Human Resource Management: Purpose, Function, and Benefits

This document provides an overview of human resource management (HRM) in the context of planning and managing resources. It explains the purpose and function of HRM, strengths and weaknesses of different recruitment and selection approaches, benefits of HRM in organizations, and evaluates the effectiveness of HRM practices in terms of profit and productivity. The document also analyzes employee relations and their influence on HRM decision making.

Human
Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the purpose and the function of HRM applicable in planning and managing
resources......................................................................................................................................1
P2 Explain the strengths and weakness of different approach in recruitment and selection......2
TASK 2............................................................................................................................................4
P3 Describe the benefits and of HRM within organisation.........................................................4
P4 Evaluate the effectiveness of HRM practises in terms of profit and productivity.................5
TASK 3............................................................................................................................................6
P5 Analyse the employee relations in respect to the influencing the HRM decision making....6
P6 Identify the key of elements of employment legislation and the impact on decision making
process.........................................................................................................................................7
TASK4.............................................................................................................................................8
P7 Illustrate the practises of HRM in organisation.....................................................................8
Conclusion.....................................................................................................................................10
.......................................................................................................................................................10
References .....................................................................................................................................12
Books and Journals.......................................................................................................................12

INTRODUCTION
Human resource management is procedure of controlling and managing employees in a
well defined manner. There are various function HR department such as recruiting, hiring, and
deploying workers at their assigned job (Bratton, and Gold, 2017). A organisation have HR
which is usually responsible for creating, and putting effort in developing effective polices to
govern workers and maintain the healthy relations with the employees. In this present report,
Merrill Lynch is a prime company on which this report has been conducted. It is an financial
consultancy firm which also provide banking services to their customers. It explain about the
different function of HRM and their strength as well as weakness while recruiting employees.
Further it explaining benefits of practices of HRM and evaluating effectiveness of various HRM
in the terms of profit. At last report covers about application of the HRM practises in
organizational context.
TASK 1
P1 Explaining purpose and the role of HRM which is applicable in planning and managing
resources
Human resource management is a department where manager have the responsibility in
developing sustainable business model which help in growth and profit maximization. It also
have different operational functions such as training, selection and provide development
programmes to employees. HR manager of the Merrill Lynch should maintain the polices
regarding Management and its operational activities so that employees may improve their
efficiency while performing their task.
Aim of the human resources management
Important purpose of the Human resource management coordinates among various
department. This help in developing the proper communication within employees to perform
their activities smoothly. HR have to look after employees work , if necessary provide them
training to enhance their skills which help in gaining larger profit and improved market share.
For the company like Merrill Lynch manager should take proper feedback from their employees
so that quality steps can be taken for further improvement in organisation. The HRM focus on
developing the job satisfaction for employee and for retaining them for a long time period.
Role of HRM in the planning workforce
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It is the department where internal part of any organisation who look after employees and
their work related activities. This function help in developing the quality environment where
employees can work effectively. There are important function of HRM which are explained
briefly down below:
Recruitment and selection: Recruitment and selection is process of the screening,
choosing, and captivating the potential employees who can fit for particular job. The main aim of
the procedure is to attract more eligible candidates and then encourage people for perform their
best. For the HR manager of Merrill Lynch it is important to have best employees in their
company because it increase efficiency and cater the resources effectively. It also facilitate
manager to hire right candidate in less time without spending much resources. Before starting the
process of recruitment, HR must make structure plan to and forecast the budget as per the
requirement.
Orientation: Many organisation does not grow through the process of orientation for the
new employees. The orientation is known as the fundamental step to assist new joining to
familiar him or her with his job role. In the context of the company it is essential for the HR to
conduct orientation programme when there is new joining which help in gaining insight
regarding the roles and responsibilities as well about company. Sometime HR of Merrill Lynch
should give intensive orientation to employees so they understand the job effectively.
Maintain good working relations: It is essentials for any organisation to provide good
working conditions for the employees. In regard of Merrill Lynch it is crucial for company and
for Human resource department to make healthy workplace. It is fundamental duty of the HR to
motivate worker so their can bring out their best and perform effectively. The HR department of
Merrill Lynch should come up with the system to provide monetary as well as non monetary
benefits to employees which help in maintaining good relation with employees.
