Impact of HRM on Organizational Success

This assignment explores the relationship between Human Resource Management (HRM) practices and organizational success. It emphasizes how effective HRM strategies, including training & development, recruitment & selection, compensation & benefits, contribute to employee productivity, decision-making, and ultimately, a competitive advantage for companies in global markets.

HUMAN RESOURCE
MANAGMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Purpose and functions of Human Resource Management.....................................................................3
P2 Strength and weakness of different methods of recruitment and selection '....................................4
TASK 2.........................................................................................................................................................5
P3 Benefits of different HRM practices ..................................................................................................5
P4 Effectiveness of different HRM practices in increasing organizational productivity and profitability
................................................................................................................................................................6
TASK 3..........................................................................................................................................................7
P5 Significance of Employee Relation ....................................................................................................7
P6 Important components of employment legislation..........................................................................8
TASK 4..........................................................................................................................................................8
P7 Application of different HRM practices .............................................................................................8
CONCLUSION.............................................................................................................................................10
REFERENCES ................................................................................................................................................1

INTRODUCTION
One of the vital function of every organization is Human Resource Management that is
concerned with recruitment as well as selection of individuals within firm. Workforce is an
important part of every company that highly contributes in growth and success of organization
(Armstrong and Taylor., 2014). It is required by managers to hire skilled and knowledgeable
candidate who are able to attain predetermined goals and objectives of company. HRM includes
various other functions such as performance appraisal, compensation, maintain healthy
workplace, employee relation etc. In the present assignment, chosen organization is Tesco which
is a British multinational grocery retailers Supermarket chain. Various products are offered by
company to its potential customers. The report includes purpose and function of organization
along with strengths and weaknesses of recruitment and selection approach. Apart from this,
benefits of Human Resource Management practices as well as its effectiveness in increasing
profits of firm is defined. At last, key components of several legislation and significance of good
employment relations define in the project.
TASK 1
P1 Purpose and functions of Human Resource Management
There are various purposes and functions of Human Resource Management but, one of
the major purpose is to is to select and hire skilled and knowledgeable work force who are able
to attain goals and targets of company. Various functions are performed by HR manager
regarding wages and salaries,performance appraisal, compensation, workplace policies, maintain
healthy environment within firm,health and safety of workers etc. The main responsibility of
Human Resource administrators of Tesco is to determine present and future needs of Manpower
and fill this gap by hiring right number of candidate for right position at right time. They also
need to provide training to them in order to enhance their competencies so that they are able to
perform well in firm and their targets. One of the main purpose is to enhance productivity and
profits of company. Managers design effective Strategies and policies to attain objectives at
defined time. Before hiring of employees, the firm is required to do appropriate workforce
planning. It assist in hiring skilled candidates who have ability to accomplish goals of company.
Training is also one of the important aspect that is performed by human resource manager of
Tesco in order to attain high growth and maintain sustainability in market.
Functions of Human Resource Management
Recruitment and selection: It is one of the main function of every organization. Under this
process human resource department make proper plan and design according to recruitment of
employees. As on the basis on job each criteria is done with the help of their knowledge.
Selection is positive process in which best candidate is selected for suitable job and in
recruitment right candidate are appoint at right place with the right jobs it is also negative
process (Berman and et. al., 2012). In Tesco, manager of company invite application so that
interested person can apply for the jobs. With the help of talent, best candidate is selected and
hire in the organization. Selection helps in select skilled employees which help in attainment of
goals and objectives easily.

