Functions and purposes of HRM

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This article provides an overview of the functions and purposes of HRM, including recruitment and selection approaches, HRM practices, and the importance of employee relations. It also discusses the impact of legal and regulatory frameworks on HRM activities. The article focuses on the case of Merrill Lynch Firm and covers topics such as training and development, compensation, advising to top management, and the different models of HRM. It also explores the concepts of workforce planning and the labor market, as well as the impact of legal and regulatory frameworks on HRM activities. The article concludes with a discussion on the application of HRM practices in the context of Merrill Lynch Firm.

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Human Resource
Management

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions and purposes of HRM...........................................................................................1
P2. Approaches concerned with recruitment and selection.........................................................3
TASK 2............................................................................................................................................6
P3. HRM practice.........................................................................................................................6
P4. Effectiveness of practice of HRM to raise profit and productivity of organisation..............8
TASK 3............................................................................................................................................9
P5. Importance of employee relations in respect to influencing HRM decision making............9
P6. Employee legislations..........................................................................................................10
TASK 4..........................................................................................................................................11
P7. Application of HRM practice..............................................................................................11
CONCLUSION .............................................................................................................................15
REFERENCES:.............................................................................................................................16
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INTRODUCTION
In dynamic world, significant role in played by human resource management to ensure
organisational success together with improving brand image so that long term sustainability is
achieved by business (Bratton and Gold, 2017). It provides leadership and directional provisions
to design as well as carry out activities so that effectiveness of employees with organisation are
fully maximised. To gain knowledge regarding human resource management, hand picked firm
is Merrill Lynch Firm that is situated at Central London. Covered aspects in the report are
HRM's purpose and functions, approaches of recruitment and selection, HRM practices,
importance of employee relations, elements of employment legislations together with application
of practice associated with human resource management concerning work relations.
TASK 1
P1. Functions and purposes of HRM.
Human resource management aims to build favourable, respectful and healthy
environment at work location for each personnel. It helps in development of creative ability,
personality and skills of employees to enhance caliberity to work. (Boon and Raven, 2012).
Functions and activities of HRM:
Various HRM functions are applicable on employee resourcing addition to workforce
planning that aids in goal accomplishments. Various HRM functions along with activities used at
Merrill Lynch Firm are:
Training and development: On boarding training programs are organised for new
employees where as ongoing training with development are provided to existing personnels that
helps in performing operations or activities in dynamic or uncertain situations. Merrill Lynch
Firm managers delivers such programs so that workforce accepts challenges and performs best
work.
Compensation: This function is related to determine competitive, equitable with
adequate compensation to personnels for their contribution towards business targets. Employees
of Merrill Lynch Firm are compensated with monetary together with non monetary rewards.
Advising to upmost management: Human resource management also provides their
valuable advises concerned with formulation, implementations and assessment of personnel
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procedures and policies to top authorities of the firm. They gives advices associated with
maintaining effective relations addition to high employee morale.
Models of HRM:
Hard Models: Treating employees as resource is characterised as hard HRM models. It
is task oriented which stresses rational and strategic aspects while planning addition to managing
resources (Chang, Gong and Peng, 2012). Using the model, Merrill Lynch Firm plans headcount
together with controlling tasks or operations which human resources performs. Managers
understands workforce needs and plans recruitments programmes with planning through hard
approaches.
Soft model: Considering employees as crucial and key assets is termed to soft HRM
model. It emphasizes towards personnels as well as their directions, commitment, self regulated
behaviour as well as trust. Using it, Merrill Lynch Firm encourages participation, empowerment
addition to workforce rights at the time of managing resources. Integration of practices or
programmes with organisational goals is done through soft approaches.
Workforce planning:
It is concept that helps in identifying existing and future needs of personnels together
with exploring cost effective methods in order to recruit addition to retaining key individuals. At
Merrill Lynch Firm, management follows proper and appropriate procedures such as planning
staffing levels and at same time ensuring availability of suitable addition to competent staff level.
