Functions and Purpose of HRM in Workforce Planning and Resourcing an Organisation
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This report discusses the functions and purpose of HRM in workforce planning and resourcing an organisation, using TESCO as a case study. It covers the managerial and operative functions of HRM, the best fit and best practice approaches, and the benefits of HRM practices for both employees and employers.
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Table of Contents INTRODUCTION...........................................................................................................................1 Part 1: Human Resources Employee Induction Manual..................................................................1 TASK 1............................................................................................................................................1 P1 Functions and purpose of HRM, applicable to workforce planning and resourcing an organisation.................................................................................................................................1 P2 Strength and weakness of several approaches to selection and recruitment..........................3 TASK 2............................................................................................................................................4 P3 Benefits of several HRM practice within firm for both employee and employer.................4 P4 Effectiveness of various HRM practice in terms of raising organisational productivity and profit............................................................................................................................................6 Part 2: The Job Application.............................................................................................................7 TASK 3............................................................................................................................................7 P5 Explanation of employee's importance in terms of influencing HRM decision making.......7 P6 Key elements of employee legislation and impact it has upon decision-making of HRM....8 TASK 4............................................................................................................................................9 P7 Application of HRM practices...............................................................................................9 CONCLUSION..............................................................................................................................13 REFERENCE.................................................................................................................................14
INTRODUCTION Human resource management refers to the effective practices which involves recruiting, vetting, hiring, selecting, training and paying large number of employees at workplace. HR department within an organisation and company usually responsible for developing, creating, putting into effects as well as seeking several policies governing employees and relationship between firm and employees. Therefore, HRM considered as an essential part of firm by which they can reduce risk and able to make effective goal which is used by employees into the firm. Thus, HR manager have responsibilities towards firm to achieve organisational goals and objectives in an effective manner (Wright, 2018). This report is based on TESCO which is one of the largest multinational retail organisation and headquartered in England. This organisation deals with different types of groceries products and merchandising across the globe. Further discussion will be based on scope and purpose of HRM in term of resourcing firm with skills and talent to accomplish business objectives. Along with there are few key elements of HRM into the organisation. At last, internal and external factors that decision making of HRM and so many practices in regards of work context will get covered in this report (Noe, and et.al. 2017). Part 1: Human Resources Employee Induction Manual TASK 1 P1 Functions and purpose of HRM, applicable to workforce planning and resourcing an organisation. Overview of the company- Tesco is a British multinational groceries and general merchandiseretailer.Thisorganisationwasincorporatedin1919byJackCohenand headquartered in Hertfordshire, England, UK. It is the third retailer in the world which operate its business globally in number of countries with the help of its 450,000 employees. Mission- The mission statement of this company is to manufacture quality product which help in attracting number of customers. Vision- The vision statement of the company is To be the most high valued business by which consumer can fulfil their need to get quality and valuable product. To provide a good working environment in which employees operate and committed colleagues and shareholders. Objective- The objective of Tesco is to retain loyal customers by offering products as per their needs and demands so that they can keep their clients happy, to gain more profits. Tesco's 1
