Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in influencing HRM decision making and its impact on organizational productivity and efficiency. It explores the benefits of different HRM practices in terms of rising organizational profit and the strengths and weaknesses of different approaches to recruitment and selection. The article also highlights the purpose and functions of HRM applicable to workforce planning and resourcing, as well as the role of employee relations in decision making.

Human Resource
Management

Table of Contents
INTRODUTION........................................................................................................................3
TASK 1......................................................................................................................................3
P1. Purpose and functions of HRM, applicable to workforce planning and resourcing........3
P2. Strengths and weakness of different approaches to recruitment and selection................4
P3.Explain the benefits of different of HRM.........................................................................6
P4. Effectiveness of different HRM practices in terms of rising organisational profit..........7
P5. Analysing the importance of employee relation in respect to influencing HRM decision
- making.................................................................................................................................8
P6. Elements of employment legislation and the impact upon HR decision making:...........8
P7. Application of HRM practices in a work- related context...............................................9
CONCLUSION........................................................................................................................10
REFERENCE...........................................................................................................................11

INTRODUTION
Human resource management is a technique which is used by the management in its
organisation so that they can manage the people. It provides help to the manager so that it can
recruit and select best persons who can fulfil the demand of the corporate. In this report
chosen company is Tecso. It is a British Multinational groceries and retailer organisation in
United Kingdom. The aim of it is to attract, recruit and retain talented staffs so that they can
increase the efficiency and productivity in the business. It covers the various topics which are
as follows: Purpose and function of HRM in workforce planning and resourcing, strength and
weakness of different approaches in recruitment and selection, benefits and effectiveness of
different practices of human resource management, importance of employee relations in
respect of decision making. Apart from this it also discuss about application of HRM
practices in a work- related context.
TASK 1
P1. Purpose and functions of HRM, applicable to workforce planning and resourcing
Human resource management is essential for an organisation so that it can manage the
human in its business. It helps the company to achieve sustainable success and growth. It
includes recruiting, hiring, developing and managing employees in the company (Human
resource management. 2014). Purpose of HRM is to effectively manage the employees in the
corporation so that they help the organisation to work smoothly and it can accomplish its goal
and objectives. Tesco can use it in its business so that it can recruit and select best workers in
the company and it can fulfil its propose which is improve efficiency and achieve the targets.
Human resource management has various functions which can help the manager to hire
suitable candidates. These functions are as follows:
Recruitment: It is the first step to fulfil the process of vacancy, sources the appropriate
persons and create contact and manage the applications. Manager of Tesco can use this
function to recruit the best candidate.
Selection: It is the next process of selecting the desirable candidates who can fill the
unoccupied place in the company. HR manager of Tesco can use this process so that it can
choose better persons in its company who can fulfil the needs of it and it can accomplish its
objectives (Kim, 2012).
Payroll administration: It involves evaluating, managing and controlling the salaries which
is to be paid to the employees. Manager of Tesco can use it to analyse the monthly salaries
and manage the incentives of employees (Fine, 2012).
Employee motivation: It is the process which is used by the organisation to encourages its
employees do that they can work better. HR manager of Tesco can motivates the workers so
that they can do work effectively and efficiently and it helps the company to achieve its
objectives.

Workforce planning can help the organisation to manage the persons in the business
so that performance can be enhanced. There are various stages which can be followed by the
HR manager of Tesco so that it can effectively manage the human in the company. Stages of
workforce planning are as follows:
Auditing and current workforce:
It is necessary for the organisation to audit the current workforce in its business so
that it can evaluate the performance of employees.HR manager of Tesco can follow this stage
so that effective planning and strategy can be done to manage the persons in the company
(Jackson. and Jiang, 2014).
Analyse the future workforce in terms of both demand and supply of labour:
It is essential for the management of company to analyse the future demand and
supply of workers so that it can fulfil the organisation need. HR manager of Tesco can
evaluate the demand and supply of staffs in its company so that it does not face the problem
of shortage of the employees. It helps it do perform its operations smoothly.
Identifies the gaps:
It is essential for the organisation to identify the gaps so that it can fulfil it by
managing the employees. HR manager of Tesco can analyse it so that it can manage the
workforce as per the needs of company and as per the demand it can engaged the persons at
several job positions.
Resourcing is important for the organisation to recruit right candidates who can fulfil
the needs of organisation. It is difficult for the company to resource the appropriate right
persons who can adjust as per the demand of the company. It is a method in which manager
address the challenge, includes a set of interconnected activities that focus on the selection
and proper development of employees. It helps the organisation to achieve efficiency and
sustainable success.
P2. Strengths and weakness of different approaches to recruitment and selection
Recruitment
It is a process in which human resource manager of the company discover and hire the
talented persons for a vacant job position. There are two types of recruitment such as internal
and external. In internal recruitment management hire the people from its own organisation.
In external recruitment company find the candidates from outside or open market and it is
time consuming and costly process. It is done on the basis of needs of a job and it involves
attracting, screening, selecting and hiring the people. Tesco can recruitment the right persons
who can perform as per the requirements of it (Ellison and Boyd, 2013).
Selection: It is the process of selecting the more appropriate person in the company who can
fill the vacant job position. HR manger can choose those candidates who have ability to
perform as per the needs of organisation. There are various approaches of recruitment and