Labour market:
Labour market is location wherein superiors interacts with labours. Within the market,
superiors complete hiring activities and labours complete best satisfying jobs. Labour market
types are as follows;
Organised labour market: It includes public employment exchanges. It is abstract in
nature. Merrill Lynch Firm within such labour market, provides training and development
activities to the manpower through their own efforts.
Unorganized labour market: Within such labour market, contract labours and casual
employment labours are found. They have high mobility level. Selected firm do not devise any
job within such labour market for their employees.
The labour market trends are:
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Industry 4.0: With fourth industrial revolution: There was usher out of huge jobs. There
are various jobs that are increasing with computers (Trends in Labour market. 2019). In context
to Merrill Lynch Firm, drastic reductions are experienced in record sales of stock.
Huge opportunities, Limited skills: In present era, for employment seekers huge
opportunities are available as labour market is considered as talent oriented. Now a days, skills
are considered on priorities regardless of quality. Despite of huge opportunities, the talent as well
as skill required within labour is far less.
Impact of legal as well as regulatory frameworks
Legal along with regulatory frameworks impacts more of HRM activities. Various legal
addition to regulatory frameworks are implemented at Merrill Lynch Firm, such as equal
opportunity act, Data protection act, Discrimination Act and so on that helps the enterprise to
implement working operations with legal practices and impacts on various manner. For example,
Data Protection Act impacts on the ways business is allowed for utilising personnel information
as personal data must be protected by entity and if fails to do so then results in negative impacts
on business image in the market. Similarly, Minimum wage Act also impacts on working of
selected entity. If entity pays compensation to its employees as per wages governed by
government then employees will be motivated and no legal penalties will be charged on entity
that impacts on positive manner on business workings as there will be no complications in
working when provisions of minimum wages are followed legally.
P2. Approaches concerned with recruitment and selection.
Recruitment: Attracting individuals for unpaid roles is termed to recruitment. It
constitutes procedures that are used in searching candidates to interview as well as hiring for
numerous positions. Merrill Lynch Firm adopts process that contains recruitment planning,
sourcing, screening and evaluating of prospective person. It stimulates individuals to apply for
vacant job.
Recruitment sources:
External recruitment: Searching suitable person from outside world so to fill open
positions is stated to external recruitment approach (Church and Waclawski, 2017). In relevance
to Merrill Lynch Firm, recruiting team makes assessments of available applications other than
current staff to analyse sufficient or qualified application who can fill or perform at particular job
vacancy. Some of the sources that selected organisation opts are:
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Media advertisements: Merrill Lynch Firm pays huge money to put ads in newspaper
together with journals by providing comprehensive details concerned with organisation, job
position nature, experience expected, skills required along with qualifications. Through this,
individual makes self evaluation against job requirements as well as accordingly apply to suited
job.
Direct recruitment: Herein, administrators of Merrill Lynch Firm puts notices on factory
gate regarding jobs available and applicants who are in search of job sees it together with apply
directly for concerned job. It is used at selected workplace to hire unskilled workers to whom
payments are made on basis of daily wages.
Short comings with benefits of recruitment approaches:
Short comings Benefits
ď‚· It takes longer addition to costs more
while making hiring decisions for
candidates from external universe.
ď‚· Recruiting qualifies employees from
outsides makes existing personnels
dissatisfied with work and they starts
leaving company that creating situation
of attrition at workplace.
ď‚· It opens doors for large applicants that
increases chances for Merrill Lynch
Firm to find right and proper individual
for the job (Freeman III, Herriges and
Kling, 2014).
ď‚· External approach brings fresh talent
that motivates existing personnels to
manufacture more as well as hopes to
obtain promotional opportunities.
Internal recruitment: Identifying and and attracting candidates to fill position from the
organisation is termed to internal recruitment approaches (Giacalone and Rosenfeld, 2013).
