Human Resource Management: Purpose, Functions, and Practices

This document provides an overview of Human Resource Management (HRM), including its purpose, functions, and practices. It covers topics such as recruitment and selection, HRM practices, employee relations, and the impact of employment legislation on HRM decision-making. The document focuses on the case of Tesco, a British multinational retailer.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................4
LO 1 ...................................................................................................................................4
P 1 Purpose and functions of HRM....................................................................................4
P 2 Strength and Weaknesses of different approaches to recruitment and selection........5
LO 2 ............................................................................................................................................6
P 3 Benefits of different HRM practices............................................................................6
P 4 Effectiveness of different HRM practices in terms of raising organizational profit...7
LO 3.............................................................................................................................................8
P 5 Importance of employee relations in respect to influencing HRM decision making. .8
P 6. Impact of employment legislation in HRM decision-making.....................................9
LO 4...........................................................................................................................................10
P 7 Application of HRM practices...................................................................................10
CONCLUSION..........................................................................................................................13
REFERENCES..........................................................................................................................14

INTRODUCTION
Human Resource Management is the process of recruiting, selecting, inducting employees,
providing orientation, imparting training and development, appraising the performance of
employees, deciding compensation and providing benefits, motivating employees, maintaining
proper relations with employees. Tesco, is a British multinational groceries and general
merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England,
United Kingdom. It is the third-largest retailer in the world measured by gross revenues and
the ninth-largest retailer in the world measured by revenues. This report covers aspects such as
purpose and functions of HRM, strength and weaknesses of different approaches to
recruitment and selection, benefits of different HRM practices, effectiveness of different
HRM practices in terms of raising organizational profit, importance of employee relations,
key elements of employment legislation, application of HRM practices.
LO 1
P 1 Purpose and functions of HRM
Recruitment and Selection-
The process of recruitment involves screening, captivating the potential in the
candidates so that company can assess if or not they have the skills and abilities which can
help Tesco to achieve their goals and objectives. HR department of the company is concerned
with attracting those candidates who are eligible and take out those people who are not
qualified for the goals of the company. In order to make the action of recruitment successful
Tesco plans the process of staffing so that they can take proper and right measures in the
process of it. Tesco predicts before that how many employees will be needed and how many
of them they can accommodate according to their budget. The process of recruitment helps the
company in many ways such as it saves their time and efforts. For instance they won't have to
fire those candidates who are not qualified for the job and avoid looking for the process of
hiring which saves a lot of money of company (Jabbour and de Sousa Jabbour, 2016). This
aspect of HRM is included in the management function.
Orientation-
Tesco feels that it is necessary to provide their employees with orientation so that they
can have an idea about the working patterns, rules and regulations and other necessary details.

HR department of the company makes it sure that the program of orientation highlights the
goals and objectives of the company. This will give the employees clarity and prepare them to
perform according to the expectations of the company. Employees of the company will be
provided about the description of the job, role of the job and their position in the company so
that they do not have any confusion in mind (Bondarouk, Harms and Lepak, 2017). The
operative functions are tasks and duties which helps the department of HR to entrust the
department of personnel and this aspect is included in that.
Manage the condition of working-
It is one of the primary role of HR of the company to maintain the environment of the
company so that employees can feel convenient and work hassle free. HR department of the
company is concerned with motivating the employees because if they don't then they won't put
all of their efforts and skills in work. This is the reason why HR department of Tesco has
come up with a system to offer employees with financial as well as non financial benefits
according to their preference and suitability.
P 2 Strength and Weaknesses of different approaches to recruitment and selection
There are two methods of recruitment and selection
Internal Recruitment-
This process is done with the help of transfers and promotions. This method is
comparatively cheaper and helps in boosting the morale of the employees. This method is an
effective method which helps Tesco to retain their employees for a long period of time and
reduce the factor of turnover of employees (Analoui, 2017).
Strength
 It helps to increase the level of retention and boost the morale of employees. The
employees of the company will be appreciated if they achieve the goals and objectives.
 This process requires less amount of paperwork which helps in saving time as
employees are selected from internal sources of the company.
 This process will maintain the level of motivation in the company which will help
them to contribute more of their skills and ideas for the progress of the company
(Huemann, Keegan and Turner, 2018).
Weakness-
 Tesco will loose the scope for hiring a fresh and new talent if they opt this method.

