Impact of HRM on Organizational Productivity

This assignment delves into the crucial link between Human Resource Management (HRM) and organizational productivity. It examines various HRM practices, such as talent acquisition, employee training, performance management, and compensation strategies, and analyzes their impact on boosting productivity levels within organizations. The assignment draws upon scholarly research and theoretical frameworks to provide a comprehensive understanding of this vital relationship.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
LO 1.................................................................................................................................................3
P1. Purpose and functions of HRM applied at workplace..........................................................3
P2. Strengths and weaknesses of recruitment and selection.......................................................4
LO 2.................................................................................................................................................6
P3 Benefits of different HRM practices for employer and employee in organisation................6
P4 Impact of different HRM practices on organisational profit and Production........................7
TASK 2............................................................................................................................................8
LO 3.................................................................................................................................................8
P5 Importance of employee relation in company which influence decision making .................8
P6 Elements of employment legislation and its impact on HRM practices................................9
LO 4...............................................................................................................................................10
P7 Application of HRM practices at workplace.......................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource means employees working in organisation. They are important part of
company as they are the medium which help to achieve targets and objectives. Workers are
numerous in company and have different mind-set, so it is essential to manage them and this is
duty of HR manager (Alfes and et. al., 2013). There are chances that employees do not like plans
and policies applied by the HR manager. So, it is important to analyse problems faced by them
and provide solution. This report is based on Vodafone Telecommunication Company having
headquarter in London. This report covers purpose and functions of HRM practices as well as
strengths and weakness of recruitment and selection practices. In this report, it is mentioned that
HR policies affect the production and productivity also. Company has many workers and
directors which are responsible for achieving the set targets. Objectives can be achieved more
efficiently with the joint efforts of employee and employer. So, HR policies must be framed in
such a way which create a strong relations in between employer and employee.
TASK 1
LO 1
P1. Purpose and functions of HRM applied at workplace
Vodafone is a big organisation having numerous employees. This company operates in
different parts of the world. There is the requirement of different skills and knowledge which is
essential for customer satisfaction and organisation’s growth.
Workforce planning
Workforce means employees working in organisation. There is requirement of employees
in different departments and at various post. So, it is important that company has to plan about it.
There is the requirement of time as well as fund and so, this is important to recruit the best
person. There are alterations in skills and qualities for post so it must be checked before
conducting recruitment program. It is essential that different team leaders of various
departments of Vodafone has to deliver required skills ans knowledge for particular post. HR
department will plan recruitment program accordingly (Armstrong and Taylor, S., 2014).
Purpose of HRM in Organisation

 Good environment in company- This is the main purpose of having HR department in
organisation. There is an essential role of HR manager to see that whether in
organisation, employees are behaving in a positive way or not. It is necessary because
this does not spoil the culture of company. Optimum utilisation of resources- There is the use of different resources for
accomplishment of targets and objectives. This helps to improve image in industry and
enhance customer satisfaction.
 Direction and guidance- Vodafone is a company which operates in telecommunication
segment and there are many changes taking place in policies and the working style. It is
necessary to provide guidance to employees regarding the way to work under changed
environment and tell relevance of that modification (Bloom and Van Reenen, 2011).
Functions of HRM in Organisation Compensation- This is the basic function of Human Resource Department to plan salary
and compensation of workers. There are many workers in Vodafone and so, it is
important to give salary carefully. There is the provision of incentives also which help to
improve performance of workers. Performance appraisal- In Vodafone, there are many employees and there is the
provision of performance appraisal every year. This helps company to motivate
employees to work efficiently. Evaluation and performance appraisal is responsibility of
manager.
 Framing policies- Policies related to employees like leave, outing, lunch, etc. are the
liabilities of HR department. This is important because with this, employees are clear
about their working style. Sometimes, there are problems faced by employees in
understanding those rules and so, this can be clear with the manager.
P2. Strengths and weaknesses of recruitment and selection
Recruitment
Recruitment is a mid-way which ends with the selection of employees. There are some
benchmarks which are set by the team leader of department and accordingly, candidate is placed.
Recruitment is a positive process (Boxall and Purcell, 2011).
Selection

