HRM Practices and Small Business Performance

The provided assignment is about Human Resource Management (HRM) practices in small businesses, focusing on their impact on performance. The discussion emphasizes the role of HRM in promoting good behavior, employee development, training, culture, and values within an organization. It also highlights how HRM can contribute to increased productivity and profitability through employee engagement and focus. The assignment is likely to be from a business or management course and may include references to relevant literature.

Human resource management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing .......1
P2 Strengths and weaknesses of different approaches to recruitment and selection .................2
P3 Benefits of different HRM practices within the organisation for both the employer and
employee.....................................................................................................................................3
P4 HRM practices to raise organisations profit and productivity...............................................5
P5 Importance of employee relations which are influencing HRM decision making for the
Morrisons ...................................................................................................................................5
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making..........................................................................................................................6
P7 Application of HRM practices ..............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
REFERENCES .............................................................................................................................12

INTRODUCTION
Human resource management refers to process of employing people, training,
compensating, development of policy, strategies to retain them. HRM plays vital role in every
organization, they have hard and soft skills to manage a company, they are responsible to fulfil
priority of business, human resources needs, find out the requirements of staffing, they nurture
employees through training which develops competitive advantage, correlate with the staff to
maintain behaviour aspects at work place. Morrisons is one of the giants in retail supermarkets in
the United Kingdom, founded by William Morrisons in 1899. This report is based on Morrisons
Supermarkets Plc., where HRM has an important role, as they are appointed as HRM with a
purpose and some certain functions, strengths and weaknesses to recruit and select a candidate,
benefits of employer and employee, effectiveness of leadership which aid to raise an
organization, decision making in terms of employees relation and employment legislation,
applications(Bridge and O'Neill, 2012).
Task 1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing
In large organizations such as Morrisons, there are many levels of management and
employees, HR manager directs the needs of management and protects protects the rights of
workers. The core Purpose of HR as follows:-
 Metrics measures performance outcomes at all level.
 Internal customer management defines policies and their implementation as this is most
attracting feature for hiring an employees and boost the quality of work.
 Establishing laws such as retirement plans, updating company's handbook, with all kind
of inputs of the firms, and it also includes rules and regulations of the firm management.
 Look after culture sensitivity through awareness among employees when they belongs
from different background(Southern, 2011).
 staffing means to hire a best candidate who has the capability to work with organization
and an in team, this can be achieved by advertisements, screening, interview, etc.
 One of the main purpose is to offer some befits to all levels, that includes health
insurance, retirements plans, paid time off, leave approvals and so on.
 Compensation can be refer in terms of wages , salary, incentives, bonuses and stock
options payments for the employees. and performance
 Developing a good relations between employee and employer is one the most essential
duty of HR manager.
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The foremost functions of HRM staffing when needed, to encourage the productivity of firm. As
Morrisons is retail supermarkets, hence it needed all kinds of staff from middle to bottom,
staffing can be done through recruitment, selection. They can recruit staff from management to
ground level, through out the phase to planning, organizing, directing, and controlling(Schaper
et. Al, 2014).
 Recruitment – Recruitment can be done through advertisements in newspaper,
magazines, online portals, websites, the then interest candidate can apply for the job and
they will have an interview and the most desired aspirants can be shortlisted among all
applicants.
 Selection – After the recruiting process, all the shortlisted aspirants will have a direct
interview and they will be selected on the judgement of presence of mind and other skills,
and the best person would have the opportunity to grab a job(Blackburn, Hart and
Wainwright, 2013).
 Training and development - After the selection the training will be provided to new
employee so that they can easily pursue their job.
 Appraisal – HR manager also promotes in house resources through evaluating their
performance report, this will give the new possibilities to stay long with the firm, and
encourage them to work hard. This develops their faith in organization and their belief is
matters a lot a company that can take a company on higher level.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection is overall human resource and management planning process,
in Morrisons, there are two different approaches of recruitment and selection, internal and
external. Internal recruitment and selection refers to the employees are already working with the
organization or existing staff, first the manager will consider the existing staff, as they are
working from a long time, if there are more opportunities exists then they must be consider, that
will increase their wages and explore their interest, if they are willing. Organization will give
them a notice that they have current vacancy regarding specific designation and then previously
joined workers can apply for that post. The major strength of this is the management can take a
fast decision as they already know performance of permanent employees, and the firm don't
need to spend money for further sources. Putting old staff forward will raise their confidence and
support and this will enhances work efficiency. But on the other hand, this lead to unmanaged
internal process, because as the permanent employees will carry forward to the new job role,
their previous post will remain empty and this will generate hassle as there is no one to keep that
work continue, to reduce this hurdle of internal process, it requires some other strict HR
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processes, like HR needs to ensure success planning, strong and accordant performance
management. The internal job roll must be driven through hardcore rules and policies, so that it
can be transparent as only the qualified people can pursue this process, as they are well known
all these conditions(Malhotra and Temponi, 2010).