Compensation and Benefits: Merrill Lynch is provide benefits to their employees so
that it will create sense of importance in minds of the employees. HR have duty for looking after
employees performance and provide benefits accordingly.
P2 Explaining strengths and weakness of various approach in the recruitment and selection
For the organisation selection and recruitment process plays an vital role for hiring best
talent from the market. The HR of Merrill Lynch should develop an effective way to hire new
employees for job role. As selection and recruitment process is a costly process so in this case
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proper planning must be done to to minimize the cost of recruiting and selection. The recurrent
of employees can perfrom internally as well as externally also. Internal selection are done
through for transferring the job role, position and employees referrals. Where as external
recruitment can be done for any vacant position. Here are the internal sources explaining about
their strengths and weakness for the organisation are describe below:
Strength Weakness
 It help in improving the employees
moral as well confidence.
 There is no requirement of providing
training and development programmes.
 It help in generating healthy
relationship with employees.
 It generate grievances among
employees.
 Skills and talent employees does not
contribute to the business.
 It develop emergency of vacant
position.
The external source of recruitment have their pros and cons for both employees and for
company which are explained down below:
Strength Weakness
 It help in hiring the fresh talent from
the market.
 It reduce the internal politics and create
a healthy environment.
 This help in hiring the experienced and
hire qualified personnel.
 It is consider as time consuming
process.
 This generate conflicts and disputes
within existing employees.
 Higher level of risk is involved.
HR manager of the Merrill Lynch is implementing different method for hiring the best
suitable employees for the organisation. The manager should choose the efficient way for
recruiting and selecting process as this is very time consuming and costly process. There are
various method in which HR manager may choose different method which are described down-
Application of the forms and CV: HR manager can use applications well as CV for
hiring the employees for the company. Application is the initial stage where candidate are
screened by the HR and where as CV is the formal document of employees in which all the
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crucial information such as qualification and experience of individual is written down there. HR
hire the employees by looking out the curriculum vitae whether the employees are fit for the
specific role.
Interviews: This is the method which is widely used by the recruiter while hiring the
new employees for the specific role. Merrill Lynch manager should develop the effective way for
taking interview as they consume more time and are expensive in nature. As interview include
different stages of HR must focus on developing proper way for taking interview and find right
candidates for job.
TASK 2
P3 Describe the benefits and of the HRM among organisation
Human resource professional have ability to figure out the ability of candidates and their
skills which are helpful in developing the organisation profit and growth. Nowadays it is
considered that employees are most valuable assets of company (Vanhala, and Ritala, 2016).
Merrill Lynch HR have major responsibilities in managing the employees and make the
coordination among the various department for doing task effectively. The HR play an vital role
in controlling the communication among department so that decision are taken effectively. For
every successful company lies the human resources department and here are benefits of human
resources which are explained briefly down below:
Improve employee turnover: It is essential for every company to have effective
employee turnover to gain higher revenue margin as well as exponential growth. As it is prime
responsibility of the human resources professional for hiring right candidates for the Merrill
Lynch. This will facilitate the HR of Merrill Lynch to ensure the skills of people and identify
whether they are fit for organisation culture. To improve employee turnover it is important to
provide right compensation and monetary benefits too.
Conflict resolution: It is the major problem which occur in every organisation. Here
come the role of HRM professional of Merrill Lynch to resolve the conflict of employees
internally in less time. HR should handle the conflict in the workplace and find our the way to
resolve it. It is responsibilities of HR to handle the situation professionally as possible because it
help in developing positive environment within Merrill Lynch.
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Employee satisfaction: Human resource are responsible of taking charge of determining
the employees satisfaction so they retain as long in the company. In circumstance of the Merrill
Lynch it is responsibility of HR to provide every possible help to their respective wokers so that
satisfaction level can be achieve by the company in well defined manner. As employees are
considers the most venerable assets for the company so it become crucial for availing all the
monetary to workers to meet the satisfaction level.
Training and development: Human resource department have to provide development
and training programme so that workers capabilities and skills of doing task can be increased in
professional manner. Merrill Lynch HR manger must conduct weekly or monthly training and
development programme so that company productivity may increase which leads towards profit
generation and market growth. This will enhance the workers confidence as well as morale in
team building so that employees may perform effectively.