Selection is a stage which is done to select employees and this is the time when candidate
is a part of organisation. HR manager has to check efficiently that the prospective employees
which are selected must be efficient enough to accomplish tasks.
There are various methods of selection and recruitment. These methods are used as per
the requirement of organisation. Mainly, recruitment and selection are divided into two methods-
Internal Source
This method is used by company when there is requirement of less number of employees.
This method is cheap and less time is required for it. E.g. Transfer, job rotation, etc.
Strengths
 This method is less costing and less time is required for selection under this method.
 Quick satisfaction of employee need (Bratton and Gold, 2012). Employees are satisfied as they have more prospects of growth and get chance to work
under dynamic nature.
Weaknesses
 There are less options of choice to manager.
 There is feeling of conflict if one subordinate is promoted and other does not. This affects
the performance of employees.
 There are possibilities of partiality in company.
External source
These sources provide chances to select candidates from the outer world. There are many
issues associated with this source such as high cost and time. Vodafone uses this technique when
there is the need of a large number of candidates at operational level like campus drive, online
recruitments, employee recruitment agencies, etc.
Strengths
 More options for choice of selection
 Fresh employee brings new energy in organisation. There are possibilities that
candidates give brand-new ideas which are beneficial in respect to company. There are bright chances that company has pool of talented candidates (Buller and
McEvoy, 2012).
Weaknesses
 More choices may confuse HR personnel and there are possibilities of wrong selection.

 New candidate is not familiar with the culture of company and hence he/ she does not
feel satisfied.
 New employee is less resistance as compared to existing personnel.
 There is requirement of training and learning program which sometimes proves to be
consumption of time (Guest, 2011).
LO 2
P3 Benefits of different HRM practices for employer and employee in organisation
HR practices is not only beneficial for Vodafone as an organisation but also for
employee. There are some problems faced by employee which they can discuss with HR
manager. There are possibilities that employee are not ready to accept changes associated with
operations, then it responsibility of manager to know the problems facing by them and provide
best solution. As change in policies related to employee then it is necessary to apply that in
Vodafone also. But there is important role of leader to know how that change can be
implemented in company which is beneficial for organisation.
BENEFITS FOR EMPLOYER
 Training and development program- These days there is requirement of training and
development which help in successful achievement of goals and objectives. HR policies
has important role in planning training of workers. There are various sources of training
so it is necessary to opt best option among them (Han, Chiang and Chang, 2010).
 Develop harmony among employee and employer- Vodafone has large number of
employee and there is important role of employer and employee relation in creating good
environment in company. HR manager has to take care about relations among employee
and employer. This will help in accomplishment of task efficiently.
 Directing workers- There are many HR policies which aims to direct employees. These
policies includes Holiday policies, training related information, etc. which is important to
direct workers.
BENEFITS FOR EMPLOYEES
 Solution to personal conflict- In organisation there are various employees of different
mindset. Hence it is tough task to bring everyone under same stream, HR manager has to
check dilemma of workers and then frame policies. There are various issues among

employee which affects their performance and they don't want to work under same team,
hence it is responsibility of manager to reduce personal conflicts among workers.
 Promotions- HR practices are aimed at achieving goals and targets of organisation in
best way. It is important to check performance of employees and tell them best way to
achieve goals and objectives more efficiently. HR manager must frame policies which
has relation between performance of employee and their growth. This motivates worker
to give best services so that there will be chances of their career growth (Huselid and
Becker, 2011).
 Safety- This is the benefit of employees. HR practices take acre of employees safety and
security, this will provide assistance to employee and they work with full liberty and
energy. Vodafone give importance to employees as they think if employee give their best
then it will help company to give best services to customer.
P4 Impact of different HRM practices on organisational profit and Production
HR practices are policies which are framed for employee of Vodafone. There are m,any
workers in this company so they are important part of organisation. Vodafone is of the view that
satisfaction of customer can be achieved through employee's performance. It is important that
HR policies must be framed properly so that employees are war of their code of conduct. HR
policies has impact on Profits as well as production. Hence it is important to analyse whether
worker is working in appropriate manner or not (Jiang and et. al., 2012). Employees are the
medium through which targets of company can be achieved. If HR manager plan policies in
appropriate manner then this will give positive impact on profit as well production. These
policies also help company to improve efficiency of individual. Benefits of HRM practices on
profit and productivity are-
 Information system- Vodafone is company which is operating in telecom industry and
there is important role of IT in achieving targets. There is requirement of updated
technology through which company can achieve goals in efficient manner. HR must give
emphasis on using updated technique which sharps knowledge of person as well.
 Logical thinking- This means person has top think in better and efficient manner with
own will and knowledge. There is requirement employees who are aware of changes
taking place in environment. In case consumer want to switch to competitive telecom
firm then it is essential for sales personnel to know what problems are faced by consumer

