HRM for a Sustainable Organisation: Importance of Recruitment, Retention, and Decision Making

This report explains the significance of HRM in creating sustainable performance in Pizza Hut. It identifies main areas of HRM, conducts SWOT and PESTLE analysis, and provides a roadmap to achieve business objectives. It also discusses recommendations to strengthen talent management strategy in the future.

UNIT 3 HRM AT YOUR NAME OF ORGANISATION
1.Introduction
This report explains significance about the human resource
management(HRM) department on the Pizza hut in specified time
period. Also, the report will identify main areas of HRM in creating
sustainable performance along with conducting SWOT and PESTLE
analysis. Also, a roadmap will be demonstrated to achieve certain
business objectives of the firm in the future. Lastly, certain
recommendations to strengthen talent management strategy in future
will also be discussed in detail.
2. Findings
a. Definitions of HRM and Sustainable performance
It is defined as adoption of HRM strategies by firm so that various
ecological, social and financial goals might be achieved (Cooke and
et.al., 2019). Moreover, HRM refers to hiring, selecting, training and
managing organization employees .Also, sustainable performance is the
ability of the company to meet customer demands and needs on timely
manner (Sartal and et.al., 2020).
b. What are the main areas of HRM and how do they contribute
to creating sustainable performance?
Main areas of HRM How they contribute to creating sustainable
performance
Recruiting and
staffing
In pizza hut this functions allows in hiring those
candidates that are experienced and are highly
qualified in performing various task for the
business. Moreover, this results in higher sales
for the business because employees are able
to take independent decisions and always
deliver quality output to its targeted customers
(Forsetlund and et.al., 2021) . Further, pizza
hut had been able to increase the customer
base due to hard work and good performance
given by the employees over the years
Compensation and This area allows the firm to retain the talented
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benefits employees within the firm so that productivity
is maintained and higher revenues for the firm
might be generated in the future. Also, trust
and loyalty is maintained for longer time period
and greater values are incorporated within the
firm (Mariappanadar, 2019). Moreover, this
ensures good performance because the
employees always remain motivated and are
ready to take up certain challenging task in
positive manner.
Training and
development
Through use of this practice the employees of
the quoted firm are aware for use of the latest
technology within the firm and are also able to
develop greater competencies need to achieve
the tasks in well-defined manner. Also, trained
staff is able to deliver better performance in
against of the competitors
c. How is change in the organisation impacting human
resources skills, knowledge and sustainability?
Although change has increased the working of various business by
improving the efficiencies but sometimes these changes have also
resulted in increase in costs and resources. Also, for the firm like pizza
hut changes within the workplace have brought up positive outcomes in
terms of more satisfied customers and introduction of new faster delivery
process so that goods might be sold in less time to large number of
customers (Mariappanadar, 2020). Moreover, with every new change
within the firm the employees are able to develop new skills and
knowledge that are essential for the ongoing operations of the business.
Thus, employees are able to provide innovative business solutions to the
supervisors and are actively taking part in the decision-making process
in times of challenging situations. Also, various organization are
identifying ways through which current change in the business would
lead to better positive future to all other people living in any particular
area
d. How internal factors affect HRM decision making to support
organisational development.
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Strengths
 The company has global
presence that has allowed
HRM department of pizza
hut to reach to large number
of people through setting
best organizational
strategies in various markets
(Baum, 2018).
 Talent management of the
firm is very strong through
which HR had attracted lot
of good employees for the
working of the firm.
Weaknesses
 There are problems of
cultural diversity and hence
HRM sometimes find
difficulties in devising the
right policies for the
business.
 HRM is facing the issue of
improving the service quality
of various outlets with the
increasing number of
customers.
Opportunities
 Expanding into the new
market for the future
organizational development
should be major decision for
the HRM.
 After the pandemic the HRM
should focus on introducing
flexible Working hours for
retaining the best talent.
Threats
 Growing competition in
market will create problem
for pizza hut HRM
department to find out ways
to survive in the market
(Mariappanadar, 2019).
 HRM efforts to ensure
maximum well-being and
safety of the employees is
greater challenge after the
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pandemic
E. How external factors of PESTLE affect HRM decision making to
support organisational development for a sustainable future
External Factors How these affect HRM decision making to
support organisational development.
