This report analyzes the role of Human Resource Management (HRM) in Intellectsoft, an IT company based in the UK. It examines the functions and purpose of HRM, recruitment strategies, benefits of HRM practices, impact of employment legislation, and effective HR practices implemented by the company.
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Table of Contents Introduction.................................................................................................................................................2 Task 1..........................................................................................................................................................2 PI-The functions and the purpose of HRM in relation to the resourcing and the workforce planning....2 P2- Recruitment.......................................................................................................................................3 P3- Benefits of HRM practices for employers and employees.................................................................5 P4- Effectiveness of HRM practices.........................................................................................................6 Task 2..........................................................................................................................................................7 P5- Employee relations............................................................................................................................7 P6- Employment Legislation and its impact on HRM decisions...............................................................8 P7- HR practices.....................................................................................................................................10 Conclusion.................................................................................................................................................11 References.................................................................................................................................................12 1
Introduction The report commences with a short introduction of a company which into IT industry and is located in UK. The report is completely deducted to the discussion of the role of the human resources in the organization and all the discussion are done pertaining to the organization selected. The HR department makes use of many sources of the recruitment and selection and the benefits and the disadvantages of the both are discussed. Then the report has discussed that how HR functions have contributed in increasing the profits of the company. Various factors like the legislations and employee relations are also highlighted which have an impact on the decisions taken by the HR department in the company. The organization which is being consideredfor the report is Intellectsoft which is focused on delivering services as per requirement of customers. The entire report is based on this company only. Task 1 PI-The functions and the purpose of HRM in relation to the resourcing and the workforce planning HR management is about the increasing the performance of the employees to the highest possible levels in relation to their role in theorganization like Intellectsoft. All the organizations are made of people. HRM is about acquiring the people’s services, developing their skills, motivating them in the gradual process and also making sure that they remain committed atIntellectsoft. Recruitment and selection: The HR department is responsible for performing both the functions at the organization. Recruitment is the process of screening, capitalization and selection of the qualified candidates based on the criteria’s set for the jobs. The goal of this is to attract qualified applicants to the job and to encourage the unqualified applicants to not apply atIntellectsoft. The HR department also executes proper staffing plan and decide upon the number of employees which they need to hire. The forecasting of employees is dependent upon the annual budget of the organization. this is important part forIntellectsoftas this helps in reducing the costs linked to the engaging the unmotivated, incompetent and underqualified employees in the organization. 2
The hiring of new employees in the organization is an expensive affair(Datta Gupta and Eriksson, 2011). Orientation: They help to provide orientation to the new employees and help them so that they can adjust to the new surroundings and environment and to new job. The employees get to know about their assigned duties and about their job roles, job descriptions and positions at which they are placed. This provides the employees with clarification regarding their jobs. Maintaining good working conditions: They make sure that the employees get good working conditions at the workplace and they also keep on motivating the employees ofIntellectsoft (Gulzar, 2017). At times it is being found that the employees don’t contribute to the goals of Intellectsoftdue to lack of motivation in them. The HR department only provides them opportunity so that non-financial and financial benefits are provided to them at all the times and they also take care of the employee welfare as this is mainly helpful in the job satisfaction for the employees. Managing employee relations: The employees are the pillars of organization and HR is mainly responsible for maintaining the employee relationships atIntellectsoft. They help in fostering the good relationships and also have the ability to influence the work outputs and the behaviors. The HR department promotes good relationship with the employees and this is a key for the success of all the organizations. The well planned relations with employees help in promotion of balanced and healthy relationship between employer and employee. Training and development: Then this is integral part of the function of the HR management. They try to improve the future and the current performance of the employees atIntellectsoftby providing them education and giving them a chance to develop their skills. P2- Recruitment As discussed above this is the way through which candidates are attracted to the organizations. There are mainly two sources of recruitment which are internal and external sources. The internal sources are those when the people are considered within the organization only(Gavrel, 2015). These can be from employee referrals, present employees, previous applicants or form the former employees atIntellectsoft. 3
