: The HR manager in ASDA needs to make sure that they are
compensating individuals as per their capabilities and skills. There is lack of rewards and
recognition which demotivate people. Training and development: There is huge requirement of various activities which will be
uplifting people capabilities and skills (Brewster and Hegewisch, 2017). This is the best
way to motivate employees and ensure that with growth of company, individual targets
are being achieved. Employee engagement: Human resource manager is tasked with making sure that he
hears out every issues and grievance that a person has. This allows organisation in having
a better motivated workforce.
 Safety and Risk management: The human resource department ensures that all the
facilities are safe for people and there is no threat of hazard and any type of loss.
The purpose of the HR department due to which ASDA is focusing on HRM is stated
below:
 Performance management: The prime reason because of which HRM is used is to boost
people ability to work and offer better as well as effective performance.
 Employee relations: There are different parties who are engaged in the process of
negotiation and relationship development. Basically, the HR in ASDA ensures that there
is a good and effective relationship between people and management (Bratton and Gold,
2012). This will state about employee satisfaction with organisation.
 Cultural sensitivity: ASDA have a much diversified workforce and it requires rules and
regulation which do not violates anyone beliefs. This is why HR department is enacted to
ensure that there is a one policy which caters to the needs of internal consumer.
 Laws: There are various laws which are enacted by government to protect people as well
as organisations (Harzing and Pinnington, 2010). This allows the human resource
manager in maintaining standardised environment within company.
P2 Strengths and Weaknesses of different approaches used by Asda in recruitment and selection
In ASDA, there are different type of jobs which has to be done by individuals who are
recruited. The managers in company has to find right people for right job. He also has to ensure
that he places him in the position at the right time. This allows individual in enhancing their
performance as they are performing task which is of their own interest. The managers also keep
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on analysing the internal as well as external environment which allows them, in finding out best
individual. There are two ways ASDA recruits people:
 Internal Recruitment: This is one of the method which is stated to be a highly efficient
technique that allows manager in filling up a vacant position via transferring or
promoting existing employee (Meredith Belbin, 2011). The company believes that this
way they will be able to enhance motivation of people and boost their performance.
There are certain advantages and disadvantages which are mentioned below:
Advantages Disadvantage
 Allows managers in motivating people.
 Employees unconditional commitment
is gained.
 A higher level of performance is
achieved
 assist in attaining targets.
 There is limited level of innovation that
is available within company. As there is
lack of new minds and thoughts.
 Constant issues or conflicts take place
between people.
Sources: Present employees, Referrals, Former workers, Past applications.
 External Recruitment: This is a highly effective method when it comes to recruiting
people within organisation. This provides a huge pool of talent to company which can be
used to find the best and most suitable individual for the post (Wright and McMahan,
2011). At present, ASDA is more focused on filling the store attendant as well as
operating level post via this this method or source of recruitment.
Advantages Disadvantage
 It assists in boosting innovation within
organisation and its process.
 The managers are able to go through
various profile and choose the best one.
 There are higher chances of finding
more suitable person.
 There is a very higher level of cost
which is involved in this process.
 There is requirement of training which
consumes a lot of resources.
 More focused analysis is required to
find out loopholes in a person abilities
against job requirement.
Sources: Employee exchanges, Advertisements, Agencies, Associations, Campus recruitment.
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Deputation.
These are the two modes which are adopted by manager in ASDA to recruit people
whose profile suits the requirement of job.
TASK 2
P3 Advantages of different HRM practices in ASDA for both the employer and employee`
There are different benefits of using human resource management as a prime way to deal
with workforce and its issues. It is the best way to ensure that each employee who is recruited by
company completes his task with a higher level of performance. It allows organisation in
enacting and enforcing a standardised environment (Harzing and Pinnington, 2010). The
company is also able to use various methods in recruiting right individuals for the vacant job.
The department is concentrated on making sure that there is a higher level of relationship
between employees and management.
Basically, it tries to develop an environment where there is less friction and conflicts
while more opportunities are present to be exploited by people. There is various task which are
fulfilled by HR department in ASDA, such as, payroll, compensation, grievance handling, T&D
as well as employee engagement (Sanders and Frenkel, 2011). It also assists top management in
making sure that each policy is implemented and enforced without higher level of resistance.
