Benefits of HRM Practices for Employer and Employee
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This document discusses the purpose and functions of HRM, as well as the strengths and weaknesses of different approaches to recruitment and selection. It also explores the benefits of various HRM practices for both employers and employees, including training and development, flexible work practices, and performance appraisal.
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Human Resource Management
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INTRODUCTION Humanresourcemanagementisanactorprocessofadminister,organisingand controllingenterprisefunctions,action, operations and workforceof the institution.It can be a process of hiringand choosing well qualified and knowledgable person for an organisation so that the function of it can be in efficacious way(Albrecht and et. al., 2015). The responsibilities and duties of HR administrative are segregated into several areas like staffing, recruitment, training,inductionandothers.ThemainmotivemotiveofHRMistomaximisethe productivenessand profitabilityofthe businessbymonitoringthe power of employees.Human resource manager administrates the manpower and put emphasis on performing the policies and process. They also help in making effective employees relation and maintenance of them. This assignmentisbasedonTescowhichisBritishtransnationalretailgrocerystoreand headquartered in England , UK. This written document will discuss about the purpose of HR functions and roles & responsibilities of which is beneficial in accomplish business objectives. It will also cover the several concepts andapproaches such as personnel planning, recruitment & selection, performance managementetc. Different HRM practices will also define that helpin increasing productivity and profitability of the organisation.Importance of employee relations andimpactofemployment legislation upon HRM decision makingwill explain. TASK 1 P1. Explainthe purpose andthefunctions of HRM Companyoverview- Tesco is aBritishmultinational groceries and general merchandise retailer. This firmwas familiar in 1919 by Jack Cohenand headquarteredinHertfordshire, England, UK. Itisthethird largest merchandiser intheuniverseand operate its business with the help of its number of stores approx 6800 crosswise the world(Altenburger and et. al., 2015). There are 450,000 employeesmake their effort in running the business ofthis retailorganization. Mission-Amission statementofTesco is to offer valuable product to it its employees so that they can retain them till long term period. Objectives- Business objectives of Tesco is to maximise the sales of the company to increase the profitability. By making decrement in prices target lower and average income group of people. Another objective of the company is produce healthy product to attract number of potential client which help in maximising customer base. 1
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Purpose of HRM Alignment of Human resource with business objectives-The main goal of HRM isto formeffectiveintercoursewith theemployees andwork for accomplishing the bushiness of the company in set time frame(Aryanto, Fontana and Afiff, 2015). In Tesco, for achieving aims and goals of the firm, the company provide training to workforce so that their execution matches with that of needs of organisation. Satisfying staffing needs- It is anotherfunction of human resource management inTesco is that it satisfies human capital workplace gap in the firm. Regarding it, this function is needed tohireandchoosewellqualifiedandknowledgableworkforcethatworkregarding organisational goals. Functions of HRM Managingemployeesrelations-Itistheimportantfunctionofhumanresource departmentand this divisionisresponsibletomaintain better relation between the employees and organisation.TheHRfunctionisaccountabletoadministraterelationandforthis,the management of Tesco make good communication with the manpower so that they can share their issues and resolving them on time. If employees relation will be good then it will help in creating a healthy and friendly workplace where employees can perform theirduties and responsibilities ineffective manner. Thiswillassistin achievingbusiness aims and objectives. Performance appraisal-It is another purpose of HRM which isresponsible to analyse the performance of the employees in a specific task and work. In Tesco,the administration of the companyis accountableto displayemployee execution in business activities and operation of the firm. This activity is organised by the company so that they can analyse employees performance and rewarded them according to that. Workforce planning- It is a process ifdeciding, prediction and planningor managing manpowersupplyanddemand,measuringgapsandobservingtargettalentmanagement participation to ensure thatan organisationhas right employee who has good skills and knowledge(Baum, 2015). In Tesco, it is an activity of administrating the staff member's of the firm by analysing their competencies and cognition. Purpose and importance of workforce planning The main purpose of workforce planning to administrating workforce and analyse the need of them for future requirement of the company. This planning is important because it help 2