Training and development:- This is also a important function of human resource department in
which managers tries to identifies skill, abilities and needs of desired workforce and they
maintain training program (Boella and Goss-Turner, 2013). They provide various training to
employees according to need of their work in the organization by adopting different methods of
training. Manager of Tesco conduct various training sessions to improve the manpower through
which they get more opportunities to increase their skills and knowledge of employees. This help
in maintain better performance of their employees.
P2 Strength and weakness of different methods of recruitment and selection '
Recruitment refers to the process of searching and finding most suitable and talented
candidate for the company who assist in achieving business objectives and goals in an effective
and efficient manner. One of the main responsibility of every HR Manager is to put right
candidate on right job at right time as per their skills, ability and knowledge. Mainly there are
two sources of recruitment: One is internal and other is External. On the other hand, the process
of Selection deals with selecting the best candidate among the pool of applicants. Selection is the
last stage of that deals with selecting the most suitable candidate for the company. HR manager
select candidate on the basis of various tests or rounds conducted by them.
Internal Source: It means employees are selected within the organization through transfer or
promotion.
Strength Weakness
Saves money, time and energy
Increase loyalty of existing employees
No error in selection
Self-Development
Lack of creativity and innovation
Discourage capable person
Sometimes creates a feeling of dissatisfaction
among existing employees
External: In this, employees are selected from outside the organization such as direct
recruitment, factory gates etc.
Strength Weakness
 Bring new ideas
 Availability of suitable candidate
 Entry of fresh talent
 Demoralization among exiting workers
'
 Lack of corporations
 Expensive Process

TASK 2
P3 Benefits of different HRM practices
There are different types of practices related with the concept of human resource
management such as training and development, motivation, compensation and benefit, healthy
working environment and many more. Each practices is having its own benefit and that satisfy
need of both employee and employer in an effective manner (Boselie, 2010). Without the proper
coordination of both employee an employer, HRM practices cannot be executed appropriately.
Following are some of the benefit of different HRM practices for both employee and employer
within TESCO are discussed below:
Retaining qualified employee: TESCO believes in providing flexible benefits to its workers
that retain them for longer period in the company. They select talented and skilled candidate who
with their efficiency and knowledge achieve thier objectives within stipulated time frame. They
believe in putting right person on right place with right skill and in right time. By this they can
manage the risk and remove excess organization burdens.
Encouraging Positive behavior: TESCO provides healthy working condition and favorable
benefit for their workforce through different HRM practices that further motivate them to
become more productive and efficient. If employee is satisfied with the work environment,
chances of attaining per-defined goals increases. However, if the working environment is
unfavorable it may lead the workers to complete dissatisfaction and as a result overall
productivity and profitability of the company decreases. But TESCO somehow manage to
maintain the positive company culture that motivates personnel to work incredibly hard and
conform to employment laws and standard.
Developing employees: Different HRM practices provided by TESCO effectively satisfies their
employees and inspire them to add value to company's intellectual property. The company is
gaining high competitive advantage over its rivals is mainly because of the skills, knowledge and
ability of their workers. They considered HRM is one of the most crucial aspect of management
on which entire functioning of a company depends. In addition to that, the company is also
providing on the job and off the job training to their workers. They have their own in-built off
the job training program that makes employees more productive and competent. Their on the job
training includes shadowing, mentoring, coaching etc. They also insure each and every employee
get adequate training that benefit them in their personal and professional life.
Improving performance management system: The HRM practices given by TESCO to its
employees help in motivating them so that they can work incredibly hard towards achieving
business objectives and goals in a structured and thorough manner. This will also assist in
improving their overall productivity and efficiency. Along with this, it also leads to build strong
relationship among employee and employers. Their performance management system aid them
to remember and reward the most competent and best employee.
Developing good relations: It is primarily important for every company to develop good
relation with its workers as their success and growth depend upon how effectively and efficiently
their employees work towards their business goals. In addition to that, maintaining good
relationship with personnel aid in talking their progress (Boxall and Purcell, 2011). It also assist
in assessing thier work performance f and take necessary steps or actions in order to control
them.