The company need to practice different types of managerial functions, so that it can
effectively boost morale of people and achieve its goals and objectives. Some of the practices are
stated below:
 Training and development: It is a way of developing individual’s capabilities and ensure
higher level of productivity. It is given in form of on the job as well as off the job
training. There are different requirements that needs to be fulfilled as well as uncertain
situations need to be overcome for which training is important.
 Staff Appraisal: This is a method which is used for evaluation of staff and ensure that
each task is completed within a set time period. There are different types of methods
which are used by people and they are stated to be 360-degree appraisal method, balance
score card, etc. in ASDA 360-degree method is used for understanding as how effective
an individual is performing.
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 Rewards: When it is identified as who performed well in the set period of time. rewards
need to be given. This is a way of ensuring that effective system is developed and
implemented as to motivate individuals.
There are certain benefits of it to employer as well as employee which are mentioned below:
For Employee: Improves KSA: The HR methods and techniques allow a person in improving his level of
knowledge, skills and abilities. He is able to adapt and grow better in his field. Higher level of Career Growth: With the improvement in the knowledge, skills and
abilities a person is able to register higher and better career growth as he is able to find
best path to follow. Better level of motivation: A person is motivated when he is satisfied with the work he is
at present doing. More efficient and effective: With improvement in skills he is able to deliver a higher
level of performance.
The benefits for Employer:
 Lowering down chances of conflicts: With the use of HRM, organisation is able to
reduce conflicts between people as well as management and employees (Deng and et. al.,
2010). The tools that are there in HRM allows people in making sure that a person
satisfied.
Illustration 1: Conflict Resolution.
(Source: Effective Communication for Resolving Conflict, 2013)
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 Trained and skilled workforce: The HR department in ASDA also ensures that each
individual is highly trained and is able to do his task in a more effective manner. Flexible and adaptability: Employees are always ready to face challenges when they are
satisfied which is possible due to HR practices.
 Achievement of goals: The people are able top achieve their goals and objectives in more
effective manner as they are more skilled and motivated.
P4 Evaluate the effectiveness of different HRM practices in ASDA
The HR department is engaged in various types of activities which allows it in making
sure that the company have a highly satisfied workforce at their disposal. The prime task of HR
department is to make sure that right people are placed at the right place at right time so that the
task is completed in a set period of time (Gruman and Saks, 2011). Each and every practice
which is conducted by this function allows company in achieving a competitive advantage by
developing a highly effective and efficient workforce. ASDA believes that its people are the
reason because of which it is able to achieve better results. But at present it is having a higher
rate of Attrition due its outdates human resource polices.
There are certain ways to check the effectiveness of various practices that are conducted
by organisation. Whenever, there is a vacancy- a job analysis is conducted. This allows manager
in analysing various connecting aspects related to the vacant job. The HR manager has to prepare
a job description as well as specification to ensure that the overall requirement of job is very well
understood. This also ensures that a right individual is recruited within company. Majorly, there
are three prime practices which are conducted by HR manager. They are stated below: Recruitment and Selection: The HR manager has the responsibility to fill up vacant
positions in the company. They have to get right people who suits job description and
have the specified qualities in them to complete a task (Walker, Damanpour and Devece,
2010). The company recruits people from internal as well as external sources and to
evaluate the effectiveness it conducts audits. Training and Development: People need training for improving their skills and abilities.
This basically assist them in completing task allotted to them in a more effective way.
Also, with changing environment it is important to have a more skilled workforce. There
are various methods of feedbacks which are used to evaluate effectiveness of training.
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 Performance management and compensation: Also the HR department makes sure that
people are paid according to their job and performance. There is need top equal
remuneration for standard output while higher rewards for extraordinary work and
punishment for lower level of returns (Nabrzyski, Schopf and Weglarz, 2012). Company
uses 360 degree appraisal system to identify the performance level of individuals.
The prime goal behind conducting these activities is to ensure the people are future ready
and there is a better relationship between employees and management.
TASK 3
P5 Analysis of the importance of employee relations to ASDA
Employee relations is a more advanced field which has evolved from industrial relations.
Basically, the difference between these two are that the new method is more focused on
individual requirement and needs while the older method was completely focused on
organisation wants. Overall, this is a way HR managers are able to develop a better relationship
between management and employees (Osman, Ho and Carmen Galang, 2011). There are certain
benefits which are there due to good relations between people and company. The managers in the
company are tasked with making sure that there is higher level of interaction that goes on in
between people and management. This allows in reducing chances of conflicts and level of dis-
satisfaction.