in identifying skills gaps in current manpower and proving training to fill competency based gap. It is essential becausewith thehelpof this,the management ofTesco can find out the present and future requirement of workforce. P2. Explain the strengths and weaknesses of different approaches to recruitment and selection Recruitment: Meaning:Under thisprocedure, it provideaway to attract, screening and selected the most suitable candidates for the organisation(Bratton,and Gold, 2017). So that pre-determine standards can be achieved in the long run, the HR manager of the Tesco, make sure that they hire qualified employees in its management team. Importance: ï‚·It provide a way to evaluate to current requirement of the employees in the organisation by analysing the job requirement in the team. ï‚·It is stage where candidates are screened on the base of their qualification and the skills are necessary for performing the different activities in the organisation. Approaches:There are intrinsic as well as externalmethods forrecruitment: Internal approach:Herecandidates are chosen from the employees of the organisation to fill the vacant positions in the management team. Someof theexample of internal recruitment are as follows:ï‚·Promotion:Under such conditions, employees are promoted to higher level in the management by evaluating the their performance inthe team.Employees outputs are analysis on the bases of knowledge and skills in the given tasks. ï‚·Transfers: Here employees are transfer to one place to another place in the organisation. External :Here candidates areselected from the outside the organisation while taking into consideration of the skills and knowledge of the candidates and the requirement of the vacant post in the organisation(Cascio, 2015). Someof theexternalrecruitmentapproachesare as follows:ï‚·CampusRecruitment:Underthiscandidates areselected from the colleges and university to have fresher in the organisation. ï‚·Advertisements:Here information about the vacant position in given in the newspaper, social media and many another ways. So that appropriates candidates are selected for the various position in the organisation. 3
Strengths: ï‚·Internal recruitment is fast in process and required less cost in the process(Cascio, 2015). ï‚·External recruitment provide fresh talent in the management team. Weaknesses: ï‚·Their are less number of new ideas in the organisation. ï‚·External process is expenses in conducting the interviews. Selection: Under this process, shortlisted candidates are further analysis on the various different grounds and are again shortlisted for testing their skills and knowledge for the available position. Approaches: ï‚·Online screening of the candidates is done for another process. ï‚·Interview is conducted to test their skills. Strengths: ï‚·Online is a easy method to shortlisted the candidates. ï‚·Interview helps in understanding the personality. Weakness: ï‚·Candidates gets nerves at the interview around. ï‚·It consume lot of time. The workforce planning:It is a way to analyse the requirement of the employees in the organisation. So that skills employees areplacedinthe management team .with the reference of Tesco company, the manager make sure that they hire good employees in its team so that goals and objectives can be achieved. Approaches:Some of therole of human resource management are as follows: Successful organisation:Thebetter performanceofthe organisation is based on the strategies which are formed on the base of the historical performanceand thehierarchyof the company(Collings, Wood, and Szamosi, 2018). This will help Tesco company to have good environment in the organisation performance. Organisation in dynamic environment:In the context of Tesco company, the manager make sure that they use external information in order to increase the internal capabilities. Training and development 4
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It refers to a scheme which highlights the performance of an individuals and groups in an organisation. Where training involvesthe educational process and development means to enhance that knowledge(Delery and Gupta, 2016). The main objective of this process is to encourage a person to learn more new things and build confidence. This method help to knowing where an individual stand at present environment and where to see in the upcoming days. Approaches Proactive approach:This method signifies that an organisation removes the problems which arises in the future. This application refers that an every individual have to take self- initiative to handle the upcoming time. Systematic approach:It refers to identifies effective methods that helps an organisation to work prominently for better results. The important term regarding this approach is that it focuses on internal and external problems and recognise the best solutions for business. Performance management It is the important method of human resource management which helps employees to be responsible and give feedback to their supervisor for the