Unit 3 Human Resource Management

This report discusses the different HRM areas and their contribution to creating sustainable organizational performance. It reviews the effects of changing nature of organizations on human resource skills and knowledge. It also discusses relevant HRM practices in relation to recruiting and retaining appropriate employees for attaining business objectives. Additionally, it analyses the internal and external factors that influence HRM decision making to support organizational development.

Unit 3
Human Resource Management
Table of Contents

INTRODUCTION................................................................................................................................2
TASK 1.................................................................................................................................................3
P1: Different HRM areas and their contribution to creating sustainable organizational
performance.....................................................................................................................................3
P2: reviewing the effects of changing nature of organizations on human resource skills
and knowledge................................................................................................................................3
P3: Relevant HRM practices in relation to recruiting and retaining appropriate employees
for attaining business objectives...................................................................................................3
P4: Internal and external factors that influence HRM decision making to support
organizational development...........................................................................................................3
TASK 2.................................................................................................................................................3
P5: Application of HRM practices in work related context to demonstrate improvement to
sustainable organizational performance......................................................................................3
CONCLUSION....................................................................................................................................3
REFERENCES....................................................................................................................................3

INTRODUCTION
Human resource management refers to the strategic approach for effective
and efficient management of human resource i.e. people in an organization, so that
they help the organization in attaining competitive advantages. Human resource
management is a function of organizations which is designed specifically to
maximize the performance of employees in service of their strategic objectives or
goals (Cross and Swart, 2022). The report will aim to analyse the different HRM
areas, review the dynamic nature of HR skills, HRM practices related to recruitment
and retaining as well as factors which influence HRM. It will also analyse the HRM
practices which are related to improving sustainable organizational performance.
TASK 1
P1: Different HRM areas and their contribution to creating sustainable organizational
performance
Human resource professionals needs to understand the functional areas of HR
department so that they are able to help employees accordingly. The functional
areas which HRM focus are as follows:
• Recruitment and staffing: Even though hiring people is the job of hiring
management but the human resource management have to sort application in
order to identify a suitable candidate for the management. HRM forwards the
list of candidates to hiring manager who are suitable for the job. It is the job of
human resource management to write job description which matches
qualification for open positions. Through this way the HRM recruits right
people on right job and ensure the people are contributing their best to
organization (Kim and et.al., 2019).
• Employee benefits: HRM have to provide various benefits to employee
which includes sick leave, family leave, healthcare, flexible spending, health
insurance and retirement accounts etc. this functional area of HRM helps the
company to retain its people with the organization as well as helps in
attracting new talent from outside.
• Human resource compliance: Human resource management have to
comply with the federal laws and state laws. The HRM age to comply with

these laws for defining how employees can be terminated as well as anti-
discrimination protections. HR ensures that these laws are being followed and
ensure appropriate working of the organization.
• Employee compensation: HRM have the obligation to decide what and how
much an employee will be paid. They decide if the salary of a person is to be
raised or not. HR have to identify the current competitive wages for a
particular position. This helps the companies in retaining the existing
employees in the company only. Through this the company motivates the
employees and thus they perform better (Yong and et.al., 2020).
• Employee and labour relations: Human resource management has to
ensure effective and good relations among the staff in organizations. They
have to draw realm as well understand what the employees and labour wants.
If these conditions are fulfilled the staff will be able to work effectively in
cooperation. Employee cooperation allows the companies to attain their
organizational goals as well as makes the employees work together to attain
those goals.
• Organizational structure: Human resource assist the management teams in
creating the business goals and vision statement of the organization. HR is
also responsible for conceptualising the organizational charts as well the flows
of projects running in every department. Through ensuring smooth flow id
projects and information, HR contribute towards attaining organizational goals
and enhanced performance of the company.
• HR information and payroll: HRM is also accountable for the keeping the
track of working environment of the organization. They have to get feedback
from employees as well as from the customers as well. Maintenance of
working environment is essential for HR as it decides the reputation of the
company (Collings and et.al., 2021). Through maintenance of the reputation
of the company, HRM contributes in the company and its competitive
advantages.
• Employee training and development: In the organizations HRM have to
provide training and development programs so that employees have
appropriate skills, capabilities and knowledge to perform their designated