selection which can be used by the organisation to hire most suitable and desirable person.
These approaches are as follows:
Systematic approach:
It is a traditional approach which is used by the management for recruitment and
selection of candidates. It always provides a good foundation and brings solidity to the
essential operations of the company (Vaiman and Collings, 2012). It helps the organisation to
hire best and suitable persons so that they can contribute maximum for the growth and
success of the organisation. In this approach corporation follow it own rules, regulations and
policies regarding the selection and recruitment of staffs. HR manager can follow this
approach so that it can get talented and skilful candidates who can work as per the
requirements of it.
Advantages:
 Most suitable employees can be hired by the company.
 Productivity and efficiency can be enhanced.
 Company can accomplish its targets by following this approach.
Disadvantages
 It is a traditional concept which is not appropriate in modern era because now a day’s
innovation is required in the recruitment and selection.
 Lengthy practice and time consuming approach.
 High cost is incurred in this whole process (Dries, 2013).
Ethnocentric approach:
This approach is followed by the management when company wants the candidates from
internal recruitment and selection. HR manager of Tesco can use this when is want persons
form its organisation so that it does not go outside to hire employees. Existing staff are aware
about the culture of it so it beneficial for the company. In this approach it can transfer the
workers from one branch to another branch or promote the existing employees at specified
job position.
Advantages
 It saves the time of company in searching of right candidates.
 It is cost effective process.
Disadvantages
 Organisation does not get fresh talent.
 It can create conflicts among existing employees on the basis of promotion.
Polycentric approach:

In this approach company hire the employees from the outside and HR manager of
organisation can use this so that it can get most desirable candidates. It helps the Tesco to get
desire candidates who can meet the demand of it (Cogin, 2012).
Advantages
 Company can hire most desirable and fresh employees.
 Productivity and efficiency can be enhanced.
Disadvantages
 It is lengthy process as compare to the ethnocentric approach.
 It is time consuming process.
P3.Explain the benefits of different of HRM
HRM is a practice which is used in organisations so that it can get most desirable and
skilful candidates. There are various benefits of Human resource management. For employer
it has various benefits which are as follows:
Improve employee turnover:
It is a reason of worry for the organisation that it has high employee turnover because
it maximise the cost of recruitment and selection. HR manager of Tesco can use HRM
practice so that it can hire the candidates who fulfil the demands of company and able to
perform according to it. It helps to reduce the employee turnover which is a good sign for the
management and its business. It shows the effective HRM practice used by the organisation.
Improves employee performance:
It maximise the performance of employees which leads the high productivity. HR
manager of Tesco can apply HRM so that it can hire most appropriate candidate who can do
work as per the needs of company (Buller and McEvoy, 2012).
Maintain the healthy working culture:
It improves the working culture in the organisation which is necessary for the
company. HR manager of Tesco can maintain healthy organisational culture by following the
effective HRM policies which can maximise the efficiency of employees.
Benefits for the employees are as follows:
Conflicts resolution:
It helps the organisation to resolve the grievances among the employees. HR manager
of Tesco can solve the conflicts between the workers by following the HRM practices and
maintain the rules and regulations of the company. It improves the efficiency of workers and
develops the faith in staffs.
Training and Development:

