Importance of Employee Relations in HRM Decision Making

This report discusses the importance of employee relations in influencing decision making in human resource management (HRM). It covers the analysis of employee relations, strengths and weaknesses of recruitment and selection approaches, benefits of HRM practices for employers and employees, and the evaluation of HRM practices in raising profit and productivity. It also analyzes the impact of employee legislation on HRM decision making. The case study focuses on Marks and Spencer, a multinational retailer headquartered in the UK.

Human
Resource

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysis of employee relation’s importance in context to influencing decision making of
HRM:...........................................................................................................................................1
Explanation of strengths and weaknesses for different approaches of recruitment and selection:
.....................................................................................................................................................2
TASK 2............................................................................................................................................3
Explanation of benefits of different practices of HRM in an organization for employer as well
as employee:................................................................................................................................3
Evaluation of effectiveness of different practices of HRM for raising profit and productivity of
an organization:...........................................................................................................................4
TASK 3............................................................................................................................................4
Analysis of importance for employee relation regarding influencing of decision making of
HRM:...........................................................................................................................................4
Identification of key elements for employee legislation as well as impact that it has on
decision making of HRM:...........................................................................................................5
TASK 4............................................................................................................................................6
Illustration of application of human resource management practices in work related context
with using specific examples:......................................................................................................6
CONCUSION..................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource refers to a set of individuals which comprises and makes workforce of
entity. Hence, the term human resource in business indicates people which are working in an
organization. Human resource management can be defined as a strategic approach which enables
effective management of employees in a business (Akiror, 2018). This report is based on
determination of human resource management of Marks and Spencer. Organization is founded in
1884 by Michael Marks and Thomas Spencer. It serves in the industry of retail and is
headquartered in United Kingdom.
This report covers explanation of purpose as well as scope of HRM in context to
resourcing of an organization with talent or skills which are appropriate for fulfilling objectives
of business. Further, it evaluates effectiveness of elements of HRM in a firm. Internal as well as
externa factors which affects decision making of human resource management are analysed
including employee legislation. Lastly, management practices of human resource in work related
context are applied.
TASK 1
Analysis of employee relation’s importance in context to influencing decision making of HRM:
Company Overview: Marks and Spencer is a multinational retailer which is based in
London. It specialises in selling of clothes, home products as well as food products. It is a public
limited company which was founded by Michael marks and Thomas spencer in the year 1884.
Company serves worldwide and its net income in 2020 is £27.4 million. Total number of
employees working in an organization is 80000.
Human resource management: It indicates procedure of managing working staff of a
company. Application of strategic approach of human resource management in Marks and
Spencer enables achievement of organizational goals by enhancing performance and productivity
of employees (El-Shamy, 2016).
Workforce planning: It indicates assessment of intervention as well as gaps in context to
talent management for the purpose of ensuring improvisation of adequate skills and expertise in
business. For workforce planning of Marks and Spencer, different software is applied in
business.
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Resourcing: It signifies attainment as well as retaining of an employee for adequate
management of employee performance level of Marks and Spencer.
Purpose of human resource management:
 Achieving objectives of business: Human resource management is to formulate of
proper planning structure of business regarding its employees. It fosters achievement of
organizational goals of Marks and Spencer.
 Employee performance enhancement: Performance level of plays a crucial role in
business because it influences performance of employees. In context to Marks and
Spencer, human resource management evaluates availability of resources that is required
for the purpose of developing performance level of working staff (Grissom, Viano and
Selin, 2016).
 Low employee turnover rate: Better HRM practices establishes an outline for
enhancing employee retention within the organization. This leads to low employee
turnover and saves organization costs associated with employee acquisition at regular
intervals. In addition to that, employee retention also increases expertise and co-
ordination within the organization, which is useful when it comes to operational
efficiency.
Functions of human resource management:
 Employee management: Effective management of employee performance in business
enables achievement of objectives of an enterprise. In relevance to Marks and Spencer, it
fosters proper resourcing as well as workforce planning for improvisation of productivity
level.
 Enhancement of employee engagement: It is important in an organization because
higher level of employee’s engagement indicates improvisation in productivity of a firm.