which forces him to switch to other company. This can be done only if sales personnel is
able to create familiar behaviour with consumer. This ultimately helps to improve profits
of company.
 Talent management- There is important role of employees in company and they make
dram of organisation true. It is important that manger of company has to take actions
regarding employee's performance and this improves the quality of services in Vodafone.
The main target of company is to achieve more profits and productivity of company, this
can be achieved with employees upliftment (Renwick, Redman and Maguire, 2013).
 Innovative ideas- There are many new and innovative ideas with employees of
company. There must be option given to employees which aims at take ideas of workers.
There are possibilities that employees have innovative plans which help company to
upgrade its plans. Workers also feel satisfy as they have good as they are treated as
important part of company. By providing chance to employees their skills get polish.
TASK 2
LO 3
P5 Importance of employee relation in company which influence decision making
There are changes in external environment of society. So it is important for company also
to modify its policies in such a way that consumer get full satisfaction and it improves
profitability also. There are chances that there is need of making changes in plans and policies of
company. This may impact policies of company and there might be change in decision of
management of Vodafone. It is important that top level management has to take care of
employees so that there also perform their duties in most appropriate manner. There is
requirement of changes in plans and policies related to employees. But these changes has to be
applied in operations efficiently, this can be done only when HR manager look the actions of
employees. It is important that manger has insist employees to accept changes and worked under
new environment. There are chances that some employees do not like to work under new
technique hence it is responsibility of manager to know problem and resolve them(Schalk,
Timmerman and Van den Heuvel, 2013).
 Team work- There are short as well as long term goals of company. It is essential that
there must be good culture in organisation which help to achieve objective of company.

There is requirement of joint efforts of employee as well as employer. There are many
employees with different skills so there is division of work among various teams as per
skills.
 Reduces defects- There are less number of defects if manager keep eyes on working
style of employees. Workers are also aware about that some high authority has eyes on
operations. This will help to reduce cost and improve quality of services, which help in
satisfaction of customer (Vaiman, Scullion and Collings, 2012).
 Friendly environment- Vodafone operates in different parts of world and there is
different culture of every employees. It is important to respect culture of one another
which helps in creates friendly environment. This impacts the performance of employees
also. It is important that HR manager make policies which are flexible. In case of changes
taking place in operations and policies this will help to adopt changes.
 Discipline within organisation- There is proper code of conduct in Vodafone fiorm,
which helps workers to know what has to be done, in how much time and hence it also
fixes the accountability and authority of individual. In case of any negative results than
top level management can know the reason of discrepancy.
P6 Elements of employment legislation and its impact on HRM practices
There are many laws related to employees which provide assistance to them. This works
as safeguard for employees safety and security. There are numerous laws framed by UK
government which Vodafone has to apply in their operations. This is important for company to
apply otherwise there will be interference of government and its affects goodwill of company.
There is important role of HR manager in application of these laws at work place. It is important
that HR personnel has full knowledge about these laws so they can educate employees. If there is
modifications in these laws then it is important manger has to alter its plans and policies. This
helps in proper flow of communication and there is no confusion in operations. Some of the acts
applied by Vodafone are-
 Anti-discrimination act: This act states that there must be equality at work place with
regard to caste, colour, creed, sex, etc. This act applies on organisation having more than
15 employees.
 Minimum Wage act: This laws states that every individual working in company is
entitled for minimum wages. In case of company does not pay wages then he/ she can sue