It can help the employees to perform better and effectively in the company. HR
manager of Tesco provides the proper training to its workers and its maximize their
efficiency and skills. As a result staffs can perform better and effectively and accomplish the
organisational objectives (Manvi and Shyam, 2014).
Employee relations:
It is the responsibility of HR manager of Tesco to provide support for workers who
thinks that their rights have been violated. Employer can behave friendly with the employees
so that that feel positive and its develops the confidence in the workers so that they can
perform better.
P4. Effectiveness of different HRM practices in terms of rising organisational profit
Human resource management is effective for the Tesco in terms of maximising
productivity and profit of the company. By following the HRM it can gain productivity and
high profits by the following perspective:
Innovative and high performing employees:
Human resource management promotes innovative culture and encourages the
workers for effective facilities and these all initiatives can help the Tesco to maximize the
profit and productivity and it shows the effectiveness of HRM.
Team and individuals goals with better communication:
Tesco’s HRM helps to lay down and attain both team and individual goals as also to
accomplish them. It helps to improves the mode of communication so that it maximise the
productivity and makes the performance more effective (Brewster and Sparrow, 2016).
Updating employee’s skills to maintain productivity:
HR manager of Tesco provides the training to the employees so that their skills can be
develops as per the needs of organisation. To perform in dynamic environment it is necessary
to update the workers skills so that they can do work better and effectively which can help the
company to achieve profitability and productivity.
Non- monetary factors to improves performance of employees:
HR manager of Tesco can provides non monetary factors and benefits to its workers
which can encourage them to perform better. It involves appraisal, exposure, feedback and
opportunities of learning. It maximize the productivity and profitability of the company and
develops the effective working environment in the organisation.
Effective rewards drive performance:
HR manager of Tesco can provides rewards to the employees if they perform better
and achieve their task. It motivates and encourage the employees to put their maximum
efforts to gain productivity.

P5. Analysing the importance of employee relation in respect to influencing HRM decision -
making
Every member of Tesco maintains the relation with the employees. It is essential for
the organisation so performance and productivity can be enhanced. Persons are not robot
when have to communicate and discuss with the other people in the company so that they can
necessary decisions. An effective and interactive working environment can encourage the
workers which does not evaluate in monetary values. It is necessary that staffs are
comfortable to work with each other and accomplish the targets. Importance of employee
relations are as mentioned below:
Discouraging conflict among workers:
Better and strong relation among employees of Tesco can minimise the grievances
and conflicts between workers. They have faith in each other as a result feel comfortable
which leads to maximize the efficiency and productivity of the staff. It develops the
belongings in the employees that subordinates are the colleagues not the competitors. It helps
to improve the productivity and organisation can take better and effective decisions.
Loyalty among the employees:
Effective and pleasant working environment in Tesco helps to develops the loyalty
among the employees. It encourage them so that they can work better and accomplish their
task effectively. They put maximum efforts to improve the productivity. It can reduce the
employees turnover rate which help the company to minimise the cost of hiring new workers.
Ensuring equality by the communicating effectively:
Effective communication system in Tesco can resolve the conflicts among the
employees related to work. It can encourage the workers to perform better and accomplish
their target effectively. Better communication can provides the help to the organisation
regarding better decisions (Bratton and Gold, 2017).
Work is easy if it shared between all employees:
Strong relationship among the staffs can easy the work because all members will
perform as a team and it maximize the efficiency and increase the productivity. So individual
persons does not feel the pressure and organisation can accomplish its targets.
P6. Elements of employment legislation and the impact upon HR decision making:
It is necessary for the organisation to follow the employment legislations which are
made by the government. It helps in the recruitment of employees and it provides the help to
the company in decision making process related to HRM. Important elements of legislation
are as follows:
Defining positions:
It is the responsibility of HR manager to define the position to the employees which
are recruited by the organisation. It also mentions the roles of workers in the company and

