Human Resource Management– Purpose and Functions

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................2
Purpose and functions of HRM....................................................................................................3
Assessment of HRM in providing talent and skills to fulfil business objectives:.......................5
Different approaches to recruitment and selection and their strengths and weaknesses:............5
Evaluation of different approaches for recruitment and selection:..............................................6
Critical evaluation of strengths and weaknesses along with examples:......................................7
ACTIVITY 2 ................................................................................................................................7
Covered in Booklet......................................................................................................................7
ACTIVITY 3....................................................................................................................................7
Importance of employee relations................................................................................................7
Key elements of employment legislation.....................................................................................8
Evaluation of employment relationship management and employment legislation....................9
Application of HRM practices...................................................................................................10
Rationale for application of HRM practices..............................................................................12
Evaluation of employee relations and HRM practices..............................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is people oriented concept which is concerned with
emotional, social as well as behavioural aspects of workforce (Ahammad and et.al, 2016)
(Anderson and et.al, 2014). It is a comprehensive function that emphasis on bringing individuals
as well as organisation together with the aim to met objectives of the company. The managers
are responsible to provide job satisfaction, attractive fringe benefits, status, opportunity for
development, job satisfaction and so on aspects to employees so that employees give their best
results and efforts towards attaining business objectives. The present report is based on Natwest
bank which is a retail as well as commercial banking company that was established by the
merger of Westminster bank as well as National Provincial Bank in the year 1968. The report
discusses purposes along with functions of HRM that are applicable to workforce planning and
resourcing, approaches of recruitment and selection, human resource management practices and
importance of employee relations. It further includes key elements of employment legislations as
well as application of HRM practices in work related context.
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ACTIVITY 1
2

Purpose and functions of HRM
Human Resource Management: Human resource management (HRM) is a practise
that involves procedure of recruiting, hiring, training and deploying human workforce into the
organization. It is a huge process that includes motivation, training and development, benefits
and compensation, law compliance and assessment processes for new and existing employees
so that organizational goals may be achieved with the help of personnels (Brown and et.al,
2017). In order to fulfil its purpose, HRM team of Natwest Bank have to perform these two
basic procedures:
Workforce Planning: Workforce planning is a result of a concern between HRM and
the organization and it is related to the regular finding and analysis of organizational need in
terms of the type, size, experience, cognition and skills of its manpower to achieve objectives.
Workforce planning refers to the process of ensuring an establishment has approach to the
human capital it needs to perform effectively. This planning strategy involves identifying
current and future personnel requirements and looking into the most appropriate and cost-
effective methods to select and retain these individuals. There is also an element of constant
analysis of human resource efficiency and implementing necessary measures, such as learning
and development initiatives, to ensure the workforce remains efficient.
Employee Resourcing: Employee Resourcing is the process which related with the
range of actions and approaches used by management in resourcing their organisations in such a
way that can enable them to meet their key objectives (Carley and Christie, 2017). It involves
staffing, recruitment, selection, retention, termination, performance management and appraisal,
administration policy, development policy, substantive development, documentation and
change in management. The HR team of Natwest Bank is has responsibilities such as planning,
recruitment and selection process, posting job, assessing the performance of employees,
organizing job applications, planning interviews and assisting in the process and checking
backgrounds.
Purpose of HRM: The purpose of HRM is to increase company's performance by
investing in the valuable people. Human resource professionals have the skills, knowledge and
techniques required in this field to find and employ best talents, help employees succeed in their
functions and ensure good working conditions. According to industry norms, purpose of HRM
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in Natwest Bank are as under:
Staffing and Recruitment: The primary and most important purpose of workforce
management is to choose a accountable staff for the organization. This includes creating
position, distinguishing job responsibilities and deciding skill level that are necessary for a
position. It also involves interviewing, administering tests, etc. reference checks of potential
candidates and transfer, promotion process, deputation for existing employees.
Training and Development: After recruiting and selecting process, adapting learning
and training procedures is the further purpose of HRM department in a firm. On boarding
training for new employees and ongoing training and development for current employees is
essential to improve their performance and efficiency. Grooming and evolution activities may
include internal meetings, conferences, or external educational courses. It also provides
opportunities for employee to get rewards, recognition and other benefits (Christopher, 2016).
