Human Resource Management: A Comprehensive Analysis of HRM Practices and Their Impact on Organizational Success

This report provides a comprehensive analysis of human resource management (HRM) practices and their impact on organizational success. It explores the purpose and functions of HRM, different approaches to recruitment and selection, the benefits of various HRM practices for both employers and employees, and the key elements of employment legislation that influence HRM decision-making. The report uses specific examples from BT, a telecommunications company in the United Kingdom, to illustrate the application of HRM practices in a work-related context. It also examines the importance of employee relations and how they can be effectively managed to enhance organizational performance. The report concludes by highlighting the critical role of HRM in achieving organizational goals and objectives.

HUMAN RESOURCES MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................4
LO1..................................................................................................................................................5
P1: Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation...........................................................................................................5
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................6
M1 Assess how the functions of HRM can provide talent and skills appropriate to fulfil
business objectives.......................................................................................................................8
M2 Evaluate the strengths and weaknesses of different approaches to recruitment and
selection.......................................................................................................................................9
D1 Critically evaluates the strengths and weaknesses of different approaches to recruitment
and selection, supported by specific examples..........................................................................11
LO2................................................................................................................................................12
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee.............................................................................................................12
P4 Evaluate the effectiveness of the different HRM practices in terms of raising organisational
profit and productivity...............................................................................................................14
M3 Explore the different methods used in HRM practices, providing specific examples to
support evaluation within an organisational context.................................................................15
D2 Critically evaluates HRM practices and application within an organisational context using
a range of specific examples......................................................................................................16
LO3................................................................................................................................................17
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P5: Analyse the importance of employee relations with respect to influencing HRM decision-
making.......................................................................................................................................17
P6: Identify the key elements of employment legislation and the impact it has on HRM
decision-making.........................................................................................................................19
M4: Evaluate the key aspects of employee relations management and employment legislation
that affect HRM decision-making in an organisational context................................................21
D3: Critically evaluate employee relations and the application of HRM practices that inform
and influence decision-making in the organisation...................................................................22
LO4................................................................................................................................................23
P7: Illustrate the application of HRM practices in a work-related context, using specific
examples....................................................................................................................................23
M5: Provide a rationale for the application of specific HRM practices in a work-related
context........................................................................................................................................25
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
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Introduction
The report provides with an explanation of the various concepts of human resource management.
The report has discussed on various aspects of human resource management and has initiated to
identify the concept of this type of management. The report will profess on the application and
scope of human resource management in the planning and recruit the workforce. The report will
converse on the effectiveness of key elements of HRM. The report will also depict an
understanding of the internal and external factors which influence decision making and
employment legislation in the UK. Lastly, the report will communicate and apply the human
resource practice in an organisation. The report has considered BT a telecommunication in the
United Kingdom.
(Source: France-Presse, 2013.
4

LO1
P1: Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation.
Human Resource Management is a contemporary concept of business and management which
engages in activities of procuring and managing human resources of the organisation. The
concept of human resource management includes various functions and scope of this concept is
vast. Strategic human resource management involves the activities of developing effective
human resources for the benefits of the organisation and rewarding the resources effectively to
provide with individual benefits to the employees.
Hard and soft HRM are amongst the different approaches applied by the human resources
manager to workforce planning and resourcing in global organisations like the BT. In the hard
HRM approach the manager treats and employees the human resources on the basis of workforce
requirements and planning. The resources are treated as any other assets or resource of the
employer and thus are foreseen according to the corporate business planning (Kepion, 2018). In
this approach of workforce planning and resourcing, the resources are not much engaged with
the top level management and minimal communication within the different levels of the
organisation is observed. The employees are not provided with a delegation of authority and
responsibility and thus have little or no command over the business processes and procedures.
In the soft HRM approach, the employees are treated as the most effective and valued assets of
business. The employees are considered as a source of achieving competitive advantage in
comparison to peer organisations. The approach considers in the practice of strong and two-way
communication indulging both the employees and the employers. The approach provides with
competitive rewards and payment structure to the employees in order to achieve the best of
organisational goals and objectives.
5