objective is to motivate employees so that they do their work effectively and help in the development of the company. Human resource plays significant role within an organisation and firm in order to cope up with different types of function of firm. It is the process, which is used by manager and employees of companies. In regards with TESCO, as it is the biggest organisation and always use large number of functions. Thus, HR manager has responsibility to operate each and every function of firm in a sequential manner by which they can meet future goals and objectives. So that the main purpose of this organisation is to examine overall issues and formulate effective plan of actions which are able to accomplish desired objectives. Functions and Activities of HRM- Activities and functions of HRM are mainly divided into 2 categories that is operative and managerial functions followed by TESCO, mentioned below: Managerial functions:With the help of this function of HR manager of firms able to plan, direct, staff and control overall operational activities within an organisation. In context of HR manager within TESCO always use these sorts of functions in order to manage their overall work perfectly. Moreover, this function helps them to manage entire team of management so that they can give their better performance and overcome unnecessary activities from the firm. If the management of the company administrate the work force and team members then they will do their wok in organised and structured manner. It will will help in accomplishing the business objective in set time frame.. Operative functions:According to this functions, HR manager of TESCO mainly develop effective strategies in order to motivate their employees towards better work. Thus, it is anessentialtoretainpotentialemployeesforfirmthroughprovidingthemtrainingand developing sessions. This function help in accomplishing the business objective because when employees will train, they will use their knowledge and efforts in proper way(Renwick, Redman and Maguire, 2013). Best fit VS Best practice approach- Best fit approach:It is considered as an important variant which is based on developing different types of policies and business strategies into the HRM. With the help of this approach HR manager of TESCO is able to design their products in a particular way and applied corporate 2
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strategies on their work. Therefore, it is necessary and used by this firm to increase its profit and productiveness at marketplace. Best practice approach:This approach refers to the certain bundle of different types of HRactivitieswhichalwayssupportfirmtogaincompetitiveadvantagesamongthe organisational settings. Herein, TESCO use this approach in order to develop good connection betweenorganisationalperformanceandHRpracticeswhichareassociatedwithhigh commitment management and improves work performance of employees at regular basis. Hard approach of HRM- It is another approach which includes that if the company follow it then employees treats simply as other resources of business. For example, in Tesco, if the administrationof respectivecompanyfollowthisapproachthen theytreatemployeesas machinery. It demotivate workforce and they do not perform in better manner. Soft approach of HRM- It is an approach that consists treating employees as one of a important assets of an organisation. In Tesco, when the management of the company use soft approach of HRM then they treat their workforce as important resource. It help in encouraging employees and they of their allotted task and wok in more effective way. Workforce planning- It refers to the process of identifying an organisation's such as future demand for people in the terms of locations, skills and numbers. Herein, it allows TESCO to make effective plan by which they can met training and recruitment. Therefore, it plays significant role by which respective firm is able to make better plan for future growth(Mello, 2014). Purpose of HRM in workforce planning- To maintain adequate workforce inventory:In relation with TESCO, the main aim of this organization is to maintain employee's right at right place when required. Additionally, HR manager of TESCO is needed to evaluate overall needs and wants of their employees within an organization. With the help of this HR manager can easily provide better services to its employees at right time with right place. Formaintaininghighmoraleofemployeeswithintheorganization:Herein, management team of TESCO always able to motivate their employees on daily basis. For this, they also gives benefits, incentives and rewards to their employees so that they can work in a perfect way and get motivation all the time. It helps firm through increasing huge profit and productiveness at marketplace(Kavanagh and Johnson, 2017). 3
P2 Strength and weakness of several approaches to selection and recruitment. The selection and recruitment process refers to the different types of key components which is used by manager while taking interview to select employees on the behalf of job vacant. This is used by HR manager of TESCO; those are going to be discussed below: Recruitment process It involves attracting the right standard of job candidates who are applying for job vacancies. Herein TESCO advertise its job in so many ways by which they can attract large number of job applicant. There are 2 types of recruitment that are: Internal Recruitment:In relation with TESCO, the management of the company use this method to hire employees for filling vacant positions. This process always overseeing its current employees who are looking to move as well as same level or promotions. According to this type of talent plan there is no suitable people than firm develop different types of developing programmes and advertise its post internally vis using intranet for minimum 2 weeks. Strength- Talented skilled employees can get attracted through taking huge advantages in TESCO along with this, they are able to evaluate overall recruitment of better employees in firm. Weakness- There is low chance to filled each vacancy of job which is provided through internal sources and it also create conflicts and issues(Jiang and et.al. 2012). External Recruitment:According to this approach, the management of the company hire employees, outside of the company.With the help of online applications applicants easily check job vacancy in this firm for their chosen job profile. Along with this, people can check interview date, time and place as well. Therefore, external recruitment plays significant role by which job applicants could save their time and money both as there is no need to go somewhere for finding jobs they can get full information through the website of the specific company which is occurred hiring process. Strength- This method is beneficial for the respective company because by using it company can a pool of candidates and it can easily get well qualified and skilled applicants as per vacant positions. Weakness- 4
