Strategic HRM and Organizational Performance

This assignment delves into the crucial relationship between strategic human resource management (HRM) and organizational performance. Students are tasked with analyzing various theoretical frameworks and empirical studies that examine how HRM practices influence organizational outcomes. Key topics include workforce differentiation, talent management, and the mediating role of psychological ownership in knowledge sharing. The analysis should consider both micro and macro perspectives, highlighting the impact of strategic HRM decisions on individual employee behavior and overall organizational success.

Human resource
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions of HRM applicable in workforce planning..........................................................1
P2. Evaluating strengths and weaknesses of different types of recruitment and selection
process.........................................................................................................................................2
TASK 2............................................................................................................................................5
P3 Advantages of HRM for both employee and employers.......................................................5
P4 HRM practices for increase organisational profit and productivity.......................................7
TASK 3............................................................................................................................................8
P5 Analyse the importance of employee which influence HRM decision making.....................8
P6 Element of employment legislation and impact of HRM decision making...........................8
TASK 4............................................................................................................................................9
P7 Evaluate HRM practices in work location.............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human-resource-management is considered as one of the most important functions
performed inside an McLaren. It acts as the backbone of any firm. It is a process in which
employees are managed in a proper manner. It includes processes like recruitment, selection,
placement, training and development, motivation, compensation and many more. It performs
functions of improving productivity and performance of employees inside the firm. Various
types of HRM practices are applied by the company through which they try to improve employee
relations, increase productivity profitability of employees as well as the company. . HR
professionals are hired by company to perform these activities and they are responsible for
maintaining healthy relations at workplace (Alfes, 2013). Company which will be referred here
is McLaren technology group. It is a British based conglomerate firm working in various sectors
like technology, consumer electronics, formula one, food and restaurants, etc. In this report,
purpose and functions of human resource management in McLaren will be studied along with the
key roles and responsibilities of HR functions, benefits and effectiveness of HRM practices,
importance of employee relations and key elements of employment legislations will also be
included in the report.
TASK 1
P1. Functions of HRM applicable in workforce planning
Human resource management is a process of bringing employees and McLaren together
so that each of their goals are met. It helps in improving employee’s performance and also in
satisfying the needs and demands of customers. It is considered as an important factors which
helps in solving employee issues and making sure that these issues will not arise again. HRM
helps in managing all the activities of management and improving employee’s engagement in
McLaren. McLaren; being one of the top most conglomerate companies in UK is having many
subsidiary companies and hence, they will need big HR department i.e. with many employees to
handle so many subsidiaries they are having (Armstrong, 2014).
Purpose of human resource management:
1. It supports McLaren in achieving the business objectives.
2. It helps in developing a way of thinking that will be applied in McLaren while any issue
is evolved.
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3. It makes sure that HR practices are properly followed by employees McLaren in
McLaren and are being mutually accepted by them.
4. It also helps in improving the productive contribution of people McLaren in McLaren in
various ways that are strategically, ethically and socially responsible (Bloom and Van
Reenen, 2011).
Functions of HRM:-
Main functions that are performed by human resource management in McLaren group
are:-
1. Manpower planning: - It is one of the most important functions that is performed by
HRM McLaren in McLaren because manpower is very important for conducting
activities McLaren in McLaren (). If employees will not be there then work will not be
completed in McLaren. It helps in determining the manpower requirements inside the
company and the means for meeting those requirements also is determined by them. If
this planning is done properly then it will lead to reduction in employee’s turnover rate
and reduce absenteeism in McLaren as well.
2. Recruitment and selection of employees: - Recruitment is conducted by organization to
hire the best and qualified candidates for job vacancy. It is very important for McLaren
for McLaren to recruit right person at the right job and also, at right time. In this process,
applications are brought in by HR department and ends with selecting of the best
employees. Recruitment can be done by internal sources and external sources.
3. Employee’s education, training and development: - It is the process of learning
programs of McLaren that will help in improving knowledge and skills of employees for
performing a particular job. Normally, training is provided to employees who are newly
employed in an McLaren (Boxall and Purcell, 2011). They are being taught ways in
which they have to perform their tasks. Proper instructions, coaching and guidance is
given to them so that they can handle their jobs effectively.
4. Compensation and benefits: - Compensations are the form of remunerations that are
received by employees in return of contribution that they give in McLaren. It is
considered as an important part of human resource management because it helps in
motivating employees and improving McLaren effectiveness.