organisation under this act. This act emphasis on upliftment of living of standards (Van
Solinge and Henkens, 2014).
 Workplace safety act: Employee work under premises of company and it is essential
that proper facility must be provided to employee at work place. This will help company
to achieve targets at time. It is essential that basic facilities are planned in such a way that
employee is safe at work place. Proper light, air, ventilation, etc. are some basic facilities
which are required as per this law.
 Health coverage: This act aims at insuring individual. There are various types of
insurance and schemes which are essential to applied at workers of small and medium
organisation. This act applies at form where 50 or more employees are working.
LO 4
P7 Application of HRM practices at workplace
Above discussion is the theoretical part of HRM practices. In this question practical
approach of Human resource department is analysed. These days HR department is not only
bounded by selection and recruitment but there are some other activities such as training, safety
and security, entertainment related activities of employees, etc. Vodafone is company which has
different operational units and hence there are different HR manager who perform task as per
culture of society.
But these days also, training and recruitment is the basic and primary duty of HR
manager. There are various activities and documents associated with recruitment and selection of
employee (Wright and McMahan, 2011).
JOB SPECIALISATION
This is a document created by concern department and deliver to HR department. This
helps to know about skills and qualities required by candidate for particular task. This document
will help manager to know whether particular candidate is capable of performing particular job
responsibility or not.
JOB SPECIALISATION
Organisation: Vodafone
Job Title: Senior Accountant
QUALIFICATION: Masters in Finance

Essential criteria:
 Knowledge about basic accounting concept.
 Know how to raise funds with minimum cost.
 Can handle personnel of different mindset.
 There is requirement of person who can handle conflicts calmly.
Desirable criteria
 1-2 years experience
 Good coordination skills.
 Good communication skills.
 Can deliver information as per requirement.
JOB DESCRIPTION:
This documents is another important paper which talks about job profile and other
related information. This talks about job and duties for particular profile.
JOB DESCRIPTION
Organisation: VODAFONE
Division: Accounts
Job Title: Senior Accountant
Job Location: New Castle
Job Summary
Company is looking for capable person who can fulfil the requirement of Senior Accountant in
the Vodafone. The applicant must carry basic accounts skills and able to work under different
financial situations.
Role
 Must have good relations with outer world.
 Maintaining Harmony in the environment

 Find sources of finance which are cheap and readily available.
 Train junior level employees.
There are many candidates which apply for the post. It is necessary that HR manager of
Vodafone has to recruit candidates at every step of selection (Alfes and et. al., 2013). At the last
step i.e. personal interview is stage where candidate come with curriculum vitae.
CURRICULUM VITAE
Name: Kim Rao
Address :23rd Street, Birmingham lane, Birmingham
Phone No. - 2421425647
Profile summary:
An MFA in accounts with experience of 6 months like to be part of organisation that provides
me bright chances of hype. Effective communicator with deep knowledge of accounts and
related theories.
Specialisation:
 Good public speaker.
 Knowledge about advance accounting
 Conflict management Expert in providing training and development
Educational qualification: -
 Bachelor in Commerce. (B.com) Masters in Financial administration (MFA)
Declaration:
I hereby declare that all the information provided is true and is best of my knowledge.
Date:
Place:
CONCLUSION
From the above decision it is clear that HR policies is important in both small as well as
small organisation. In older ages the role of HR Manager is not so significant but as the

environment is changing, demand of consumer is changing the role HR manager also increases.
There are change in operational policies of company hence there is requirement of proper
guidance and training. HR policies has vital role in managing quality of goods and services. HR
policies take care of employee and employer relationship, which is essential for accomplishment
of targets. There are some laws governed by UK government and it is essential for organisation
to apply them, these laws help company to achieve targets. In case of need of training HR
manager has to analyse all the options and opt best and appropriate one. If employee is not ready
to accept changes than manager has to motivate them and in case of any problem it must be
resolved.

REFERENCES
Books and Journals
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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance:
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Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
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psychological ownership and knowledge sharing: mediating role of organizational
commitment in Taiwanese high-tech organizations. The International Journal of Human
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Jiang, K., and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations
influence decision making on e-HRM applications. Human Resource Management
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Vaiman, V., Scullion, H. and Collings, D., 2012. Talent management decision making.
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Van Solinge, H. and Henkens, K., 2014. Work-related factors as predictors in the retirement
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Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
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Online
Recruitment and selection process. 2017. [Online]. Available Through:
<https://hr.ucr.edu/recruitment/guidelines/process.html>.