Human Resource Management: Contribution to Sustainable Performance

This report discusses the role of HRM in creating sustainable organizational performance and its contribution in recruitment and employee retention. It investigates external and internal factors which impact HRM decision making to support organizational development in the context of Aston Martin. It also applies HRM practices in a work-related context.

Human
Resource
Management
1

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explanation of main areas of HRM and their contribution to sustainable performance...3
P2 Review the effects of changing nature of organizations on human resource skills and
knowledge...............................................................................................................................5
TASK 2............................................................................................................................................7
P3 Review of HRM practices related to employee recruitment and retention.......................7
TASK 3............................................................................................................................................7
P4 Investigation on external and internal factors which impact HRM decision making to
support organizational development.......................................................................................7
TASK 4..........................................................................................................................................11
Covered in Appendix............................................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................13
APPENDIX....................................................................................................................................14
P5 Application HRM practices in work related context......................................................14
2

INTRODUCTION
Human resource management is the organizational function which manage is issues related to
people in a company. It is defined as the practice of recruitment hiring development and
employees of the company. This report is based on UK car manufacturer Aston Martin. The
company was founded in 1913 and is currently headquartered engaged in United Kingdom it
manufactures luxury sports cars and grand tourers. Aston Martin has 160 car dealerships in 53
countries along with a workforce of 2373 employees (ABOUT US, 2022). Aston Martin has
highly specialised and centralized organizational structure which is similar to hierarchical
organizational structure. This report describes the role of human resource management in
creating sustainable organizational performance and assesses its contribution in recruitment and
employee retention. Examination of external and internal factors which affect human resource
management decision-making in context of organizational development of Aston Martin is
provided in this report in addition to this application of human resource management practices in
context of context Martin is also given.
MAIN BODY
TASK 1
P1 Explanation of main areas of HRM and their contribution to sustainable performance
Aston Martin has been able to succeed in different international market and maintain its
position as a demanded luxury car brand because of effective human resource management and
talented workforce. Human resource management is relevant in the luxury car industry because
timely manufacturing of luxury automobiles is completed because of the skills and knowledge of
highly talented workforce which is provided to the company by effective human resource
management (Gheiratmand, Hosseini and Reihani, 2017).
The strength of human resource management in context of the luxury automobile
manufacturing industry is that it provides the company skilled laborers and craftsman who are
able to create high quality luxury cars. In addition to this another strength of human resource
management is that it helps develop talented mechanics and technicians for the company who are
able to support innovation at the firm so that the company continues to introduce technologically
advanced luxury cars.
3

The weakness of human resource management in context of luxury car manufacturing
industry is that it requires huge amount of financial investment for training and developing
mechanics and technicians to the degree where they are able to create innovative and
technologically advanced luxury automobiles. This is because luxury automobile craftsmanship
is not a popular profession stream for which thousands of skilled individuals can be available.
This showcases the importance of developing effective humans resource management
functions at Aston Martin as it can help the company build a suitable workforce which take the
organization towards success. The different human resource management functions and their
contribution towards sustainable organizational performance is explained below:
 Human Resource Planning: This human resource management function allows businesses
to meet their current and future demands for talent and helps human resource management
staff to estimate and build skills in the workforce which are valuable to the organization and
will support the company in succeeding (Johari, Hosseini and Samadikuchaksaraei, 2017).
This human resource management function supports sustainable performance by helping the
company attract talent which is suitable for creating a sustainable environment while also
promoting success of the company in different fields. in context of Aston martin human
resource planning plays an important role in sustainable performance of The enterprise
because it helps update skills of current employees and attract new employees whose skill
set is valuable for growth and continued progress of the organization.
 Recruitment and Selection: This human resource management function focuses on filling
every vacant position of the company with talented individuals who are also committed
towards achieving business aims and objectives of the company (Uddin, 2018). Aston
Martin is able to find employees who are not only talented but also have similar views and
ideologies which align with company values so that the company is able to gain a dedicated
workforce motivated to deliver high quality results. This is for benefit of the company they
support sustainable development as both the company and employees work towards
achieving success in a sustainable manner.
 Performance Management: Businesses are able to improve performance of their
employees by utilizing the performance management human resource function. It improves
sustainability of the organization by increasing the knowledge and skills of employees so
that they are able to complete various activities and formulate plans for future of the
4