Focus of human resource department of Marks and Spencer is to increase engagement
level of employees in an organization which reduces its retention level.
 Enhancing employee motivation: Efficient HRM practices also establishes an outline
for employee motivation. Everyone in a team is motivated by different dynamics, for
some it might be monitory benefits and on the other hand for some it might be
recognition. It is the job of HR managers to understand what the driving for is and us it as
a tool to enhance employee performance.
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Explanation of strengths and weaknesses for different approaches of recruitment and selection:
Recruitment refers to a procedure of identification of requirements in business related to
human resources as well as resolving issues regarding human resources deficiency. Approaches
of human resource are described below:
 Internal approaches: It pinpoints procedure of filling of vacant position within premises
of an organization (Kutafina. and et. al., 2019). Employee referral as well as promotions
are two internal approaches which are utilised by Marks and Spencer which serves as a
strength as it reduces cost associated with it. While its weakness is that employee referral
and approaches encourage favouritism, which leads to decrement of productivity due to
selection of unskilled staffs.
Strengths:
1. Internal recruitment is cost effective way and saves organization costs associated with
attracting candidates for job roles.
2. This approach of recruitment helps in retention of expertise in the workforce.
Weaknesses:
1. Internal recruitments prevent entrance of new fresh talent in organization’s
workforce.
2. It leads to workforce being non-competitive and effects operational efficiency.
 External approaches: Advertisements in televisions, newspapers and radio for
informing people about vacancy, and campus recruitments are external approaches for
recruitments. Its strength is that external approaches fosters selection of skilled
employees while its weaknesses is that external approaches leads to increment in
expenses.
Strengths:
1. It enhances the presence of fresh talent within the organization.
2. It also brings diversity and new vision in organization which enhances innovation in
decision making process.
Weaknesses:
1. It is a costly process which requires major funding for employee acquisition and their
training and development.
2. It also increases employee turnover ratio.
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Selection indicates selecting adequate employee for vacant job position. Approaches of
selection are stated below:
 Internal approaches: It pinpoints selection of employees within an organization after
the process of recruitment. Preliminary screening is an internal selection approach.
Strengths: Strength of internal approach of selection is that it facilitates selection of
appropriate employee.
Weaknesses: On the other hand, its weakness is that it is time consuming process.
 External approaches: It refers to external methods which are used for selection.
Strengths: While considering its strength it can be noted that external approach of
selection provides various option for selecting skilled employees for Marks and Spencer.
Weaknesses: While, its weakness is that external approach is not feasible for all types of
job position.
TASK 2
Explanation of benefits of different practices of HRM in an organization for employer as well as
employee:
Human resource management practices can be explained as internal policies of business
that is drafted for attainment of business goals through effective employee contribution. HRM
practices of recruitment and selection as well as training and development are applied by Marks
and Spencer which are evaluated below:
Recruitment and selection: Strategy of selective hiring with incorporation of panel-based
interviews, effective advertising as well as internships for vacancies of job are adopted by Marks
and Spencer which fosters process of innovative hiring. Benefit to employers: It enables formulation of effective planning for employees of
Mark and Spencer as it facilitates selection of right candidate and facilitates their
adequate positioning in a business as per requirements of an enterprise.
 Benefit to employees: Innovative recruitment hiring enables enhancement of proactive
as well as agile attitude of working staff because employees are motivated for gaining of
competitive edge (Lechner and Paul, 2019).
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Training and development: Effective training is provided to employees of Marks and
Spencer on a regular basis which facilitates performance enhancement of employees. Further,
career development opportunities are also provided to them.
 Benefit to employers: Training and development of employees enables improvises
motivation level of employees which ultimately leads to enhancement of efficiency as
well as profitability of Marks and Spencer. For instance, Mark and Spencer prioritizes
their training and development mechanisms, which leads to workers being compatible
with organization’s courses of action. This leads to enhancement of employee
motivations and therefore, they are able to function better.
 Benefit to employees: It fosters improvisation job satisfaction level for employees of
Marks and Spencer which further enhances their morale. For instance, if workforce is
trained and developed it will make them well aware about the protocols and code of
conduct which will make it easier for them to carry on operations.