Building flexible workplace: Providing favorable and flexible workplace is chiefly important
for all organization as it help in motivating and encouraging workforce to perform more
effectively and become a role model for their subordinates. In today's world, employees expect
different working environment then those were in past. Today's personnel are more diverse and
so do their skills and knowledge (Daley, 2012). Therefore, it is become much easier for firms to
maintain flexibility in their working environment. Some of the retaining policy of TESCO
includes flexible working hour, composition of work teams, accountability method, different
channels of communication, work location, training and development etc. In such type of
workplace, workers c TASK 2an easilt fit themselves or adjust themselves as per the requirement
of job.
P4 Effectiveness of different HRM practices in increasing organizational productivity and
profitability
The HRM practices proves out to be effective for TESCO in context of raising organizational
productivity and profit. Starting from the time of implementation of different HRM practices, the
company has gain huge profit and productivity by the following perspective which are discussed
below:
Innovative and high performing employees: The HRM practices of Tesco encourage
innovative environment that motivate their workers perform more effectively towards achieving
organizational objectives. In addition to that, they are also providing better facilities to thier
workforce which help in improving their overall performance and efficiency. Motivated and
skilled employees leads to generate higher profit for the firm and as a result attain business
objectives within stipulated time frame. Also company can gain high competitive advantage with
its skilled and competent work force.
Effective direction setting and execution: Leaders and managers of Tesco plays crucial role
towards formulating the direction, purpose, goals, priorities, roles and responsibilities of the
employees. Along with this, their HR department also assist in hiring the appropriate manager
the right place so that every business activity can be executed in a systematic manner. This lead
the business entity to the superior place with higher profit and productivity. The entire growth
and development of any company depends upon their HR department. Therefore, it is important
to select right manager for the right role.
Team and individual goals with effective communication: The HRM practices of Tesco helps
to set and achieve both the team and individual goal in an appropriate manner. Nowadays with
effective communication channel it has become much easier for firms to establish great
relationship with its employees. Tesco conduct various training and development session for
their employees that help in improving their overall efficiency and productivity which ultimately
benefit them in their both personal and professional life. It is primary important for the company
to achieve their goal keeping in mind goals of individual and team as well so that all can be
attained collectively.
Effective reward drive performance: When monetary rewards are directly linked with
workers performance, they act as a motivating factors that keep encouraging and inspiring
employees to work incredibly hard towards attaining their business objective (Gospel and Sako,
2010). Rewards are normally classified into two categories one is monetary and other is non
monetary. Monetary factors can be measured in terms of money such as incentives, benefits,

holiday trip whereas non monetary includes sense of achievement, recognition etc. Every
employee is expected to get pay as per their performance. When they get good amount of pay for
their performance it help in keeping them motivated and retained them for longer.
Sharing and collaboration: It has been believed that productivity and profitability of the firm
when other from outside the company feel free to collaborate and willing to share their best and
innovative idea with the company. This is mainly possible because of HRM practices that helps
TESCO in developing formal method that opens and increase the way of collaboration and
sharing process. In addition to that, if employee work collectively towards achieving
organizational objective chances of attaining it within the given time frame increases
tremendously.
Non monetary factor to improve employees: There are number of non monetary factors that
exist in workplace and tend to motivate employees in a significant manner which ultimately
effects their overall performance and productivity (Heizer, 2016). Some of the non monetary
factors that raise personnel motivation, loyalty, excitement, energy includes praise, challenge,
exposure, learning opportunities and feedback. It is the prime responsibility of TESCO's HR
manager to ensure that all these non-monetary factor should be effectively utilized in the
company.
Updating employee's skill to maintain productivity: Today's world is full of competition.
Everyday some new invention or innovation takes place that help in executive business activities
in a proper manner. So in order to gain high competitive edge in overseas market, TESCO needs
to update the existing skills of their employee as per the market demand. For effectively doing
they can arrange range various training session or program for them that makes them more
productive and efficient.
TASK 3
P5 Significance of Employee Relation
Work is easy if it shared among all workers collectively: It has been believed that if work is
properly divided among employees on the basis of their skills and efficiency, chances of
accomplishing it increases. In TESCO, healthy relationship is shared among all employees that
mainly reduce or eliminate the workload particularly on one person and in turn maximize the
chances of attaining higher productivity. It is almost impossible for single person to handle or
control everything, therefore it is primarily important to divide word among the team members
so that they can achieve their desired task within assigned time. This can only be possible if their
workers share good relationship with one another and trust each other completely. This will
ultimately lead to increase their ability in terms of making task easy so that it can be achieved
effectively.
Discouraging conflict among workers: If personnel of a company shares good relation with
their co-worker it indirectly eliminate the chances of arising conflict among them. Sharing good
relationship with co-worker promotes healthy working environment which can be benefit for
other as well. Positive and friendly working environment enables employees to consider their co-
worker as colleagues not as competitors (Hoque, 2013). As a result, overall productivity of the
company increases which help in taking better decision for the company.
Loyalty of the employees: Employees can become loyal if they found pleasant and interactive