jobs. This enables diversity and inclusion as well as communication among
staff which ultimately leads the organization towards better productivity and
building competitive advantages.
P2: Reviewing the effects of changing nature of organizations on human resource
skills and knowledge
Work environment is changing constantly, so does the organizations do. The
organization’s structure, work, processes as well as content have changed a lot as
the businesses have become more cognitively complex, time pressured, mobile,
team based as well as more technical techniques. Organization focus on becoming
competitive as well as technical due to their more learning and agile processes
(Chams and García-Blandón, 2019). The effects of changing nature of organization
on HR skills and knowledge is as follows:
• Alleviating fears: Organizational changes creates the uncertainty and fears
among the employees. It becomes the responsibility of HR to take appropriate
steps for alleviating those uncertainties and fears. For this, the HR have
ensure that they have appropriate knowledge to tackle that change because
they have to point out the benefits of changes such as fringe benefits and
providing reassurance as well.
• Communication: Organizational change creates confusion among
employees. To handle the confusion, HRM have to open various channels for
communication. HR department have to keep employees informed about what
is to be expected from every stage of change. To do this, HR have to ensure
they have appropriate knowledge which they will be providing to other
employees (Ruparel and et.al., 2020).
Strategic HRM in relation to the changing effects on organisations and its business
environment
When HRM is consistent with the competitive strategy for the organization, it creates
significant effects on the financial performance of the organization. SHRM is not
limited only to the HR department, but for all the executives and managers as well.
They have to ensure competence, effective consequences as well as appropriate
governance n the organization as well. They also have to up-to what extent the

company can respond to the uncertainties and learn as well as adapt to those
changes in business environments (Yong and et.al., 2020).
P3: Relevant HRM practices in relation to recruiting and retaining appropriate
employees for attaining business objectives
Human resource management’s primary obligation is to recruit and retain the
talented workforce in organization. If the staff of the organization is competent, then
only organizations such as Elliot can attain their organizational objectives.
HRM functions related to retaining and recruiting workforce:
• Providing job security to employees: providing security to the people is a top
priority pf HR of organizations. If the employer provides security to the
employees for them as in terms of jobs, the employees will be willing to come
to work. Employment security makes the employees go home after work and
provide something to themselves and their families. Having that security
makes the employees feel valued in organization.
• Selective hiring: HR have ensure that they hire the people who can add value
to organization and contribute towards the organizational goals. They do not
hire just anyone, but the candidate who fits best for the job as well have better
understanding company and its policies (Saeed and et.al., 2019).
• Training and development: HR have to implement appropriate training and
development programs in organization so that the employees are able to
perform their designated jobs and tasks effectively. Appropriate training and
development makes the employees confident as well as motivated to perform
their tasks. Therefore, they contribute their best in the organization and
enhance organizational productivity.
• Making information accessible to all: HR have to ensure that every employee
have access to appropriate information which they need to perform their tasks
or want to ask any queries. This helps the employees to be more engaged in
their work and remain in their organizations (Cooke, 2018).

The strengths and weaknesses of HRM in terms of its contribution to business
success.
Strengths of HRM: Human Resource Management helps the organization to retain
the talent with the company as well as secures it for a longer term. It also helps in
creation of a stronger and effective on boarding process as well as improves
employee retention. It elevate employee benefits as well as provides access to HR
remotely and save valuable time and energy of employees. All these leads the
company towards business success (Troth and Guest, 2020).
Weaknesses of HRM: Human Resource Management lack the support of top
management in organization. It have improper actualization as well provides
inadequate development programmes sometimes. Inadequate information is another
weakness of HRM which all leads to the organization failure.
P4: Internal and external factors that influence HRM decision making to support
organizational development
Internal factors
Corporate objectives:
Then corporate objectives of Elliot Leigh influence its HRM decisions. An
organization frames objectives considering its future and long term success. These
are important to be considered while taking HRM decisions. The decisions need to
be taken in alignment with the organization objective. For example, if Elliott Leigh
aims to develop a highly skilled workforce, HRM decisions need to focus on
improving training and development strategies. They need to take into account the
provision of highly efficient training in various domains so that the objective of a
highly skilled workforce could be supported and achieved (Kianto, Sáenz and
Aramburu, 2017).
Operational strategies
The HRM decisions also need to take into account the operations strategies
of organization. Elliott Leigh’s operational strategy is designed to provide quality
oriented and value for money service. This influences HRM decisions which need to
be taken in accordance with the operational strategy. The recruitment of staff and