There are various benefits of this to ASDA. They are mentioned below: Improved level of creativity and innovation: With higher level of satisfaction with job,
people tend to do their job with more innovative approach. This reduces cost and time
consumption. Better worker loyalty: When there is good relationship between people and management,
then people give the company their unconditional loyalty. Enhances team working: Positive environment makes people to work with one another
(Shaw, Park and Kim, 2013). Also, they are ready to face challenges to accomplish task
and achieve goals.
 Competitive advantage: Company is able to achieve all of its goals when people are
highly motivated and satisfied. They provide better productivity and efficiency.
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Illustration 2: Employee Relation.
(Source: Building Good Employee Relations through Communication. 2013)
The above stated points are the benefits which are there due to better employee relations.
They also describe about the reason because of which establishing good employee relationship is
important (Sparrow, 2013). A better relation between authority and people also allows managers
in taking fast decisions.
P6 Key elements of employment legislation and their impact on HR decision making
ASDA is a UK based company which is owned by WALMART. The company and has
to follow all the rules and regulations of the country. There are more than 40000 people who are
employed by the firm. The company is known to follow all the stated legislations and laws,
though there are various complications that exist (Van Dooren, Bouckaert and Halligan, 2015).
The managers are able to enact a standardised environment within company. The laws which are
followed by company are stated below: Health and Safety Act 1974: This is a law where, employer has to inform and aware
employees regarding the safety and hygiene within workplace. There are certain
responsibilities that have to be fulfilled by people as to avoid any accident. Equal pay act 1970: This is a law which was enacted to reduce level of difference that
existed between different males and females (Flamholtz, 2012). In ASDA, the managers
ensures that everyone received equal salary and there are no inequalities. RIDDOR 2013: Reporting of injuries, diseases and dangerous occurrences regulations.
The legislation was enacted for making sure that employees and people involved in
workplaces are safe and in case of any hazard the government is informed on time.
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 Equality act 2010: This act replaced all anti discrimination acts and installed a
standardised law. It states that people should not get discriminated on any grounds. Also
the act ensures that people are able to grow in their career.
The4se are the legislations which are used by ASDA for making sure that company is
able to fulfil all requirements. Also , changes in market dynamics are adopted in a proper
manner.
TASK 4
P7 Application of HRM practices in work related context
The human resource department is engaged in different activities and practices. The
company is completely focused on developing products and services by innovating process and
existing structures. It will allow them in attaining a higher level of competitive advantage over
competitors. A more satisfied workforce is known to enhance productivity as well as profitability
of people. At the moment there is a vacancy of HR manager available in company and for
recruitment and selection they have to prepare documents which are stated below: (Also include
questions that will be asked in the selection process).
Job Selection Process in ASDA:
 Identification of Vacancy: This is the first step where the managers identifies need of an
individual for a vacant post. This is important as to keep each and every position full.
 Job Analysis: HR managers then conducts analysis where they prepare Job description
and Specification. This allows them in making sure that vacant job is important or not.
 Advertisement: After brief analysis, an advertisement is floated so as to inform
candidates regarding vacant job.
 Reviewing application of candidates: CV’s are received which are reviewed by HR
managers and best candidates are chosen for interview.
 Selection interview: The chosen candidates are called up for interview and they are fully
analysed on the basis of their responses.
 Offer letter: People are given offer letters if they are selected and called up for induction
training.
Job Description
Organisation Name ASDA
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Job Designation Human Resource Officer
Location London
Reporting Human Resource Manager (head office)
Roles and Responsibilities  To perform enlistment and Selection process in
the locale
 To guarantee representatives grievances are
settled
 To direct occasions.
Working Hours 9:30am to 6:00pm
Salary 12000 Pound per month
Working Facilities A set amount of grocery is free, also the company offers
flexible working hours. There are various discounts
offered to employees only. Medical facilities.
Job Specification
Qualification  Candidate has to be graduated
 He/she needs to have a master degree also a
practical diploma.
Experience  There is requirement of at least 3 years of
experience.
 He needs to have an experience of practical
application of all the HR tools and theories.