P2 Explain the strengths and weaknesses of different approaches to recruitment and
selection.
The two popularly used approaches to employee selection and recruitment are internal and
external recruitment. Internal recruitment includes approaches like recommendations from
existing employees, promotion, transfers etc. Whereas external recruitment includes approaches
direct interviews, walk-in interview, consultancy etc. There are various strengths and weaknesses
of these approaches to recruitment which are discussed as below:
Internal Recruitment and Selection
Strengths
 Less time consuming and easier
selection process.
 Requires less sorting and selection of
candidates.
 Provides with high calibre and
required candidates for specific job roles
and positions (Kang and Shen, 2013).
 Provides with motivation and
increased dedication to the employees.
Weaknesses
 Restricts the flow of new energy and
thinking into the organisation.
 Promotion bars the thinking of
growth and development as per the business
specifications and requirements.
 Creates the atmosphere of
resentment and de-motivation for the
employees not being promoted at higher
levels.
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External Recruitment and Selection
Strengths
 External recruitment provides with
an inflow of new talent and ideas in the
organisation.
 The process of this selection enables
interview and screen as many candidates as
possible.
 The process of selection provides
with greater and enhanced sets of skills and
abilities to the organisations.
Weaknesses
 The process is a more expensive
procedure and is time-consuming.
 It requires evaluating and analysing
various candidates.
 The results of selection and
recruiting are not also as desired (Kang and
Shen, 2013).
 It involves various activities such as
conducting interviews and providing with
advertisements in various forms of media.
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M1 Assess how the functions of HRM can provide talent and skills appropriate to fulfil
business objectives.
There are numerous purposes of HRM such as Training and Development of the employees,
Recruitment and Selection of the employees, Orientation, Performance Analysis and Evaluation,
feedback and Identifying areas of improvements. These functions of HRM provide with
increased abilities and opportunities to fulfil the organisational goals and objectives. The
function of training and development provides with increased sets of skills and knowledge to the
employees in order to attain the goals and objectives effectively.
The function of performance evaluation and analysis enables to indemnity the loopholes and
drawbacks of the employee performance (De Bruecker, et. al., 2015). This analysis aids in
improvising the employee's performance and enables to achieve the desired results. The function
of feedbacks and identifying the areas of improvements also helps the employees to focus on
their drawbacks and demerits of performance. Feedback is an essential function of the HRM; this
will elevate the performance of the employees and deploys the application of resources and
assets in an effective manner.
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M2 Evaluate the strengths and weaknesses of different approaches to recruitment and
selection.
The approach of competency and competency are two approaches to recruitment and selection
adopted in various global environments. The strengths and weakness of these approaches are
discussed as follow:
Competency Approach
Strengths
 A standardised form of interview and questionnaire are followed and is dependent on the
nature of the job and the profile of the duties and responsibilities to be executed.
 The selection of candidates is performed according to their actual abilities to perform the
required tasks and jobs (Kang and Shen, 2013).
 The approach provides with an advantage to select the most appropriate and skilled
candidate.
Weakness
 The approach involves a time-consuming process and results in a lengthy process of
interviews and selection procedure.
 Other diverse abilities and attributes of the candidates are not considered that may prove
as an advantage to the candidate in various other fields.
Competency Approach
Strengths
 The approach is dynamic in nature and accommodates the changing nature and aspects of
the recruitment and selection procedure in the HRM.
 The approach also focuses on diverse sets of skills and abilities of the candidates and
encourages the individual to increase their skills and abilities.
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Weakness
 There is a difference between the skills and abilities of the individual and the skills that
are required by the job profile and the job position (Kang and Shen, 2013).
 No specific standard and sets of regulation are followed in the approach. The approach