 This also increases the chances of conflict between employees.
External Recruitment-
This method helps to eliminate the problem in the company. This method consumes
time and is expensive as compared to other methods. This method is not considered as
effective as it is not able to identify the suitable candidate for the job. This process involves
putting ads online or in newspapers and training new employees which incurs a lot of cost for
the company and even after that the candidate may not be suitable for the job (Kianto, Sáenz
and Aramburu, 2017).
Strength
 This process helps the company to attract more people and find the eligible candidate
for the job.
 This process helps the company to find out new talents in the market which can help
them to stay competitive in the market.
 This process allows the company to hire employees with advanced skills and abilities
which can help the company to solve complex issues.
Weakness
 This process takes too much time to find the right candidate and incurs a lot of cost
which is the reason why many of the companies prefers internal recruitment.
 This process involves advertising and interviews which makes this process more
expensive.
 The process of selection in this method is not considered as effective as it sometimes
loose potential candidates.
LO 2
P 3 Benefits of different HRM practices
Providing security to employees-
HR of Tesco needs to provide their employees with security as no one can predict what
happens next. If the employees of the company know that they and their family are being
looked after then they will continue to work with the company for a long period of time. This
is a costly process but if the company does not work on this process then many of the
employees will leave the company.

Selective Hiring-
This aspect states that HR of the company deals with various situations in order to
bring those employees who can add value in the company. If Tesco is able to bring eligible
employees who have the potential then they can help the company to gain competitive
advantage. There are three type of assessments which is done before hiring that is ability,
trainability and commitment. Assessment of these factors guides th company in the process of
selection.
Self managed and effective teams-
HR department of Tesco encourages the employees of the company to work as a team
as it is helpful in the process of achieving goals. If people work in a team then it will create
value because people with different type of thought process will work towards a common goal
and find out an effective solution. Ideas that they share are combined which helps the
company to expand their operations in different areas. If the HR department of the company is
successful in formulating teams then company will be able to achieve the task in an efficient
and effective manner.
Fair and Performance based Competition-
HR department of the company needs to keep in mind that the pay scale of employees
must be set according to their potential and skills so that they feel valuable working in the
company. If they pay some of them above their scale then it will increase their attitude
regarding work and will stop them to leave the company even if they want to. Other than this
HR of Tesco provides their employees with rewards and benefits which are based on their
performance. These measures are taken to create so that they can increase the level of
employee commitment and give them a sense of ownership.
Development and Training-
This aspect helps the company to function the HR department. Training helps the
employees top understand the system and processes of the company and with that HR makes
them aware about the knowledge which is required in their jobs. Main focus of this area is to
how to increase the efficiency. On the other hand development of the company focuses on
increasing the abilities in the position which regards to management.
Reward Management-

This aspect helps the organization to make the employees of the company feel valued
and so that they can put more of their efforts into work and achieve more goals for the
company. Management of reward is the policies of employee on consistency, fair and equal
basis.
P 4 Effectiveness of different HRM practices in terms of raising organizational profit
Providing security to employees-
If the HR of Tesco is successful in this aspect then this will help the company to earn
more profits. The reason behind this is that measures that the company take to provide security
for the employees and their families creates a sense of value among which makes them loyal
to the company and if the employees pf the company are old and working there for a long
period of time then they will know the forces of market and analyze them in a better way
which will help the company to stay ahead of their competitors and help them to earn huge
amount of profit (Shipton and et.al., 2017).
Selective Hiring-
If the HR of the company hires those employees who has the potential to meet the
goals and objectives of the company then the company will be able to earn more profits. The
success of this aspect solely depends on the HR of the company as they are the ones who have
to hire and guide the employees so that they can work up to their potential. In order to earn
more profits it is necessary for the company to hire only those candidates who are qualified
and who has the skills and abilities (Van Berkel and et.al., 2017).
Fair and Performance based Competition-
This aspect is effective if the company wants to earn more profits. This aspect states
that Tesco must provide everyone with fair amount of pay scale and incentives so that they
feel valuable and work on achieving the task which will help the company to get expected
results. This aspect will make the employees feel clear about their work and position and HR
of the company will provide them with bonuses on the basis of their performance which will
keep them motivated and contribute more of their efforts.
Flexible conditions of working-
HR of the company manage the work environment of the company in discipline so that
employees of the company don't have problem to focus on work and work flexibly. This will