related work. In context of TESCO, the manager give full attention towards their employees so that they work effectively and efficiently for organisation benefits. For this a company give rewards to motivates an individuals so they do systematic work and become the organisation a leading supermarket in UK. Approaches Comparative approach: This method suggests that an every employee in an organisation are compare with each other performance in respect to same level. It includes graphic rating scale, forced distribution and paired comparison. In TESCO, managers compare their employees to others so that they work above their comfort zone to accomplish the task assign and take the best rank. Behaviouralapproach:Itisthetraditionalmethodofmeasuringtheemployees performance by usingBARS and BOS methods(Hecklau and et. al., 2016). In context of the TESCO, human resource manager properly measures employee performance on the basis of their behaviour and attitude by using the BARS method. Reward system This is the important and the first method in an organisation to motivates and encourages employees to work very effectively. Furthermore, this system will evaluate the performance and 5
give rewards on the basis of an every individuals efforts(Jabbour and de Sousa Jabbour, 2016). TESCO, using reward system to motivate their employees so company achieve the desired task on given time. Approaches Internal and external benefits:When an individual satisfy with their work in a company is called internal rewards whereas, when customers satisfy with employees work and they gives good compliments is called extrinsic rewards. The management of TESCO focus on both these rewards to sustain in the market for longer period. Monetary and non- monetary rewards:The supervisor of TESCO, suggests both types of rewards to their best working employees. Financial rewards defines when an individual receives benefits in money form i.e. bonus, incentives etc., whereas non- financial rewards refers when employees receives rewards not in the terms of monetary form i.e. goodwill, power etc. TASK 2 P3. The benefits of different HRM practices within an organisation for both employer and employee In Tesco,there are different HRM practicesthat are executed by the administration of the company. These HRMaction are necessary for theemployerand employeesand assist in their development and growth. Training and development- It refers to an activity and process which is organised by the management of the employeesso that they can make growth and development in their abilityand competencies. In Tesco, the administration provide training and development programs both existing and newly hired employeesso thattheycan get information about new application and make development inskillsor knowledge(Noe and et. al., 2015). The administration of respective company provide different kind of training programs to its workforce like shadowing, coaching, job rotation and mentoring etc. Benefits for employees- Training and development is beneficial forworkerbecause it help in making development in employees skills and knowledge. This HRM practice is crucial for personal and profession growth of the workforce. With the assistance of this kind activity they gain information about new things like technologies etc. 6
Benefits for employer- This HRM activityis important foremployer because when company provide training to manpower then employer have trained employees for their specific task(Sagwa, K’Obonyo and Ogutu, 2015). Trained workforce help in accomplish the task aims and objectives in accurate manner on set time frame. Flexible work practice- It is an important HRM practice in which company make flexibility in their way of working and operating the business of the company. In Tesco, for this management of the company offer flexible working option and employee choice to its employees in different terms such aswork reported shifts, work from home, part timejobs etc. Benefits to employees- It is important to employees because it assist in devising work life balance. This HRM practice will be benefited to workforce of the company because by adopting this choice they can spend their time with family. It will help in reducing stress and get employment according to their choice. Benefits to employer- It is beneficial to employer because if company provide this option to workers then work load will be reduce. Employer will make focus on their work and accomplish their target and goal. Performance appraisal- It is a process of determine and examine employee performance. In Tesco, administration of the firm can organise this activity monthly and annually basis to monitor execution of its employees. It is conducted for rewarding employees as per their working performance in term of bonus, incentives, trips etc. Benefits for employees- This HRMexercise isessential for employees because it motivate them. It assist in providing financial and non-financial benefits to them in term of remuneration, vouchers, trips, incentives etc. Benefits for employer- It isbeneficial to leaderwith the help of it, they aware with skilled, knowledgable and qualified employees who can be beneficial for their project and task (Shenand Benson,2016). This practice help in encouraging workforce so the task in which they perform complete on time and also help in achieving employer target and they also rewarded for it. P4. Evaluation of the effectiveness of different HRM practices There arevarioushuman resource exercise whichare crucial for developinggainfulness and productivity of the company. The description of them are as below: 7