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Advantages: Increased retention and morale of employees Tradition done by employees in minimum time Less paperwork involved as the person is already working with the company. Disadvantages Probability of animosity among the ranks Chances of stagnation in which employees may not show wiliness to change Lack of diversity may take place at the organization External sources of recruitment This is when the recruitment is done using external sources and not from the company only. There are many external sources which can be made use byIntellectsoftand these are from the advertisements,employmentexchanges,professionalassociations,employmentagencies, campus recruitments, word of mouth or nay more sources. This again has its own pros and cons and some of these are stated below. Advantages Qualified personnel available for filing the vacant positions More choice available for making recruitments Fresh talent available EAC employee brings competitive spirit Disadvantages Can cause dissatisfaction among the existing staff members Lengthy process and this may take long time Very costly to recruit using external sources and money is wasted on application processing and on advertisements Selection The selection is the process of the most suitable person for the performing on the job. This selection is done after evaluating all the available options and this aids in getting answers to the 4
best person which may be available for the job. Many methods exist for the selection processes and all of them have their own pros and cons(Pocket Pence, 2018). Based on experience: This is an important selection technique and this is valuable for choosing the applicants and has a pro of choosing the most experienced person for the job. But this also has a problem that a candidate with less or no experience may get rejected on this ground even if he possesses the right potential in him. Categorization:Intellectsoftalso selects the employees by categorizing them to various categories and this actually becomes problematic when they grow up. This way also the worthy employees may not get selected. Interviewing:Cited company increasingly make useof the interviewing method for selecting of the people. Some candidates are not able to bear with the pressure related to the interviewing processes and their performance in them may not be appropriate. But still this is considered as a good method for assessing the strengths and weaknesses of the employees. Instincts: At times the employers make the selection based on the instincts which is also the gut feeling. This employee selection tools provides advantages of responding to the general five senses and but at many times this is not a good technique of making selection as many times this is not based on concrete information as this may be based on deceptive information. P3- Benefits of HRM practices for employers and employees Organization culture: The organization culture is the set of the working rules, values, traditions and vision which the company likeIntellectsofthas adopted in the years. The HR department helps in propagating the organization culture in the organizations. They establish the procedures, standards and the guidelines and help the employee learn about the behaviors which are acceptable in the company. Like policy related to punctuality helpsIntellectsoftin promoting time management(Wickramasinghe and Samaratunga, 2016). So the HR department only make sure that the employee follows and maintain the cultures of the organization. 5
Planning for change: The changes constantly happen atIntellectsoftand the HR team has to make sure that they stabilize the company for the changes taking place. This is rightfully done by the HR department by the company. They help them to plan for the changes and that these things can’t be ignored at any times. This helps the employees of Intellectsoftin understanding the roles by seeing bigger picture of the organization. They build bridges in the mangers and departments and help people deal with changing situations. They make use of the information and develop a management plan for the changes taking place in workflow and for making sure that the employees in the times of alarming changes. Development and training: This is for the benefits of the employees and employers as all the employees which even includes the highly skilled and qualified employees need training at all points of time. This is due to the fact that all the organizations like Intellectsoftperform their functions in a different manner. The procedures and policies have to be conveyed to all the staff members and this is required as a part of the boarding process of the company. All the employees working require to work on same wavelength. The employees are also involved in the employee development(Rmi-solutions.com, 2018). This way the education keeps the employees unto date and this aids in bringing modern and original ideas to the organization. Safety and health: The HR department at the concern also plays an important role in the safety and heath of the employees atIntellectsoft. They achieve through the procedures the policies or the organization and the HR department make sure that all the employees know about the risk present in any work. In case when something is risky atIntellectsoft, then HR department talks about such situations to the employees. This eventually reduces the possibility for occurring of any accidents and so the legal actions on the company also reduces and they also get benefitted. Retention and recruitment: This is also the area in which HR department benefits the employers and the employees. They recruit candidates, select the best one, encourage them to get more education, award then compensation and benefits and this is considered as the internal part of the HR department. This has resulted in decreasing the turnover rate of the employee’s as they feel more motivated to perform their jobs. They have 6