Compliance with Law: The HR department of companies are responsible for the safety
and even-handed treatment of their employees. Various laws exist to protect employees in a
variety of areas and failure to comply with these regulations can bring countless lawsuits which
can adversely affect a business’s profitability. The Human resources department of respective
firm keeps company up-to-date with regulations by staying aware of these laws, spread the
proper information and planning procedures to ensure attachment to the laws.
Functions of HRM: HR department is created under personnel professionals who has to
perform some functions in order to fulfil above mentioned purposes. Human Resource
Management functions can be of three types which are discussed below:
Operative Functions: The operative functions are those tasks which are generally
confide to the human resource. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organisation. Hiring, training,
motivation, compensation, benefits, appraisals, career improvement, dismissal, employee
relationship are the major operative functions performed by HRM in selected company.
Managerial Functions: Managerial functions are the same responsibilities that an
ordinary manager have to perform in order to achieve departmental aims. These functions
includes observing job requirements and plan recruitment accordingly, organising activities
such as grouping, assigning, delegating and directing then controlling the whole process
according to the plans (Gangwar, Date and Ramaswamy, 2015).
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Advisory Functions: HR professionals are the experts in resourcing of personnels thus
expected to suggest and advise to the top management as well as departmental managers in
particular field. HR managers of respective company are responsible for advising formulation
of personnel policy, procedures and programs.
Assessment of HRM in providing talent and skills to fulfil business objectives:
The personnel management department of establishments is liable to follow all
instructions and guidelines in recruitment process and select valuable employees for the
organization. By following all the functions, HRM helps in selecting professional and
compatible workforce, creating work-friendly environment, building healthy employer-
employee relationship, motivating employees, training and developing new skills, planning and
organising man power, complying legislations and dismissing unskilled persons which eventual
enhance the talent and skills of new and existing working people and aids in achieving business
objectives.
Different approaches to recruitment and selection and their strengths and weaknesses:
Recruitment: Recruitment is a process of offering, screening, interviewing and
appointing appropriate employees as per the requirements of the organization. It includes two
types of sources in order to find the suitable employees which are:
Internal Sources:
Promotion Approach: In this method, the existing employees working in the firm are
promoted on higher post with higher salary and change in roles & responsibilities. This
approach is used for eliminate hassle of recruitment process as well as appointing well
experienced and knowledgable personnels (Kesavan, Staats and Gilland, 2014).
Transfer Approach: Transfer method is the one in which the existing employee is sent
to the different department or premises for functioning same roles and duties with same rank.
The employees of Natwest Bank are shifted to one premises to another to perform same
operations.
Strengths of Internal Approaches:
 In internal approach existing employee can transition into the new role with minimal
downtime.
 This approach saves time and energy by eliminating extra paperwork and fuss of new
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screening.
 Other employees see there is room for advancement and reward for a job well done.
Weaknesses of Internal Approaches:
 This approach can create disagreement in the workplace that affects everyone.
 It may be time to take someone of a different aspect, gender, age or quality into the
workplace to bring new orientation to business.
 It run the risk of maintaining a status quo that doesn’t permit for new ideas or path. This
can put you at a tremulous disadvantage.
External Sources:
Social network: Now a days, recruiters use social networking platforms such as
facebook, linkdin, etc. to post and advertise their job vacancies. External people applies on the
portals and called for the recruitment process.
Press advertisement: These source communicates recruitment message to mass public.
Under this method, vacant post with required details related to job specifications are given
through the medium of newspapers to general public.
Recruitment agencies: Companies hires some agencies to find out and provide
appropriate desired candidates for vacant post in their firms. These recruitment firms charges
consultancy fees from the organizations to provide human resources.
Strengths of External Approaches:
 Such source brings fresh talent that helps in inspiriting existing employees to work with
more potential.
 It raises chances for current employees to get promotional benefits.
 It attracts larger individual that increases chances to choose right person for specific job.
Weaknesses of external sources of recruitment:
 It takes longer as well as more cost to hire people from outside world.
 It takes more time to provide content and massage to outside applicants.
 The external recruitment process can attract candidates who are not relevant or worthy
of the open position.
Evaluation of different approaches for recruitment and selection:
After analysing all strengths and weaknesses of selection and recruitment processes, the
management of Natwest Bank should choose external approach of recruiting so that company
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can attract and retain new fresh talent which is full of creativity and ideas. It provides larger
number of applications which helps in choosing appropriate candidates and others can be hold
for the further vacancies. With help of external selection approach, the existing employees can
be promoted on higher posts with their skills and experience and new employees as well as
outsider talented professionals will also get attracted and inspired (Kurtessis and et.al, 2017).