employment legislation has several rules and regulations which is needed to be followed by
the organisation for defining job positions.
Proper compensation:
Employment legislation has describes the terms and conditions regarding
compensation which is essential to be follow by the Tesco. Organisations have its own
compensation scheme and on the basis of it, it provides the benefits of it.
Ensuring equality:
It the responsibility of HR manager that it should treat equal to all employees who
work in the organisation. Tesco cannot do inequality on the basis of sex, wages and cast.
Employment legislation prohibits this.
Time of work:
Workers should aware about the working hours of the organisation and if it doing
overtime than additional benefit should be provided by the company. Tesco instruct its
workers that they have to work according to working policy of the organisation and if they
work extra than it will pay additional amount for their additional efforts (Armstrong and
Taylor, 2014).
P7. Application of HRM practices in a work- related context
HRM practices can help the organisation to create efficiency in the business so that
employees can perform better and accomplish their targets on time. It help the company to
achieve sustainable success and growth. As intern in Human resource department it Tesco for
the post of HR assignment has been presented below:
Job specification:
It mention the roles, responsibilities, capabilities and skills in the candidate to perform
the duties in the organisation. It is the responsibility of human resource manager of Tesco to
make the job description to attract and hire appropriate persons in the company so they can
work as per the needs of it. It helps it to maximize the efficiency and productivity. As a result
most desirable candidates can be recruited by it who can perform their duties as per the
requirements of organisations.
Job Specification
HR Assistant
Academic Qualification
 MBA qualified from a recognised university
Personal Attributes
 Passionate
 Problem solving skills
 Excellent communication skills
 Effective management style

 Better analytical skill
Experience
 Minimum 2 years of experience is required
Physical Appearance
 Tall, good looking, effective body language and age between 25- 34 years
Resume consist of following things which are as follows : professional profile, qualification
and experience, key skills, work experience, personal details and references.
Selection criteria for the interview
Type and level of qualification
Working experience
Excellent communication skills
Knowledge about HR
Mental ability
Age- 25- 34
It is the basic criteria for the selection and those persons can fulfil the demand of this they can
apply for the job. It helps to make selection process smoother and effective.
Evaluation of process:
It makes the recruitment process more effective and Tesco will able to find
appropriate persons for its organisation. It can minimise the recruitment and selection cost
and it is shows the better planning of the company. Through this ineffective candidates will
not apply for the particular designation. It makes the recruitment process effective and time
saving and make the selection process better and smoother. It reflects the better strategy of
company to find talented people who can fulfil the requirements of the organisation
(Andreeva and Kianto, 2012).
CONCLUSION
From the above report, it has been concluded that human resource management is
essential for the better management of humans in the company. Its make the operational
activities smoother and effective. By applying HR functions and approaches of selection and
recruitment Tesco can able to hire appropriate candidates in its company. It helps to enhanced
the productivity and profitability of the business. Employment legislations provides the help
to the organisation to maintain and follow all rules and regulations which are needed to be
followed for the effective HRM practices. It helps it to take better decisions in its company so
that it can maximise the productivity and efficiency as a result it can accomplish its
objectives and goal.

REFERENCE
Books and Journals
Andreeva, T. and Kianto, A., 2012. Does knowledge management really matter? Linking
knowledge management practices, competitiveness and economic
performance. Journal of knowledge management. 16(4). pp.617-636.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
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.
Cogin, J., 2012. Are generational differences in work values fact or fiction? Multi-country
evidence and implications. The International Journal of Human Resource
Management. 23(11). pp.2268-2294.
Dries, N., 2013. The psychology of talent management: A review and research
agenda. Human Resource Management Review. 23(4). pp.272-285.
Ellison, N. B. and Boyd, D. M., 2013. Sociality through social network sites. In The Oxford
handbook of internet studies.
Fine, S., 2012. Estimating the economic impact of personnel selection tools on
counterproductive work behaviors. Economics and Business Letters. 1(4). pp.1-9.
Jackson, S. E., Schuler, R. S. and Jiang, K., 2014. An aspirational framework for strategic
human resource management. The Academy of Management Annals. 8(1). pp.1-56.
Kim, S., 2012. The impact of human resource management on state government IT employee
turnover intentions. Public Personnel Management. 41(2). pp.257-279.
Manvi, S. S. and Shyam, G. K., 2014. Resource management for Infrastructure as a Service
(IaaS) in cloud computing: A survey. Journal of network and computer
applications. (41). pp.424-440.
Vaiman, V., Scullion, H. and Collings, D., 2012. Talent management decision
making. Management Decision. 50(5). pp.925-941.
Online
Human resource management. 2014. [Online]. Available Through:
<https://www.humanresourcesedu.org/what-is-human-resources/>