Political – tax,
unemployment, and
government
intervention.
In case of higher unemployment in the country
HRM of the quoted firm is able to higher
employees at low wage rates. Also, if in any
country government intervention is more than
HRM ensures that all the policies and
organization structure are approved from
higher authorities.
Economical –
inflation, exchange
rate, interest rate and
disposable income.
If in any country inflation is very higher than
the same will be informed by HRM department
to the management so that prices of the goods
might be changed and corrective actions might
be taken on time (Cohen and et.al., 2019).
Similarly, if interest rates are lower than the
HRM would suggest the firm to takes more
funds and will also provide the list of possible
fund investors for the business.
Social – improve
employee retention,
culture influences and
beliefs. Age,
demographics,
education, likes,
interests and opinions
of society.
Pizza hut HRM department is totally focused
on making those decisions that will improve
the retention of the employees and will also
provide suitable suggestions to the firm in
providing certain opinions that are existing in
the society and among the people so that
better compensation plans and benefits to
employees might be given to create positive
effect on the firm.
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External Factors How these affect HRM decision making to
support organisational development.
Technological –
remote working, use
of computers and
cloud computing.
HRM is responsible for taking decision
regarding use of the latest technology within
the outlets, developing proper training
programmes to employees for the same and
suggesting ways through which employees
would be able to work in flexible hours so that
more people are attracted towards the firm
(Gardas and et.al., 2019).
Legal – laws on using
technology such as
data protection,
product safety, rules
and regulations, equal
opportunities and
health and safety.
HRM department communicates all the laws
such as health and safety, rules and
regulations relating to employment, working
hours etc. to the pizza hut management so
that all the activities might be conducted in
smooth manner. Also, based on these laws
future decisions are made by quoted firm so
that no negative impact is created on working
operations
Environmental –
products or services
that are
environmental
friendly, less pollution,
use of electric, and
socially responsible.
Sustainability
It is the duty of HR department to develop
strategies for the business where all the
employees are engaged in conducting
environmental friendly practices within the
workplace and are very well aware about the
same. Also, it also suggests ways to firm for
being socially responsible in the future through
specifying activities that are done by the
competitors and giving better ways of
improvement.
f. Comparison of areas of HRM to create a sustainable
organisational performance.
Areas of HRM What is the same? What is different?
Recruitment
HRM had developed
policies to attract the
To work in the
sustainable manner
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right candidates for
the job.
quoted firm need to
ensure that all the
employees are very
well aware of the
changes in social
objectives and this is
only possible when
seminars and
presentations are
given to employees to
know about the same
Compensation
Good amount of
salary to work in the
business for the long
run is already made
by the HRM
department of the
company for each of
its employees like
other business firm.
With the changing
business environment
and working
conditions it is very
important for the HRM
department to revise
all its incentive
policies to survive in
market in long run.
Training and
development
New joiners in the
workplace of pizza hut
are given proper
training so that work
might be carried out
systematically as
followed over the
years.
With the growing
business it is required
that even the old
employees are given
training programmes
so that certain
competencies and
skills might be
developed to operate
digital technologies at
the workplace
g. How HRM is changing in the modern business organisation
HRM has completely changed in the modern era as now most of the
work is carried out digitally rather than manually that has reduced lot of
burden and stress among the HR employees as data is automaticity
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recorded (Peerzadah, Mufti and Nazir, 2018). Also, with workforce
diversity at the workplace flexible work policies are been developed so
that qualified employees are attracted for the firm in the future.
Moreover, nature of work has also been changing that has allowed the
HR department to identify new ways of making the work more
productive. Furthermore, with globalization competition has been
increased and thus HRM had played important role in making the firm
more creative and innovative.
h. How external and internal factors affect HRM decision making with
examples to show how they support organisational development
The greatest example of pizza hut HRM department is that after having
pandemic it analyses the negative impact of external factor on the
business and thus it introduced better heath and safety policy for all its
workers so that proper precautions might be taken by employees while
working at the workplaces (Davila and Elvira, 2018). Also, measures
such as social distancing, use of masks, sanitizer were made mandatory
for all working staff so that no problems are faced later on. Another,
example is installing of better technology by HRM department in the
pizza outlets so that billing and food ordering would be done faster so
that more number of customers might be attended in particular point of
time.
