Benefits of HRM Practices for Employer and Employees

This document discusses the benefits of HRM practices for both employers and employees within an organization. It explores how HRM practices improve performance and help achieve business goals. The document also highlights the importance of training, development, and learning practices in enhancing employee performance.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Function and purposes of HRM..............................................................................................3
P2 Merits and Demerits of of different approaches to recruitment and selection.......................6
Task 2...............................................................................................................................................9
P3 Benefits of HRM practices for employer and employees within organization......................9
P4 How HRM practices are effective for raising organizational productivity and profitability
....................................................................................................................................................10
Task 3.............................................................................................................................................11
P5 Importance of employee relations which influences HRM decision making.......................11
P6 Employment's Key legislation which impacts on decision making.....................................11
Task 4 ............................................................................................................................................12
P7 Application of HRM practices in organizational context.....................................................12
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................15

INTRODUCTION
Recruitment, selection, inducting employees, training and development, providing
orientation and appraising the performance of employees are the part of Human resource
management which helps to perform all business functions. HRM is important for business
organization who manage all business activities and provide employees benefits (Tochaee,
Hosseini and Reihani, 2016). Different policies and legislation are formulated by HR manager
for the welfare of organization. To know about Human resource management Merrill Lynch has
been taken that provides investment services to its clients and maintain all function optimally in
order to raise profit margin. Various concepts and topics are to be covered in report like scope
and purpose of HRM for resourcing that helps to fulfil business goals, how key elements of
HRM are effective, how internal and external factors affects the decision of HRM and different
HRM practices which is used by organization to complete target and attain business objectives.
Task 1
P1 Function and purposes of HRM
Human resource management is consider as important department within business
organization which handles employees aspects and various functions like planning, organizing,
directing and controlling and providing benefits and incentives to employees. Therefore, human
resource management is important for organization who analysis the needs of organization and
selects best staff for running business activities (van den Brink, Fruytier and Thunnissen, 2013).
Workforce planning: This planning ensures that an organization has current and future
personnel needs that helps to work effectively. The meaning of workforce is competent
personnel who can understand the needs of organization and put their efforts to complete task.
Human resource management uses workforce planning that is cost effective method to hire and
retain employees in their organization.
Resourcing: This is more effective than recruitment because it focuses on long term
goals and strategic within organization. It consider different functions and strategic requirement
that helps employees to accomplish objectives. In Merrill Lynch, HR manager identify the needs
of employees and build policies to retain them for long term (Kim and Bae, 2017).
Purpose of HRM

To maximize the performance - Every industry needs HRM for the purpose of
increasing the production by raising organizational performance. Such as management of Merrill
Lynch prevent employees prevent issues at work place and maximize the business performance
by investing correct person.
To increase the employee's job satisfaction – HRM is good for organization as well
employees that analysis the employees needs and build policies for their benefits. Therefore,
purpose of HRM is to increase the employee's job satisfaction by following policies and
regulations. The HR manager of Merrill Lynch follows some regulations for the purpose of
providing benefits to employees and increase job satisfaction (Masoudi and et.al., 2012).
Different Functions of HRM:
HRM contains various functions which are applicable on employees resourcing and
workforce planning in order to accomplish goals (HRM functions, 2018). Various functions of
HRM are:
Training and development: It consider in operative function that allows employees to
gain new skills and knowledge in order to perform job effectively. It helps to increase the
confidence level of existing employees and ensures they are working right work. HR manager of
Merrill Lynch provides training and development programme to employees in order to prepares
them for higher level responsibilities and perform daily operations effectively (Dumont, Shen,
and Deng, 2017).
Performance Appraisals - This function is most important for organization as it helps to
increase the job satisfaction of employees by giving them appraisals. In Merrill Lynch, HR
manger check and analysis employees performance who are working at there and give appraisals
to good performer employees that helps to increase motivation level.
Managerial functions: This function is related with management which helps to achieve
business goals by performing all business activities. Managerial functions of Merrill Lynch are
as given:
Planning - It consider as primary function of any organization which helps to achieve
future goals. Planning helps Merrill Lynch management to collect, analyse and identify present
and future needs in order to accomplish business goals.