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5. Training and Development – This department s responsible for providing good training
to the employees who have just joined the office. This is done so that the employees gain
all the skills that are required to be in them for giving good performance in the company.
This helps in increasing the productivity of employees as they are getting to learn new
skills . So, if in McLaren any new employee is joining the office then they should be
given proper training development so that they get ready for the job.
P2. Evaluating strengths and weaknesses of different types of recruitment and selection process
Recruitment and selection process is one of the most essential processes conducted in
McLaren in McLaren . It is a process in which the best candidates are selected from the pool of
applications received by McLaren for a particular post (Bratton and Gold, 2012). Most of the
managers things that conducting selection process is one of the critical decision functions in the
McLaren . Here, managers actually tries to m,arch the knowledge and skills of employees with
the requirements of job and the one which is perfectly matched is selected. There is no single
selection process that is considered perfect for an organisation as there are variety of processes
available.
Various approaches that are used to recruit and select employees in McLaren are:-
1. Internal sources: - In this approach, employees are selected from within the McLaren.
Various ways in which internal recruitment can be conducted are like Job posting and
bidding, promotions and transfer, employee referrals and re-recruiting former employees.
This method helps in improving the morale of employees and this will help company in
assessing the abilities of existing employees in a better way. This method is considered to
be cheap.
2. External sources: - It is a method in which candidates are selected by using external
tools of recruitment. Few of them are like through campus recruitment, newspaper article,
media sources, etc. Through this method, company employs fresh talent who do not hold
any experience in the job for which he has been selected. It is considered as a costly
process because here, proper training is required to be given to employees to enhance
their skills.
3. Third party sources: - In this, placement agencies and head-hunters are given with the
responsibility to find qualified candidates for the job positions available. They use
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various tools and techniques to find the perfect candidate for company (Buller and
McEvoy, 2012).
Strengths and weaknesses can be described as :-
Approaches Strengths Weaknesses
INTERNAL
RECRUITMENT
4. It helps in reducing the
cost of employing new
employees in the
organisation .
5. Here, the correct view
of candidate's skills is
known to company so
there is no need to
further investigate
6. The employee becomes
more committed in their
work because of this
promotion,
7. Less training is required
by these employees.
8. Through this,
employee's performance
is also upgraded because
of the satisfaction they
have got after promotion
reflects in their work.
9. The applicants who did
not get through feels bad
and dissatisfied,
10. It is generally for limited
no. of candidates so
everyone cannot grab
this opportunity.
11. It stops entry of new
talent in the organisation
which is not good
because every company
needs new ideas.
12. Sometimes, the post
which is vacant is not
suitable for the
employees currently
working so internal
recruitment is not
possible .
13. Nepotism and
favouritism is very
common in this method
of recruitment which
does partiality with
other employees.
EXTERNAL  In this, new blood enters  It demotivate the
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RECRUITMENT the company which is
very good because they
come with lots of new
ideas can be useful for
organisation's growth.
 This method is very
simple and adoptable
without any issues.
 In this type of
recruitment, large no. of
candidates can apply
which gives the
companies more options
to choose the best
among them .
 Here, generally the job
profile and type is
prescribed therefore the
candidates select and sit
in interviews as per the
profiler itself.
 It helps in avoiding
ripple effect in the
employees which means
that the employees who
are working currently
will not get promoted if
there is vacancy .
 It also helps in
expanding knowledge
base of the company
internal employees
because they feel that
they did not get the
opportunity to grab this
job.
 It is a costly process for
organisation because
lots of activities are
conducted in this
process of recruitment.
 The company doesn't
know anything about the
employees which is a
risk which the company
takes while recruiting
the person.
 It is a very long process
which takes much time
of the employer for
selecting, interviewing
and finalising the
candidate for the job.
 Candidates who are
selected sometimes
takes time in adjusting
inside the company.
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which acts as a positive
factor.
Some of the Negative impacts of Internal Recruitment are -
 In this type , same employee is getting g promoted again and again so other employees
feel dejected and dissatisfied. This reduces their creativity and interests of performing
good inside the company.
 Another negative impact is that the employee who is transferred to different department
will have to be trained again and again , it increases the work of company and also
pressure on employees.
Some of the Negative impacts of External Recruitment are -
 In this the negative point is that the candidates who are hired from outside can not be
ttrusted all of a sudden and company can not share any confidential information with
them as they have a fear that it can be leaked.