company with consideration of sustainability and its environmental impact. This helps the
company ensure that the company is moving towards path of success without negatively
harming environmental resources and contributing to climate change (Salas‐Vallina, Alegre
and López‐Cabrales, 2021). In context of Aston Martin the company is able to focus on
attaining its sustainability goals with the help of the performance management human
resource management function because it improves awareness knowledge and skills of the
employees to focus their resources in improving sustainability of the company without
harming its profitability or financial success.
P2 Review the effects of changing nature of organizations on human resource skills and
knowledge
Strategic human resource management is defined as a framework which links people
management and development practices so that the company is able to achieve long term
business goals. The purpose of strategic human resource management is to focus on long term
resourcing issues within the company so that the organizational goals and long term objectives
can be attained in a timely manner. In context of Aston Martin the usage of strategic human
resource management helps the company built their workforce in a way which supports long
term survival of the company along with achievement of various time consuming sustainability
as well as financial objectives.
Changing skill and knowledge requirements because of external as well as internal
environment changes affect strategic human resource management both positively and
negatively. This is also true in the case of Aston Martin because there knowledge and skills
demand in today’s work are drastically different from what was being demanded by luxury car
manufacturers 10 years ago. In general work is now more cognitively complex team based
collaborative dependent on social and technological skills along with higher time pressure
(Ringle, 2020). This is because businesses today aim to become more leaner and agile and are
focused on identifying value from consumer perspective with continuously re organizing to
maintain or gain competitive advantage.
In context of Aston Martin this type of changing environment affects strategic human
resource management and influences the ways in which employees skills are developed and the
knowledge required by the company. Currently the primary demand of businesses includes
5

cognitive competence social and interactive competence along with ability to adapt to changing
workplace.
These skills are in high demand in the current environment which have shaped strategic
human resource management. In context of Aston Martin started human resource management
focuses on building cognitive competence of individuals so that they are able to handle increased
complexity at work and the organizational environment supports continuous professional
development of employees.
On the other hand the negative impact of strategic human resource management is that
since cognitive competency cannot be easily estimated when it comes to long term planning.
Strategic human resource management often fails to consider technological development
affecting demand for specific cognitive skills which affects the overall purpose of cognitive
competence development (Oluwatayo and Adetoro, 2020).
This disadvantage can be seen in the case of artificial intelligence affecting workplaces in
the automobile industry. As artificial intelligence becomes more and more sophisticated the
cognitive competence demanded by employees working in the automobile industry will change
as much of the work will be taken by artificial intelligent technologies. This affects strategic
human resource management estimation of the future development of artificial intelligence and
its impact on level of employee cognitive competence cannot be completed accurately.
In addition to this changing nature of work because of increased workplace facility an
rise of remote working also affects strategic human resource management and influences the
skills and knowledge demanded by businesses. In this case strategic human resource
management has positive impact as it helps build digital capabilities of employees so that they
are able to easily manage virtual work and digital transformation of the company.
On the other hand the negative impact of strategic human resource management to this
changing aspect of work is that it is not able to foresee the future digital demands and changes so
that the skills of the employees can be updated in that specific direction for better human
resource management (Kasekende, 2020). In context of Aston Martin strategic human resource
management is beneficial as it has helped the company build a more resilience workforce and
also promoted talent so that the skills and knowledge of employees is updated with changing
nature of work.
6