Making online job advertisement could be expensive and also ignored by few people as there are many other option to select desired job profile. Selection process It generally involves selecting most suitable employees from those people who are applying for a vacancy. Along with this, there are various rules and legislations which all are significant part of firm and used while selecting process. Selection process considers selecting the most suitable people from those that apply for a vacancy (DeCenzo, Robbins and Verhulst, 2016). In Tesco, the management of the company useddifferentmethodsofselectionlikescreeninginwhich,theadministratorshortout candidates CV's as per the requirement of specific job role. Strength- With the help of this approach, employees are able to get effective amount of flexibility and able to modify few changes accordingly. Along with this firm is able to monitor applicant qualification in a proper way. Weakness- There is no specific evidence of questions and no analysis for future so that it can develop difficulties during the process of selecting job applicant. TASK 2 P3 Benefits of several HRM practice within firm for both employee and employer There are different types of HRM practices in which management team of TESCO gives effective performance like recruitment and selection, training and development, reward system and performance management and many more. All these asserted HRM practices are essential for effective growth of an organisation(Chelladurai and Kerwin, 2018). There are assorted activities and HRM practices which are followed by TESCO in order to achieve targeted goals, that are: Training & development:This type of activity mainly administrated by an organisation in order to formulate existing skills as well as knowledge. In regards with TESCO, they generally conduct training sessions to their employees in order to get huge information and improve competencies. With the help of this firm can provide effective training to its employees and achieve organisational goals. 5
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BasisTrainingDevelopment MeaningIt indicates to a learning activity in which workforce get an option to improve their skill, knowledge and competencies as per the need of job or work. It refers to and educational action that is concerned with the all over development of workforce. TermIt is a short term process.It is a long term activity. ObjectiveThemainpurposeoftrainingto makedevelopmentinwork performance of the manpower. The objective of development is to prepare workforce so that they can dealwithfuturechallengesand issues. AimTraining is related to particular job or job role. It is affiliated to conceptual and general knowledge. Identification of training needs-the training gap- To identify the need of training, the management of the company can analyse the performance of the employees in a specific task or work. If the employees do not perform well then the company find out training gap. Then, the managementprovide trainingand learningsessions to workforce so that they can make improvement in their skills. Types of training- There are two types of training- one the job and off the job. On the job training- It means training in the private and public sector which is provided to employees. So that the worker is engaged in productive work and that offers skills and knowledge which is crucial to the full and adequate execution on the job. In Tesco, this kind of training, the operative staff is provided the instant instructions to execute their jobs in actual working environment. Off the job training- In this training method, employee learn their job roles away from the current work place in which they will be perform. This kind of training program consist coaching, internship and job instructions etc. 6
Evaluation of training- After providing training the management of respective company analyse and measure workforce execution that they are able to do their work in effective manner. In Tesco, to make evaluation of training, the management can measure their performance. Benefits for employee- It is an essential practice for employees by which they can improve their overall skills and knowledge for future growth. Benefits for employer- Training and developing programme always important for firm in order to make best project to achieve targeted goals. With the help of this they are able to follow unique tools and techniques for supporting employee’s performance and encourage them towards achievement of working goals. Performance appraisal:It refers to the activity of evaluating and analysing overall performance of employees. In relation with TESCO management this organisation is able to give best performance of its workforce(Cascio, 2015). Methods of performance management- there are different methods that can be used by the management of Tesco to measure and monitor the execution of its workforce. Comparative approach- With the help of it, the administration of the company can analyse their working performance provide ranking it. Then make comparison with other employees. For making comparison they can use different techniques like paired comparison and graphic rating scale etc. Result approach- By using this approach, the organisation can monitor employees performance by rating workforce on the basis of employees performance outcomes. Types of payment and reward system- There are different kind of reward systems: Bonus- It is a financial compensation that us above and beyond the normal payment. It is provided by the company for their good performance and provide motivation to them so that they can do their work in more effective manner. Remuneration- It indicates to the monetary rewards that a worker receives but these rewards can take different forms. It is receives by the workforce for their organisation for the good execution and contribution in company's success. Benefits for employee- This activity considered as an important activity for employees as it helps them to perform well through ignoring errors. Along with this, for better performance they can get reward, money and incentives from TESCO. 7
