Human Resource Management Theory & Practice

This assignment delves into the theoretical foundations and practical applications of Human Resource Management (HRM). It examines various HRM functions, policies, and strategies, drawing upon scholarly sources to provide a comprehensive understanding of the field. The analysis explores the role of HRM in organizational success, employee well-being, and societal impact.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Purpose and function of HRM...............................................................................................4
P2 & M2 Strength and weaknesses of different approaches of recruitment and selection.........5
TASK 2............................................................................................................................................7
P3 Benefits of different HRM practices for employer and employee.........................................7
P4 & D2 Effectiveness of different HRM practices in raising profitability of organisation......8
TASK 3............................................................................................................................................9
P5 Importance of employee relations and its power to influence HRM decision-making........9
P6 & M4 Key elements of employment legislation and the impact upon HRM decision-
making.......................................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Application of HRM practices.............................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Human resource management is the important function of organisation. To properly
conduct the activities of organisation, it is necessary to have effective human resource
management. This includes the activities related to appointment of personnel, determination of
remuneration, appraisal of performance and maintenance of employee relation. All these
activities are important for the success of organisation (Bratton and Gold, 2012). Rent-A-Car is
indulge in the car rental business, founded by Jack Taylor in 1957 in USA.
In this present report explain about, Different functions and purpose of HRM, strength and
weaknesses of different recruitment approaches and benefits of different HRM practices to
employer and employee and their effectiveness in raising the profitability of organisation. Here
also explain about, importance of employee relation in company and different key elements of
employment legislation and their impact on HRM decision making.

TASK 1
P1 Purpose and function of HRM
There are many purpose and function of HRM in organisation. This helps the company to
easily conduct the activities. This will contribute in increase the profitability of company. Rent-
A-Car is establish the business of car renting in USA (Brewster and Hegewisch, 2017). This
company has the largest car renting business now and many employees are working to operate
the business effectively. It is the duty of HR manager of company is to properly conduct the
functions of company. For this purpose different purpose and functions are described below:
Purpose of HRM
The purpose and objective of company is to properly the manage the activities of
company. Different purposes of HRM includes, internal customer management, Staffing,
Compensation and performance, laws etc. It is the duty of HR manager of the company is to
properly implement the functions to achieve objectives of cited company:
 Internal customer management: It is the duty of HR manager to implement the policies
and process to attract, recruit and retain quality of workforce. This helps the company to
attract the customer towards the services. This helps the company to increase the
profitability.
 Staffing: It includes the process of fulfilment of workforce of company. This helps the
company to properly conduct activities of business and fulfil the demands of customers.
 Compensation and performance: It includes the process of providing compensation to
employees on happening of health related issues and implement proper performance
appraisal performance (Chelladurai and Kerwin, 2017).
Functions of HRM
The HR manager of Rent-A-Car has to perform the following functions which are
described below:
 Recruitment and selection: The main function of HR in company is to appoint the
employees according to requirement to handler the activities effectively. There are many
approaches are used by them for selection of employees which includes: online
recruitment, personal interview, external sources etc.

 Employee relation: It is the main function of HR in company to maintain relation
between the employees. This helps the company to make the coordination and support
among the employees. This would increase the productivity of company.
 Training and development: It is the duty of HR manager to provide adequate training
and development program to employees of company. This helps in development of
additional skills among them. It is important for personal and professional development
of employees (CHUANG and Liao, 2010).
M1
The functions described above helps the employees of Rent-A-Car to increase their
talent. Their importance in development of new skills shall be defined below:
 Training and development helps in learning of new skills and knowledge regarding the
projects on which they are working. This increase the capability to handle the situation
more appropriate manner and solve the problems regarding that.
 Employee relation helps in building the confidence among the employees of company
and creates the positive attitude among them. This increases the passion between them.
P2 & M2 Strength and weaknesses of different approaches of recruitment and selection
There are many approaches are used by the management of Rent-A-Car for recruitment
and selection of the employee in company. This helps the company to mange the workforce in
proper manner and effectively operate the activities. This helps the company to meet out the
demands of their customers.
Different recruitment approaches
There are two approaches available to company to recruit the employees. These are
internal and external. Internal approach includes the process of promotion of the existing
employee to fill the vacant position (Dacin, Dacin and Matear, 2010). External approach
includes the process of selection of candidate by giving newspaper advertisement, online
recruitment etc. Rent-A-Car company uses online recruitment for the selection of their
employees. Strength and weaknesses of both the approaches are defined below:
 Internal source: This includes the process of fill the vacant position by promotion of
existing employee. Another internal source is to appoint the person which is
recommanded by existing employees of company. There are many strength and
weaknesses of these approach which are defined below:

- Strengths: The approach used by management of company to recruit employees defined above
have lots of strengths. This saves the time and cost of the company. Secondly, the promotion of
existing employee on higher position helps to motivate in organisation and improves their skills
and involvement in their activities. This would help to increase their passion towards their work
and development of their personality.
- Weaknesses: Weaknesses of this source is that it not consider the fresh and talented persons to
fill the vacancy. This approach finish the opportunity of company to acquire more talented
person on jobs which improves their productivity and profitability (Fulton, and et. al., 2011).
 External sources: This includes the process of selection of candidates through
newspaper advertisement, online recruitment, personal interview etc. Online recruitment
approach used by Rent-A-Car company to recruit the employees. There are many
strength and weaknesses of this approach:
- Strengths: The strength of online recruitment is that it is fast process of selection of the fresh
talent in company. This process provides the company talented persons which have extensive
knowledge about various aspects. This saves the cost of company on training and development
of employees. This will help to increase productivity and profitability of company.
- Weaknesses: It de motivates the existing employee of company as the new persons takes the
higher position. This will reduce the confidence and believe of existing employees on company.
Different selection approaches
Systematic and Non systematic approach is used by management of Rent-A-Car. Both
these approaches have their own strength and weaknesses:
 Systematic: This approach includes the process of selection through proper sequence.
- Strength: This helps the company to recruit highly qualified personnel which perfectly suits
the job.
- weaknesses: This approach is time consuming and involves lots of cost.
 Non systematic: This approach includes the selection of the person on random basis.
- Strength: It saves the time and cost of company (Guest, 2011).
- Weaknesses: Not appoint person which suits more to job. This affects the quality of work.

TASK 2
P3 Benefits of different HRM practices for employer and employee
There are many HRM practices available to the management of Rent-A-Car. These
practices includes, training and development, job and workplace design, flexible organisation,
performance and reward. All these have their own benefits on employer and employees of
company. This helps the company to increase productivity and efficiency of their activities and
satisfy the different demands of customers. The two main approach used by HR manager of cited
company are learning, development and training and performance and reward. These two
approaches and benefits are described below:
 Learning, development and training: This approach is used by management of Rent-A-
Car to improve the skills and knowledge of their existing employees. This helps the
company to increase innovation among the employee and attain the organisational
objectives effectively and efficiently. To provide training and development various
methods are used by management of company includes, seminars, on job training, off roll
training etc. this helps the company to provide knowledge large number of employees on
single time. This save the time and cost of company. It helps in personal and professional
development of employees and contributes in profitability of company.
 Performance and reward: This approach used by the management of Rent-A-Car to
motivate the employees at workplace. This helps the company to increase the
performance of their employees. This approach includes the process of appraisal of
performance of employees with comparison of standards formed by company. This helps
the company to identify the problems faced by them and provide the solutions regarding
them. The management of cited company provides the extra rewards to employees on
such appraisal. This motivates them to maintain the quality in their work to get extra
remuneration. So, there is huge benefit of this approach to cited company because we
know about that remuneration has directly related to the performance of employees. So,
reward helps to increase the performance of employees (Halbesleben, J.R., 2010).
P4 & D2 Effectiveness of different HRM practices in raising profitability of organisation
There are many approaches are used by management of Rent-A-Car to increase the
profitability of company. These approaches includes, job and workplace design, training and

