Importance of HRM Practices in Organizational Profit and Productivity

This report discusses the purpose and functions of HRM, strengths and weaknesses of recruitment and selection approaches, benefits of HRM practices for both employers and employees, and the effectiveness of HRM practices in raising organizational profit and productivity. It also highlights the importance of employee relations and the impact of employment legislation on HRM decision-making. The case study focuses on Tesco, a multinational organization.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation......................................................................................................1
P2 Strengths and weaknesses of different approaches to recruitment and selection..............1
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee..........................................................................................................2
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.............................................................................................................................2
P5 Importance of employee relations in respect to influencing HRM decision- making......3
P6 Employment legislation and the impact it has upon HRM decision- making...................4
P7. Application of HRM practices in TESCO........................................................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Human Resource Management is defined as a process in which HRM department within an
organisation engage in the procedure of maintaining workforce performance by undertaking
different actions like recruitment, selection, training, motivation and more. This mainly aims
towards enhancing day to day performance of employees to fulfil corporate objective and goals
with great efficiency (Alomari, 2020). This report has been based on Tesco, entity operate their
business functions as a multinational organisation without having its headquartered in England
United Kingdom, by offering high quality product and services company effectively satisfy
consumer needs and demands. Present report includes discussions on purpose and scope of HRM
in addition with employee relation effectiveness and employee engagement. Along with this
report include employee legislations, job description, preparatory notes, job offer letter and CV.
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation
There are different type of function that has been taken by HR department that are
applicable to workforce planning and resources of an organisation. Functions and purpose this
unit engage in this is selection, recruitment, training and hiring of candidates through which they
can effectively manage workforce with an organisation that enhance overall productivity and
profitability of entity.
WORKFORCE PLANNING
Workforce planning defines as a procedure in which activities related to identifying need
and priority of employees required in every department within an organisation (Meyers, Paauwe
and Dries, 2020). This approach is being undertaken by Company HR manager, in this they
recruit and select potential and effectual candidates to fulfil company job requirement as to
enhance workforce strength through which profitability of entity can be significantly maximized:
PURPOSES OF HRM
 Main purpose of HRM is to make sure that employees in entity is conducting their
activities and functions in safe and secure worplace environment.
 The most important purpose of HRM is to offer adequate supervision and efficient
guidance to each and every workers and work force of company as to enhance that
motivation towards accomplishment of entity goals and objectives.
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FUNCTIONS OF HRM
Tesco HRM function is differentiated into three categories that include Cooperative
managerial and advisory
Operative Functions:
It is one of the most difficult as well as challenging function that Company HR manager
is undertaken in HRM department, as in this execution of this function require maximum number
of resources to conduct operative functions. HRM department is mainly engaged in the operation
of recruiting competitive candidates and selecting them for various job positions in entity. Along
with this in this function HR manager also engage in the function of providing proper training
and orientation to employees in order to enhance skill knowledge and compatibility of
employees with company operations. Further it has been evaluated that operating function also
includes conducting performance evaluation by HR manager to maximize employee’s
knowledge.
Managerial Functions:
This function is mainly associated with number of functions, within this HR manager is
required to develop policies as well as plans in order to align employee’s activities with entity
objectives. In this function HR manager is having most important responsibility to develop
positive workplace environment and structure through which they can provide formative
direction to employees as to align their behavioural conduct with company goals. Lastly in this
function, HR manager undertake controlling activities as to make sure that laid down plan is
executing with appropriate standards.
Advisory Functions:
This HRM function is aimed at provision of advice by HR department to top management
team for formulation of policies and plans. In addition with this HRM department act as a most
significant function within an organisation that mainly hold the responsibilities to offer adequate
Advises to head of different department as well as unit that are undertaking their role in Tesco.
P2 Strengths and weaknesses of different approaches to recruitment and selection.