P4 Evaluating effectiveness of HRM practises in terms of productivity and profit
It is method which help in examining direct relationship among HR and company. There
are several activities which are performed by the HR are like career management, performance
appraisal, reward, bonuses etc. It is core responsibility of the HR manager to provide safe and
secure environment in the organisation so that employees feel safe and sustain for a longer
period of time (Hassan, 2016). The business entity should provide Monterey benefits such as
bonus, and incentives to motivate employees to perform their task effectively. The HRM
practises involve 360 degree performance review so that Hr can get the proper feedback of
employees regarding their job roles and performance. This method will help to make proper
decision about their job roles and make changes if needed. In the context of Merrill Lynch, there
are some of the essential HRM practises which can taken into account for Hr which are stated
down :
Compensation and pay Management: Compensation and pay is the process where
budget and revenue are measured in a well defined manner. For Merrill Lynch it is important to
have effective pay polices which help in enhancing the employees moral to will give give it best
for the company. Compensation must be granted to the employees so they have sense of
worthiness in organisation. This will help in having trust of employees and it individual will
sustain in a company for a longer time period.
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Selecting and the administration benefits: Organization have various kinds of the
profit to their employees so they are concerned about workers safety. There are different kind of
benefits which are life insurance health insurance and flexible spending accounts. It the major
responsibility HR for availing all this services to their employees and make sure that every one
gets benefited from this.
Recruiting and selecting: It is process where worker gets chosen on basis of their skill
and talent. Here comes the Hr who have the responsibility of hiring the employees which are best
fit for the job role. For company's, HR manager could hire the best worker for their organization
because skilled and talented employee will be helpful in saving time and resource of company.
Legal and the regulation compliances: The organization must have follow all the rules
and regulation which are made the company as well as government. There are certain regrading
the employees such as medical leave act, family law, labour law etc. HR manager of Merrill
Lynch must use aware about all the law and provide benefits to their employees.
TASK 3
P5 Analysing employee relations in the respect to influencing the HRM decision making
Employees relation is important is very aspect in company in order to accomplished task
in effectively manner (Cook, 2016). For achieving organisational goal and objective it is crucial
to build the proper relation with employees. Non of the task can achieved if there is no
communicate and a healthy relation is present the culture of Merrill Lynch. For the regular
growth and expansion it is important to have healthy relations between employees and manager
this will result in quality work and provide ample amount revenue to company. For company,
various HR decision which can be explained in brief down below:
Preliminary Evaluation: It is crucial to take important steps before making decision this
will reduce uncertainty in organisation. Explaining prior the role and responsibility of individual
may convey clear information about their task which employees have to perform. In
circumstance of Merrill Lynch it is crucial for the manager could briefly explain the
responsibility as roles of the particular employee. This will ease for manger and employees to
understand their work easily and effectively. It also help in reducing the conflict regarding the
job role and individual can perform their activities in well defined manner.
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Employees grievances: Every organisation in the world have employees grievances
because misunderstanding occur anytime. Company can reduce these grievances by taking
effective measures and sought out the problem. Grievances leads to slow down the process and
efficiency of employees as well as company. So management of Merrill Lynch should take try to
make chaos free environment so that it reaches to the maximum level of profitability. The Hr
must have problem solving attitude because they are the individual in the company who have
direct contact with employees.
Work and work load distribution: It become a problem when workload is distributed
among the employees. As individual have their own responsibilities and assigned task which
they have to complete in given time frame. So HR manager of Merrill Lynch have the key role to
distribute the work equally so that they can achieve their target effectively. It also influence the
employees while HR take any decision regarding employees. So management team should not be
bias in taking decision or while making policies so that employees to make a bond with
employees.
As per the above discussion, Merrill Lynch HR should focus on creating positive
environment as well as healthy relationship with employees as to perform task effectively. It will
help organisation to expand their business rapidly in minimum time period. It is also essential to
provide monetary benefits to their employees because it motivate employees to achieve
organisational objective.
