This report discusses the different areas of HRM practices and their contribution to the success of the company. It covers the role of recruiting and retaining employees, internal and external factors influencing HRM decisions, and the importance of using effective HRM practices for strengthening organisational performance.
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THE ROLE OF HRM AND ORGANISATIONAL DEVELOPMENT 1
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 Different HRM areas and their contribution in organisational performance-.............................3 StrategicHRMrelationtothechangingeffectsontheorganisationanditsbusiness environment-................................................................................................................................4 The role of recruiting and retaining appropriate employees from the available labour markets-5 The internal and external factors that influence HRM decisions in the workplace-....................5 Above factors supporting the organisational development-........................................................6 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9 2
INTRODUCTION Human resource management is the practice followed in the organisations to manage the employees and the stakeholders of the company (Collings and et.al., 2018). This practice has mainfunctionswhicharetobefollowedbytheorganisationssuchastherecruitment, compensation of the employees and designating the work. This is used by the organisations to increase the productivity level through the performance of the employees. Nissan is a car manufacturing company which is operated by the European division which is also located in the UK. This report will discuss the different areas of the HRM as well as its contribution in the success of the company. Along with this, it will also include the role of retaining and recruiting the employees in the organisation. Further, it will discuss the internal and external factors that can affect the HRM decisions at the workplace as this overall roadmap of the HRM practices will enable the organisation to the success. MAIN BODY Different HRM areas as well as their contribution in performance of organisation- HRM is very wide term and has various areas which are to be followed by the companies for achieving success. Some of the main different areas of the HRM practices which will help Nissan company in better performance of the overall organisation are- Recruitment and selection-This process in HRM in which the skilled and talented as well as having required qualifications as per the job roles are selected and recruited for increasing the productivity level of the overall organisation. Nissan Company practices this main area of human resource management effectively which helps them in selecting better employees for the company for having competitive edge (Opute, 2020). The major strength of this HRM practice as it helps in increasing the efficiency of the organisation whereas it also has disadvantage as it is much time consuming process for HRM. Employee compensation-This is the amount which the employee receives in return to the efforts and hard work done for achieving the goals and objectives for the company. This is considered as the most integral part of the HRM because this enables the employees in job satisfaction and helps in motivating the employees which directly impacts the performance of the employee (Stone, Cox and Gavin, 2020). Nissan Company ensures about this area of the HRM 3
for increasing the effectiveness of the employees which directly contributes to the organisational performance.Thishasthebiggestadvantageofincreasingtheproductivitylevelofthe employee. But with this, it also demotivates the employees who has less payroll then others. Training and development-The human resource management plays the vital role in providing training and developing both new as well as existing employees of the company. They are responsible for the organising the training and development program as the employees will be more skilled then they will better perform. The HRM practices are directly related to the effective performance of the overall organisation.They can pay attention to the individual skill required by them so that they will feel that the company value for them. Nissan Company follow this HRM practices as they have much skilled and talented employees in the company but they must follow this practice regularly will help in more effective work. The major strengths of this process it helps the employees in the self-development and by this employee will work better and the drawback is that it costs much money and time (Anwar and Abdullah, 2021). Strategic HRM relation to the changing effects on the organisation and its business environment- Strategic Human resource management is the set of the policies which are designed and implemented for ensuring that the employees contributes their best for achieving the goals and objectives of the organisation. It is the combination of the strategy and the Human resource management (Bailey and et.al., 2018). Organisations are exposed to the challenges faced by them in the business environment. The emergence of the technical advancements, telecommunications, globalizationsandmanymorehascreateduseofHumanresourcemanagementinthe organisations. Strategic HRM designs the policies which are very necessary because of the changingbusinessenvironment.StrategicHRMhelpsinenhancingtheproductivityand effectiveness of the organisations so it is used by the companies to combat with the changing business environment as well as in the organizations itself. This HRM provides many HR strategies which can be used by the companies. Nissan Company must use the Strategic HRM for effectiveness of the organisations as it helps in making changes in the organisation for competing in the changing business environment. This is the most important element which must be considered while making changes in the company because it will help the HR department to design the policies which are necessary for the changingeffectsontheorganisationaswellitsbusinessenvironment(Gurmuand Ongkowijoyo, 2020.). 4
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The role of recruiting and retaining appropriate employees– Recruitment and retaining the talented and skilled employees in the organisations is the most important role of HRM as these both are very necessary for the success of the organisation. Recruitment is the process of hiring the candidates which are best fort the companies and having good qualifications, skills and are highly talented. Retention is the process of stopping the talented and skilled employees to leave the company as by this, the company may lose its efficiency. The companies must provide the employees the benefits and rewards which will help them to retain the employees in the organisation because this motivates and creates job security among the employees which stops them to leave the organisation. Recruitment and retention has direct impact on the overall performance of the organisation as hiring effective candidate will lead to effective contribution by the employee and retaining the talented and skilled employees will also help in maintaining the efficiency level of the organisation (Akunda, Chen and Gikiri, 2018). They both plays a vital role in performance of the organisation as the effectiveness of the employees is highly depended on these two factors. The HRM must ensure that they are hiring the right candidate for the right job role according to the qualifications and skills. The employees working effectively and efficiently will have positive impact on the organisations and will be able to achieve the goals and objections of the company (Gallardo-Gallardo, Thunnissen and Scullion, 2020). Nissan Company must hire those candidate which will contribute better for the company and will help the company to stay ahead in the highly competitive market. It is very important for this company to recruit better candidate from the available labour markets for better performance of the organisation. The internal and external factors that influence decisions of HRM in the workplace- The HR department can face many internal and external factors which can affect the decision making of the HRM in the organisations. These can be such as- External Factors-These are the factors of the business environment which can affect the working of the business as well as its performance. The external factors which can influence the decisions of the Nissan Company are as follows- Available Labour market-This is the main function of the HRM to maintain adequate staff in the organisation for smooth running of the business operations. This external factor can affect the decisions of the HRM as it depends on the number of the labours in the market. For example, if 5