After the internal recruitment, the HRM will look for external recruitment, they will
publish advertisements in magazines, newspapers, websites, online portals, and other sources, as
people will get aware about the new requirements they will apply these from different sources of
applications, and then they will get a call from the organization, and then they have to clear all
the interview phases such as ability test, aptitude test, and then they have a direct interview in
that the human resource management will put some questionnaires related to the job description,
and candidates performance, personality, attitude, and presence of mind. HR manager will select
the most desired and capable aspirants who are well suited for the prospectus according to the
evolution in interview. The main strength is hiring a new talent and ideas, results in innovations
and modern patterns that can bring more efficient outcomes and there will be increase in
potential business, as they are providing opportunities to the young generations. Direct posting
on promotional level that make the management to take a quick decision, from a wide pool of
available candidates that will generate a new concepts sop management needed to be more
conscious while selection. On contrary, recruiting resources from outside of a firm may increase
in expanses, such as advertisements, and new team demand for high level of income, long time
to finalise a most appropriate candidate considering the fraudulent or any offensive activities. It
is hard to find an individual who is honest and trustworthy in terms of better effectiveness and
efficiency(Gronum, Verreynneadn Kastelle, 2012).
P3 Benefits of different HRM practices within the organisation for both the employer and
employee
There are several HRM practices within Morrisons, employees are coming from diverse
background, so it becomes essential for human resource manger to take some step for their well
being. The benefits of different HRM practices as follows:
Promoting positive behaviour – Human resources management practices generates an
environment where employees work with calm and optimist behaviour, managers can reward
employees for their performance and skilfulness and look after their needs and this will
encourage employees with enthusiastic way. This will remain a healthy culture inside an
organization with ethics and standards(Herbane, 2010).
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Employees development – Providing training to the workers is one of the core practice
of HRM, though this encourage to work with zeal and satisfy them to work by putting most
efforts. This will explore their knowledge and skills which most required for taking a business on
new heights, and it also raise competitive advantage. As competition is tough so there is a need
to establish new strategies that can make a company stand on the peak(Altman, Sabato and
Wilson, 2010).
Hiring and training the workforce - Nowadays, as the companies are extending their
ventures so there is a demand of hiring new personnel, in Morrisons, is launching so many
supermarkets across the world. So workforce needs to be trained by the experts as they are new
and presents a company, so from their educational training to personality development
everything requires a training so that workforce will stay long and will be a reason for the
customer satisfaction.
Performance management system – Human resources management should give a regular
feedback to the workers to motivate them to enhances their working power and should analyse
the working pattern to guide them so that they will also increase their performance, and this will
offer them opportunities to grow with organizations. As Morrisons is a grocery supermarket, so
they have a goodwill among people because of their presentation in front of customers as this the
most essential to be in demand. As workforce manages their work within a team that achieve a
certain goals and objectives of an organisation(Battisti and Perry, 2011).
Culture and values – HRM is also responsible to manage culture and values in an
organizations. Any organizations must have positive environment, every person should have
respect for the other person, and should not be harm anyone's dignity. Every organization has
some specific criteria and policies that have to obeyed by people in any circumstances. HR
manager has to make clean and innocuous atmosphere so that everyone feel free to work and
have an optimistic view for working environment.
Conflict management – A human resource manger should be able to working in
favourable circumstances, they should have the capacity to resolve the disputes conditions that
may occur from the unnecessary reasons or disagreement on some issue. There can be
uncountable reasons for this kind of problem, so HRM should find out all the possible ways to
solve any type of matters.
Building good relations – Establishing good relations between employers and employee
is also has a significance for the HR manager through organizing personal meetings, corporate
gatherings, conference.
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P4 HRM practices to raise organisations profit and productivity
Human resources practices helps to produce profits with financial growth of a company
through putting up the information about a how resources are directly connected to the revenue
and profit ratios. There is an interrelation between the constructive economical performance and
knowledge workforce, HRM take the help of some kind of key elements which are as follows-
Keep the employee busy – One should know the abilities of workers and after that every
employee should assigned a task so that they will engage in that activity, whether it is in
planning, manufacturing, designing, supply or anything else. The manpower must be utilized to
in strategic ways as to attend customers query, operating computer, different departments like
finance, sales, marketing and other operational activities(Rae, 2010).
Priority management – Managers analysed all the activities and susceptibility of work
so that employees can put exertion to get the craved the output that have the strike on the
business outcomes. They has focal point on leadership, execution management, cooperation,
managing tasks and finding out the ways by which people can increase engagements.
Build brand image – Creating a brand value is most important for a HR manager,
though it is liable to promote business ethics, values, goals, missions through integrating the
procedures such as recruiting and selection, offering compensations, training and development.