TASK 2
P3 Review of HRM practices related to employee recruitment and retention
Strength Weaknesses
Internal recruitment approach: Internal
recruitment is more beneficial for the Aston
Martin . This is more effective than external
recruitment. Because, there is higher chance of
getting experienced and knowledgeable people
within organisation.
Internal recruitment approach: The internal
recruitment procedure hinders the arrival of
fresh candidness (Hamori, 2019). It will impact
on dynamic workplace of Aston Martin . The
existing employees might not able to adjust
with new technology which require new and
fresh mind.
External recruitment approach: This
recruitment approach is effective for Aston
Martin . It will helps in selecting candidates
through interviews which will be beneficial for
seeking fresh talent from market.
External recruitment approach: This
recruitment approach might not be cost and
time effective for Aston Martin . Recruiting
and selecting take time to choose best
employees through different areas.
TASK 3
P4 Investigation on external and internal factors which impact HRM decision making to support
organizational development
Internal factors which affect HRM
Organizational Culture:
The values norms and culture of a specific company affects human resource management this is
a critical internal factor which shapes the way which human resource management operates
within a company supports organizational growth and development (Hack-Polay, 2020). This
factor affects human resource management as the focus of human resource management is to
build workforce of a company in a way which supports attainment of goals and objectives and
alliance with organizational values. In context of Aston Martin the organizational culture at the
company is role culture.
7

This type of organization is characterized by strong functional specialized areas
coordinated by narrowband of senior management at the top with higher degree of formalization
and standardization. This culture affects various human resource management practices as it
shapes them to be more formal answer ended eyes. It also centralizes authority at the company
which further influences human resource management and future planning this is because
decisions regarding human resource planning and human resource management policies are
taken by the top most authority without giving much consideration to opinions of lower level
employees. In this way organizational culture positively influences strategic human resource
management as it improves the speed with which decisions are taken for at any organizational
objectives (Geetha, 2020).
On the other hand is also a negative impact of reduced employee morale as centralization
does not account for Opinions of employees in human resource decision-making. It is
recommended that Aston Martin mix the organizational culture a little bit more democratic so
that opinions of employees are also taken into account by making human resource management
decisions.
Business Objectives;
The business objectives of the company play an important role in shaping human
resource management as the aim of human resource management is to support attainment of
business objectives (Forth, 2019). The aim of Aston Martin is to enrich what is unique to the
Aston Martin brand the combination of high performance an ultimate luxury together in one
automobile. Aston Martin focuses on achieving this by becoming the most agile and efficient
company in luxury segment to achieve the best outcome for the product including consumers
investors and other stakeholders.
Aston Martin has also supported creation of sustainable strategy which aims to build a
sustainable product plan defined and aligned with market demand and overall business plan of
the company. These objectives plan important role in human resource management at the
organization and affect human resource management decisions. The organizational objective of
Aston Martin focusing on continuing with the legacy of the brand with emphasis on
craftsmanship and high quality product development affects human resource management as
specific skills needed to be developed in the workforce of the organization to support creation of
a workforce skilled in craftsmanship.
8

In addition to this the focus on increasing sustainability of the company is another aspect
of business objectives of estimating which influences human resource management decision-
making. This is because human resource management policies and practices need to be
implemented which increased knowledge of employees about sustainability and help change
organizational environment so that sustainability is prioritized in every business activity and
department.
The positive impact of business objectives affecting human resource management is that
it helps the company achieve various business objectives in a timely manner while the negative
impact is that it may distract the company from challenges and obstacles impacting the internal
environment of the organization.
This is because the organization will be focused on achieving long term objectives that
short term business activities will be affected due to lower priority. It is recommended that Aston
Martin trains its human resource management to equally priorities short term objectives an
activities so that attainment of long term business objectives does not affect current working of
the company.
External Factors which affect HRM
Availability of talent:
The availability of talent affects human resource management decision-making because
certain changes need to be made to the overall human resource planning so that skilled
employees are present at the company even at the times of labor shortage. In context of Aston
Martin there is always demand for skilled Mechanical Engineers product designers and
technicians so that the company is able to build luxurious as well as high powered automobiles
(STRATEGY, 2022).
It is analyzed that such high skilled and high paying job cannot be easily filled by
businesses because there are less number of candidates available for such crucial positions in a
company. In this way labor shortage for high skilled jobs affects human resource management
decision-making as the company has to adjust its policies and practices to ensure that skilled
employees from the limited talent pool available are recruited at the company instead of its
industry rivals.
The positive impact of this external factor affecting human resource management is that
it helps the company plan resourcing in a way which every position at the firm is occupied by the
9