personnel would also be done in a way that supports the operational strategy of the
organization.
Organization’s financial position
This is an important factor that influences the HRM decisions. The financial
position of Elliott Leigh impacts the HRM practices. The HRM decisions are
influenced by the ability of the company to pay wages and salaries as accordingly,
the recruitment of personnel would be done and suitable strategies for recruitment
would be adopted. Funds available for training human resources affect the training
and development decisions of HRM.
External factors
Socio cultural factors
These influence various aspects of organization including the HRM decisions.
This is because these factors determine the expectations that society has from the
organization (Armstrong and Taylor, 2020). The views of the people towards
authority structure, organizational culture and responsibility influence HRM decisions
pertaining to organization structure and culture.
Technological factors
These factors comprise of the intentions and techniques which are used for
carrying out the work within Elliot Leigh. Technology influence HRM decisions as
they need to adopt processes which make use of novel technology interventions
such as receiving applications online, conducting interviews through telephone and
communicating the results in electronic form. The training and development
decisions also need to be taken by involving the use of latest technology. Use of
visual display terminal for making training programs is an example of influence of
technology on HRM decisions.
Political legal factors
These collude the political system government’s role in business and laws
formulated by the government. HRM decisions at Elliott Leigh are influenced by the
political legal factors. The government policies for management of human resources
need to be abide by while taking HRM decisions (Armstrong, 2020). There are laws

on discrimination as a result of which the HRM decisions need to be made to
develop organization policies related to anti- discrimination within Elliott Leigh.
Discussion of factors and how they support in organization development
The above mentioned internal and external factors can be discussed as follows:
Corporate objectives
These are the measurable and time specific targets which organization sets
for achieving its overall goal. Corporate objectives provide a direction to the
organizations like Elliott Leigh and guide its various activities. It can be evaluated
that this factor is important for the growth of the organization as it helps in identifying
loopholes and framing strategies for dealing with them. In this way, corporate
objectives support organizational development in a direct manner. They push the
organization to keep moving forward.
Operational strategies
These are the methods which are used by the companies for reaching their
objectives. It can be evaluated that organization strategy is important because these
help the companies like Elliott Leigh to examine and implement systems through
which the personnel, resources and work processes can be utilized in an effective
manner. In this way, operational strategies help in the development of strategic
initiatives and operational plans (Brewster, Mayrhofer and Farndale, 2018). These
also enable the business departments and units to implement the business strategy
in a successful manner. In this way, it assists in the growth of the organization.
Organization’s financial position
The financial position of Elliot Leigh is an important factor as many aspects of
the business are dependent on it. this supports the growth of the organization as with
better financial position, the company can better train its human resources, explore
new markets and make better investment decisions. It also improves the ability of the
business to survive and adopt new methods of operating in market. It is also able to
undertake better promotional activities. All this helps the organizations like Elliott
Leigh to grow.
Socio- cultural factors
These factors comprise of the beliefs, values, desires, attitudes and
expectations of the society. The socio cultural factors are important as they

determine the expectations that society has from the organization (Collings, Wood
and Szamosi, 2018). These are important to be considered in order to remain
aligned with the expectations of the society. This helps in identifying and fulfilling the
needs of the customers and serving them in a better manner. In this way, the socio
cultural factors help the organization to evolve and develop.
Technological factors
These factors are concerned with the inventions in the technology which are
prevailing in the market. This could be in the field of manufacturing, or connecting
with customers and even operational aspects of the organization. Use of updated
technology by Elliott Leigh is helpful in driving internal operations of the firm. It
improves the speed of the tasks and improves connectivity of the organization. In
this way technological factors help in the development of organization.
Political legal factors
These factors comprise of the government policies and laws and political
system of the nation. These are important to be followed by the organizations such
as Elliott Leigh. In order to abide by the political system of the country and to follow
polices, the organization develops its processes accordingly. It formulates its internal
policies to follow the government laws and regulations (Bailey and et.al., 2018).
Therefore, a number of new elements need to be incorporated by the company as
and when there are changes in the government laws and policies. This leads to
organizational development.
Talent management
Talent management strategy is major goals for organization as it can help the
companies in attaining competitive advantages in the market. Talent management
helps the companies in keeping their current employees and providing them higher
positions in the organization. In order to successfully strengthening the talent
management strategy of Elliot Leigh, it has to ensure the following steps:
The organization needs to identify what talent means to it and who are the employee
which it wants to keep in the organization for a longer run.