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Training and development- It is a procedure of improving and developing workforce skills and competencies so that they can do theirwork with more power.For example, in Tesco, the management of thecompany supply training andlearningcomposer so that they can aware with the new technologies and increase their knowledge(Stewart and Brown, 2019). It assist the company when the firm use new technologies then employees can do their work and task in efficient manner and complete the work on time without any issue and complexity. This help in maximising productivity and profitability of the company. Performance management- It is another effective HRM practice which is effective for analysing and evaluating employees performance in a specific task. In Tesco, with help of this activity, the firm monitor employees performance so that if workers are not perform well then organisation can organisation can provide training to them. If they executed well then they can rewarded for their good performance. It motivate employees and they do their work with more effectiveness and use their all efforts. Thishelp in increasing productivity and profitability ofthe company in adequatestyle. TASK 3 P5. The importance of employee relations in respect to influencing HRM decision making Employeerelationsindicatestoanorganisation'seffortstomanageandmaintain relationships among employees and employer. A company which have good employees relation can providefair and agreeable treatment toits workforce so that they will beattachedwith their jobs and loyal regarding organisation. In Tesco, if the management of the company adopt or implement effective policies and laws which are good for organisation as well as employees then workforce easily adopt them in effective manner and work according to them(Albrecht and et. al., 2015). It beneficial for the flexibility of firm because if the law and policies in favour of employees then it create positive impact upon employees. Because they easily adopt them do their work in ethical manner. For example, in Tesco if the company will not provide flexible working choice to employeesthen it create unfavourable impact because some people take negative advantages in term of completing their flexible manner which increase the cost and minimise productivity. In context of it,decision making of the company willbe influence in negative manner and the firm organise decision making process again. 8
P6. The key elements of employment legislation and its impact upon HRM decision making Equality and Diversity Act 2010:This act came into existence on 1stOctober 2010. It combines 116 isolated pieces of legislation. Equality and diversity act provides a lawful structure inwhicheveryemployeegetsequalopportunityinallfieldslikesalary,incentiveand promotions. This act ensure that every employee would get fair and equal treatment in Britain (Altenburger and et. al., 2015). Many acts and regulations are merged in this act likeBalanced PayAct 1970, race relation 1976, sex discrimination act 1975, disability discrimination act 1995, the employment equality regulations 2003. The retail giant Tesco Limited human resource manager have to ensure that would be no discrimination among employee. Personnel manager must treat every employee in fair and equal manner. Working Time Directives:To prevent exploitation of employees, European Union introduce a statute law called working time directives. All EU member states have to abide this law. This law provides certain rights to employees which HR manager have to provide them. These rights are right to rest 11 hours each day, right to one full day off in a week, right to 5.6 paid leaves in a year. Company's HR manager cannot force workers to work more than 48 hours in a week. Tesco' HR manager have to assure that there should not be any sort of exploitation of employees. Company should allow them to take sufficient rest so that they can work more efficiently and effectively. National Minimum Wage Rate UK:National minimum wage or national living wageis the least possible remuneration company have to provide to their employees. Allworkers entitled to be paid minimum wage declared by the government of UK. Minimum wage rates for employees aged 25 or older and apprentice are 8.21 and 3.90 pound respectively(Aryanto, Fontana and Afiff, 2015). Tesco HR manager have to set their compensation structure in such a manner that every employee get minimum wage alleged by government of UK. Sex Discrimination Act:Sex discrimination act came into force in 1975. This act protect employees from facingsecernment on the basis of their gender. This act assure gender equality in work places. Tesco limited have to take into account that there should be no discrimination on the ground of an individual's gender. HR manager have to compensate equal remuneration to both men and women. Grievance policy and leave policy must be fair and equal for both men and women. 9