development, flexible organisation and reward systems. These approaches helps the employee of
company to research about the preferences of customers and provide the services according to
that. The cited company is indulge in providing the service of car renting. There is huge
requirement to understand the customer demands and preferences to get success in future. These
approaches helps the company to properly manage the activities and provides the time to
management to focus on market. The two approaches used by company are job and workplace
design and flexible organisation. There is huge importance of these two approaches in increase
the profitability of company if implanted in company effectively which are described below:
 Job and workplace design: This includes the atmosphere provided by company to
employees at workplace. It is the duty of management of company is to provide the
adequate space and the facilities to the employees. This will have direct impact on the
performance. Rent-A-Car is doing the business of car renting. It the largest company
proving these services. The management of company to give proper emphasis on job and
workplace design for employees (Kim, and et. al., 2010). To provide jobs as per their
specification helps them to retain employees for longer time period. To provide adequate
safety measures at workplace and provide all facilities to employees of cited company
helps them to create positive atmosphere. All this encourage the employee to work harder
to increase the profitability of company.
 Flexible organisation: This includes the nature of management of company which have
direct impact on the performance of employees. If the regulation provided by company
are strict and they penalise their employees for not to be punctual decreases their
efficiency. The management of Rent-A-Car, is required to be flexible on their regulations
framed by them for employees. They have to linnet with there employees and not
penalise them for their mistakes. This builds the confidence of employees in company
improves their performance. This helps the company to retain their employees for longer
period and maintain positive energy at workplace. This will helps the company to
increase their productivity and satisfaction of the customers demand. This will enable the
company to increase their profitability (Soltis and et. al., 2013).
M3
There are many evaluation methods of HRM practices which are used by company. Rent-
A-Car uses to HRM practices which are training and development and performance and reward.

Two methods are used by management of cited company for evaluation of these HRM practices
which are described below:
 Kirkpatrick: This method is used to evaluate the effectiveness of training. Value of
training can be judged in four levels.
- level 1: Response of participants on training program
- Level 2: Learning measures, they actually learned or not
- Level 3: It includes about the behaviour of participants regarding training programs
- Level 4: This will includes about the result of training on employees. That helps in
development of new skills or not.
 ROI: It is the additional method of Kirkpatrick model. This methods is used by
management of company to evaluate training effectiveness. This demonstrate direct
relationship between company productiveness and training of employees.
TASK 3
P5 Importance of employee relations and its power to influence HRM decision-making
Employee relation: It means the relation between the employees of company. A good
relation can be recognise by coordination and supportive nature among the employees of
company. The management of Rent-A-Car has duty to maintain employee relation in company,
this helps in increase the performance of employees. Overall contribution of the good relation
between the employees id to increase the productivity and profitability of company.
Importance of employee relation
There are many importance of employee relation to cited company. This helps the
company improve coordination among the employees and satisfy the demands of customers.
This will increase the profitability of company. Different importance of employee relation to
Rent-A-Car company is described below:
 Better decision making: There are many issues in company on which decision making
by single person is not possible. Sometimes, management of company requires the
support of employees in making effective decisions regarding important topics because
employees of company provides internal information related to operations of company.

 Easy to perform work: Perform the functions of company becomes easy if it is shared
among all employees. Responsibilities equally divided among the team members
supports company to complete tasks in stipulated time (Teece, 2012).
 Build positive atmosphere: If there is not good relation among employees this will
creates stress and tension which affects the performance. But if they have good relation it
easy for them to work as family and spend 8-9 hours at workplace. This will remove
stress from employees.
 Feel motivated on trustworthy employee: The employees of company feel motivated
when they have trustworthy co-workers. This helps the employee to improve the
performance and increase the profitability of company.
Strategies for build and improve employee relation
There are many strategies are adopted by cited company to improve the relation between
employees. These strategies helps the company to improve the performance and increase the
profitability. Different strategies are described below:
 The management of company has equally treated all employees. Employee favouritism
should be avoided.
 Keep the job of employees interesting and challenging. Provide greater responsibilities
and indulge them in training programs.
 Maintain continuous interaction with employees (Bratton and Gold, 2012).
P6 & M4 Key elements of employment legislation and the impact upon HRM decision-making
Employment legislation: It includes the laws regarding employment of employees in
company. The key elements of employment legislation includes, Equality act., data protection
act., health and safety act., redundancy, dismissal, employment contracts and ethical
considerations. All these elements are important aspects which is required to implement by
management of cited company. This governs the rules and regulations of employment in
company. These regulations are defined below:
 Equality Act.: This Act. Provides about the equality in organisation. The management of
Rent-A-Car company has to maintain between the equality of all employees whether it is
male or female. There is no discrimination between employees according to their gender.
It affects the decision making of HRM as they have to adopt equal policy regarding