I. Critical evaluation of HRM practices in recruitment and retention in
relation to importance of the labour market and achieving business
objectives and sustainability performance.
Business
objectives
Strengths Weaknesses Evaluation
Recruiting staff
with the right
skills to expand
the
organisation.
Selecting Highly
qualified
individuals
would give
better
performance
and success to
the pizza hut.
Any kind of
baisness and
partiality would
only hamper
productivity of
the firm.
The pizza hut
has been given
fair chance to
all the
individuals
those willing to
work in the firm
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Retaining talent
and skills to
achieve profit.
Bests
employees in
the firm have
been able to
bring greater
innovation in
the company
If training
programmes
are no
conducted on
timely manner
than employee
productivity is
impacted
Still needs to
have better
compensation
and benefits
programmes for
maximum
employee
retention.
To incorporate
remote working
for virtual
meetings.
To achieve
business
objectives
flexible working
hours need to
be provided
No such policy
is been
formulated in
the firm.
Better HRM
plans need to
be developed
so that greater
independence
is provided to its
employees.
To implement
relevant
legislation
including data
protection.
Employee feels
safe sharing
personal data
and documents
with the
company
Chances of
errors and
cybercrime in
today era is
higher even
after data
protection
software
Pizza hut
values all its
employees and
thus ensures
safety of all its
workers
irrespective of
levels within
workplace and
even after
leaving the firm
To achieve
cultural diversity
in recruitment.
Company is
trying to expand
into newer
regions for
higher revenues
and sales
People with
different culture
sometimes
creates conflicts
at the
workplace due
to difference in
the workplace
HRM of the
quoted firm
need to include
cultural diversity
policy so that
better working
might be
ensured.
To develop
managers to
performance
manage staff
All managers
are able to treat
to employees
equally and
solve their
problems if any
issue arises in
positive manner
Lack of any
particular skills
sometimes in
challenging
situation can
create problems
in decision-
making.
Better and does
not require
many
improvements
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J. Evaluate key factors affecting HRM decision making to make valid
recommendations
External and
internal factors
Strengths Weaknesses Evaluation
Skills gaps and
labour force
trends
Pizza hut
identifies the
skill gap that
exist within the
employees for
better
functioning of
the operations
in the future.
Skill training
programmes
are expensive
and hence not
conducted by
the quoted firm
on regular
basis.
HRM need to
conduct
interview
sessions and
take
performance
review to
identify
employee
lacking areas
Globalisation on
HR policies for
equality,
diversity and
raising cultural
awareness in
the workplace.
HRM modifies
the organization
structure based
on the different
culture and
target market it
is operating
Some employee
opinions are not
understood well
by others and
often left
missed out
even if it is
good.
More market
research need
to be conducted
to include
cultural diversity
within
workplace
Impact of legal
and regulatory
frameworks
The quoted firm
is able to work
smoothly in
various markets
and earning
revenues.
Changes
without the
notice of legal
authorities have
led to additional
costs to the
firm.
It is far better
than other firms
that are
struggling to
operate
business in
other regions
fo9 the country.
Impact of
leadership
styles on
organisational
transformation
The leaders of
the company
give command
to the
employees so
that work is
carried out as
planned and
Too much
rigidity in
leadership style
sometimes
negatively
affects the HRM
decision in
bringing about
HRM of the
company is
forced to adopt
more formal
approach while
suggesting any
change to
management
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thus all the
decisions of
HRM is based
on the approval.
change. that is not good
when some
urgent
decisions need
to be taken in
limited time
period.
Learning and
development
including digital
learning.
HRM is bringing
new
technologies at
the workplace in
pizza hut
Less tech
effective people
are forced to
leave the firm
More training
programmes
need to be
developed by
HRM.
Organisational
culture and
strategic
planning and
development
HRM has been
able to develop
diverse
workforce to
achieve certain
Business goals
Organizational
culture
sometimes
make HRM
ineffective in
areas of
development.