TASK 4 P7. The application of HRM practices in a work related context HRM activities provide a plate from to workforce of the organisation forgrowth and improvementof the company in which specific company operate. For recruiting skilled and talented workers organise process of recruitment and selection(Baum, 2015). In Tesco, the administration perform different HRM practices like training & development, performance management, recruitment and performance appraisal etc. The company provide training to existing and newly hired workforce so that existing employees can make development in their skills and new workers can aware with the rules and regulations of the firm. With the help of performance management, it can analyse workers execution and rewarded them so that they can feel motivated. Job specification for HR executive Job description Position: Human Resource Executive Organisation: Tesco Plc Job purpose: The company is searching an HR executive to administrate organisation's recruiting,learninganddevelopmentandemployeesperformanceprograms.Theperson executesthe basic functions of the HR department, handling areas like personnel management, social welfare and the fixture of HR records. Roles & responsibilities: ï‚·To develop fair HR policies and assure workforce understand and comply them. ï‚·To manage worker's grievances and prepare salary statements. ï‚·Responsible tomanage workplace safety issuesandmanage insurance-related issues. ï‚·To maintain and update regular and day to day database like per5sonbal file and data of each employee. Requirements: ï‚·Bachelor's degreeor equivalentin Human resource andorganisation development. ï‚·Master's of business administration in Human resource with the specialisation in organisational behaviour and organisation development. ï‚·1 experience as HR executive from a well reputed company in UK. 10
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Person specification for HR executive BasisEssentialDesirable Qualificationï‚·Bachelor'sin business administrationin human resource. ï‚·Master'sinBusiness administrationin Humanresource management. Other educational diploma in Human resource and in related field. Skillsï‚·Goodcommunication and management skills. ï‚·Effectiveproblem solvinganddecision making. Tohaveknowledgeabout database, computer and IT like Email, MS office and others. Experienceï‚·1yearexperienceas HRexecutivefroma reputed company. ï‚·2 years experiences as HR assistant. 2yearsexperienceasHR administrator in a MNC in UK. Documentation of preparatory notes for interviews To organise interview, it is crucial to to prepare notes to conduct several types of actions and activities which are needed for evaluating knowledge and competencies of interviewees. Before conducting the activity of interview, the interviewer design notes regarding question of a particular job position, set timing criteria for taking interview and develop their skill so that they can recruit or choose qualified and knowledgable applicants. There some interview question which can be crucial for hiring applicants for HR executive post. It is important for both interview and interviewer to have effective information about them. 11
ï‚·Tell me something about yourself in brief. ï‚·How do you stay informed about updates to labour laws? ï‚·What is your most difficult phase in recruitment lifestyle? ï‚·What is your management style? ï‚·What kind of recruitment methods would you prefer? Job offer latter for HR Executive position Mr. XYZ Tesco Plc., UK Date: 31/01/2020 To Mr. ABC We are delighted to provide information that you have been selected for the post of HR Executive in Tesco Plc. If you are interested for this job then kindly fill the form which is provided on our company website(www.tescoplc.com) within five days. Roles and responsibilities: ï‚·Make participation in planning and development of recruitment and training process. ï‚·Record, maintain and monitor attendance to assure employee punctuality. ï‚·Manage and conduct several welfare activities and operations. ï‚·Update communication channels on daily basis. CONCLUSION From the preceding explain information, it can be summarise that human resource management is an effective process and activity of managing employees and business function of a company. It assist a business company by executing different activities and practices like recruitment & selection, training & development, performance management and others. These different HRM practices are effective or beneficial for employees and employer for their personal and professional development. Effective employees relation are essential for the growth of the company and employment legislation are important for ethical operation of firm. Different HRM application like job description, person specification, interview questions are effective for hiring skilled employees. 12
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