appointment, appraisal and determination of the remuneration of employees of company
whether they are male or female.
 Data protection Act.: This includes about the protection of important information of
company. The employees of company are restrict by these rules that they do not transmit
the important information of company to others. Otherwise they have to penalise under
laws. This will affect the decision making of HRM as they have to be attentive when they
provide the information to employees and properly supervise them. They have to sign the
bond with the employees of company as they secure important information (Brewster and
Hegewisch, 2017).
 Health and Safety Act.: As per this Act., it is the duty of management of company is to
provide adequate safety to employees at workplace. They have to provide gloves, helmets
,sign boards etc. to employees who are working in hazardous situation. This affects the
decision making of HRM as they are more conscious about the health of employees.
Otherwise they have to penalise by the law agencies under this act.
 Dismissal: This includes about that the company not dismiss any employee without show
cause notice. It is the duty of the management of company is to conduct proper enquiry
and provide proper reason for removal of employee from company. It affects the decision
making of HRM as they have to implement the procedure for removal of faulty
employees and conduct proper enquiry (Chelladurai and Kerwin, 2017). This will saves
the image of company in future.
TASK 4
P7 Application of HRM practices
Appointment of Management Trainee in Rent-A-Car company is done on the basis of
following criteria which is described below:
Job Description
Job Details
Title of the job: Management Trainee
Department: operations

Job purpose
 To assist HR manager of company for proper management of activities
 To improve the performance of companies and meets demands of customers
 To fill the vacant position and build effective team of management
Responsibilities and Duties
 Analyse market demand of customers and guide employees in such direction
 Assist the management of company in appraisal the performance of employees
 Satisfying different management needs
Description of CV
Qualifications and information regarding appointment of management trainee is
described below:
General Information
Name:
Phone No:
Email-id:
Qualification
MBA London University 65%
BBA London University 68%
Higher education Cambridge school 75%
Secondary education Cambridge School 63%
Personal Details
Fathers name:
Mothers name:

Date of Birth:
Extra Skills: Having good communication and leadership skills and great decision making
power
Preparation of structured Interview: Some of the important qualities of candidates are
consider by management of company while appointing eligible candidates:
 Prepare questionnaire to remove errors
 Eligibility of person
 Requirement of skills by eligible candidates
 verification
 Evaluate personality and capability of person of performing task
Offering of offer letter: To selected candidate company has to provide the offer letter in which
terms and conditions are mentioned and adopted by selected candidate (CHUANG and Liao,
2010).
Essentials of offer letter:
 Description about organisation
 Date of joining
 Structure of Salary
 Working Hours
 Signature of higher authority
 Common seal
Evaluation: This process includes the evaluation of recruitment of management trainee so, HR
department does not make any mistakes and perform their functions effectively.
Criteria for selection of candidate
 On the basis of past performance
 on their skills
 Education level
This process helps the company to properly appoint the eligible candidate in company.

CONCLUSION
It has been concluded from the above report that, HRM practices helps the company to
increase the skills and improves the performance of employees. This helps the companies to
determine the demand in market and satisfy them in more appropriate manner (Dacin, Dacin and
Matear, 2010). These practices have huge impact on employer and employees. This helps the
company to increase there profitability.

REFERENCES
Books and Journals
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Fulton, E.A., and et. al., 2011. Human behaviour: the key source of uncertainty in fisheries
management. Fish and Fisheries. 12(1). pp.2-17.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Halbesleben, J.R., 2010. A meta-analysis of work engagement: Relationships with burnout,
demands, resources, and consequences. Work engagement: A handbook of essential
theory and research. 8. pp.102-117.
Hobfoll, S.E., 2011. Conservation of resource caravans and engaged settings. Journal of
occupational and organizational psychology. 84(1). pp.116-122.
Kim, H.R., and et. al., 2010. Corporate social responsibility and employee–company
identification. Journal of Business Ethics. 95(4). pp.557-569.
Soltis, S.M., and et. al., 2013. A social network perspective on turnover intentions: The role of
distributive justice and social support. Human Resource Management. 52(4). pp.561-
584.
Teece, D.J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
Management Studies. 49(8). pp.1395-1401.
Watson, T.J., 2011. Ethnography, reality, and truth: the vital need for studies of ‘how things
work’in organizations and management. Journal of Management studies. 48(1). pp.202-
217.
Online:
Human resource management. 2016. [Online]. Available through:
<http://www.yourarticlelibrary.com/hrm/human-resource-management-functions-managerial-operative-
and-advisory-function/27995/>.