creates ambiguity and confusion in the managers and the candidates.
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D1 Critically evaluates the strengths and weaknesses of different approaches to
recruitment and selection, supported by specific examples.
The competency approach develops tests and knowledge assessment of the candidates according
to the job position and specifications. For example, if the position the candidate is to be
interviewed is for the position of a business manager, the texts and interview questions will be
developed according to the aspects of the job role and duties to be performed. The candidate will
be evaluated on the basis of decision making approaches, problem-solving techniques and tool
adopted etc. (Ulrich, et. al., 2013). A contingency approach is a dynamic approach that
improvises the ability of candidate and the organisation to sustain and develop according to the
changes in the business and the environment. For example, the approach will assess the skills
and abilities of the candidate outside the area of job profile and responsibilities. An interview for
the job profile of a human resource manager will be assessed according to the communication
skills, decision-making techniques and tools, integration of the individual, team building and
dynamics etc.
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LO2
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee.
Benefits Employees BT (Employer)
Training and
Development
The function of training and
development provides with
increased sets of skills and abilities
to the employees.
The purpose of training and
development provides with increased
employee efficiency and effective
performance of the tasks and work
allocated.
Rewards and
Incentives
The function of rewards and
incentives provides with benefits
monetary and non-monetary to the
employees (Rai Technology
University, 2017). It enables to
accomplish the desired goals and
objectives.
The function of rewards and
incentives provides with more
motivated and dedicated workforce,
this enables to accomplish the desired
goals and purposes of the organisation
in an effective manner.
Performance
Evaluation
The function of performance
evaluation enables the employees to
identify their drawbacks and areas
of a loophole. The identification
these loopholes enable to improvise
the performance and the efficiency
of the employees.
The function of performance
evaluation aids the organisation or the
human resource manager to focus on
the gaps in performance (Ozcan, Y.A.,
2014). The identification of these gaps
emphasises on the allocation and
application of resources according to
the performance of the employees.
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Feedback Feedbacks are constructive advises
given back to the employees by the
employers. Feedbacks provide with
information to the employees
regarding their areas of
improvements and provide an
opportunity to perform in an
effective manner.
To the organisation or the human
resource manager, the function of
feedback is essential. Feedbacks
enable to focus and profess the
performance analysis and evaluation
of the employee performance.
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P4 Evaluate the effectiveness of the different HRM practices in terms of raising
organisational profit and productivity.
The practice of learning, development and training empirically contributes towards raising the
organisational profit and productivity. The practice of learning contributes to the terms of
providing with increased sets of skills and knowledge. The practice of learning enables to
acquire various skills and knowledge which were not possessed by the employees in the earlier
stages or before the process of learning. The practice of training and development improvises the
working abilities and proficiency of the employees. The practice of T&D nourishes the existing
sets of the skills and employability attributes of the employees and improvises the working
efficiency. The practice of learning, development and training enables to raise the organisational
profits and productivity (Rai Technology University, 2017).
The practice imparts enhanced and developed information and knowledge to the employees.
These enhanced sets of knowledge provide with better working and technical know-how to the
employees. With better knowledge and technical education of the business processes and
procedures, the employees work in an effective and efficient manner. The deployment of
resources with training and development results in increased profit and productivity in the BT.
Increased skills result in increased levels of motivation and job satisfaction for the employees.
The workforce, when provided with increased job satisfaction, displays higher levels of
motivation and thus results in increased profits for the organisation.
14

