Human Resource Management: Areas, Strategies, and Factors

This report analyzes different areas of HRM such as recruitment and selection, performance management, compensation, and training and development. It also examines the importance of strategic HRM in changing business environment, role of recruiting and retaining employees, internal and external factors influencing HRM decisions, and their evaluation for organizational development.

Human Resource
Management

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Comparison of different HRM areas in relation to organizational performance......................................3
Examining strategic HRM in context with changing business environment............................................4
Evaluating the role of recruiting and retaining proper employees............................................................5
Identifying internal and external factors that influence the HRM decision’s...........................................6
Evaluation of these factors on for organizational development...............................................................8
Presenting the steps that need to be taken to strengthen talent management strategy..............................9
Recommendations.................................................................................................................................10
TASK 2.....................................................................................................................................................10
Developing the training programmed that assess the HRM practices....................................................10
Recommendations.................................................................................................................................12
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Human resource management is very important practice that allows various firms to
focus on those practices that will help to generate greater revenues for the firm. Also, the present
report is based on comparison of certain HRM areas and will analyses how these areas are
interlinked with each other in delivering the bests result for the firm. Also, the report will focus
on the importance of strategic HRM that has caused certain changes on the organizational
working and performances of the employees. Moreover, the study will evaluate role of
recruitment and retaining of certain employees from the local markets so that better productivity
could be delivered. Furthermore, various internal and external factors will also be identified so
that effective HRM decisions could be taken for any future goal or objective.
Moreover, evaluation of these factors will also be done along with certain organizational
examples. Also, bests talent management strategies will also be discussed so that efficiency of
the firm could be maintained for longer duration. Lastly, strength and weakness of HRM
practices along with two major areas of training will also be analyzed. Also, certain
recommendations for the future improvement will also be given under this report.
TASK 1
Comparison of different HRM areas in relation to organizational performance.
There are different types of HRM areas that help in smooth functioning of the firms so
that major problems could be solved easily. Also, these areas ensure that organization is able to
achieve certain business goals and all the resources could be utilized in best of manner. Some of
the major areas relating to HRM are as follows:
Recruitment and selection: This area is based on hiring, selecting and recruiting the best
talents for the firms so that future success could be achieved. Also, this area ensures that only
those candidates are selected that have some potential in delivering better productivity for the
various tasks of the firms (Rodríguez-Sánchez and et.al., 2018). Moreover, this area set some of
major criteria based on the firm so that selection process could be made much easier.
Furthermore, recruitment in any big or small firm could be done either through online medium
or through offline mode.

Performance management: This is the area that focuses’ more on the analyzing the
performance of each employee at the workplace so that better policies and structure could be
formulated in the future (Vrchota and et.al., 2019). Also, there are various performance
management techniques that are applied in the firm so that bests results could be gathered.
Furthermore, based on the performance various incentive and policies programs are been
formulated so that employees remain motivated for longer time period.
Compensation: This is mainly related to the finance department that helps the employees
in earning the right wages for all the work that has been carried out which is ultimately the
primary motive of any individual. Also, proper wages and compensation plans are being
formulated according to the changing business environment so that efficiency is not impacted to
larger extent.
Training and development: This is the crucial area of HRM as all the employees
selected at recruitment area need to be provided proper training so that certain skills could be
upgraded in best of manner. Also, it helps in maintaining the existing skills and increase the
knowledge area of the individual so that tasks could be carried out in faster and with minimum
resources.
Thus above are some of the major areas that falls into the HRM and are very crucial for
any organization so that human resources could be managed in most effective ways. Also, in
context of Elliot Leigh it can be said that better management of human resource areas would help
the leaders of the company to develop efficient marketing strategy and deliver quality standards
to its customers (Pius, Alharahsheh and Sanyang, 2020). Also, with continuous working and
retaining the best talents through good HRM practices the firm would be able to improve the
organizational performance systematically over the coming years.
Examining strategic HRM in context with changing business environment.
Strategic HRM is related to managing all the people in the organization in most effective
manner in form of adopting best recruitment, retaining, rewarding and developing employee’s
practices so that other activities within the firm could be carried out smoothly (Wan, 2018).
Moreover, through strategic human resource management (SHRM) quoted firm would be able to
increase the overall organizational performance and gain competitive advantage among the rest