 This method involves huge cost as it is a lengthy process but there is no guarantee that
employee will leave the company as soon as they are hired. There are many cases when
employee gets hired but they leave the company as soon as they join it. This brings huge
loss to the company.
TASK 2
P3 Advantages of HRM for both employee and employers
There are various practices that are used by human-resource-managers for conducting
activities of organisation in an effective way. These activities helps in improving business
operation and achieving target goals of the company (Guest, 2011). It also takes care that proper
employee relations are being maintained in an organisation or not These practices provides
various types of benefits to McLaren and its employees as well (Han, Chiang and Chang, 2010).
BENEFITS TO MCLAREN: Benefits of HRM practices for the organisation are as follows:-
1. Developing employees : HRM practices tries to satisfy employees and encouraging to
contribute in the activities that re being conducted in an organisation. If employees will
be satisfied then their productivity will be improved which will benefit company by
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increasing their competitive advantage. So, in order to increase he efficiency of company,
they will try to improve skills of employees.
2. Promoting positive behaviour : After implementing HRM practices in an organisation, if
employees are happy and satisfied then a positive environment is created inside an
organisation. A successful organisation always tries to maintain a positive working
environment in an organisation and McLaren being one of them is doing the same in their
company.
3. Building flexible workplace : HR managers always tries to maintain a flexible work
environment in an organisation for the employees by priovidingt them good facilities,
flexible work schedule, smooth work teams perfect work location and good
communication structure. If workplace is flexible then employee retention can be reduced
and it will be considered as benefit for the organisation.
4. Motivating workers : Managers are hired by company to manage workers of company
effectively. The HRM practices that are implied by these managers will motivate
employees and make them realise their actual worth and capabilities so that they perform
well in an organisation (Han, Chiang and Chang, 2010).
BENEFITS TO EMPLOYEES OF MCLAREN:
1. Conflict Resolution : HR managers helps in solving conflicts that have been arise in an
organisation , whether between employees or between employees and company. These
practices define the policies and procedures that are to be followed in workplace. They
also help in solving issues that have been arise due to the behaviours conducted by
employees .
2. Training and development : HR managers also helps employees by providing them
proper raining an development . They organise special training programs for them so that
they are able to learn new skills and knowledge that will be helpful in performing their
work easily.
3. Employee relations : HR managers always support those employees who have a feeling
that their rights have been violated in an organisation (Huselid and Becker, 2011). Major
issues that are arise in companies are related to discrimination or harassment. HR
managers takes care that such situations should not be arise in company again. They do
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this by implementing various types of laws like anti-discrimination law and harassment
laws etc.
4. High Salary – If the employees will get good salary then they will feel satisfied and
company will be able to reduce the employee turnover rate . In this way, high salary
packages acts as a motivating factor.
5. Healthy Environment – It is the responsibility of the HR manager to maintain good
environment inside company. This will help in bringing positivity inside company which
will further develop creativity.
P4 HRM practices for increase organisational profit and productivity
There are several benefits that McLaren and its employees are getting by implementing
HRM practices in organisation. Main purpose of any organisation in to increase profits and
productivity of company. A company needs capital in order to make a place in market. Human-
resource-manage helps company in making strategies and plans which aims at increasing profits
and providing benefits to company. Plans which are made should aim at providing good products
and services at minimum prices.
Application of practices of HRM will help organisation in improving trust of employees
on organisation because if employees will feel safe and secure inside company then a trust is
build between employee and company. This will compel employees to work well in the
organisation will will eventually increase profits of company. Few of the effective HRM
practices that are helping in increasing profits of company are:-
 Training and development:- This practice is conducted to increase knowledge and skills
of employees who are newly appointed and to those who are already working in an
organisation but requires to learn new skills to improve the performance of employees. It
is an effective process because here overall growth of employees is considered. It will
increase productivity of employees which will later on increase organisational profits.
 Reward management:- Giving reward to employees is also on effective HR practice
because through this employees will feel good and motivated after which they will
perform more in a better way. Rewards can be in both monetary and non-monetary form.
Employers can give monetary rewards to employees if they feel that employees are in
need of them (Jiang, 2012). Through this company's employee will feel that company is
very much concerned about them and then they will also feel loyalty in organisation.
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Non-monetary rewards are like giving recognition to an employee, motivating them ,
expecting m,ore from them as compared to other employees. These also acts as an
important and effective HRM practice (Renwick, Redman and Maguire, 2013).