M3 Explore the different methods used in HRM practices, providing specific examples to
support evaluation within an organisational context.
The practice of learning, training & development in the HRM practice provides with various
benefits and advantages to the organisation. In the context of BT, the practice of training and
development provides with the following benefits and advantages:
 Practice of training and development provides with increased profits and productivity.
 The practice of learning imparts with increased levels of proficiency and expert
knowledge to the employees.
 The practice of training imparts diverse knowledge and education to the employees
regarding their work and job roles to be performed.
 The practice of training and development increases the working abilities and capacities of
the employees in BT (Ulrich, et. al., 2013).
 The practice of training and learning provides with a higher level of motivation and
dedication to the employees.
 The motivation results in higher performance of the task and work that is performed by
the employees.
 The HRM practice of training and development also reduces the accidents and
operational costs for the organisation.
 The practice enables to provide employees with effective training and thus reduces the
operational costs and wastage of the resources.
15

D2 Critically evaluates HRM practices and application within an organisational context
using a range of specific examples.
The HRM practice of learning, training and development provides with various positive and
negative aspects. These are discussed below:
Positive
 Increased efficiency and productivity of the employees.
 Increased profits and revenues for the organisation.
 Increased sets of skills and knowledge for the employees.
 Enhanced levels of performance.
Negative
 It increases the burden of costs and expenditures for the organisation.
 It is a time-consuming task and involves a lot of processes and techniques (Rai
Technology University, 2017).
 The practice may not always provide with the effective result due to the dynamic nature
of the business environment.
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LO3
P5: Analyse the importance of employee relations with respect to influencing HRM
decision-making.
Employee Relations
It can be defined as the process of building a relationship between the management and the
employees in order to improve the coordination between managers and staff. Employee relations
deal with creating a collective relationship in a firm with the aim of building trust and confidence
among the employees towards the firm (Purce, 2014). Maintaining a healthy relationship ensures
effective communication being developed and also, the employees will be motivated to perform
better. The importance of employee relations for BT can be analysed as:
 The various decisions taken by the management related to the operations of the company
are communicated to the employees which enables them to know their roles and
responsibilities.
 A healthy employee-employer relationship helps the management to avoid conflicts and
enhance the teamwork among the employees. This ensures smooth working of the
company and enhanced production quality (Ruck and Welch, 2012).
 The grievances of the employees are resolved and the suggestions provided by a trade
union or representative of the employees and hence, decisions are taken after taking
suggestions from the trade union or employees’ representatives.
 Trade unions provide the necessary inputs which enable the management to develop
policies aiming at improving the working conditions and providing better compensation
for the employees.
 Trade unions act as mediators and negotiate with the management related to various
issues faced by the employees. The trade unions take part in the management decision-
making process and enable BT to take important decisions concerning the welfare of the
employees.
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 BT takes regular feedback from employees related to its policies which help the
management to ascertain the level of satisfaction of employees and change or implement
the policies accordingly.
All these activities which are aimed at improving the employee relations motivate the employees
to improve their performance which enhances the production efficiency of BT.
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P6: Identify the key elements of employment legislation and the impact it has on HRM
decision-making.
There is different legislation which is formulated by the UK government to ensure that the
employees get fair treatment and create a healthy working environment throughout the UK
region. BT has to follow this mandatory employee legislation and ensure that the policies have to
be implemented by considering these legislations, such as:
The Employee Rights Act
This ensures that the contractual rights of the employees are safeguarded which includes,
 Providing the remuneration based on the wages decided as per National Minimum Wage
Act, 1998 (The UK rules, 2018).
 Protection of employees against wrongful dismissal from employment.
 Entitlement to regular pay statements.
 The terms and conditions of employment have to be provided in writing.
This act protects the rights of the employees such as, protection against wrongful termination
which ensures job security of the employees. The National Minimum Wages Act, 1998 was
formulated to ensure that the employees are protected against exploitation.
The Equality Act, 2010
It is the principal legislation which prohibits discrimination and harassment in the UK region.
The act strictly prohibits the employer to discriminate the employees on the basis of gender, age,
race, colour, religious background and ethnicity. The law prohibits both direct and indirect
discrimination. Direct discrimination occurs when the employees are treated less favourably
when compared with others and indirect discrimination occurs when certain policies are
formulated by the company which favours only a particular characteristic of persons. The other
laws aiming at securing the employees from discrimination are the Equal Pay Act, 1970, the
Disability Discrimination Act, 1995, and the Race Relations Act, 1976 (Hand, et. al., 2012).
19

BT is an equal opportunity employer and has followed all these legislations and this can be
ascertained by the fact that it provides equal opportunities for all to work and grow in the
organisation. The benefits of the company in complying with the above legislation can be
evaluated as:
 It helps the company to formulate the policies related to compensation and benefits
provided to the employees since the National Minimum Wages Act provides the details
regarding the minimum wages to be paid to the employees (Hülsheger, et. al., 2013).
 Providing equal opportunity ensures that the talented employees are selected which helps
to enhance the quality of the services provided by BT.
 Employees feel secured and hence, the loyalty of the employees is gained which
enhances goodwill of the company among the employees.
 The shareholders and stockholders also are interested in those companies which ensure
that the provisions are maintained by the company which enables the company to expand
into other foreign markets.
 The company will be able to enhance its goodwill and reputation which ensures
achieving the overall objectives of the company (Hülsheger, et. al., 2013).
20