Merrill Lynch Firm uses followings:
Internal advertisements: Notices are hang on break rooms, notice boards or mails are send
including detailed information about vacant position. Administrators of chosen business analyses
performances of selected employees and provides names to recruitment team and the team sends
mails to prospective candidates addition to performs further recruitment processes.
Temp to permanent: Upgrading temporary personnel staff to full time position is another
recruitment method. Various assistants or intern roles starts as temporary jobs. As per their skills
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or performances on the training period, recruitment team consults with concerned departments
and plans further recruitment activities.
Benefits along with shortcomings of internal recruitment approaches:
Benefits Short comings
ď‚· Attracting employees from within
organisation improves morale as well
as retention such that other personnels
analyses chances of advancements and
performs work in well manner
(Holling, 2017).
ď‚· Using the approach, existing
personnels of Merrill Lynch Firm are
motivated with opportunities for career
development.
ď‚· Employees who are not selected for
unpaid roles feels demotivated and
gives less productivity.
ď‚· Recruiting internally is easier and
quicker as both employee and
organisation are familiar about
workings. It limits choices to find more
skilled candidate with better
qualifications.
Selection:
Choosing individual or putting right person with appropriate skills on right job is defined
to selection. Proper selection process is followed to select candidates for distinct departments of
Merrill Lynch Firm including applications receiving, preliminary interview, applicants
screenings, interview, tests, background checking and final selection.
Selection approaches:
Group exercises: Herein, candidates were provided job role exercises addition to topic
with some time to prepare. Recruiting team of the firm during the activity, observes each
candidate as per the attributes they are looking for and award them marks. This method is
reliable as the individual getting top marks are selected for vacant positions.
Reference checking: Many times, references or backgrounds are also checked to
ascertain behaviour of candidate in last job. Merrill Lynch managers checks references through
the numbers that are provided by the candidate and generates information about the person.
Unsatisfactory references can affects decision making while appointing individuals.
Shortcomings as well as benefits of selection approaches:
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Short comings Benefits
ď‚· At various time, many procedures are
not followed in proper manner or are
used with wrong purposes (Locke and
Latham, 2013).
ď‚· Selection procedures of Merrill Lynch
Firm involves various stages that
consumes more time and efforts of
managers as well as hampers other
works.
ď‚· From diversified applications,
prospective candidate with capabilities,
potentialities and skills is selected to
enhance business efficiency.
ď‚· It benefits Merrill Lynch Firm to make
proper assessment about knowledge
and education of individual at different
selection stages.
TASK 2
P3. HRM practice.
HRM practices are characterised to systems, policies and activities that influences
attitudes or performances of employees. Executive of Merrill Lynch firm formulates policies or
strategies that benefits workforce together with business in attaining beneficiary outcomes. From
distinct HRM practices, selected practice by respective entity is learning, development addition
to training practice whose description is as follows:
Training, development together with learning practice:
One of the effective practice that strengthens knowledge of an individual to perform
activities with innovating ways.
Differentiation among development and training:
Differentiation basis Development Training
Meaning Development is said to procedure
wherein entity equips knowledge and
skills of manpower till the aspects that
they can achieve steady growth as well
as handle job effectively.
Training is characterised to
procedure of equipping
manpower with particular
knowledge and competence till
the extent they are liable to
handle numerous tasks
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smoothly.
Terms Development is among gradual process
that is for long term as it includes
proper understanding of operations and
learning aspects for enhancing
activities.
Training is provided within
shorter term as only fewer
skills are only developed to
hold particular duties for
executing gained skills.
Types of training:
Following are some training types that Merrill Lynch firm follows:
Job instruction training: Herein, managers of respective firm provides overview of job
as well as experienced trainers exhibit entire working of job. When the performance after
training are evaluated, then additional training is provided to manpower.
Safety training: In this training type, employees are trained for minimising accidents and
keeping themselves safe from hazards. The manpower of Merrill Lynch firm are provided safety
instructions for using machinery as well as other dangerous devices.