HRM Decisions
are based more
shared values'
and beliefs
rather than the
current market
situations.
Impact of
motivation upon
performance
Positive impact
on achieving
challenging
tasks
Lack of
motivation
make the
employee left
the firm without
any proper
notice to HRM
Each individual
motivation level
need to be
identified so
that corrective
measure might
be taken on
time.
k. How relevant HRM practices affect recruitment and retention to
achieve business objectives with ROADMAP with milestones.
What
are the
areas
for
HRM to
improve
?
What activities
will HRM
implement?
What are
milestones?
Timelin
es –
start
and end
date
Stakeholders –
who is
involved?
Better  Identify  Bonus 1 Jan –  Employe
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UNIT 3 HRM AT YOUR NAME OF ORGANISATION
incentiv
e
policies
each
individual
needs
 Evaluate
each
employee
performan
ce.
 promotio
n
1 April
2022
es
 manager
s
 HR
departme
nt
Cultural
diversit
y
 Team
building
activities
within
workplace
 Interactive
sessions
 Group
discussio
ns on
any topic
 Fun
activity
1 Feb -
31
March
 Remote
employe
es
 Junior
HR
 Supervis
ors
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Recommendations for future human resource planning
It is recommended to pizza hut that it should conduct more detailed
market research analysis before implementing any kind of HR policy
within the workplace so that new changes within the organization might
be easily accepted by others without any kind of hesitation or conflicts so
that better goals might be achieved in due course of time.
3. Conclusion
From the above report it can be concluded that HRM department
plays very important role in devising the best policies for the overall
business. Also, the report had identified main areas of HRM along with
impact of any change that affects the sustainability performance of the
firm. Moreover, role of recruiting and retaining the right employees had
also been explained through certain business examples. Lastly,
roadmap to gain success through certain business recommendations
had also been covered under this report.
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4. Bibliography
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Al-Hawari, M. A., Quratulain, S. and Melhem, S. B., 2021. How and
when frontline employees’ environmental values influence their
green creativity? Examining the role of perceived work
meaningfulness and green HRM practices. Journal of Cleaner
Production. 310. p.127598.
Baum, T., 2018. Sustainable human resource management as a driver
in tourism policy and planning: a serious sin of omission?. Journal of
Sustainable Tourism. 26(6). pp.873-889.
Cohen, E. and et.al., 2019. Sustainability reporting and sustainable
HRM. Sustainable Human Resource Management: Strategies,
Practices and Challenges. p.245.
Davila, A. and Elvira, M. M., 2018. Revisiting the Latin American HRM
model. In Handbook of Research on Comparative Human Resource
Management. Edward Elgar Publishing.
Forsetlund, L. and et.al., 2021. Continuing education meetings and
workshops: effects on professional practice and healthcare
outcomes. Cochrane database of systematic reviews. (9).
Gardas, B. B. and et.al., 2019. Green talent management to unlock
sustainability in the oil and gas sector. Journal of Cleaner
Production. 229. pp.850-862.
Mariappanadar, S., 2019. Measurements for sustainable HRM
practices. Sustainable Human Resource Management: Strategies,
Practices and Challenges. p.216.
Mariappanadar, S., 2019. Sustainable HRM practices: Values and
characteristics. Sustainable human resource management:
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Strategies, practices and challenges; Management, Work &
Organizations. pp.81-104.
Mariappanadar, S., 2020. Implementing sustainable HRM
practices. Sustainable Human Resource Management: Strategies,
Practices and Challenges. p.157.
Peerzadah, S. A., Mufti, S. and Nazir, N. A., 2018. Green human
resource management: A review. International Journal of Enhanced
Research in Management & Computer Applications. 7(3). pp.790-
795.
Cooke, F. L. and et.al., 2019. How far has international HRM travelled?
A systematic review of literature on multinational corporations
(2000–2014). Human Resource Management Review. 29(1). pp.59-
75.
Sartal, A. and et.al., 2020. The sustainable manufacturing concept,
evolution and opportunities within Industry 4.0: A literature
review. Advances in Mechanical Engineering. 12(5).
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