Human Resource Management: Areas, Practices, and Factors Affecting Decision Making

Human
Resource
Management
1

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explanation of main areas of HRM and their contribution to sustainable performance...3
P2 Review the effects of changing nature of organizations on human resource skills and
knowledge...............................................................................................................................5
TASK 2............................................................................................................................................7
P3 Review of HRM practices related to employee recruitment and retention.......................7
TASK 3............................................................................................................................................7
P4 Investigation on external and internal factors which impact HRM decision making to
support organizational development.......................................................................................7
TASK 4..........................................................................................................................................11
Covered in Appendix............................................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................13
APPENDIX....................................................................................................................................14
P5 Application HRM practices in work related context......................................................14
2

INTRODUCTION
Human resource management is the organizational function which manage is issues related to
people in a company. It is defined as the practice of recruitment hiring development and
employees of the company. This report is based on UK car manufacturer Aston Martin. The
company was founded in 1913 and is currently headquartered engaged in United Kingdom it
manufactures luxury sports cars and grand tourers. Aston Martin has 160 car dealerships in 53
countries along with a workforce of 2373 employees (ABOUT US, 2022). Aston Martin has
highly specialised and centralized organizational structure which is similar to hierarchical
organizational structure. This report describes the role of human resource management in
creating sustainable organizational performance and assesses its contribution in recruitment and
employee retention. Examination of external and internal factors which affect human resource
management decision-making in context of organizational development of Aston Martin is
provided in this report in addition to this application of human resource management practices in
context of context Martin is also given.
MAIN BODY
TASK 1
P1 Explanation of main areas of HRM and their contribution to sustainable performance
Aston Martin has been able to succeed in different international market and maintain its
position as a demanded luxury car brand because of effective human resource management and
talented workforce. Human resource management is relevant in the luxury car industry because
timely manufacturing of luxury automobiles is completed because of the skills and knowledge of
highly talented workforce which is provided to the company by effective human resource
management (Gheiratmand, Hosseini and Reihani, 2017).
The strength of human resource management in context of the luxury automobile
manufacturing industry is that it provides the company skilled laborers and craftsman who are
able to create high quality luxury cars. In addition to this another strength of human resource
management is that it helps develop talented mechanics and technicians for the company who are
able to support innovation at the firm so that the company continues to introduce technologically
advanced luxury cars.
3

The weakness of human resource management in context of luxury car manufacturing
industry is that it requires huge amount of financial investment for training and developing
mechanics and technicians to the degree where they are able to create innovative and
technologically advanced luxury automobiles. This is because luxury automobile craftsmanship
is not a popular profession stream for which thousands of skilled individuals can be available.
This showcases the importance of developing effective humans resource management
functions at Aston Martin as it can help the company build a suitable workforce which take the
organization towards success. The different human resource management functions and their
contribution towards sustainable organizational performance is explained below:
 Human Resource Planning: This human resource management function allows businesses
to meet their current and future demands for talent and helps human resource management
staff to estimate and build skills in the workforce which are valuable to the organization and
will support the company in succeeding (Johari, Hosseini and Samadikuchaksaraei, 2017).
This human resource management function supports sustainable performance by helping the
company attract talent which is suitable for creating a sustainable environment while also
promoting success of the company in different fields. in context of Aston martin human
resource planning plays an important role in sustainable performance of The enterprise
because it helps update skills of current employees and attract new employees whose skill
set is valuable for growth and continued progress of the organization.
 Recruitment and Selection: This human resource management function focuses on filling
every vacant position of the company with talented individuals who are also committed
towards achieving business aims and objectives of the company (Uddin, 2018). Aston
Martin is able to find employees who are not only talented but also have similar views and
ideologies which align with company values so that the company is able to gain a dedicated
workforce motivated to deliver high quality results. This is for benefit of the company they
support sustainable development as both the company and employees work towards
achieving success in a sustainable manner.
 Performance Management: Businesses are able to improve performance of their
employees by utilizing the performance management human resource function. It improves
sustainability of the organization by increasing the knowledge and skills of employees so
that they are able to complete various activities and formulate plans for future of the
4