It have to consider some career development offering and offer them to employees.
Career development opportunities will make the employees stay in the organization
of a long period.
The organization have to identify the gaols and the type of talent which it needs to
retain. It will match the talent of employees with the organizational goals and, the
best matched candidates are the people which it will need to retain and focus on.
The company have to stop micro management of the employees and focus more on
results rather than the processes and procedure which are used for attaining results.
It will improve the job satisfaction and motivate the employees to be more result
oriented.
The organizations have to ensure that with appropriate talent, the employees are
hard working as well. Without hard work, even talent does not work for much long.
The organizations need to develop zero tolerance for negative work behaviours in
the workplace. It will eliminate the problem which can be raised due to talent
arrogance. When employees are recognised for their talent, they become arrogant
and start showing tantrums. This can be avoided only if the companies have the zero
talent policies.
Creating a healthy work environment is the major thing which makes the employees
to remain and work in the organization.
TASK 2
P5: Application of HRM practices in work related context to demonstrate
improvement to sustainable organizational performance
Human Resources Management are the strategic operations of HR
department in an organization. HRM practices are applicable in all the types of
organizations whether small or large. The functions of HR works mostly the same
everywhere (Ahammad, Glaister and Gomes, 2020). The application of HRM
practices can be demonstrated through following:
Recruitment and selection process: Recruitment refers to the process in which
involves the implementation of techniques for attracting candidates to apply for the
vacant positions in the organization. It is focused on attracting candidates and

encouraging them to apply for the same. Selection however is associated with
identify the most suitable candidates and selecting them for the vacant job position.
Recruitment is a positive process as applications are encouraged and selection is a
negative process are applications are rejected (Mousa and Othman, 2020). In
selection process, the candidates are rejected until the best candidates are
selecting.
Process of recruitment: The process of recruitment involves seven phases such as:
• The needs of hiring are identified
• Preparing the job description of position
• The talent is searched using different techniques
• Screening and shortlisting candidates
• Interviewing the shortlisted candidates
• Evaluating the results and offering employment
• Conducting induction programmes.
Advantages of recruitment: Recruitment is a process which offers various
advantages to organizations such as:
• Reduces hiring time: Recruiting helps the hiring management in identifying
candidates as well evaluating and also persuade them to join the organization
(Carnevale and Hatak, 2020).
• Shortening on-boarding time: Recruitment helps the companies in making the
candidates adjust the company easily as the hire candidates quicker on on-
boarding process.
• Less costly: Recruitment is a process which is consumes less time and as
well as less costs. Informing and attracting candidates through the methods
such as emails is a least costly process for the organizations.
• Strengthening the employee engagement: In the internal recruitment the
candidates are hired from within the organizations. It motivates the employee
as they are provided more opportunities.

• Better quality candidates: Recruitment process creates a large pool of
candidates from which the most suitable candidate is selection. The more
applications, the more are chances for hiring a talent and appropriate
candidate (Yong and et.al., 2019).
Disadvantages: Despite various advantages of recruitment, it have various
disadvantages as well. These disadvantages are explained as follows:
• Leaves games in workforce: Recruitment process, especially internal
recruitment creates huge gaps between current workforce as new position is
filled and the old positions becomes vacant then (Macke and Genari, 2019).
• Internal recruitment limits pools of application: In internal recruitment, the
applications are limited to internal candidates only who are already working
for the company.
• Inflexible culture: Internal recruitment creates stagnant culture and affects the
cultural environment of the company.
• Higher risks involvement: In recruitment, any candidate can apply for the job.
It accepts the irrelevant and unqualified application of candidates who might
not be suitable (Wilkinson and Dundon, 2021).
• Time consuming: Recruitment is a very time consuming process.
Recruitment: Improvement in organizational performance:
Recruitment is a process through which organizations such as Elliot fills their vacant
job positions. It helps the companies in enhancing producing through hiring the
talented candidates. It ultimately helps the organization in improving their productivity
which results in improving its overall organizational performance (Boon, Den Hartog
and Lepak, 2019).
Selection process:
Selection process is long and time consuming. It involves following steps:
• Creating job designs
• Positioning description