SOURCES OF RECRUITMENT
Internal:
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In this recruitment process, entity mainly engaged in the hiring and selecting of
candidates through transfer and promotion. Internal recruitment is a cost-effective measure
through which Tesco can enhance moral of their existing employees. Along with this, this
approach also allows Tesco to provide number of benefit to their workforce that can further lead
towards reducing overall employee turnover ratio.
External:
External source of recruitment allow organisation to hire candidate from outside sources
of entity in which company is required to hire competent candidates from different sources
outside organisation. Through this approach Tesco can bring fresh talent and ideas and entity
workplace structure. However this approach is time consuming and expensive that requires
different type of processes.
METHODS OF SELECTION
There are various form of method of selection which is being further defined below:
Job Analysis:
It is mainly a process of collecting as well as analysing data which is related to human
requirement of job (Kaufman, 2020). It is an effective approach with the help of which
evaluation of job placement can be effectively done.
Job Description:
Job description consist information which is related to roles, responsibilities and duties that are
associated with particular form of job within Tesco. In addition with is it also have layout of
qualification and skills which are required to be possessed by an individual those who apply for
the job role.
Person Specification:
Person specification is a description that mainly contains knowledge, skills, experience,
competencies and other essential qualities as well as attributes which are required to be
possessed by an applicant in order to execute task in Tesco.
APPROACHES OF RECRUITMENT AND SELECTION
Competency approach:
In this process recruitment is mainly undertaken by an organisation by evaluating
candidate ability to develop in context to their professional experiences. With the help of this
Tesco can recruit candidates from the overall application who are having competency to
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accomplish objectives of organisation in a well defined and effective manner. With the help of
competency approach entity can eliminate bias through which the can decrease workforce
turnover. Further it has been identified that this approach cannot prove to be much reliable for
Tesco.
Contingency:
In this type of approach Tesco can hire recruitment agencies to provide them skill
qualified and potential employees for the different job roles. Contingency approach effectively
aid Tesco to get maximum number of talented individual from various sources in time effective
manner. It not only aid entity to enhance their work for strength and capability but also allows
them to conduct organisational operations with great efficiency. This approach can provide
various types of advantages to Tesco in the recruitment and selection process.
P3 Benefits of different HRM practices within an organisation for both the employer and
employee
With the application of wide range of HRM practices entity can effectively allow them to
fulfil their objectives and mission. In this practices related to recruitment, orientation, training,
development, dismissal etc are included. There are some of the certain practices undertaken by
Tesco HR manager are being defined:
HRM PRACTICES
Training & development
TESCO offer different type of training and development courses to their employees in order
to enhance their skill knowledge and performance ability. This practice is been duly undertaken
by HR Manager of company through which they are aiming to increase capability and
performance level of workers that further assist entity to enhance their overall level of
profitability.
Recruitment & selection
It is one of the most important factors that Tesco manager undertaken is to select and recruit
potential and talented candidates as to fulfil vacant job positions in organisational structure. By
conducting recruitment and selection practices effectively HR manager aim towards
strengthening workforce capabilities. 360 degree appraisal system is being also implemented as
to enhance employees performance level by appreciating their hard work.
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BENEFITS FOR EMPLOYER
In this, entity takes use of efficient practices through which they can further ensure
organisation to accomplish their objectives and goals in time effective manner.
Timely attainment of objectives:
By taking advantage of different training and development courses HR manager of Tesco
can enhance performance level of employees which further lead entity to accomplish their
operations and goals from company in more efficient way.
Raised profitability:
By taking advantage of flexible working practices employees and employers can get
number of advantages (Iqbal, 2020). In terms with employees, they can perform their job role
with flexibility and comfort that further lead them to enhance their efficiency. While if it is
talked about employer, flexible working practices allow them to get maximum results in time
effective manner.
BENEFITS FOR EMPLOYEES
Enhanced productivity: By offerings continuous training and development to employees
Tesco can increase overall productivity level of employees that further lead entity to gain many
benefits.