Evaluation of training:
By using following methods, training is evaluated among employees:
Knowledge acquisition: the best method that measures effectiveness of training fro
analysing that trainees have potentialities to acquire knowledge from others. With this method,
an examination is conducted that shows results about extent to which trainees can apply new
knowledge to work.
Kirkpatrick Evaluation model: The measure to evaluate training was provided by
Donald Kirkpatrick. It has 4 approaches that helps managers to evaluate training program
effectiveness. In reaction level, managers analyses the ways learners reacts on training and its
usefulness. In learning, they measures skills and knowledge that were gained during training.
They uses test scores, KPI indicators and feedbacks. Within Behaviour level, mangers
understands the ways training impacted on performance and work attitude of learners. They uses
methods of self assessment questionnaires, observations and many more. At last, result stage
wherein tangible results are measured to analyse training outcomes.
Performance and reward
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The another practice wherein employees are rewarded through bonuses and awards as per
their performances.
Methods to monitor employee performance: At Merrill Lynch Firm, managers uses
following methods to properly monitor performances of staff members:
Random Quality checks: To monitor performances, management association randomly
checks quality for analysing actual performance. As this is done randomly, employees do not get
any time for preparation the employees to alter their performances. This helps managers to
ascertain the areas where they are lacking and the areas where they are best and accordingly
provided rewards.
Checking attitudes: Another method for monitor manpower performance is their
attitudes while analysing results. Bad attitude will show insubordinate behaviour depicting that
employee is unable to meet objectives of performances. When they do not meet targets they are
not paid any bonuses at Merrill Lynch Firm.
Types of payment as well as reward system: Organisational managers uses following
payment types of pro bonus, fixed fee and percentage of candidate package. In context to reward
system, they uses intrinsic as well as extrinsic rewards. Intrinsic rewards are in form of feedback
and acknowledgement while extrinsic rewards are gifts, raises, bonuses and promotions.
HRM practice Benefits to employers Benefits to employees
Learning, training with
development practice
ď‚· The practice benefits
employers to expose latest
techniques as well as trends
in professional areas.
ď‚· Such practice increases
employee motivation,
morales as well as job
satisfaction.
Performance with
reward system
ď‚· These practices upgrades
knowledge of subordinates
that helps them to utilise
their leadership together
with managerial skills to
fullest (Meadows and
Randers, 2012).
ď‚· It improves quality and
quantity of staff
members by
performing better to
attain rewards which
helps in attaining
financial benefits.
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P4. Effectiveness of practice of HRM to raise profit and productivity of organisation.
An organisation can improve the performances of its workforce with the application of
effective HRM practice. Merrill Lynch Firm adopts HRM practice such as training, learning and
development which makes staff members competent and effective (Effectiveness of practice of
HRM. 2019). Performance and reward system helps workforce to frame effective strategies with
innovative commodities that results in raising productivity as well as profit margins of Merrill
Lynch Firm. With both the practices, employees are taught about development of their career as
well as they started rethinking that makes them more specialised in concerned field to produce
effective results. Learning with development courses ensures efficiencies of worker in context to
project success and attain rewards by delivering best performance.
TASK 3
P5. Importance of employee relations in respect to influencing HRM decision making.
Employees posses knowledge and ideas that empowers them to make innovation
contributions in HRM decision making to reduce outsourcing addition to increasing productivity.
In relevance to Merrill Lynch Firm, strategies are adopted by human resource management
including worker involvement program as well as engagement awareness training so to reduce
issues, satisfying employees, managing performances as well as strengthen relationship among
all employees and with their subordinates so to engage workforce (Importance of employee
relation. 2019). Importance of maintaining good relations at workplace which can influence
HRM decision making are as elaborated:
Reduced conflicts: Personnels adjust more quickly as well as stop finding faults among
others when healthy relations is built with them. They focuses more on work activities and strive
hard for better performances as they don't waste time on meaningless conflicts along with
disputes (Morgan, 2013). Human resource management of Merrill Lynch Firm makes best
decisions to provided efficient environment where all start treating others as family members
along with improving compromise level to make others happy along with becoming productive
to organisation which results in influencing HRM decision making towards achieving success.