Evaluation of effectiveness of different practices of HRM for raising profit and productivity of
an organization:
HRM practices proves as a factor for improving contribution level of employees for
performance of tasks that are allotted to working staff. It results in enhancement of productivity
as well as profitability of an organization. Human resource management practices enable
alignment of employee performance of Marks and Spencer with strategical goals of an enterprise
which boosts its profitability. Efficiency of various practices of human resource management in
context to improvising of profitability as well as productivity of company are stated below:
Recruitment and selection: It facilitate proactive linkage of performance of working staff
with goals of an organization. In relevance to Marks and Spencer, recruitment and selection
enables enterprise to attract skilled as well as expertise individuals which fosters incorporation of
productive and efficient workforce (Pahos and Galanaki, 2019). The positive aspects associated
with recruitment and selection of Marks and Spencer, it helps in introduction of innovation in
decision making process by introducing fresh talent within the workforce and the negative
aspects are it is a time and cost consuming process.
Training and Development: It pertains an influence on engagement level of employees and
boosts morale of staff members. It gives a valuable insight for enhancing skills and expertise of
working staff of Marks and Spencer. The positive aspects associated with training and
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development in Marks and Spencer is it helps in making workforce compatible with
organization’s protocols and pre-existing courses of actions and therefore it enhances employee
motivation and operational efficiency of workforce. The negative aspects associated with
training and development of Marks and Spencer is it is a time and cost consuming process for the
organization.
TASK 3
Analysis of importance for employee relation regarding influencing of decision making of HRM:
Employee relations pinpoints efforts of an organization in context to management of
relationship among employer and employees. It serves as an important part of management of
human resource of a firm. It can be explained as an effort of an organization for creation and
maintenance a positive relationship along with staff members. It ensures improvisation in
dedication level and engagement of working staff in working staff. Maintenance of an employee
relationship in Marks and Spencer facilitates improvisation in efficiency level of working staff
which leads to positive contribution in growth as well as development of business.
 Productivity improvisation: Employee engagement proves to be a helpful approach for
maintenance of work culture in a firm that is positive. It improvises satisfaction level of
working staff and improves its engagement in Marks and Spencer.
 Workplace conflicts decrement: Management of employee relationship pertains focus
on enhancing morale of employees as well as fosters alignment of requirements of
working staff with goals of Marks and Spencer. Workplace conflicts is declined by
providing resolutions for issues which are faced by workforce in an enterprise which
enhances their competencies (Steed and et. al.,2019).
Identification of key elements for employee legislation as well as impact that it has on decision
making of HRM:
Employment Legislation signifies body of laws which regulates the relationship among
employees and employers. While, these laws are generally framed for the purpose of protecting
workers. Issues which are covered by such laws involves legal working ages, safe working
environment, and discrimination.
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The Payment of Bonus (Amendment) Act, 1995 (34 of 1995): It was proposed for making
payments of bonus to individuals that are employed in an organization. It was implemented in
September 25, 1965. Due to implementation of this law, Marks and Spencer is bound for paying
bonus to every employee. Marks and Spencer has provided set off or set on as well as redressed
mechanism. It also enables Marks and Spencer to measure performance of its workforce. In order
to structure the operations in accordance to this legislation, Marks and Spencer have to invest
time in reviewing employee performance and establishing an outline for employee bonuses based
on their performance.
Workers Compensation Act, 2020: Workers Compensation Act was introduced in 5 March,
1923. It provides social security to workforce and along with-it compensation is provided to its
dependents (Woodcock, 2017). In context to Marks and Spencer, compensation law provides job
safety to its labours. Marks and Spencer have developed trust among its employees. Company
has provided benefits to its workforce in relation to health insurance. It has implemented policies
related to paid off.
Employment Legislation (Equality Act 2010): Employment signifies body of laws which
regulates relationship among employees and employers. While bulk of such laws are framed for
protecting workers, and incorporates some regulations related to ways in which it can be
imposed. In order to structure the operations in accordance to this legislation, Marks and Spencer
have to focus on treating all the employees equally. Mark and Spencer’s adaptation using this
legislation revolves around hiring individuals and promoting them without any grounds for
discrimination.