help the employees of the company to bring new methods and ideas into the company which
will help them to generate more revenues (Alfes and et.al., 2020).
LO 3
P 5 Importance of employee relations in respect to influencing HRM decision making.
Retain loyal employees-
It is necessary for the senior management of the company to have a relationship with
their team because if they don't then there are many chances that they can loose them against
their competitors. It is believed that if the employees of the company feel relaxed, convenient
and whose efforts and practices are being appreciated by the company then they will be a part
of the company and serve with them for a long time. This is the reason why Tesco maintains a
positive relationship with their employees and this is one of the reasons of the success of the
company. This also helps the company to save money on the aspects of hiring, training,
recruitment of new employees because their employees are a part of their team for a long
time(Ammeter and et.al., 2018).
Reduced conflicts in workplace-
Tesco maintains positive relation with their employees which reduces the probability
of employees to engage in a conflict with others. One of the benefits of maintaining relations
with each other is the work environment in the company will be peaceful. Conflicts impact the
productivity in the company as the energy of the employees is invested in disharmony which
can reduce the profits of the company.
Increased Productivity-
If the relations between the employer and the employee is good then the productivity
through employees will be more which will the company to earn more money. HR of Tesco
believes that till the employees are satisfied with their role and position in the company they
will continue to contribute more of their efforts and works like they are working on their own
project.
Increased Morale-
If the employees of the company are satisfied then they will feel secure and confident
which will help them to perform their best. HR of the company must share some secrets of the
company but not those which can risk the interest of them. They need to work between a line
of trust which is necessary to maintain in order to achieve growth.

P 6. Impact of employment legislation in HRM decision-making
Employee legislation's involved in HRM decision-making involved.
Sex Discrimination Act 1975: Sex Discrimination Act 1975 opposes the discrimination at
work place in context of gender (Gebel and Giesecke, 2016). This act enables the equal
growth and employment opportunities based on the skill and knowledge irrespective of
gender. This act influences the HRM decision-making as while giving growth opportunities
skills and talent must be considered.
Work time directive: Work time directive influence the HRM decision-making in relation to
setting of working hours of the employee's (Liebregts and Stam, 2016). This act opposes
working only for 8 hours a day that comprises with 48 hours in week. This act also influence
the HRM decision-making in respect of granting leaves to employee's as this act enable 4
weeks as off in the entire year.
Employment Act 2008: This act carry the influence over HRM decision-making in respect to
solving issues at work place. This act also influence the HRM decision-making making in
respect to setting up of minimum wage rate.
Equal Pay Act 1970: To enable the gender equality in respect of wage rate and salary
structure the UK government implemented the Equal Pay Act over all corporate houses. This
Act also influence the HRM decision-making making in term of setting wage rate in case of
promotion. This act enables the equal increment for all the employee's in case of promotion
irrespective of gender.
National minimum wage rate: National minimum wage rate opposes that an employee must
earn the minimum amount set by government in this act as a salary (Reed, 2016). This act
influence over HRM decision-making related to giving or offering the salary. According to
this act every employee in corporate organizations must earn a minimum amount of £ 1524.
The human resource management of Tesco msut offer at least this amount to all its human
resources.
Data Protection: To ensure the protection of data in corporate organization related to the
personal information of employee's. While conducting recruitments the HRM in Tesco collect
various personal and professional information from the candidates to analyse about the
background so its a prime responsibility of the HRM to assure security of such employee's
personal information.

Race Relation Act: This act opposes to any discrimination at work place in respect of caste,
religion, gender, colour and in any manner. HRM needs to implement this act in work
practices of setting an effective corporate culture in organisation.
LO 4
P 7 Application of HRM practices
HR department of Tesco has the duty to undertake operations and check the efficiency
and effectiveness of work in employees. This covers all the aspects such as hiring, recruiting
and training (Wilkinson, Redman and Dundon, 2017).
JOB SPECIFICATION
Job Title- Human Resource Manager
Reporting- Manager of Store
Summary- HR manager of Tesco has to accomplish the assigned task in order to achieve the
goals and objectives. Manager of HR will work on all the aspects which are related to the
field of administration.
Competencies-
 Team Work
 Communication
 Handle the queries of customer.
 Problem Solving
 Making decisions
 Adapt new strategies
Role/Duties of Job-
 To facilitate and make the communication clear between staff.
 Handle the issues of customers and employees.
 Maintain the environment of workplace and motivate the employees.
 Available for employees and provide them with the necessary guidelines.
Requirements-
 Applicant must have a experience of more than 2 years.
 Training of job is required.