of its competitors. Also, with the changing business environment and situations like pandemic
strategic HRM have made organizations realized that people are important part for the success of
any business. Thus, SHRM plays a very vital role in delivering the best quality services in name
of firm against some of its powerful rivalries in the market and also allows the employees to
remain motivated for longer time period (Momin, 2018). Furthermore, strategic HRM has
allowed the company to enjoy diversity at the workplace through hiring those employees that are
form different backgrounds and cultural beliefs. Thus, it has built more teamwork, cooperation
and generation of ideas among those people that are completely unknown to each other and is
also essential in achieving greater organizational future success.
Also, with the changing technology and manpower requirements it is important for any
firm to properly design jobs and identify new roles within the firm so that better competencies
could be developed within individual through various training programs that would be helpful
for both personal and professional growth. Furthermore, with the help of SHRM the firm would
be able to introduce new changes within the organization easily without much interferences and
hesitation from other people or social groups (Milewska and Gembalska-Kwiecień, 2018). Thus,
SHRM helps in better integration of business environment of any firm according to the changing
needs of the customers. also, human resources are the most important asset of any firm and it is
very essential that management provides full support and encouragement through one of the best
SHRM practices. Also, this helps in building strong relationships between supervisors and
subordinates that further helps management in getting timely feedback in form of any problem if
faced. Moreover, with the changing business environment it is observed that having the right
SHRM practices would allow the firm in analyzing various business changes instantly so that
corrective measure could be taken on time. Moreover, HRM ensures that all the departments of
the firm interact on the daily basis so that coordination could be maintained and other strategic
decisions could be taken easily for the future growth and success.
Evaluating the role of recruiting and retaining proper employees.
In the current era where things are changing rapidly it is very much important that the
management is recruiting the best employees for the firm so that better utilization of resources
could be made. Also, those employees that are highly efficient would also be able to provide the
right solutions for any complex problems in future thus saving the unused time of management.

Moreover, the best recruitment practices could be done only when the internal management is
highly effective and the firms offers large variety of career development opportunities that is
required by any employee to garb better opportunities in the future. Furthermore, role of
recruiting best employees could be done through developing better compensation programs so
that employees are able to get fair wages for the tasks that are been carried out on regular basis.
However, if wrong persons are selected for the new job roles within the firm than it might only
lead to lower productivity levels and wastage of resources (Koko and Nabie, 2019). Also,
negative work culture is developed that only creates conflicts and resistance among existing
employees in taking up new tasks at the workplace.
Retaining the best talent is also major tasks for the various firms as old employees are
highly qualified individuals that have acquired various skills and experience and thus does not
required much training in various areas. Thus, it saves from the excessive productivity losses as
chances of committing mistakes is higher in new employees than in comparison to older ones.
Also, retaining the top employees could be done only when special work life balance programs
are being created that could be done through ensuring flexibility in working hours that further
would create less stress among the individuals in delivering the best outputs in specific timeline
Moreover, highly engaged employees tends to develop better customer relationship that
is essential for building the brand image and goodwill of the firm for longer time (Kassymova
and et.al., 2019). Also, if needs of older employees are identified properly than better
organizational culture could be developed that will allow the firm to change the business policies
and structure essential for the growth. However, if employees are not retaining than it could
adverse effects in the form of missing work days, driving the important clients, negatively
influence other new joiner at workplace and much more. Thus, this type of environment would
result in loss of revenues for the firm and will affect the goodwill of the company in long run.
Identifying internal and external factors that influence the HRM decision’s.
There is various type of internal and external factors that affects the business operations
of any firm. Moreover, these factors need to be closely analyzed by the firms so that it does not
affect the business on large level. Below is list of some of the internal factors that affects the
HRM decision’s:

Level of growth: For all the firms that are working on small level HRM decisions have
to be taken very wisely. Also, budget prepared by the firm need to be taken in mind by HR
department while recruiting various candidates so that resources could be gathered accordingly
for various business activities. Moreover, to maintain the level of growth of the firm various
compensation plans have to be than decided so that maximum revenues are earned in due course
of time.
Use of technology: HRM decisions are also affected by this factor as if any high level
technology is being used at the workplace than the firm need to hire those candidates that are
tech efficient so that there is minimum wastage of resources and work could be completed on
time.
Organizational culture: This is another type of internal factor that make HRM sure that
all the candidates for the job selected are accordance with the business goals. Thus, person could
easily adapt to the changes that are expected to occur in future within the firm due to changing
business environment (George, 2019).
Business conflicts: It is another factor that affects the HRM decisions as it is role of the
HR department to ensure that all employees are satisfied with the current job role and work so
chances of conflicts are very less. Also, HRM department need to redesign business policies to
ensure that such types of problems do not happen in the future.
Moreover, there are various types of external factors that are responsible for affecting
several HRM decision’s some of them are described as below:
Legal factors: There are various types of business laws that are been made so that the
firm could function in smooth manner without intervention by third party. Also, all HRM
decisions a are based on these laws so that business operations are not affected heavily as failure
in guidelines might add to unnecessary costs in the future (Internal and External Factors
Affecting Human Resources, 2022).
Economic factors: There are certain factors such as inflation, recession times etc. that
might force HRM department in changing the hiring and selecting criteria’s. Also, based on the
economy the firm target only those employees that are capable of delivering the best productivity

levels for the firm. Moreover, if there is high inflation rate than the firm need to redefine it
current wages plan so that employees are able to live happily and not under the stress.
Political factors: These factors also affect the HRM decisions as if there is any kind of
political instability in the country or there is any kind of situations like recent times of pandemic
than the HRM policies need to be redesign in way that allows individual flexibility in working
hours along with freedom of remote working so that daily routine tasks could be carried out.
However, designing such types of HRM policies is quite challenging especially for those firms
that are growing and expansion stage.
Evaluation of these factors on for organizational development.
Some of the above internal and external factors of HRM could be either proved as
strength or weakness depending upon the business environment the firm is working in current
times. Also, it is based on the innovation and creativity level of the firm that allows them to
handle all factors either in the form of threats or opportunities so that business success could be
gained systematically (Darmawan and et.al., 2020). Moreover, it can be said that while carefully
analyzing the internal factors the firm would be able to make better HRM decision’s as it can be
changed and controlled to greater extent unlike external factors that are effecting the business
form the outside and the firm has less control over it. Furthermore, those firms that are working
very hard for developing the organization in best manner against the competitors are the ones
that remain competitive longer.
Organizational developments could also be gained from analyzing the decision’s that are
taken by the rivalries in same situation so that better strategic decisions could be made.
Furthermore, all the external factors that are presented above it is to be recommended to the
quoted firm that proper business plan need to be developed before implementing any kind of
business policies within the HRM so that output could be delivered accordingly (Zhang, 2019).
Also, it is essential that HRM decisions based on analysis of certain factors are not taken
independently as it might affect the other departments working and affect the overall
productivity of each individual. For instance: Fluctuations in UK market and full dependency of
Tesco for revenues in local market has led to more losses for the firm because HRM policy
relating to expansion into geographical regions was very weak that resulted in problems
especially during the times of Covid-19.