 Job Design:- This HRM practice helps McLaren in making employees learn different
types of work which is done in the company. This makes employees efficient therefore in
case of unavailability of the senior management staff, middle level managers can handle
the situation and save the company from losses. In this way the productivity of employee
is increased and company is also able to make huge profits.
 Sharing and Cooperating – This HRM practice is effective because it is helping the
company in bringing in coordination between the management and the investors or other
third [parties of the company. In this way, sharing of ideas , thoughts , reviews are taken
and given.
 Communication process – There should be effective communication process between
the management and the individuals working in the company. It is the responsibility of
HR manager to make sure that there is good communication in the company.
TASK 3
P5 Analyse the importance of employee which influence HRM decision making
Employees are considered as a very important part of organisation. They are like an asset
which will be there with organisation for a long time . So company has to take care that they are
properly taking care of employees and they are happy while working in company also. Along
with this, managers of McLaren should try to influence their employees to participate in various
activities that are being conducted in an organisation. Because of this , employees will come
more in contact with the senior team of company and by talking with them employee will fell
more confident and motivated.
Employers should include employees while taking decisions of company. This will make
them feel their importance in company and they should be given equal importance like other
members in the company. Also, in order to maintain healthy employee relations in an
organisation, McLaren should conduct activities and programs in organisation , this will create
an informal environment in company and in this environment employees will feel free to
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communicate with each other and with senior people as well. A transparent relationship between
employer and employee will help employees in sharing ideas and thoughts and issues easily.
If employee relations in an organisation are strong then work environment in an
organisation will become more pleasant and wonderful (Schalk, Timmerman and Van den
Heuvel,2013). McLaren knows very well that investing time and money in implementing
employee relations will be profitable deal because it helps in increasing productivity of
organisation and improves decision making process. So, high performance of employees will
help McLaren in competing with issues arising outside the organisation.
P6 Element of employment legislation and impact of HRM decision making
There are various types of issues that are arise either inside the organisation or outside .
HR manager of company is responsible to resolve all these issues on time and in a correct way.
But it is not possible that managers are having solution of each and every problem so
government has introduced certain laws that are compulsorily to be mentioned in company's
policies and should be implemented also (Vaiman, Scullion and Collings, 2012). Acts that are
introduced by government are:-
EQUAL WAGE ACT: This act says that if any type of discrimination is happening in an
organisation in terms of giving salary to employees to employees then that employee can take
use of this act and get equal wages in company. Employees should not be judged on the basis of
their gender, caste, religion and colour etc. The employee have got the right to claim their money
if they are not getting equal payment as that of its members.
MINIMUM PAYMENT ACT: Under this act, government has described the minimum wage
that employee will get as per their job profile in the company. If employees are getting less
payment then that is described then they can claim kit by going against the company. McLaren
has to implement this strategy in their company as it is having various stores al over world and
this act is mainly for workers.
DISCRIMINATION ACT: This act specifies that employees of organisation should not be
discriminated on the basis of their gender. Like it is there in many organisation that male
employees are given more importance than female employees and even if female employee is
more efficient then also male employee will get promoted. This should not happen and the one
who is deserving should only get promoted. McLaren ensures that their company's employees
should not go through this situation and feel comfortable (Van Solinge and Henkens, 2014).
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EMPLOYEE EQUALITY ACT - In this act, it is included that employees of the company
should be treated equally inside the company and should not be discriminated on the basis of
caste , race and religion.
WORKING TIME ACT – In this act, it is included that hen employees of the company will
work as per the ideal office time decided by the management of the company and if any
employee is working after the office hours also for completing the work of company then they
should be paid overtime.
TASK 4
P7 Evaluate HRM practices in work location
There are various types of HRM practices that are implemented by McLaren inside the
company. But, the two main practices are:-
Job specification – it is a statement which is describes knowledge, skills , education and abilities
of a particular candidate. It is being developed from job analysis. It helps recruiting team of
company in knowing what level of qualifications, qualities and characteristic are present in
employees that is making him eligible for the job.
JOB SPECIFICATION
Organisation: McLaren Group
Job Title – Human resource manager.
Qualification – Post graduation or diploma in Marketing and HR
Essential Criteria:
 Ability to bring coordination between management and employees
 Having good knowledge about rules and policies that are implemented in companies
Desirable criteria:
 5+ years of experience as a human resource executive.
 Good communication and presentation skills.