P6 Identify the key of elements of employment legislation and the impact on decision making
process
Employment legislation is law which is enforced by the government for the organisation
to avail all benefits to their employees. It have the direct effect on the employer and also on
employees. Human resource department should proper use of each and every law so that
employees and worker who are working in the organisation can have benefits so that they can
achieve their aim and objectives effectively. There are several laws which HR department should
implemented and follow such as employment law, discrimination, labour law and family and
medical law. In the context of Merrill Lynch there are laws which are explained below:
Health and safety act : The health and safety act was implemented in year 1974 and it is
also known as legislation governing the various health and safety rules in organisation. For the
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company like Merrill Lynch HR is responsible for managing the health and safety work in
company. Management have duty to look after their employees who are working in the
organisation ans this also help in retaining employees for a longer a duration. There are various
safety rules such as company should provide proper equipments should be provided to
employees while working at workstation. This reduce theft while performing any business
activities.
Equal pay act: this is the act which was implemented in year 2010, where employees
have right to avail equal pay for both men as well as women. This act covers Monterey aspect for
individual and regulates the payment in each and every organisation. The HR team of Merrill
Lynch have to follow all the rules and regulation of equal wages act so that employees of
company may have equal rights and of money. The HR should not be bias and should pay equal
wages regardless of any gender.
Labour standard act: It is also govern by the federal law which look after the minimum
wages law, overtime, pay eligibility, record keeping and child labour in different sector such as
private and governments (Chowhan, 2016). This act was passed in 1938 and since then it have
change as per the environment and requirement of employees. All labour and their union comes
under the labour act. Merrill Lynch is responsible for introducing fair labour law for their safety.
This law cover payment, health insurance etc. . The HR must ensure that labour get all the
services on time effectively.
Family and medical leave act: This act was came in picture in 1993 where company
provide safety to the family of employees who are working in the organisation for longer time
period. This act covers various security such as job protection, unpaid leave and medical
insurance for family. For the Merrill Lynch it is important to provide all the befits to employees
family because it create trust of employees towards company.
TASK4
P7 Illustrate the practises of HRM in organisation
Human resource department have different practises which involve various course of
action universally (Buller, and McEvoy 2016). The best practice of human resource is
employment security. It is duty of HR to ensure the employees have job security so that
employees can sustain for longer time period. Another practise include hiring the right
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candidates for the job. It is important for manager to choose the best talent so that employees can
perform effectively which result in expansion and revenue generation of employees. Further
practises include self management and making effective team so that employees can work can be
done on time with considering quality. Hr of Merrill Lynch needs to encourage different team so
that each one can perform their activities in time period. Here are some HRM practises which are
explained down below in brief:
Curriculum Vitae:
It is also known as CV (Curriculum Vitae) it is a detailed document highlighting the
individual professional and academic history. It typically include information like work
experience, achievements and awards, scholarship and other circular activities. Every company
asked for the CV and candidates must make it attractive so that HR can hire or call for interview.
Here is the sample of CV which is stated down below:
Personal Description
Name : ABC
Address : Baker street, City, UK
Contact No : 033-333-11211
Email id: [e-mail]
Career aim: To improve my skill and knowledge based to achieve higher success in future. To
work with an institution where I can develop my career and work in a quality environment.
Experience: 6 years in teaching in human resources subject.
Qualification
Educational Qualification University Percentages
MBA (Specialisation in HR) Stanford university, London 80.00%
Bachelor in business
administration (BBA)
Harvard University, London 72.00%
Functions and Duties
 Providing effective training and development t programmes for employees so that they
can perform better in future.
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 Making polices which can be benefited to employees as well as company.
 To work in coordination with HR team to gain knowledge of the latest policies and
procedures of company.
Knowledge Areas
 MS Excel
 Power Point
 SPSS
Private details
Date of Birth- 14 August, 1989
Languages Known: English, French and Mexican.
Interests : Reading books, adventure sports and Riding bike.
M1 Identification and explanation to the functions of HR for fulfilling the business
objectives-
There are many functions of HR which are helpful in gaining the business objectives.
Some of them are recruiting and training which is helpful for Merrill Lynch to recruit the right
talent for company so that they can gain the huge profit and revenue for company. By record
keeping and maintaining employee relationship company can attain their objectives effectively
and thus easily compete with the rivals in market.