Task 2
P5 Importance of employee relations which are influencing HRM decision making for the
Morrisons
In Morrisons, employees and management are bound with each other with a reliance,
which they are having on each other, as this is the tool to make people glad at one place, and
only with this bond they stays at one location and this sharing relationship from both the sides
enhances the work productivity. The relationship between employee and mangers is affected by
trust, openness, willingness to collaborate and amenability, balancing power, expectations of
both the parties. The HRM have all the rights to take decisions, that are regulated from the
beginning, so the employee develops a belief that nothing is illegal. Decision making is one a
one minute activity about any employees, the higher authorities has a predetermine framework
on which a firm lies, same rules are also followed in Morrisons, with a guidelines. Morrisons is
a food chain company and it follows a legal framework for employee relationships, that are as
follows:
 Sometimes management is not able to take decisions along, it needs a support from others
, may be the fellow workers can give a brilliant idea that can help to attain a
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target(Carraher and Paridon, 2015). They need to look a plan carefully before
implementing them, all the pros and cons are needed to evaluate to know feasibility.
 A healthy relation is a working environment less the burden by sharing work, this
increase in productivity with easy mind, all the responsibility is divided among team
members so that work can be carried out in a most efficient way, without any
disturbance. Good skills which are essential to maintain a good working environment
with the ease of sharing team working.
 A healthy employee relationship reduces the problem even in case of absenteeism, it is
very rare that employees take leaves, but in case it happens then colleagues can help with
their best effort.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making
The employment legislation can be refer as legal contact that has a fix set of legal aspects
between employer and employees at Morrisons to reduce the chances of any kind of disputes, all
of these factors contains clear description about terms and conditions, that are explained by the
employer before a person join a firm, these rules are for both the sides, to retain benefits of laws.
These are described below:
 A legal contract of employment is a legally signed by the employer an employee, that
includes all the terms which are associated with both parties, consisting with terms and
conditions of a contract, employers must provide an employee with at least one month
written statements according to the terms and conditions(Bridge and O'Neill, 2012).
 The written statement of particulars includes the names of parties which are involved in
the contract, like employers and employees, date of commencement of employment and
period of continue employment, details of remunerations, hours of working, workplace
locations, job title and job description.
 Terms are also includes holiday entitles, arrangements about sick leave and pay, details
fro company pension plans, notice for terminations period, expected term for contractual
employment, any terms of collective agreement that impact on working conditions,
information concerning rules, disciplinary decisions, dismissals and grievances.
 There are some employment rights, which can be define as employee's rights to time off,
guaranteed payments for maternity and paternal leaves, etc.
 There are some flexible working environment that includes part time employees, partial
homeworking, term time working, contracting out of work, arrangement of flexitime,
contracts based on annual or zero bonus(Schaperand et. Al., 2014).
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P7 Application of HRM practices
There are some specific human resources management which have the ability to develop
leadership traits among staff members, through training and motivation program. Morrisons is
dealing with best HRM practices. There are some applications of HRM that are offering most
suitable environment as follows :
Performance Appraisal: As being a manager it is important to carefully look after each
and every employee as they are working hard so they should get a reward in performance
appraisal. If Morrisons provides good performance award to them then that will enhance their
productivity to reach the goals. Management can offer them holidays, extra earning or some
other kinds of treat so that they will feel proud to being a part of it.
Career management : Everyone have some future expectations, so if a company wants
to sustain employees they should promote the staff and give them some challenging
opportunities so that they will increase their interest to work longer(Storey, 2016).
Training: Training is essential for staff, timely training is required so that they can
friendly with changes, whether it is regarding machinery, or on the time of recruiting new
persons to enhance their skills and knowledge.
Recruitment: Recruitment is a process to take new persons in a company because there
is a huge demand in different departments. They hire new by communicating in different ways.
CONCLUSION
This report is about the human resources management of Morrisons which is fourth
largest grocery supermarket in the United Kingdom, and good commanding is always works
from grass roots of an organization. It includes the purpose and functions of HR manager, which
emphasizes on managing the internal resources of a company, and it is liable to hire most
prominent personnel that executes all the tasks effectively. This strength the internal and external
sources for recruiting new and existing personnel in an organization in away that can offer them
new possibilities to work with increasing competitive advantages, there are some positive
benefits of HRM is that promoting good behaviour, employees development, training, culture
and values, maintaining good relationship. HRM practices are also beneficial for raising profits
and productivity through employee engagement, focus, creating brand image. There are some
terms and conditions for employments which are regulated by the European Legislation, that
takes place before the join an organization, so that it can avoid the disputes between
employment and employees.
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REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012.Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Southern, A. ed., 2011.Enterprise, deprivation and social exclusion: The role of small business in
addressing social and economic inequalities(Vol. 2). Routledge.
Schaper, M.T., and et. Al 2014. Entrepreneurship and small business.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development.20(1).pp.8-27.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1).pp.28-37.
Gronum, S., Verreynne, M.L. and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2).pp.257-282.
Herbane, B., 2010. Small business research: Time for a crisis-based view. International Small
Business Journal.28(1).pp.43-64.
Altman, E.I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2).p.95.
Battisti, M. and Perry, M., 2011. Walking the talk? Environmental responsibility from the
perspective of small‐business owners. Corporate Social Responsibility and
Environmental Management. 18(3). pp.172-185.
Rae, D., 2010. Universities and enterprise education: responding to the challenges of the new
era. Journal of Small Business and Enterprise Development. 17(4).pp.591-606.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2).pp.89-98.
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REFERENCES
Books and Journals
Online
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