M4: Evaluate the key aspects of employee relations management and employment
legislation that affect HRM decision-making in an organisational context.
The key aspects of employee relations management in BT can be evaluated as:
 BT formulates the policies which aim at providing the safety and security of the
employees during the course of the employment. The legislation such as the Equality Act,
2010, ensures that employees are treated according to their merit and that there is no
discrimination of employees. This helps the management to create a healthy environment
and to enhance its goodwill and reputation among the employees as well as the
stakeholders (Ruck and Welch, 2012).
 BT encourages the participation of employees in the management and takes a valuable
suggestion from trade unions and employees’ representatives which results in gaining the
loyalty of the employees and formulating policies that promote cooperation and
coordination within the employees. This is the reason that the company has been able to
expand to other foreign markets.
 BT decides the remuneration of the employees as per the National Minimum Wages Act,
1998 which ensures that the employees are not exploited in the workplace. Also, the
employment is secured for the employees since the company does not terminate the
employees without providing proper notice and reason of such termination (Ruck and
Welch, 2012).
21

D3: Critically evaluate employee relations and the application of HRM practices that
inform and influence decision-making in the organisation.
BT has a positive outlook towards its employees and the policies are formed to provide the better
working conditions. The policies of BT towards employee-relations can be evaluated as:
The advantages of formulating these policies are, the job security of the employees is ensured
which creates a healthy environment. The participation of employees in the management
decision-making process enables the management to formulate policies which are accepted by
the employees which motivate the employees to perform better. These help to achieve the overall
objectives of the company. However, since trade unions have to be consulted before taking
decisions, there may be a delay in implementing important decisions (Ruck and Welch, 2012).
The advantage of providing the detailed job advertisement is that the applications will be
received only from the eligible candidates. However, the company may have to incur huge
expenses since placing the job advertisements in proper channels require a huge investment.
22

LO4
P7: Illustrate the application of HRM practices in a work-related context, using specific
examples.
JOB VACANCY
UCL is London’s leading multidisciplinary university and it is the top-rated university for
research strength. It was founded in 1826 in London and it has the distinction of being the first
university in England to provide equal opportunities for all irrespective of the students’
background. The founding principles are academic excellence and research aimed at providing
solutions to the real-world problems. At present, the university has more than 11,000 staff and
39,000 students from 150 countries. UCL has a global community of more than 20,000 alumni
and is connected through online network, events, journals and alumni benefits card. It has also a
specialised career networking evenings for graduates.
This prestigious institution provides an opportunity for the eligible candidates to be a part of this
institution:
Name of the post: Business Lecturer
Educational Qualification: PhD in business and master’s in business (MBA) along with a
degree in teacher preparation program.
Experience: Minimum 4 years of experience in teaching
Minimum 3 years of experience in assisting students related to business research.
Job role: Teaching post-secondary business classes
23

Provide regular inputs related to students’ performance
Maintenance of attendance and marks sheet.
Provide suggestions regarding improvement in the quality of teaching
Provide various reports to the management as and when required.
Key skills: Excellent teaching and communication skills
Ability to handle foreign students
Knowledge of other foreign languages will be an added advantage
Other Skills: Knowledge of internet
Knowledge of MS (Word, Excel and Powerpoint)
Salary: 50,000 pounds to 65,000 pounds per annum
How to apply: The interested candidates can apply by using the link:
https://www.jobs.london.ac.uk/vacancies_v3.aspx and please visit our website for all the other
details about the institution.
24

M5: Provide a rationale for the application of specific HRM practices in a work-related
context.
The job vacancies for the different posts are advertised in the Newspapers because:
 A large number of applications can be received since it is a common media which is used
in advertising the vacancies. This ensures selection of experienced and eligible
candidates.
 The newspaper advertisement also helps to promote the company to other geographical
locations since newspapers like Financial Times are circulated throughout the UK region.
 Since newspapers advertisements are considered as genuine, the applicants feel confident
while applying for the job. Advertising by using other means such as social media may be
considered as bias and hence, many applicants do not apply for the vacancies (Blake,
2018).
 Newspapers such as Financial Times are circulated and promoted based on the market
analysis and target market and hence, the applications that are received are genuine and
the selection of the best candidates can be ensured.
 Promotional activities by the way of Newspapers and journals enhance the goodwill and
reputation of the company (Blake, 2018).
25

Conclusion
The report has professed on various elements and aspects of the human resource management.
The report has identified HRM as an essential element of the dynamic business environment.
The report has deliberated discussions on the significance various HRM practices portray in the
organisation of BT. The report has communicated on various practices such as training and
development, reward and recognition as important HRM practices. The report has developed a
job advertisement for the position of lecturer in the University College of London. The report has
lastly discussed on the concept of employee relations and management in the context of BT.
26

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