most talented candidate available in the labor market (Cherif, 2020). On the other hand the
negative impact of labor shortage affecting human resource management decision-making is that
it can negatively affect other functions of the company such as reward and learning and
development if recruiting skilled individuals is prioritized by the human resource management
department.
It is recommended that Aston Martin invest in building learning and development
practices which help individuals update their skills according to fluctuate in labor demand so that
the company is able to maintain smooth functioning and deliver high quality results even in
times of labor shortage crisis.
Technological Development:
Another external factor which affects human resource management decision-making is
technological development (Boeck, 2018). This can be seen in the recent case of digital
technologies such as virtual reality technology and digital working environment supporting
increase in remote working. Here it can be seen that technological development has a significant
impact on human resource decision-making as it supports creation of a flexible working
environment which has been exploited by different businesses to improve employee morale
during the testing time of COVID-19 pandemic.
In this way technological development has always supported changes in human resource
management affecting human resource management decision-making so there the company is
able to exploit new technologies for improvement in human resource management practices. In
context of Aston Martin the company utilize is advanced technology suggests artificial
intelligence to improve decision making at the company.
In addition to this new technologies such as automation and artificial intelligence
automation also affect human resource management decision-making because it reduces the
requirement of employees for specific libraries tasks (Analoui, 2018). The positive impact of
technological development on human resource management decision-making is that it improves
decision-making by providing human resource management department sufficient employee data
through which they are able to make plans for future resourcing and implement useful learning
and development programmers.
Big data technology is a recent technological advancement which has supported human
resource management by improving its decision-making significantly through the usage of
10

employee data. On the other hand the negative impact of technological development on human
resource management decision-making is that it may introduce cyber security threats to human
resource management as most of the decision-making is dependent on the usage of different
kinds of digital technologies.
In context of Aston Martin the usage of artificial intelligence can lead to the company
becoming more vulnerable towards cyber attacks reducing the quality of cyber security at the
firm. This can also harm human resource management decision-making as cybercriminals can
utilize employee data two harm employees of the company and release sensitive information
about human resources.
In order to overcome this disadvantage of technological development it is recommended
that Aston Martin invest in improving digital security of the company on a global scale so that
the company remains updated and protected from any kind of cyber attacks. This will support
organizational development as digital technologies like AI can be safely used by human resource
management to make inform decisions (Aktar, 2018).
TASK 4
Covered in Appendix
CONCLUSION
From the above report it is determined that human resource management is an important
functional area of the organisation which helps the company improve its sustainable performance
to different functions such as human resources planning and performance management. It is
important that businesses invest in strategic human resource management because it helps the
company improve employee knowledge and skills with changing nature of work in the industry.
In this way the company can initiate continuous development of human resources and ensure that
it is able to survive for long time with stable profitability. Finally different human resource
management practises related to recruitment and retention support continuous development of
talent at the company. It is also concluded that internal factors such as organisational culture and
external factors such as technological development influence daily human resource management
decision-making both positively and negatively
11