Reduces absenteeism: Employees are generally more serious about their work as well as
comes at workplace daily. Work environment at Merrill Lynch Firm is favourable and
motivating as superiors maintains strong relationships with all the staff members that motivates
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employees to not to take frequent leaves addition to enjoying work without complaining and give
best that results in reduction in absenteeisms and motivation of workforce that influences
decision making of human resource management in positive aspects.
P6. Employee legislations.
Laws that regulates employee relationships with top management and covers workers
rights are said to employee legislations. The impacts of the legislations are seen on HRM
decision making as managers needs to make alterations in existing legislation according to new
stated law. Other than this, the purpose to adopt legislations are to improve motivation of
employees along with retaining them for long time period. Various legislations followed by
Merrill Lynch Firm administrators are:
Healthy and safety Act, 1974: It states general duties of superiors, contractors and top
management regarding maintaining control on dangerous activities at work premises and
managing personnels in general. Following the act, superior authorities of Merrill Lynch Firm
secures safety, welfare addition to health of individuals at work. They also make various
provisions that maintains systems, machines and plant in safe conditions without creating risks
while performing operations (Pelling, 2012). Providing protective environment influences HRM
decisions in motivating personnels to work without hampering productivity.
Anti discrimination Act, 1977: Legislation that prohibits sexual or unlawful racial
discrimination in various situations addition to promote equal opportunities for all personnels is
termed to anti discrimination act. Managers with departmental heads of Merrill Lynch Firm
follows the legislation and prevents all type of discriminations concerned with employment,
disability,marital status, career responsibilities, race, sex and age. Treating equality and
providing opportunities to all at selected organisations helps in influencing HRM decisions as all
employees work with coordination according to defined procedures that improves relation and
maximise productivity.
Trade unions as well as workplace representation:
The trade unions plays important role of negotiating wages as well as working conditions,
takes collective actions for enforcing collective bargaining at local level. But at national level,
trade unions have role to protect manpower from compensation hikes as well as to provide job
security by measures of peace.
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Collective agreements: These are written contracts among union and superior which
outlines terms and conditions concerned with employment for bargaining units. The trade unions
of Merrill Lynch Firm uses collective agreement methods such as arbitration, negotiation and
conciliation to settle trade conflicts.
Best practice: To manage trade unions, managers of the entity follows discipline
procedures to create favourable environment for work. They manages grievances of trade unions
with proper consultation among top authorities and union trades so to reach on final conclusion
for sorting out their grievances. In context to redundancy, managers uses data storage technology
where they saves data at two distinct locations and uses it when required.
TASK 4
P7. Application of HRM practice.
Merrill Lynch Firm adopts best suited HRM practice to make decisions about hiring
potential person. In context to recruitment practice, departmental heads with recruitment team
properly uses following HRM practices:
Job specification: The job specification for the designation of HR officer :
Job designation: HR officer
Business entity: Merrill Lynch Firm
Job overview: HR Officer will provide daily administrative along with office supports with
distinct HR functions, will enhance manpower performance, manage recruitments and design
development programs as per company policies. Individual applying for such designation must
have decision making skills for streamlining workflow.
Responsibilities with role:
ď‚· Providing advices on staff recruitment.
ď‚· Preparing Job adverts.
ď‚· Contacting individuals for fixing appointments.
ď‚· Arranging induction sessions.
Academic qualification:
ď‚· Bachelor's degree in commerce or other field.
ď‚· Master's degree in Business.
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Person specification: It includes entire information about candidate applying for the position.
CV for the designation of HR Officer.
James Chishiki,
338 Garratt Ln, London, United Kingdom
Contact Number: +88 18 5111 7829
Email Address: james.25chishiki@yahoo.im
Professional Summary:
Experienced and talented Officer in Human Resource Management who encourages workforce
to pursue workings by building personal excellence. Builds challenging together with engaging
learning environment which motivates manpower to become smart workers.