Benefits for employer- When management of TESCO conduct this sorts of activity, they should aware towards talented and highly skilled employees. With the help of this they can measure performance of employees and give benefits to them accordingly. Flexible work practice:It is known as effective activity and best HRM practice which helps firm to achieve their goals and objectives. With the help of this flexible work TESCO can provide best working option to their employees like work from home, part time job and so on. Benefits for employee- It is beneficial because, with the help of this employees can maintain overall work life balance and it also overcome stress level from the work. So that employees can chose their working option accordingly(Buller and McEvoy, 2012). Benefits for employer- When employees have working flexibility in their work than they can happily work and not take stress too much. On the other side if employer will conduct this type of activity than it can overcome work load from employees and able to maximise firm's profit with huge sales or revenue. Job and workplace design-It is activity of conducting work into tasks that needed to perform a particular job role. It consists the conscious efforts to organise tasks, responsibilities and duties into a unit of work to accomplish certain aims and objectives. Benefits for employee- It is beneficial to employees because if the employee have that skills then it can do the work and perform roles & responsibilities in effective manner. It will motivate the workforce to move in other ways. Benefits for employer- It is advantageous to employer because by designing job as per employees skills and knowledge they can perform the work in effective manner within less time. It will help in development and growth of the company. P4 Effectiveness of various HRM practice in terms of raising organisational productivity and profit. With the help of assorted HRM practices management team of TESCO is able to plays different types of roles and responsibilities in order to increase organisational profit and productivity through gaining future advantages in a proper way. There are functions which played by manager of TESCO, that are: Traininganddevelopment-Itisconsideredasbestactivityofhumanresource management, this is because there are large number of tool and technologies which all are used to develop effective goods and services to satisfy consumer's needs and wants. For this, HR 8
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manager needs to provide effective training and developing sessions to their employees by which they can perform well and able to achieve organisational goals through using various tools and strategies.IncontextofTesco,themanagementofthecompanyprovidetrainingand development programs to its employees so that they can make improvement and increment in their skills and knowledge and make their contrition in success of the business in term of profit and productivity. For example, if the company adopt new technology, then it conduct training sessions so that workforce aware with the use of it and do their work according to it. When employees have knowledge about the use of it the they can do their effectively or on time. This will help in maximising profit and productivity of the company. Performance management- It is another activity which is used to analyse and evaluate overall performance of employees towards their roles and responsibilities. It can be a process of analysing employees performance so that they can rewarded as per their execution. It help in motivating employees and when they are motivated, they do their work appropriately. In Tesco, the management conduct this activity to analyse employees performance so that they can aware with their skilled workforce. When the company perform special task and work then they can involve these employees so that the outcomes can accomplish in set time frame. It will help in increasing profitability and productivity of the company(Brewster and Hegewisch, 2017). Conclusion According to the above specified HRM practices this can be said that, HRM activities and functions are always useful for every firm in order to achieve particular goals and objectives. With the help of large number of HRM practices respective firm is able to follow training and developing activities for their employees to gain highly skilled and knowledgeable employees in a perfect manner. By continuously using these assorted practices they can achieve desired goals and complete people requirements. Part 2: The Job Application TASK 3 P5 Explanation of employee's importance in terms of influencing HRM decision making Employee relation refers to efforts that devise by the administration of an organisation to manage and make good and effective relations among employees and employers. In Tesco, it can be a process of managing relationship among workforce and superior. It is essential for the 9