Critical evaluation of strengths and weaknesses along with examples:
Each recruitment and selection approach has its own strengths and weaknesses. Both the
sources provide adequate personnels to respective firm. The company should adopt both the
approaches to fill the vacancies as external sources provide fresh new talent and internal sources
provide experienced and skilled workforce. For example, if there are two vacancies available
for senior posts in Natwest Bank then HRM can fill these seats by promoting existing
employees and hire new employees on junior posts. The company should change the
contingency selection approach at the time of emergency hiring and choose the contemporary
approach to make timely decisions.
ACTIVITY 2
Covered in Booklet
ACTIVITY 3
Importance of employee relations.
Employee relations are the efforts that are made by organisational authorities in order to
manage relationships among employers as well as employees. By adopting employee relation
programs, fair along with consistent treatment is provided that results in commitment of
workforce towards jobs as well as remain loyal to company. The main purpose of such relation is
to deepen the relationships by identifying issues and providing solutions to resolve workplace
problems, providing support for performance management systems and measuring morale as
well as satisfaction of employees. It includes human resource strategies along with success of
business that are heavily dependent on workforce engagement towards productivity. For
example, if employees are motivated then efficiency will increase to great level (Lund-Thomsen
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and Lindgreen, 2014). The managers of Natwest Bank communicates with employees on daily
basis and if there is any problem or issue related to work they are sorted by communicating with
Branch managers in effective manner and at the same time follows different strategies such as
involving employees in decision making, communicating necessary information, distributing
power along with authority, encouraging job rotation and so on that improves employee relations
at workplace. If managers maintain effective relationships which results in impacting on positive
results otherwise affects organisational operations. The importance of employee relations are as
follows:
 Employee relations signifies high productivity as well as personnel satisfaction that helps
in achieving objectives speedily by coordinating activities between employees as well as
employers.
 Such relation is important to understand the problems associated with employees and
resolving them to make employees feel good and motivated that results in maximising
efficiency to achieve higher results.
 Managers of Natwest Bank maintains effective relations with employees of their own
branch as well as of other branches that helps in exchanging ideas, thoughts about any
changes as well as accepting challenges in order to beat competition (Mason and
Simmons, 2014).
Thus, effective employee relations helps in exchanging ideas, actions or thoughts that
impacts on HRM decision making as well as help the business to attain long term objectives in
effective manner.
Key elements of employment legislation.
Employment legislations are the laws or rules that are governed to regulate relationships
at work place. Such legislations provides aspects related to when a candidate should be hired and
when they can perform operations. There are governed by administrative regulations, federal
statutes along with state statues as well as judicial decisions. In context to Natwest Bank, it is the
duty of managers to provide detailed information about rights as well as responsibilities that
employees has at workplace. They comply with all the employment legislations in order to
provide protection to their employees. Some of the employment laws are as described:
Work Time Regulations Act, 1998: Such legislation provides working hours to be
followed at organisation (Tripathi, Gautam and Lal, 2017) . The standard work time stated under
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the act is 48 hours in a week. If employees perform operations more than the standard time then
company has to pay more benefits or over time money. By following such legislation, managers
of Natwest Bank do not force employees to perform work other than the prescribed time. If there
is more work at Natwest Bank and managers taken a decision that employees will be forced to
work more other than standard time at some salary. If employees do not work and resigns from
job then it impacts on HRM decision making.
Fair labour Standards Act, 1938: This act was enacted with the aim to establish
minimum wages, youth employment standards and overtime payments in order to protects
employees from unfair activities related with excessive working hours, unsafe working
conditions, unequal payments and so on (Ouyang, Liu and Zhang, 2016). The HR managers of
Natwest Bank have to record all necessary information and to comply with all aspects that are
stated under the act. This helps in making good decisions at the time of more work and hence
impacts on HRM decision making.
Equality Act, 2010: such legislation was enacted to protect employees from
discrimination, partiality, or unfair behaviour at work place. It emphasis towards providing equal
rights to male employees as well as female employees (Walk, Zhang and Littlepage, 2019). The
managers of Natwest Bank follows such act in order to treat all employees in equal manner so to
retain workforce for longer time period. As such, it benefits managers to take effective decisions
at the time if any discrimination based on gender, colour, age and so on is found that directly
impacts on decision making by human resource management.