Job description – It is having basic job related data which is useful to advertise a specific job
and attracting pool of talented candidates (Wright and McMahan, 2011). The information that is
included in this is job title, job location, job summary etc.
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Job Description
Organisation: McLaren Group
Division: Human resource department
Job Title: Human resource manager
Job Location: London
Reporting to: Sr. HR manager.
Job Summary
Need for Human resource manager who have good experience in managing employees and
administration and good knowledge of employment laws
The Role
1. Conducting training and development sessions
2. Managing all leaves and other issues of employees.
The Candidate
1. Strong communication and administrative skills.
2. Good knowledge OF Computer skills and presentation skills as well.
Whenever a company aims at organising a recruiting event then they should make sure
that they are reaching maximum no. of candidates. So while posting any job advertisement
company should take care of this (Alfes, 2013). There are so many ways in which company can
post job advertisement like through social media, web portals, notice boards etc. now-r-days
many job sites are also there from where company can take cv's of pool of candidates and can
choose the one who suits the best (Armstrong and Taylor, 2014).
CV is prepared below:-
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CURICULAM VITAE
Curriculum Vitae
Name – Benjamin Kay
Address – 21 street, City of London.
Phone No. - 77777-55555
Senior Human resource management
by having 5+ years of experience in employee management and labour laws. Worked with
1200+ people who have different cultural, values, beliefs and attitudes.
Areas of expertise –
 Employee relations and Labour laws
 Organisational development
 Training and development
 Staffing requirements
 Employee development
Educational qualification: -
 Bachelor in Commerce. (B.com)
 Masters in business administration (MBA)
Declaration- I hereby, all the above information which are mentioned in this document are
correct.
Date:
Place:
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Cover Letter
Name – Benjamin Kay
Address – 21 street, City of London.
Phone No. - 77777-55555
Benjamin. K @ gmail.com
Date: 4 November 2017
Mr. Ryan Francom
HR Manager
McLaren Group
3rd street, near lotus gardens,
London , UK
Dear MR. Francom,
I am interested in the human resource manager position at McLaren company as shown in the
advertisement. In was previously working as a junior HR manager in Vodafone and is having 5+
experience in this field. I believe that the skills and competencies that I am having is perfect for
the job you have offered.
I am having strong communication and listening skills which is very essential in an HR
manager. My experience will help me to perform better and bring in good results for the
company. I am confident at my skills and wants you to qualify me for this position. If you
want , I can also provide you the current samples of your work. I have also enclosed by resume.
I look forward to meet you so that we can discus my qualifications in detail.
Sincerely,
Benjamin Kay
The important documents tat ate required to be taken while going for an interview are;-
 Resume
 4Colored photographs
 10th and 12th Mark sheet
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 Graduation and Post Graduation mark sheet
 Skill certificates
 Certificates of Extra activities
 Previous job documents if have any.
CONCLUSION
From the above report it can be concluded that human-resource-management helps in
growth and development if employees. Because of this , McLaren increases their income and
help in improving employee performance. In this report, purpose and functions of Human
resource management in an organisation is be studied along with key roles and responsibilities of
HR function, benefits and effectiveness of HRM practices, importance of employee relations and
key elements of employment legislations has also been included in the report. Along with this,
elements of employee legislation and evaluation of HRM practices is also studied.
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REFERENCES
Books and Journals
Alfes, K., and et. al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The
international journal of human resource management. 24(2). pp.330-351.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Buller, P. F. and McEvoy, G.M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Han, T. S., Chiang, H.H. and Chang, A., 2010. Employee participation in decision making,
psychological ownership and knowledge sharing: mediating role of organizational
commitment in Taiwanese high-tech organizations. The International Journal of
Human Resource Management. 21(12). pp.2218-2233.
Huselid, M. A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K., and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations
influence decision making on e-HRM applications. Human Resource Management
Review. 23(1). pp.84-92.
Vaiman, V., Scullion, H. and Collings, D., 2012. Talent management decision making.
Management Decision. 50(5). pp.925-941.
Van Solinge, H. and Henkens, K., 2014. Work-related factors as predictors in the retirement
decision-making process of older workers in the Netherlands. Ageing & Society.
34(9). pp.1551-1574.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal.
21(2). pp.93-104.
Online
Recruitment and selection process. 2017. [Online]. Available Through:
<https://hr.ucr.edu/recruitment/guidelines/process.html>. [Accessed on 25th
October 2017].
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