company because it beneficial to create a effective and healthy working environment so that employees can perform their work and task in crucial way without creating any kind of discrimination. Employees relations also effective to operate the business of the company in crucial manner so that it can accomplish its aims and objectives in set time duration. If the relations among employees and employers will not be good then it will affect the firm in negative manner. The flow of information will not be proper, chances if discrimination and partiality will be high. Employees will not perform their work properly and ineffective relation can demotivate employees. For example, in Tesco if the company adopt new technology in its business due to change in consumer needs. Then, due to ineffective relationship, employees will not ready to adopt this change because they have fear to decrease their performance. This negatively affect the decision making of HRM in negative term because decision of applying new technology influence unfavourably. To make effective relation with employees, the management can utilise option of open communication so that workers can discuss their issues and problems with their seniors without fear and get effective solution on time. Flexible working option is an another way to make good workforce relation. If the management of respective company will make flexibility in its work then employees can do their work as per their suitability. It will also not create burden of work to them as well as organisation. By following the option of employees of choice, they can a lot and assign the work as per employees skills and knowledge. This positively affect the decision making of HRM because when the human resource management consider this HR practice then employees can perform their work adequate way and complete it on grated time frame which positively affect decision making of HRM. P6 Key elements of employee legislation and impact it has upon decision-making of HRM. Employment legislation very well known for different types of laws and legislation which is given by governmental bodies in every country and followed by company in an appropriate manner. These assorted rules and regulations are developed by government of UK in context of TESCO they always followed by HR manager to increase workforce, that are: Equal and diversity act, 2010:This act was given by the parliament of UK in order to protect employees from the discrimination which all are develop by an organisation like race, competition, pay, gender and many more. With the help of this act employees are able to take few advantages within each scenario and not able to face any discrimination at workplace. For 10
example, in Tesco, if the management of the respective company will follow equality and diversity act then it can create a positive work place where all the employees treat in similar manner with out making any kind of discrimination regarding growth options, reward system and others. It will also create favourable impact upon decision making of HRM because when there is not discrimination in working environment then the management can focus on other activities of the firm in context of its growth(Armstrong and Taylor, 2014). Sex discrimination act, 1975:This act was develop for that companies which make discrimination between male and female employees along with their opportunities and growth. In relation of TESCO, if management team of this organisation will not follow this act then it could be affect HRM decisions and overall working environment as well. Therefore, management team of this representative firm should follow this act by which employees do not need to face any complications at workplace and they can work together at same position. For instant, if the administrationofTescowillnotfollowthisactthenthechanceofarisingissuesand complexities high due to discrimination which negatively affect the company as well as HRM decision making. The discrimination will arise on the basis of gender and it will influence male and female employees in term of pay, working hours and roles or responsibilities. If the respective company pay high salary to male employees then it demotivate female which can be a reason of employees turnover. This create negative impact upon the decision making and leaders and managers take decision regarding to resolve this issue. Fair Labor Standards Act, 1938:This is being considered as the act, which kept its focus on establishing effectively a much clearer and defined element in relation to minimum wages, payment along with various restrictions as well. If it is talked about Tesco, then this organization also taken into consideration of different amendments and provisions that takes place. This has helped them in taking appropriate decisions in relation to criminal violation. Minimum Wages Act, 1998:This is related with minimum amount ofwages which must be paid to employees. This is a sole right for employees whether they are skilled or non skilled they have to be paid a minimum fixed amount of wages. For example, In Tesco, if the management of the company will not follow this act then it can not provide satisfaction to employees in monetary term. This will unfavorably affect the decision making of human resource management because if employees will not get pay as per their work then they will not 11
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local toward firm. It can be create situation of employees term over and the decision of HRM to implement this act will be affect negatively(Marchington and et.al., 2016). Occupational Health and Safety Act, 2004:This act helps in making changes related to health, safety and welfare of employees in an organization. Tesco is able to maintain high safety standards so that there is a satisfied workforce which can help in achievement of set objectives. There is better communication and management of human resource in more effective manner. For example, In Tesco, if the management of the company will follow this law then it provide a healthy and friendly working environment where employees can use their all efforts and effectiveness and make contribution in organization's growth and success. This favorably affect decision making of HRM because when workforce performing their work using any risky techniques then with help of this act the management can provide safety and security to their manpower. Trade Union Act, 2016- This act was developed in 2016 as a UK labor lawwhich is passedbytheDavidCameronadministrationofUKconservativeparty.InTesco,the