Highlights:
ď‚· Strong public speaker
ď‚· Motivating officer.
ď‚· Tolerance of failure.
Education:
Course name University Grade
Ph.D Oxford University, London A
Master of Business
administration
University of Exeter, UK A
Bachelor of Commerce University of Leicester, England, UK A
Declaration: Mention information is correct as per my consideration.
Job advertisements:
HR OFFICER REQUIRED
Our customers as well as highly progressive group is searching for challenge oriented candidate
for HR Officer position.
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The candidates meeting following requirements can apply:
ď‚· MBA with Major HR subject.
ď‚· Must have fluent communication techniques.
ď‚· Have excellent command on Office apps.
Interested prospect matching with described criteria can send their CVs along with covering
letter at Merrillhrrecruit@gmail.com till December 01, 2019.
Documentation of preceding notes for selection aspects as well as interview
Managers designs preparatory noted prior to activities for recruitment or selection. The
notes are related with interview questions that recruiter will ask from the prospective candidate.
Based on the person specification and requirements of entity, candidates are short listed for
interview. Further, responses from interview will determine the selection of competing person
for the designation. The recruiting team of Merrill Lynch Firm will ask following questions from
the short listed candidates:
INTERVIEW QUESTIONS
ď‚· Describe yourself along with your objectives?
ď‚· Describe the environment that suits manpower to enhance productivity?
ď‚· Tell me two reasons that we should hire you?
ď‚· What management style must be preferred to manage staff members effectively?
Based on the interview, further activities like employment tests, reference checks and
medical examination will be conducted for short listed candidates. The chart illustrates selection
procedure for HR Officer designation:
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Job Offer letter:
Mr. Salim Dsouza,
Merrill Lynch Firm.
Dear James Chishiki,
It is for acknowledging you that for HR Officer position at Merrill Lynch Firm, you have been
hired at the entity.
Job Responsibilities:
ď‚· Report preparation for manpower performances.
ď‚· Preparing Job adverts.
ď‚· Arranging induction sessions.
Reporting: Human Resource department.
Compensation: $ 40000 per month along with additional benefits.
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Sincerely,
Mr. Salim Dsouza
CONCLUSION
From the above discussion it has been summarised that to plan strategies or approaches to
hire people, providing them training, maintaining work atmosphere, appraising performances,
developing public relations and managing disputes is generally done through human resource
management. Main HRM functions are providing advises to higher managers along with
divisional heads, managing compensation, setting training and development programs.
Organisations uses recruitment approaches including media advertisements, direct recruitment,
internal advertisements and temp to permanent where as goes ahead with selection approaches of
group exercises and reference checking. Legislations governed for employees includes Healthy
and safety Act, 1974 and Anti discrimination Act, 1977. HRM practice is primarily applied for
making hiring decisions as well as managing performances effectively.
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REFERENCES:
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absorptive capacity, and subsidiary performance. Academy of Management Journal.
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Church, A. H. and Waclawski, J., 2017. Designing and using organizational surveys. Routledge.
Freeman III, A. M., Herriges, J. A. and Kling, C. L., 2014. The measurement of environmental
and resource values: theory and methods. Routledge.
Giacalone, R. A. and Rosenfeld, P., 2013. Impression management in the organization.
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Holling, C. S., 2017. Adaptive environmental assessment and management.
Locke, E. A. and Latham, G. P. Eds., 2013. New developments in goal setting and task
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Morgan, G., 2013. Riding the waves of change. Imaginization Inc.
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Reid, D., 2013. Sustainable development: An introductory guide. Routledge.
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Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
World Health Organization, 2014. Companion handbook to the WHO guidelines for the
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Online:
Effectiveness of practice of HRM. 2019. [Online]. Available through:
<https://www.yourtrainingedge.com/effectiveness-of-corporate-learning-and-
development-programs >
Importance of employee relation. 2019. [Online]. Available through:
<https://www.managementstudyguide.com/importance-of-employee-relations.htm>
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trends-in-the-labor-market/>
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