 Proof of experience
Area of Expertise  Needs to have great communication skills
 Highly informed regarding HR practices
 Training and development
 Problem settlement
 Performance management
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Other Qualities  Effective time management abilities.
 Better negotiation abilities are needed.
 Person should be able to understand other people
mindset.
VACANCY
ASDA is hiring for the post of HR manager.
Post – Human resource manager
Qualification - Master in relevant field, Phd.
Experience – minimum 3 years of experience in retailing industry
The selected individuals will be called out for interview.
The individuals will have to apply for job via post or email.
Last Date to apply- 29 Oct 2017
Address: Southbank, Great Wilson St, Leeds LS11 5AD
Email: [e-mail]
Contact: 293 88766 88
Candidate CV received for the job:
Curriculum Vitae
Name:
Address:
Telephone number:
Email:
Career Objective: To continually learn and build up my aptitudes while working in an
association which trust in double development and advancement.
Academic Qualification:
 Graduate
 Masters in Human resource
Experience:
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 HR Executive in Sainsbury from last 4.5 years.
Personal skills:
 Good Negotiation skills
 Excellent Team management
 Employee Interaction and engagement
 Honesty and Loyalty
 Situation analysis
 Time management skills
 Able leader
Declaration:
I seriously proclaim that everything expressed in this CV is correct and unadulterated.
Interview questions and preparatory notes:
Interview Question
Q.1. Disclose to Me something important to you out of CV?
Q.2. What separates you from others?
Q.3. What Characteristics improve you a HR supervisor?
Q.4. In what capacity will you approach individuals and oversee them?
Q.5. State about your employing methodologies which you utilized as a part of past? How we
can utilize them in our organization?
Q.6. How might you comprehend a circumstance where representatives are not happy with
organization remuneration arrangement?
Justification behind choosing a person: The individual who will be chosen for the job
need to have all the stated skills and abilities defined in the JD and JS. Also, possession of
practical knowledge is very vital.
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CONCLUSION
In the above prepared report, there are various types of methods and techniques that can
be used by company for making sure that each issues is properly addressed. In ASDA, the
managers need to motivate people as well as make sure that their level of satisfaction is at par
with requirement. Also, various benefits of developing good employee relations are stated. There
is a brief application of the HR practices that have impact upon decision making that takes place
within organisation. Also whole process which is followed for recruiting and selecting people is
stated in the report.
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REFERNCES
Books and Journal
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave
Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Deng, F. M. and et. al., 2010. Sovereignty as responsibility: conflict management in Africa.
Brookings Institution Press.
Flamholtz, E. G., 2012. Human resource accounting: Advances in concepts, methods and
applications. Springer Science & Business Media.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
Harzing, A. W. and Pinnington, A. eds., 2010. International human resource management. Sage.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest.19(3).
Nabrzyski, J., Schopf, J. M. and Weglarz, J. eds., 2012. Grid resource management: state of the
art and future trends (Vol. 64). Springer Science & Business Media.
Osman, I., Ho, T. C. and Carmen Galang, M., 2011. The relationship between human resource
practices and firm performance: an empirical assessment of firms in Malaysia. Business
Strategy Series. 12(1). pp.41-48.
Sanders, K. and Frenkel, S., 2011. HR-line management relations: characteristics and effects.
The International Journal of Human Resource Management. 22(8). pp.1611-1617.
Shaw, J. D., Park, T. Y. and Kim, E., 2013. A resource‐based perspective on human capital
losses, HRM investments, and organizational performance. Strategic management
journal. 34(5). pp.572-589.
Sparrow, P., 2013. Strategic HRM and employee engagement. Employee engagement in theory
and practice, pp.99-115.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public
sector. Routledge.
Walker, R. M., Damanpour, F. and Devece, C. A., 2010. Management innovation and
organizational performance: The mediating effect of performance management. Journal
of Public Administration Research and Theory. 21(2). pp.367-386.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Online
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Building Good Employee Relations through Communication. 2013. [Online]. Available
through:<http://sbs.strathmore.edu/blog/2013/04/30/building-good-employee-relations-
through-communication/>. [Accessed on 21st October 2017].
Effective Communication for Resolving Conflict. 2013. [Online]. Available
through:<http://www.maximumadvantage.com/conflict-resolution-in-the-
workplace.html>. [Accessed on 21st October 2017].
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