• Creating the selection committee
• Recruiting the candidate
• Initial screening of candidates
• Pre-interview options
• In person interview
• Recommendation for hiring candidates
Advantages of selection: The major advantage of selection is that it allows the
organizations to hire the most suitable and best candidates from all the candidates
who have applied for the vacancy. It allows the hiring management to access the
skills and capabilities of candidates as well as allow them to compare the skills with
requirement of vacant positions. Selection is more reliable than recruitment and
allows only qualified candidates to proceed to further stages (Michael, 2019).
Disadvantages of selection: selection process have various disadvantages as well.
It does not provide whole picture of candidate’s skills as candidates might not be
honest. Some tests of selection are ambiguous which impacts the results. It can be
time consuming as well as costly. It can influence the daily operations of the
company as many people of companies have to conduct the selection interviews and
tests.
Selection: Improvement in organizational performance
Selection is the process which makes the best talent available to organization. It
ensures that the organization hires candidates who are qualified as well as acquire
the qualities which are needed for the vacant position. It helps the companies in
selecting best people who can contribute towards organization objectives. Through
selection new and fresh talent is included in the organizations which helps the
companies in bringing innovative and creative ideas which ultimately leads the
organization towards improvements in their overall performance and productivity.
Performance management
Performance management are the management tools of organization which helps
the management to monitor as well evaluate the performance of employees in it. The

objective of performance management is to create a work environment in which the
people can perform with their best capabilities and abilities for producing high quality
work environment (Cooke, Schuler and Varma, 2020). The performance
management is a cycle which have following stages:
• Planning
• Monitoring
• Reviewing and
• Rewarding
Performance management ensures that the organization’s activities meets
organizational outcomes in an effective manner.
• Advantages of performance management: It allows the organizations to
discuss and evaluate the performance issues with the employees and provide
them ways through which they can improve their work and performances. It
targets staff development and prepares them for further responsibilities.
Positive appraisals encourage and motivate the staff to do better (Cooke,
Schuler and Varma, 2020). When the employees are rewarded for their
performances, they are encouraged to improve their performances further
more and contribute better than before.
• Disadvantages of performance management: Performance management is
a time consuming process as managers have to spend hours to write
performance appraisals on candidates. It might cause discouragement in
employees as appraisals are not positive every time. Performance
management focus more on things which were not accomplished rather than
then the things accomplished by employees. It might demotivate them.
Recommendations
Elliot Leigh have a very good reputation and motivated workforce. But it can use
some recommendations to improve its organizational performance. The
recommendations are as follows:
• Training programs: The organization provides various opportunities to its staff.
However, it is recommended that the company can put some more emphasis

on its training and educational programs so that the employees are prepared
for future uncertainties and challenges and have appropriate skills to handle
them.
• Technical development: Even though the company implements appropriate
technologies in its work environment. But, it is recommended that the chosen
company must focus more on its technical development as the upcoming era
is technological, information technology and artificial intelligence based.
CONCLUSION
It can be concluded that human resource management is an important and
integral function of organization despite their different natures or sizes. HRM have
various distinct areas such as recruitment, selection, staffing, payroll and employee
compensation etc. which all contribute towards sustainable and improved
organizational performances. Organizational environments are constantly changing,
so the HRM department have to prepare their skills accordingly. Recruitment and
retaining the employees are primary functions of organizations as they allow the
organizations to attain their organizational objectives. There are various factors such
as external and internal which affects the organizational development. Various HRM
practices such as recruitment and performance management have various
advantages and disadvantages which leads companies towards improve
performances.

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