management of the company should formulate plan and polices, rules and regulations by considering this act. If the company do any changes then labor can action towards it which will affect decision making of HRM favorably as well as negatively. TASK 4 P7 Application of HRM practices. Job Specification: it is a basically a document that contains duties, responsibilities & tasks that is needed to be perform by candidates for a specific job. This document is prepared by Human Resource manager of an organisation. After analysing and examining requirements, the Human Resource manager of Tesco prepare job specification in order to fill vacant position of Marketing manager: Job Specification Organisation:TESCO Job Designation:Marketing Manager Organisation: Tesco Plc Job purpose: The administration of the company find out a well qualified and knowledgable marketing manager who work for the growth and development of the company in term of 12
making good relation to customers and maximising sales of the firm. The person is responsible to frame good marketing strategies and approaches. Roles and responsibilities: ï‚·Capableofmanaging&maintainingcoordinationbetweendifferentfunctionsof organisation. ï‚·Knowledge of marketing Tools & Techniques. ï‚·Ability to optimize resource of company and handle adverse situations. ï‚·To manage distribution channels, media and marketing staff. Required skills and experiences: ï‚·Bachelor's degree in marketing or in related field form a recognised university. ï‚·Master's of business administration in marketing with the specialization of international marketing. ï‚·Strong communication, presentation and leadership skills. ï‚·2 years experiences as marketing executive from a multinational organisation. Question for Interview The questions which is prepared by Human Resource manager of Tesco in order to select competent & effective candidate is described below considering job profile of marketing manager: Q1. Give Briefly Introduction of yourself? Q2. Tell me about your Internships & Work experience? Q3. Why we will hire you as a marketing manager and tell me three skills which makes you unique from other people? Q4. Any computer proficiency you have learned? Q5. How you coordinate and manage work as a marketing manager? Q6. Tell me your three strength and weaknesses? Q7. Elaborate a scenario when you use your management skills in order to solve problems and handle situations? Person Specification Job Position: Marketing Manager Service area: Head of Department 13
Grade: A CriteriaEssentialDesirable Required skillsLeadership skills Time management Effectivecommunication skills Planning skills Computer Proficiency QualificationMBA(Specialisationin marketing) Market research course Knowledgeï‚·Knowledgeabout marketingtools& techniques ï‚·Management and team building skills ï‚·schedulemeetings effectively ï‚·developmentof effectivemarketing strategies ï‚·problem solving skills MaintainingCoordination betweenstaffmembersand business activities Relevant experienceBetween 6 months to 1 year- Other attributesPolite nature positive attitude Influencer - Job offer letter: This document contains detailed information regarding roles and responsibilities, job profile, payroll, timings and many more. It is offered to candidates after their selection. The letter given by human resource manager of Tesco is mentioned below: Offer Letter Organisation NameTESCO 14
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Job positionMarketing Manager LocationEurope Reporting personHOD of company Roles & Responsibilitiesï‚·Marketresearch,Markettrendanalysisand development of marketing strategies. ï‚·Analysisofcustomerrequirements,effective decision-making for launching of product. ï‚·Managing and controlling of teams. Working Duration9.00 am to 6:30 pm Payroll6000 pound per month plus incentives Facilities given to employeesHealthyworkingenvironment,positiveculture, Incentives & appraisals given to employees as per their performance. In relation to Tesco, the higher authorities of company analyse large number of candidate so that they can select best and effective employee who has the ability to enhance productivity as well as performance of organisation. It is important for Human Resource manager of Tesco to select suitable candidate who can perform activities effectively. Rationale The above mentioned question which is asked by company to candidates gives an appropriate information about a person experience as well as qualification. This will also help Tesco to select a suitable candidate who can carry out business activities effectively(Wang and Et. Al., 2017). In addition to this, Job specification gives a clarity to scrutinized candidates for further interview process. Critical Evaluation 15
Person specification document which is provided by Tesco gives an appropriate idea about job role to candidates. With this, it facilitates company to shortlist effective candidates for further rounds. Although, it is a cost effective as well as time consuming process. Moreover, it is difficult to mention all needed skills, qualification and criteria in person specification document properly. 16
CONCLUSION Fromtheabovespecifiedreportithasbeenanalysedthat,thehumanresource management plays significant role within the organisation through recruiting and selecting highly skilled employees with huge knowledge. It is also very helpful to manage overall activities and operations of business, whereas, HR manager has responsibility to hire skilled employees for particular job role. There are several kind of recruiting and selecting method for workers by which they can bring qualified employees in an organisation and achieve targeted goals. In addition to this, firm has been applied different types of laws and legislations for giving huge benefits to their employees along with there are few HR policies which is used to achieve targeted goals and objectives. 17
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