12

REFRENCES
Books and Journals
Aktar, 2018. The relationship between human resource management practices and employee
engagement: The moderating role of organizational culture. Journal of Knowledge
Globalization, 10(1). pp.55-89.
Analoui, F., 2018. Managerial perspectives, assumptions and development of the human resource
management. In Human resource management issues in developing countries (pp. 1-20).
Routledge.
Boeck, 2018. Employee reactions to talent management: Assumptions versus evidence. Journal
of Organizational Behavior, 39(2). pp.199-213.
Cherif, 2020. The role of human resource management practices and employee job satisfaction in
predicting organizational commitment in Saudi Arabian banking sector. International
Journal of Sociology and Social Policy.
Forth, 2019. Management practices and SME performance. Scottish Journal of Political
Economy, 66(4). pp.527-558.
Geetha, 2020. Green HRM-A conceptual framework. Journal of Xi'an University of Architecture
& Technology, 7(5). pp.1204-1212.
Gheiratmand, T., Hosseini, H.M. and Reihani, S.S., 2017. Iron-borosilicate soft magnetic
composites: The correlation between processing parameters and magnetic properties for
high frequency applications. Journal of Magnetism and Magnetic Materials, 429,
pp.241-250.
Hack-Polay, 2020. Globalisation and HR Practices in Africa: When culture refuses to make way
for so-called universalistic perspectives. International Journal of Business and
Globalisation.
Hamori, 2019. MOOCs at work: what induces employer support for them?. The International
Journal of Human Resource Management, p.1.
Johari, N., Hosseini, H.M. and Samadikuchaksaraei, A., 2017. Optimized composition of
nanocomposite scaffolds formed from silk fibroin and nano-TiO2 for bone tissue
engineering. Materials Science and Engineering: C, 79. pp.783-792.
Kasekende, 2020. Strategic human resource practices, emotional exhaustion and OCB: The
mediator role of person-organization fit. Journal of Organizational Effectiveness: People
and Performance.
Oluwatayo, A. A. and Adetoro, O., 2020. Influence of employee attributes, work context and
human resource management practices on employee job engagement. Global Journal of
Flexible Systems Management, 21(4), pp.295-308.
Ringle, 2020. Partial least squares structural equation modeling in HRM research. The
International Journal of Human Resource Management, 31(12), pp.1617-1643.
Salas‐Vallina, A., Alegre, J. and López‐Cabrales, Á., 2021. The challenge of increasing
employees' well‐being and performance: How human resource management practices
and engaging leadership work together toward reaching this goal. Human Resource
Management, 60(3), pp.333-347.
Uddin, 2018. Practicality of green human resource management practices: A study on banking
sector in Bangladesh. International Journal of economics, commerce and management.
VI (6), pp.382-393.
Online
13

ABOUT US, 2022. [Online] Available through <https://www.astonmartinlagonda.com/about-
us>
STRATEGY, 2022. [Online] Available through <https://www.astonmartinlagonda.com/about-
us/strategy>
APPENDIX
P5 Application HRM practices in work related context
Person Specification for marketing manager at Aston Martin
BASICS Essentials Desirables
Skills  Communication skills
 Teamwork skills
 Management skills
 Leadership skills
 Adaptability
 Creativity
Experience Minimum 4 years’ experience at
marketing or management position in
reputed business firm.
2 years’ experience at the post
of marketing manager at retail
firm.
Education  MBA in marketing from
reputed educational institution
 Certification course in
digital marketing and
social media marketing
Job Offer Letter for marketing manager at Aston Martin
Job Offer Letter
Ms xyz
This letter is to inform you that you are selected for the position of Marketing manager in Aston
Martin . This organisation is happy that your recruited and selected successfully. Your joining
date as Marketing Manager will be 25 October 2021. Other information are mentioned below:
Key roles and responsibilities:
 Should evaluate and improve marking of brand.
 Should lead the marketing team with effective strategy.
 To study market and current marketing trends.
Position: Marketing Manager
Salary: €20000
Regards
14

Team HR
(Aston Martin )
CV for Marketing manager at Aston Martin
Curriculum Vitae
Contact Information:
Name: XYZ
Address: ABC
Contact no.: ----------
Qualifications:
 MBA from PQR University
 Social media certificate from MNO institute
Professional Experience:
 Working as sales manager in xyz company with 3 years of experience.
 Handling and mangling junior staff
 Assisting with customer.
15