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carefully able to identify that what important roles have be done by them given by Intellectsoft. P4- Effectiveness of HRM practices The HRM department has definitely led to increase in the organizational profits as they have reduced the turnover rate in the organization. If the turnover rate ofIntellectsoftis high, then the organization would have to send more money on the sources of recruitment to attract various candidates to the job. More money would be wasted on their selection processes, induction to the work. All these cost have resulted in saving so much money of the companies and this eventually has led to increase in the profitability of the company. Even this has increased the productivity levels the organization as they keep on motivating the employees of the company. The motivated employees tend to work harder and contribute better for the goals ofIntellectsoft(Offong and Costello, 2017). So HR department had made sure that the employees remain motivated at all times and they have taken care of each and every single responsibility about which they have towards the employees. Then they have made the onboarding process easy for the employees by providing them training facilities at all the times. They have taken various steps to make sure that the new horse gets the right training and also that they’re able to perform to the best of their abilities. They solve all the issues which may arise betweenIntellectsoftand employees in a proper manner. This way the employees don’t thing about taking legal action against the employer and so the chances of the litigation by the company reduces. So they have reduced the chances of getting involved in the lawsuits(Chowhan, 2016). They have paid a considerable attention to the employee relations and to comply with all the regulations and the laws. They even have developed a program so that they are able to solve the issues of employees before they become serious problems and this ultimately indirectly in related to giving the organization profitability boosts. This way it is quite evident that HR functions has aided the organization to perform their functions in a proper manner and this way they have been able to increase the profitability of the company and have acted as a catalyst for the growth of the company. They have provided the companies flexible environment for increasing the employee engagement and morale and they 7
perform all the functions and have helped the organization to improve their profits and profitability. Task 2 P5- Employee relations The employee’s relations affect the roles of the HRM in the organizations to great extent. The moreIntellectsoftis dependent upon the employees, the more active it has to play its role. The organization is into software business so the functions performed by the HR team has also to be very much involved. The people are supposed to work in the organization in the groups so they need to take steps that there exist cordial relationships between the employees at all the stages. This determines the success rate of the projects undertaken by the company. The HR department has to incorporate such practices and policies using which they have to constantly make efforts to promote companionship in the people.The employee relations also refer to the fact that the effortsIntellectsofttry to manage the relationship between the employers and employees. This is the basis which provides a consistent t and fair bias based on which the treatment to all the employees are determine din the organizations. The employees have to be taught so remain committed to their jobs and remain loyal to the company(Ishaq et al., 2016). These types of programs help the companies to resolve and present problems which may be faced by the companiesatvarioussituationsatthework. This all has influenced the employee relations program and many strategies have also been adopted by the HR department of the organization that they are able to make the best usage of the employees for accomplishing the mission forIntellectsoft. The HR strategies are the deliberate plans which have been made by them keeping in mind the employee relations. This has helped the company to gain competitive advantage in the market.They have focused on issues which may affect the employees in the form of benefits, pays, maintaining work life balances and also safe conditions of work to their employees. Then as the business is more based on deadlines so the HR department has adopted many strategies by which they can assure the employees for a balance in their work and life situations. They have tried to provide the employees a bets working place. They have actually made the employees as they are the 8
stakeholders of the business. This way they have valued their contributions to the company and this has taken a different form. To understand their perspectives in a better way they have a person which is the representative of the employee relations and this person works along with HR department. He keeps on updating the areas which needs to be improved by the company and this way they remain updated about the problems of the employees and initiate changes in their processes. The program for employee relations is not size fit all solution andthe HR department have been deeply influenced by the employee relations present among the employees atIntellectsoft. P6- Employment Legislation and its impact on HRM decisions Many regulations exist in UK which provide the guidelines of the changes which may take place in the HRM decisions as they have to follow the legislation guidelines and they have to protect theemployees’rightswhicharerelatedtotheequalemploymentopportunities,non- discrimination, form or join unions, standards of conduction and terms of employment and