the HRM id deciding that more talented and skilled labours must be selected and hired but if there is no availability in the market than they have to change their decisions and work according to the availability in the market. Nissan Company HRM can also have influence of available labour market on the basis of the candidates available in the market and what type of company wants to hire. Government Regulations-It is very important for the HRM to ensure that the organisation works according to the compliance standards so they have much pressure of maintaining this in the organisation. This external factors affects the decisions of the regulations because this can affect the training, compensation, termination of the company (Zainon and et.al., 2020). Nissan company can have impact on HRM of this external factors if the company is not ensuing this, then they are extremely penalised for not following this. Internal factors-These are the factors within the organisation and can affect the operations of the company. Nissan Company can face these internal factors such as- Level of growth-This internal factor can affect the business by evaluating the projected growth of the organisation. The HRM have to change their decisions according to the growth of the company for example, if the company is growing rapidly then they have to take decisions to focus more on the recruitment and staffing process. Nissan Company after knowing the growth of the company can have effect on the HRM decisions. Use of technology-This is the key internal factor which affect the decisions of the HRM. As the technology is very much advancing nowadays so it is very important for the companies to adapt thesechangesforcompetinginthemarket(OsiurakandHeinke,2018).Forexamples, companies using online benefits management which helps the HRM to more focus on the areas of recruitment and training development. Nissan Company also affect these decisions as they have to work according to the technology in the business environment. Above factors supporting the organisational development- External Factors: Available Labour market-This factor will help in development of the organisation as hiring the skilled and talented employees in the market will contributes better for the company. When highly skilled employees are hired in the organisation it helps in boosting the productivity level and it directly contributes to the development of the organisation (Yadav and Singh, 2021). 6
Government Regulation-This external factor also supports the development of the organisation as it helps in increasing the sustainability which contributes to the development. The business growth becomes more speedy and holistic. Internal Factors: Level of growth- Evaluating the level of growth helps the organisation to understand their performance of the company. Speedy growth of the company means the company is developing day by day. Growth is the key element for the organisational development because growth and development are interrelated with each other. Use of technology-This factor also supports the most for the development of the organisation. Companies which are using highly advanced technology are considered as the most developed companies. As this helps in the growth of the overall organisation and they are highly advanced in every operation of the business. These all external and internal factors will support the organisational development of the Nissan Company if they ensure about using highly advance technology and hiring the mist effective and suitable candidates which can work according to the job roles and responsibilities of the company. HRM practices plays the major role in improving the sustainable organisation as it helps in recruiting and selecting the better employees for the company which contributes in speedy growth of the company. HRM also helps in shaping the future of the company as well as boosting the profit of the company. These all helps in improving the sustainable organisation performance (Chams and García-Blandón, 2019). 7
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CONCLUSION This report has discussed the different areas of HRM practices as well as their contribution for the success of the company. Along with this, it has also discussed the strategic HRM relation to the changing effects on the organisation and its business environment. Further, it has considered the importance and role of recruiting and retaining the talented and skilled labours or employees for maintaining efficiency of the company. It has also discussed the weaknesses and strengths of the HRM practices in the organisation. Later, it has discussed the external and internal factors which can influence the decisions of the HRM as well as how they also support in the organisational development. From the above report it can be conclude that using effective HRM practices is the roadmap for strengthening the organisational performance as well as its talent management strategy by hiring highly talented and skilled employees for the organisation. 8
REFERENCES Books and journals Akunda,D.,Chen,Z.andGikiri,S.N.,2018.RoleofHRMintalentretentionwith evidence.Journal of Management and Strategy,9(2), pp.8-19. Alzyoud, A.A.Y., 2018. The influence of human resource management practices on employee work engagement.Foundations of Management,10(1). pp.251-256. Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management practice on Organizationalperformance.InternationaljournalofEngineering,Businessand Management (IJEBM),5. Bailey, C., and et.al., 2018.Strategic human resource management. Oxford University Press. Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource managementfortheadoptionofsustainabledevelopmentgoals.Resources, Conservation and Recycling,141, pp.109-122. Collings, D.G., and et.al., 2018.Human resource management: A critical approach. Routledge. Gallardo-Gallardo, E., Thunnissen, M. and Scullion, H., 2020. Talent management: context matters.The International Journal of Human Resource Management,31(4), pp.457-473. Gurmu, A.T. and Ongkowijoyo, C.S., 2020. Predicting construction labor productivity based on implementationlevelsofhumanresourcemanagementpractices.Journalof Construction Engineering and Management,146(3), p.04019115. Opute,J.E.,2020.RecruitmentandSelection.InHRMinAfrica(pp.17-30).Palgrave Macmillan, Cham. Osiurak, F. and Heinke, D., 2018. Looking for intoolligence: A unified framework for the cognitive study of human tool use and technology.American Psychologist,73(2), p.169. Stone, R.J., Cox, A. and Gavin, M., 2020.Human resource management. John Wiley & Sons. Yadav, P. and Singh, B., 2021. The Impact of Effective Recruitment & Selection Process on Organizational Development: An Empirical Study.Annals of the Romanian Society for Cell Biology,25(6), pp.693-703. 9
Zainon,S.,andet.al.,2020.Factorsofhumanresourcemanagementpracticesaffecting organizational performance.International Journal of Organizational Leadership,9(4), p.184. 10