Training and development: This is one of the most important benefits that employees can
get, as in this they get opportunity to increase their skill and talent through which they can
perform their roles and responsibilities with more effectiveness.
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity
HRM practices allow an organisation to develop a plan through which they can enhance
performance as well as efficiency of employees. In context to this HRM practices undertaking by
HR manager of Tesco is given below:
Recruitment and selection process:
This process is mainly associated to evaluation of job vacancy, proper review of
application, evaluation of Job requirement and hiring in selecting potential candidate. In this HR
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manager of Tesco by taking advantage of Giri approach to recruit candidates can enhance
strength and potential of their workforce.
Development and orientation:
Respective organisation offer different form of development and training courses as well
as program to employees. It has been evaluated that weekly training sessions to enhance skill
and knowledge of employees is been provided to them as to make them compatible with any
change that company bring. This enhances job satisfaction among workers through which entity
increase the overall productivity and profitability.
P5 Importance of employee relations in respect to influencing HRM decision- making
Employee relation play key essential role through which an organisation can enhance their
overall profitability and productivity at great extent. Tesco HR manager by sharing efficient
relationship with their employees can create a positive workplace environment. This will
significantly aid entity to gain maximum number of benefits. Importance of employee relation is
being mentioned below:
Organisational culture:
Making improvement in organisational culture is one of the most important aims of
Tesco. This can be only fulfilled by maintaining and establishing efficient relationship with
employees (Ahammad, Glaister and Gomes, 2020). In this entity can create a two way
communication process through which employees can share their views, perspective with
subordinates and can conductor roles and responsibilities by having proper understanding of their
functions it help in creating a better organisational culture.
Promote positive behaviour:
Employee relationship is an essential aspect of Human Resource Department with the help
of which they can enhance employee productivity on daily basis through which entity can
enhance their profit earning capability. HR manager within Tesco aim towards promoting
positive attitude with workers for this they can formulate soft bond with employees through
which they can enhance their satisfaction level towards their job role. In addition to this entity
can also take advantage of sociological approach through which Tesco can make their employees
work in a free manner in context to their roles and responsibilities.
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P6 Employment legislation and the impact it has upon HRM decision- making
Employment legislations include different type of legal obligations and laws that are
required to be enforced by an organisation in order to conduct their organisational activities
under legislations framed by government authorities and institutions. These laws are being duly
framed by government to provide significant protection and right to each and every employee in
workplace structure (Yu, Wong and Fynes, 2020). In relation to Tesco it is essential for entity
HR manager to have proper understanding of all the legal legislations, regulation and laws that
are required to be abide by company as to provide safe and secure workplace environment to
their employees. It enhances employees feeling of security and belongingness that effectively in
hands their productivity:
Sex discrimination Act, 1975:
By enforcing this law in entity workplace premises Tesco manager can assure equal right
and treatment for all the employees irrespective of their sex (Armstrong and Taylor, 2020). This
law has been framed by governments through which they duly force an entity to make sure that
employees with any gender get equal opportunity, right, benefits in company. With the execution
of this law Tesco can provide positive workplace environment to their employees that enhances
overall productivity of entity.
Anti discrimination Act:
According to anti discrimination act it is essential for HR manager of Tesco to make sure
that all the employees get equal opportunities according to their performance during the time of
appraisal. With the application of this law Tesco can remove favouritism in their workplace
structure and can provide equal treatment to all the employees at the time of appraisal and
promotions in accordance with their hard work.
Work and family Act:
Tesco perform their operations at wide scale and is having different type of departments
within it. The law of work and family act proves to be very beneficial for both employees and
entity as through this act Tesco can provide basic facilities for employees to take care of their
families. It automatically leads towards enhancing sense of belongingness among them that also
enhances their loyalty and morale towards organisation. Elements such as maternity benefits,
separate premises for women workers in entity for baby feeding and other advantages to
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employees can allow Tesco to increase daily basis performance and motivation of their workers
at great extent.