Another example is of Marks and Spencer that is also big retailer company in UK and
suffered earlier due to lack of career development programs for the employees by the HR
department. Thus, due to this it was unable to maintain large number of older productive
employees for various firm operations (Fihla and Chinyamurindi, 2018). However, there are
some organizations that have performed extraordinary well after closely observing the external
environment one of which is Goggle company that ensures that employees are given complete
freedom so that new innovative ideas could be generated. Also, it provides good working
environment that is needed to carry out tasks in best manner.
Presenting the steps that need to be taken to strengthen talent management strategy.
There are several steps that could be taken by the firm so that best talent management
strategy could be used by the firm. Also, below are some steps that quoted firm could use to
attract and retain best talent for conduct of future activities.
Attract top talents like customers: The best talent strategy for the firm is that top
talents are provided best interview experience so that brand image and goodwill of the company
could be maintained. Furthermore, best talent management strategy is one that is about to make
employee understand about the current working culture and policies of the business.
Align the plans: It is very essential that talent management and business strategies are
aligned so that there is no wastage in terms of money and time. Also, hiring wrong employee
would only result in the additional costs for the firm (8 Steps to Building a Successful Talent
Management Strategy, 2022).
Giving clear expectations, job requirements and goals: The best talent management
strategy is one that clearly describes all the goals and expectations that are expected form the
employee so that individual could remain motivated and satisfied with the job and there are no
major problems in carrying out the daily tasks.
Measure progress: Timely and regular feedback is also very important so that current
performance of the individual if required could be improved. Further, talent management need to
build culture where employees are able to express emotions easily.

Build engagement: Better talent management is one that ensure that there is continuous
engagement between the supervisor and subordinates so that major decisions could be taken
easily.
Fair compensation: For all the hard work that is put in by the employees it is required
that fair wages are been given so that required level of motivation and goodwill of the company
could be maintained. Also, talent management need to understand that only happy employees are
the productive employees (Berhil, Benlahmar and Labani, 2020).
Open communication channel: It is very much required that there is open
communication channel that allows the employees to keep their viewpoints in front of the
management so that all queries could be solved immediately. Also, through this practice of talent
management strategy the firm is able to take effective decisions for the future business
operations.
Creating path for advancement and improvement: Talent management strategy need
to analyses various path within the workplace that will allow employees to grab new opportunity
relating to the future development. It would also allow them to grow both personally and
professionally. However, if the talent management strategy does not cover this part than there are
chances that employees might switch to other options that are available in the market that would
be helpful in their personal growth.
Recommendations
 It is recommended to the quoted firm that to ensure the best HRM practices within the
firm it is essential that strategic business planning is done before only so that all
departments could work in the similar direction (Armstrong and et.al., 2020). Also, this
will ensure more amount of cooperation and teamwork within the individuals.
 Moreover, it is to be suggested to quoted firm that before implementing any kind of
strategy within the firm all the internal and external factors need to be identified through
conducting various analysis such as SWOT and pestle so that unnecessary costs are not
involved in later time period.
 Also, best recruitment practices could only be developed when adequate amount of
resources and investment along with the current knowledge of the market is gained by

the firm. Thus, through using various software’s and tools the firm could easily generate
large amount of pasts data so that better planning could be done (Wawer, 2018).
TASK 2
Developing the training programmed that assess the HRM practices
Recruitment and selection process: Recruitment is the process of finding the best
candidates for the vacant positions and encourages them to apply for those vacant positions. By
having the recruitment, the company goes for the selection by choosing the best candidate
applied for the particular job in the organization. It is basically the positive process as in this
recruitment process the more and more job seekers can apply for the job (Rozario, Venkatraman
and Abbas, 2019). This HRM practice has some strengths that it can make the best candidate to
apply and have his position in the organization. By having some strength, it has some weakness
to that sometimes the company may not bale to recruit and select the best candidate because of
less practice of selecting. The hiring managers of the company must submit the completed
requisition on the department of the HR and after that HR will accept the requisition and call the
candidate for interview process. After taking interview the HR used to select the most
appropriate candidate for their organization. The cited organization can follow the same
recruitment and selection process in order to hire the best employee in their organization.
The HR department of the organization must have the verbal offer letter to the employees
and after confirming it will give the written letter to the selected candidate and also check the
overall background of the selected candidate. Human resources Rae responsible in order to hire
and select the best employees for their organization and this will help the company to increase its
productivity and profitability in the market. After providing the job, the organization can also
provide the employees on- job training in order to increase the skills and capabilities of the
employees and it will lead to have good productivity. The mangers of the company use the
performance management in order to align the company goals with the help of team and
members in the organization (Nikolaou, 2021). The guideline of the performance management
states the clear activities and outcomes which helps the employees and team to check their
performance during work.