Evaluation of employment relationship management and employment legislation.
As per the discussed HRM practices as well as legislations it can be evaluated that
Natwest bank uses effective practices of human resources that helps in taking critical decisions
for the future of business. Such practices maintains effective relationships among employees
along with employers that motivates both to cordially perform activities that results in attainment
of goals. Equality act provides safety from discrimination where as fair labour standards act
helps in protecting workforce from unfair work activities (Paloutzian and Park, 2014).
Application of HRM practices.
Managers of Natwest Bank adopts various HRM practices based on training and
development, performance based compensation, selective hiring and so on that results in
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maximising efficiency to achieve goals. For instance, application of recruitment and selection
practice includes job specification, person specification and offer letter.
Application of HRM practice in context to Natwest Bank:
Natwest Bank is operating its activities with the help of numerous employees that are
performing operations in different branches. The managers identify vacant position and emphasis
on recruiting as well as selecting candidate, providing training along with development programs
and employee performance to achieve business goals.
Job specification: a written statement that includes detailed information about particular
job such as working conditions, job title, job responsibilities and hence forth.
Job specification
Entity Natwest Bank
Job title Branch Manager
Job location London
Roles and responsibilities  Directing all operational activities such as human
resources, administration and customer services as per
the objectives of Bank.
 Develop forecasts as well as business plans.
 Manage budgets.
 Assess market conditions and identify opportunities
for sales.
 Share knowledge as well as address issues.
Requirements  Knowledge of management techniques.
 Familiar with banking sector regulations.
Person specification: A description of skills, knowledge, qualification, experience that a
candidate should posses in relevance to perform duties associated with particular job (Teizer,
2015).
Person specification
Person Specifications
10

Job Title: Branch Manager
Department: Human resource department
Essentials: Things required for information:
(A): Application Form and (I): Interview
Essential Desirable
knowledge Excellent knowledge of
banking sector
Knowledge of budgets,
purchasing processes and
finance.
Relevant experience 0 to 5 years
Skills  Numeracy skills
 strong organisational
skills
 Presentation skills
 Communication skills
 Willingness to learn
 Supportive
Curriculum Vitae: A summary of information of job applicant which includes
educational background as well as other details (Throsby, 2017).
Name: Christina Dsouza
Contact Number: 88954632147
Email address: [e-mail]
Objectives: To show skills in dynamic environment that will help in achieving organisational
objectives as swell as developing my knowledge.
Qualifications:
Class University/School Passing Year Grades
10th Amsterdam School 2010 A
12th Amsterdam School 2012 A
Graduation BBA 2015 A+
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Post graduation MBA 2017 A+
Experience:
Worked with XYZ Company for 2 years.
Personal skills:
 Leadership skills
 Communication skills.
Declaration: All the above mentioned information is correct as per my knowledge.
Place: London
Date: 10 July, 2018
Rationale for application of HRM practices.
HRM practices are applied in order to smoothing the recruitment, selection, training,
development, compensation as well as so on activities that results in hiring suitable candidate for
the vacant job position(Wilkinson, 2015). The rationale of HRM practices is to get exact skilful
candidate who have required skills or knowledge to attain all objectives and takes the business to
higher position in competitive environment. Such practices are important to place suitable
candidate at right position with various responsibilities along with authorities.
Evaluation of employee relations and HRM practices
According to the above discussion it has been concluded that employee relations helps in
reducing conflicts as well as solving issues at workplace. Such relation improves communication
among employees along with employers. HRM practices are applied by the managers of Natwest
Bank that results in attracting various applications, making hiring decisions, providing training
and development programmes and hence forth (Wood and Logsdon, 2017). Moreover, the
selected bank maximises profits by using such practices that influences human resource
management decisions.
CONCLUSION
From the above report it can be concluded that human resource management is required
to effectively manage workforce and to acquire suitable candidates for job positions at the time
of shortage of skills. Purpose of HRM are Staffing and Recruitment, Training and Development,
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Compliance with Law wher as Functions of HRM are Operative Functions, Managerial
Functions and Advisory Functions. HRM practices includes Recruitment and selection, Training
and development, providing security to work force, selective hiring, performance based
compensation and so on. Key elements of employment legislation are Work Time Regulations
Act, 1998, Fair labour Standards Act, 1938 and Equality Act, 2010. All the HRM practices are
effectively applied in order to achieve objectives.
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