P7. Application of HRM practices in TESCO
There are several human resource management practices that are pertinent to an organisation.
Out of these, the most prominent one is recruitment and selection (Crawshaw, Budhwar and
Davis, 2020). Some of the practices related to recruitment and selection are clearly conducted
below:-
Job Description for Finance Assistant
JOB DESCRIPTION
Company: TESCO
Function: Finance
Designation: Finance Assistant
Job Type: Full Time
Salary: £35,000
Location: London, UK
Job Purpose:
Provide support to the Finance Manager to record, maintain and retrieve financial details of the
company.
Responsibilities:
 Records, maintains and monitors the financial transactions on a regular basis.
 Reconciling the financial statements.
 Maintains the financial files and records on a daily basis.
 Give day end report to Finance Manager of the company.
 Giving end of the day reports to the Head of Finance Department
Interested individuals can submit their resume by sending a mail on [e-mail]. For any
queries, call on 022-333-44455.
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Thanks and Regards
Head of HR Department
TESCO UK
Person Specification for Finance Assistant
PERSON SPECIFICATION
Name: CDE
Contact No.: 044-125-4644
Email Id: [e-mail]
Address: ABC Street, BCD City, United Kingdom
Position: Finance Assistant
Professional Summary:
Professional having 1 year experience in the field of finance and having impeccable
communication and leadership skills.
Key skills and knowledge:
 Financial knowledge
 Impeccable communication ability
 Problem solving Team working
Professional Experience:
Company: KLM Ltd.
Tenure: 1 year
Designation: Finance Associate
Educational Qualification:
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PG: MBA (Finance)
XX University, United Kingdom
Year: 2018
Preparatory notes for interview for Finance Assistant
Applicant Name:
Panel No.:
Vital Criteria
Educated to degree level or equivalent
Notes
Experience in the field of finance
Acquainted with the terminology and key concepts of finance
Impeccable interaction skills
Ability to work in critical situations involving spot decision
making
Capable of dealing with financial transactions effectually
Knowledge of the ethical and professional duty as an individual
working in the field of finance
Ability to identify and report financial issues in the company
Desirable Criteria Notes
Post Graduate in Finance
Thorough knowledge of accounting terminology
Interview for Finance Assistant
1. Give a brief introduction about yourself and your background.
2. Do you hold any experience in the field of finance?
3. What are the qualities that make you appropriate for this job vacancy?
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4. What are the 3 Golden Rules of Accounting?
Job offer for selected candidate as Finance Assistant
Job Offer Letter
TESCO PLC
XX Street, London, UK.
June 22, 2020
Dear ABC
This is to inform you that you are hired as Finance Assistant for TESCO PLC. It is a full time
job. You will be on probation period for the first 3 months where your performance will be
reviewed. Your gross annual salary is $XXXXXX. You will have the access to all the benefits
and compensation of a full time worker after the elapse of your probation tenure. You are
required to submit your educational and professional qualification verifying documents. In
case you have any queries regarding the job title or employment offer, you can send a mail to
[e-mail] or call at 099-888-7777.
Thanks and Regards,
ZZZ
Head of HR Department
TESCO PLC
CONCLUSION
According to the above mentioned report it has been concluded that human resource
management play most important role within an organisation as this unit have a responsibility to
manage employees those who are performing their operations in entity workplace premises.
Employees are considered as main source of revenue generation thus, it is essential for an
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organisation to develop effective relationship with them by offering them many benefits,
compensation, positive workplace environment. It will not enhance their daily basis performance
and productivity but also facilitate entity to generate maximum profitability and market share
holding. However this is essential for HR manager to consider employee legislation and laws and
enforce them effectively to conduct their business operations in feasible and efficient manner.
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Meyers, M.C., van Woerkom, M., Paauwe, J. and Dries, N., 2020. HR managers’ talent
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