privacy rights. There exists separate legislation for every work which is performed by the HR department. Let us try to evaluate this by studying the legislations which are existing for the recruitment and selection. Many acts exist for this and these areEquality Act 2010, Equality and Human rights commission 2007,Fixed term employment, criminal records check and many more. The quality Act was established in 2010 and this a framework to prevent discrimination at the workplaces. This has been formed as more equality can be promoted in the organizations and discrimination based on any ground is not done in the organizations. This details all the aspects and this obviously has an impact on the policies which have been designed by the HR departments. The HR rights and equality commission was set in 2007 and this is formed for the promotion of the equality legislation in UK. The organization can take any legal actions assistant companies which are following the same. Data protection act 1988: In accordance with this act, it is important for the management of Intellectsoft to make sure that they protect personal information and it is not shared with any other. 9
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Minimum Standards of terms and conditions for employment: then many employment laws exist which relate to the setting of the minimum standards for the employers which have to be met in relationtothesafety,paymentsmadetoemployees,leaveswhichtheycantake.The Occupational safety and Health Act 1974 states about the regulations and rules which have to be followed at the workplace. So all the factors have to be kept in the mind by the HR department while designing their practices and policies for the employees working in the organization (Wang, 2015). The employees are also entitled to receive the leave and this is as per the Family and Medical Leave Act and this protects the employees who have to stay away from their facilities due to their work commitments. The companies though their HR department have to provide such facilities to the employees of the organization. National minimum wages act 1998: All the workers within the business should be provided with minimum wage. This should be calculated as per the total amount of work that is performance by workers. Equal pay Act 1970: It is important to make sure that workers are paid as per the post they hold. Employees should be differentiated on the basis of pay provided. Then most importantly all the information of the employees has to keep confidential by the HR department, there exist many privacy protections which are provided to the employees. So employment law is a wide topic and all the actions and the decision makings made by the HR department have to carefully consider all the details of this. This law and legislations are actually made to regulate the relationship between the employees and the employers and this overall helps in governing that what the employers can expect to learn for the employees and what are the rights of the employees. So legislations have a great impact on the employee performance. P7- HR practices Some of the HR practices which have been used by the HR professionals at the company and the examples of these are: Investing in the employee health: the company has made a tremendous effort of taking care of the health of the people in the organization and they have done this by provide them gym memberships are concessional rates and even have arranged for two activity 10
rooms in the office so that every employee gets time to relax whenever he feels stressed or exhausted while working at the company. The HR managers are learning to adopt quickly to the changing situations and this is the reason that they have invested in the physicalandthementalhealthofthepeople.Thishashelpedinincreasingthe productivity levels of the employees as they have place to take their stress out. This is great example of the HR practice being started by the company. Two way mentoring reactive: then they have also started with a two-way process of mentoring in which the employees are able to learn the knowledge about the product and that of processes form the veterans in the company. Even this way not only new employees get benefitted in the organization but the seasoned employees already working at the concern also get a chance to absorb new technology from the newly joined employees. The smart companies are able to tap the new skill of mentoring as a back and forth relationship and the relationship which is used in the concern is not just up to down. No more job titles: the HR officials has started a rule in which all the people working are not addressed by their job t7itles but buy their respective surnames. This has created an informal environment at the work. This way the team members of the employees working in the organization seems to be more cohesive and united and the company is making use of new and updated technology and is leaving behind the outdated business traditions. Flexibility to employees: The HR department also makes the necessary arrangements for the employees so that they can go and attend their urgencies in the life.This helps the employees to balance their work and life and this way better integration of their work and the life takes place. Such initiatives have helped the company officials to work harder in the company. Conclusion The report has tried to present a complete picture of the functions which are performed by the HR team and all the functions are specifically discussed form the point of view of an organization to make the overall comprehension of the issues easy. The aspects of HR are being analyzed from various points of view and also that which factors makes an impact on the influencing the HR roles.It is important for the make sure that employees are properly monitored so that the areas to be improved are identified. In accordance with the findings made employees 11
should be provided with training and development as it helps in raising the performance level in effective manner. 12
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