work environment that keeps on motivating them to perform assigned task in an effective and
efficient manner. When employees are motivated they work incredibly hard which indirectly
encourages other co-worker as well. As a result, overall productivity and efficiency of employees
increases. In fact they start taking task willingly. Rate of employee turnovers also start
decreasing that help in reducing the cost related with recruitment and selection of new
candidate.
Ensuring quality by communicating effectively: Chances of achieving particular task increases
if it has been communicated properly. Effective communication system in TESCO ensures that
there is no discrimination across the company in any perspective (Jiang and et. al., 2012). They
provide equal and fair opportunities to all its employees. In addition to that, they are also
providing motivating workplace environment that keep inspiring them to work more effectively
and efficiently words achieving business objectives and goals.
P6 Important components of employment legislation
Various laws and legislation are framed by government which defines about rights and
responsibilities of both employer as well as workers. This facilitates in defining responsibilities
of manpower to firm. Some key components of legislation are as follows:
Anti discrimination act: The act states that employers must ensure that there should be
no discrimination takes place at workplace so that a healthy environment can remain maintain.
They should treat their personnel with equal respect and dignity. Firm should ensure that no
discrimination occurs on the basis of age, religion, sex, colour, caste, religion, education, culture
etc. as this will directly influence performance of company in adverse way. So, administrators of
Tesco needs to ensure that discrimination not happens at workplace and equal opportunities
should render to them so that they feel satisfied.
Equal pay act: This act states that every individual who are working within firm gets fair
and equal wages for their work which they done at same level (Marchington and et. al., 2016).
This will facilitates in increasing morale of workers and feel sense of satisfaction which in turn
enhance profitability and productivity of Tesco.
Working time directive act: This act is related with working hours of an employee at
workplace. They should work for at least 8 hours daily as per this legislation.
TASK 4
P7 Application of different HRM practices
JOB SPECIFICATION
Organisation: Tesco
Job title: Assistant Human resource administrator

Qualification:- MBA or PGDM in related subject.
Essential Criteria:
 individual must be able to deal with every kind of situation in effective manner.
 Ensure coordination & cooperation between all team members.
 Satisfactory knowledge of management theories as well as approaches.
Desirable Criteria:
 Require 6 years of experience
 Good personality & physique
CURRICULUM VITAE
Curriculum Vitae
Name:- PQR
Address:- United Kingdom
Phone No:- 6472730348959
Profile summary:-
Require a MBA professional with speciality in HR and have a minimum experience of 6 years
to be the part of company.
Specialisation:
 Recruitment & training program
 Decent management of conflicts & disputes
Educational Qualification:-
 BCA
 MBA
Declaration:
I hereby declare that all the information provided is true and best in my knowledge.
Date:
Place:

CONCLUSION
As per the above mentioned report, it can be concluded that organizational success
depend upon how effectively and efficiently their employees work towards achieving business
objectives and goals. The primary responsibility of any company is to recruit and select most
talented and suitable candidate for the company that assist them in gaining high competitive
advantage in overseas market. There are different HRM practices like training and development,
recruitment and selection, compensation and benefits that assist in increasing overall productivity
and efficiency of employees. In addition to that it also help in formulating effective decision
making that provide benefits to employees in both long and short term.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Berman, E. M. and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Boselie, P., 2010. Strategic human resource management: A balanced approach. Tata McGraw-
Hill Education.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Gospel, H. and Sako, M., 2010. The unbundling of corporate functions: the evolution of shared
services and outsourcing in human resource management. Industrial and Corporate
Change. 19(5). pp.1367-1396.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
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Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
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