Personal Specification
Professional Summary-
I am a hard working guy and the company can easily rely on me as I am dedicated to my
work. I will contribute my best to achieve growth for the company. I will always put the
interest of company before my personal interest.
Qualification-
 Bachelors in Management studies
 Masters in Business Administration
Key Skills-
 Manage time and complete the work efficiently.
 Easily make the employees of the company train and learn about the working patterns
of the company.
Experience-
 Worked as HR in Toyota for 1 year.
 Worked as HR in Sainsbury for 2 years.
Interview questions-
 Give a description about yourself?
 Tell me your strength and weakness?
 Why do you feel that you are eligible for this position?
 Give reasons that define your potential according to the goals and objectives of the
company?
Offer Letter-
5 February 2020
Jack
HR
Tesco

High Street UK
Dear Jack,
The company is pleased to inform you that you have been selected for the position of HR
manager in the company. We believe that your skills and experience is what the company
needs right now and they will be an asset to the company.
This is to mention that you can commence with us from 10th of February 2019. If you decide
to join us then please sign the second copy and return that to us.
We look forward to begin with you.
Sincerely,
Henry
HR Manager
Title- Human Resource Manager
Date- 5 Feb 2020
Qualification- Bachelor's degree in Human resource manager from any recognized university
Experience- Need 1 Year of experience within the human resource department
Personal characteristics
Effective time management skills – Yes
Effective communication skills – Yes
Management skills- Yes
Roles and responsibilities
Able to handle internal and external operations – Yes
Accountable for payrolls – yes
Effective recruitment and training providing – Yes
Rationale

The reason that for selecting these HR practices is that they help the company to
achieve their goals and objectives by increasing productivity, training the employees and
prepare them for the future opportunities of the company.
CONCLUSION
This report conclude about various purpose and functions of HRM in respect to the
work place planning and resourcing. How different approaches of recruitment in corporate
houses enable various strengths and weaknesses in the company. This report also conclude
about in what ways HRM practices give benefits to employer and also to employee as well in
organizations. This report also conduce about the effectiveness of various practices of HRM in
term of raising organization profitability and productivity. All the aspects of employee
relationship that carry the influence of decision-making related to the HRM in corporate
organisation. Effect of legislation related to the employment in corporate organization has also
concluded in this report. Various aspect of HRM practices in work related context has also
concluded in this report.
REFERENCES
Books and journals
Alfes, K., and et.al., 2020. The International Journal of Human Resource Management. The
International Journal of Human Resource Management, 2020.
Ammeter, A.P., and et.al., 2018. Research in Personnel and Human Resources Management.
Analoui, F., 2017. The changing patterns of human resource management. Routledge.
Bondarouk, T., Harms, R. and Lepak, D., 2017. Does e-HRM lead to better HRM
service?. The International Journal of Human Resource Management, 28(9), pp.1332-
1362.
Gebel, M. and Giesecke, J., 2016. Does deregulation help? The impact of employment
protection reforms on youths’ unemployment and temporary employment risks in
Europe. European Sociological Review.32(4). pp.486-500.
Huemann, M., Keegan, A. and Turner, R., 2018, September. Human resource management in
the project-oriented organization. Project Management Institute.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production, 112, pp.1824-1833.

Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
practices, intellectual capital and innovation. Journal of Business Research, 81, pp.11-
20.
Liebregts, W.J. and Stam, F.C., 2016. Employment protection and entrepreneurship:
unpacking the effects of employment protection legislation on the allocation of
entrepreneurial activity in society. Discussion Paper Series/Tjalling C. Koopmans
Research Institute.16(08).
Reed, A., 2016. RFRA v. ENDA; Religious Freedom and Employment Discrimination. Va. J.
Soc. Pol'y & L.23. p.2.
Shipton, H., and et.al., 2017. HRM and innovation: looking across levels. Human Resource
Management Journal, 27(2), pp.246-263.
Van Berkel, R., and et.al., 2017. Editorial introduction: An introduction to employer
engagement in the field of HRM. Blending social policy and HRM research in
promoting vulnerable groups' labour market participation. Human Resource
Management Journal, 27(4), pp.503-513.
Wilkinson, A., Redman, T. and Dundon, T. eds., 2017. Contemporary human resource
management: text and cases. London: Pearson.