Performance Management: Performance management refers to the management in the
organization which helps the managers to monitor and evaluate the work of the employees in the
business. The main objective of the performance management is to create the best environment
where the employees can perform with their best of skills and capabilities and produce the high
quality of work in the organization. Performance management is the tool that used to create and
measure the planned goals and objectives of the organization. The managers of the organization
can use this performance management in order to adjust the workflow and recommend the
employees new course of action. In this training programed it will describe the strengths and
weaknesses of the HRM practices in the organization.
The performance management of the company helps in aligning the activities of the
employees by focusing on the mission of the company. This also helps in developing the job-
performances outcomes that what work does the company have, etc. The performance
management training is the initiative in which the employees used to work with the organization,
basically with the managers, which use to provide them training in order to improve the skills
and performances in their workplace (Schleicher and et.al., 2018). The cited organization also
provides the training to their employees in order to have the good performance in the company.
The performance management training must include the planning phase, employee’s assessment,
recognition of performance and career development.
Employee relations: The employee relation refers to the system which makes the
organization’s efforts to maintain and create the positive relationship with its employees in the
organization. By having the positive employee relation provides the company to have
productivity in their work. But sometimes employees used to take negative benefit of having
good behavior with them as it will have the weakness on this HRM practice. The employee’s
relation is the main function of the HR in order to create the positive relation between the
employers and the employees (Samwel, 2018). It is the part of the HR’s function in the cited
organization.
The HR of the company must provide the basic training to their employers and
employees in order to have the good relation in the company. By having mutual understanding
and better relation with the employees help the company to have the better productivity and
profitability in the company. The managers of the employee relation in the organization used to

design plans and implement the company’s employee relation programs and policies. It helps in
maintaining the better relation and has good communication between the employees and
employers and it also helps in maintain the satisfaction of the job of the employees.
Recommendations
1. It is recommended to the company that it must make the good recruitment and selection
process which will help them to have hired the best employees in the organization. By
having this it will lead the company to increase its productivity by providing them
training in order to increase their skills and capabilities.
2. It is also suggested to the organization that it must focus on the performance management
practices as which helps the managers to monitor and check the work of the employees in
the business. By not checking the performance it may decreases the performance of the
employees and will decrease the productivity of the company.
3. Further it is recommended to the company that it must also maintain the good relation
with their employees. This will make them to have better understanding and good
communication with the employees. The human resource must focus on this in order to
maintain positive relation between the employer and employees. They must also take care
that the employees must not misuse this positive relation as it may lead to decrease in the
profitability of the company.
CONCLUSION
From the above report it can be concluded that HRM plays very important role in
managing and hiring those employees that are best suited for the organisation. Also, the report
had identified different HRM areas such as recruitment and boarding, training, compensation etc.
that helped in getting the best resources for the Elliot Leigh. Moreover, the study had identified
role of strategic HRM while working in complex business environment. Also, with upcoming of
latest technologies in the market the significance of having the older employees through various
retention activities had also been covered under this report.
Moreover, role of best recruitment practices in increasing the effectiveness of the firm
had also been analyzed so that better policies could be developed in the future. Furthermore,
various steps such as alignment of plans, measuring progress, open communication channel,

creating path for advancement etc. as part of talent management strategy has also been identified
so that better future goals could be developed by the firm. Lastly, this study had focused on
performance management and employee relations as key areas of HRM practices that will allow
the firm to generate higher revenues for the firm.
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