TASK 4
Illustration of application of human resource management practices in work related context with
using specific examples:
Job description:
Job description of marketing manager in Marks and Spencer
Marks and Spencer, a multinational corporation which has a job vacancy for job position of
marketing manager at the head office that is situated in London.
Job Title: Marketing manager
Location: United Kingdom
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Reporting to: Managing Director
Responsible for: Assistant of marketing
Purpose of Job:
Development as well as execution of strategies related to marketing in an enterprise for
ensuring profit maximization.
Duties and responsibilities:
 Monitoring of performance of marketing activities.
 Handling queries regarding marketing as well as sales.
 Production of adequate PR collateral.
Job offer letter:
Offer Letter
Mr/Ms ABC,
We are extremely pleased for conveying you the information related to your selection in Marks
and Spencer as Marketing manager. All of the criteria for recruitment and selection are
successfully completed and hence, you are requested for joining firm from 1 February 2021.
Other important information is described below:
 Probation period of employee is for three months.
 Leaves will be provided to you after completing a probation period.
 Nullification of the contract requires providing of notice prior 20 days.
 The salary associated with job role is 180,000Euros per annum (negotiable).
 The job timings will be 8.30 A.M. to 6.00 P.M.
Person specification:
Person specification
Job Title: Marketing manager
Qualifications which are required:
 Must have completed master in Business Communication.
 Bachelors from any of the stream is recognisable.
 Candidate must have minimum two-year experience.
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Skills
 Leadership
 Communication
 Creative Thinking
 Should be oriented to promote collective development.
 Exceptional analytical skills
 Problem solving efficiency
Knowledge
 Extensive knowledge of marketing strategies, channelization and branding.
 Proficiency in Electronic marketing and Automation strategies.
Experience
 Minimum two years’ experience is required.
Personal Qualities
 Curiosity for new learning.
 Frequent Adaptability to change.
 Persistence and Patience.
CONCUSION
Above report concludes that human resource management helps a firm in gaining
competitive advantages. Approach of human resource management is designed for the purpose
of maximizing performance of working staff and achieving strategic objectives of an
organization. Alignment with organizational objectives, and effective employee relation are
some purpose of human resource management. Its functions are employee engagement and
performance management. There are various internal as well as external approaches for
recruitment and selection. Human resource practices are recruitment and selection as well as
training and development. Employee relations pertains huge influence in HRM decision-making
as it establishes an outline for HRM operations. Apart from it, there are several legislations for
employees which creates an outline for HRM decision making processes as well, because in
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order to make operations compatible with legislative boundaries, it is essential to consider these
legislations while planning courses of actions.
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REFERENCES
Books and Journals:
Akiror, A. P., 2018. Staff Training and Employee Performance in the Public Sector in Uganda:
The Case of Ministry of Finance Planning and Economic Development (Doctoral
dissertation, Uganda Management Institute).
El-Shamy, S., 2016. Dynamic induction: Games, activities and ideas to revitalize your employee
induction process. CRC Press.
Grissom, J. A., Viano, S. L. and Selin, J. L., 2016. Understanding employee turnover in the
public sector: Insights from research on teacher mobility. Public Administration Review.
76(2). pp.241-251.
Kutafina, E. and et. al., 2019. Learning Manual Skills with Smart Wearables. In Perspectives on
Wearable Enhanced Learning (WELL) (pp. 229-250). Springer, Cham.
Lechner, A. T. and Paul, M., 2019. Is this smile for real? The role of affect and thinking style in
customer perceptions of frontline employee emotion authenticity. Journal of Business
Research. 94. pp.195-208.
Pahos, N. and Galanaki, E., 2019, April. Staffing practices and employee performance: the role
of age. In Evidence-based HRM: A Global Forum for Empirical Scholarship. Emerald
Publishing Limited.
Steed, L. B. and et. al.,2019. Leaving work at work: A meta-analysis on employee recovery from
work. Journal of Management, p.0149206319864153.
Woodcock, M., 2017. Team development manual. Routledge.
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