M2 Evaluation of strength and weaknesses of approaches to recruitment and selection
process-
The major strength and weaknesses of external source of recruitment are that it allow
company to hire the fresh talent but along with that the company had to train that new employee
which could cost company (Bratton, and Gold, 2017). The another strength and weaknesses of
internal selection are that the intentionally talented peoples are promoted on higher post and
other it creates a biasses among the co-workers and new talent has been bounded to be recruited.
D1 Critical evaluation of the strength and weaknesses of approaches to selection and
recruitment-
The strength and weaknesses of recruitment approaches could have positive impact on
the Merrill Lynch as the new and skilled talent could be selected from vast empire of talent and
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further it could raise company's expenses. The internal selection approaches could have negative
and positive impact as well it could be helpful in enhancing the confidence and morale among
the employees and could also create conflicts and demoralisation among the other employees.
M3 Exploring various methods which are used in HRM practices-
The various HRM practices which are used by the Merrill Lynch are safety, healthy and
happy workplace as by this HR department of the company renders their employees with the safe
and healthy work place environment so that they can work in the positive attitude towards
achieving the goal and objective of company effectively (Hassan, 2016). The fair evaluation
system is used by company so that employee do not feel demoralise and demotivate each
employee with the talented skills are being promoted further on the basis of their work
performance.
M4 Identification of key aspects of employee relation managements and employee
legislation-
It is very important for the Merrill Lynch to maintain employee relationship so that they
motivate and encourage the employee for attaining the company's objectives. The company
should have their employee relation management they must provide rewards and incentive to the
employee which is helpful in motivating the employees. The employee legislations are helpful in
safeguarding the employees at workplace and thus they could have a positive attitude towards the
workplace and company.
D3 Critical evaluation of employee relation and the application of HRM practices which
informs and influence decision-making in the organizational context-
If there is the good employee relation and application of HRM in the Merrill Lynch than
the company can have right decision-making and could adopt the good business practices and
grow in the market (Cook, 2016). The company can also compete with rivals in market. If
company can have negative impact and application of HRM than they could demotivate the
employee and couldn't maintain the employee relation thus the production and operation of
company may affected adversely. So the company can suffer from losses.
M5 Providing a rationale for application of specific HRM-
It is very useful for Merrill Lynch in maintaining the good employee relationship among
the employee and employers. The company can motivate and encourage their employees with the
help of rewards and incentives to their employees. The positive employee will be fruitful for the
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growth of company and thus they gain huge revenue and profit and goal and objective of
company can effectively attain by company.
Conclusion
For the above report it has been analysed that Human resource department is essentials
for every organisation to have effective HR policies so that company can operate its business
activities smoothly. In the regards of Merrill Lynch it is crucial that HR should have
interpersonal skill which will help him or her to handle the situation in well defined manner. It is
also essential for HR department to make healthy relationship with employees so that result in
making quick decision which are useful for company. At last Merrill Lynch have to follow every
laws and regulation to ensure that every employees can avail benefits.
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References
Books and Journals
Buller, P. F. and McEvoy, G. M., 2016. A model for implementing a sustainability strategy
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Chowhan, J., 2016. Unpacking the black box: understanding the relationship between strategy,
HRM practices, innovation and organizational performance. Human Resource
Management Journal. 26(2). pp.112-133.
Cook, H., MacKenzie, R. and Forde, C., 2016. HRM and performance: The vulnerability of soft
HRM practices during recession and retrenchment. Human Resource Management
Journal. 26(4). pp.557-571.
Donate, M. J., Peña, I. and Sanchez de Pablo, J. D., 2016. HRM practices for human and social
capital development: effects on innovation capabilities. The International Journal of
Human Resource Management. 27(9). pp.928-953.
Farouk, S. and et. al., 2016. HRM practices and organizational performance in the UAE banking
sector: The mediating role of organizational innovation. International Journal of
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Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
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Lu, K., Zhu, J. and Bao, H., 2015. High-performance human resource management and firm
performance: The mediating role of innovation in China.Industrial Management & Data
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Marchington, M. and et. al., 2016.Human resource management at work. Kogan Page Publishers.
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