Organizing - This function helps to organize the business activities within organization.
In Merrill Lynch HR manager organize all business activities which relates to employees
benefits and organization welfare (DeNisi, Wilson and Biteman, 2014).
Directing - This function helps to activate employees at various levels and contribute
towards organizational goal. In Merrill Lynch HR manager shows a right path in order to
accomplish goals.
Controlling - In this function all business activities and and employees performance are
controlled by manager of organization and compare with goals in order run a business. By
controlling all activities and performance organization can achieve business objectives
efficiently.
Approaches of HRM:
Hard approaches – This approach characterised employees as resource of organization
who helps works at workplace and complete their task is consider as hard approach. It is task
oriented by following rational and strategic aspects while making plans in order to achieve
business objectives. By using hard approach, Merrill Lynch's manager make plans and perform
business activities effectively (Kang, Snell and Swart, 2012).
Soft approaches – This approach considers employees as the part of key assets of
business entity who understand needs and make efforts to complete targets. It mainly focuses on
personnels and their directions in order to complete commitment. Using this approach, manager
of Merrill Lynch understand needs of employees and give their efforts to accomplish target.
The difference between Best Fit approach and Best practice is explained as follows:
Particulars Best Fit approach Best practice
Meaning Best Fit approach is a
contingency approach.
Best practice is a universal
approach.
Dependency It focus on picking the most
effective HR policies in order
to gain productive results.
Best practices totally depends
on matching them properly to
the firm's working
environment.

Hard model of HRM: This model is focusing more on cost control, task to be
performed and attaining set goals and objectives.
Soft model of HRM: It is defined as this model emphasizes on individual self direction
as well as places trust, commitment and self-regulated behaviour at the middle of the strategic
approach to people.
Internal labour market is defined as administration unit in a company where pricing and
allocation of labour is designed by administrative rules and regulations. There are three types of
labour market which are physical and mental labour, skilled and unskilled labour and productive
and unproductive labour which are prevailing in the open market place. By doing so turnover,
retention and stability of potential employees can be easily. As it helps to safeguard the rights of
the labour in the working premises. Legal and regulatory framework creates huge impact on
labour performance and retention. The policies framed by regilatory body helps the labour to
work effectively and efficiently because they are assured that they are not illegally treated at the
workplace.
Modern tools and techniques has raised efficiency of HR practices has it has made the
work of recruitment and selection. As as well as large number of skilled applicant can be
stimulated towards the vacant post by online recruitment and interview process.
P2 Merits and Demerits of of different approaches to recruitment and selection
Recruitment: Recruitment is important for organization which fulfil needs of skilled and
talented staff by recruiting number of applicants. This is the process of attracting individuals for
the purpose of performing different roles within organization. It involves various procedure to
search the applicants for hiring at numerous positions. In Merrill Lynch, HR manager make
plans, source employees, screening and evaluating their performance in order to fill vacant
position (Townsend and et.al., 2012).
Recruitment approaches:
External approaches: To find out the suitable person out of the organization and world
is contained in external approach. It involves different sources like job portals, event recruiting,
online recruitment, media advertisement, direct recruitment, contractors, consultants etc. Some
recruitment methods are opts by Merrill Lynch that are:
Direct recruitment – In this method, Merrill Lynch's administrator paste a notice on
factory gate which influence job seekers to get a chance of job opportunities. This is the direct

method of recruitment which are used by organizations to fill vacancy instantly. This is mainly
used in factories where needed of many labours occurs suddenly and can be fill by this method.
Media advertisements - In Merrill Lynch HR manager make plans to put advertisement
on social media, print media and other which helps to attracts number of applicants for getting
job opportunities. Organization pays huge amount of money for give the advertisement in which
they consider job position, location, salary and job responsibilities with required qualification
towards filling vacant position (About internal and external recruitment, 2018).
Short comings with benefits of recruitment approaches:
Benefits Short comings
 This process also increases chances of
better competition within organization
in terms of hiring new talent with
experience.
 Administrator of Merrill Lynch can fill
instant vacancy by using media
advertisement and direct recruitment.
 External recruitment create less
chances of understanding the
environment of business organization
that can be a big difference for future
activities.
 It may be risky for Merrill Lynch
because candidates are recruited for
post which may not be worthy of
position offered.
Internal approaches: To identify the needs of employees and recruit them from the
organization is termed as internal recruitment. It reduces the risk of organization as employees
are well aware about norms and environment of enterprise. In Merrill Lynch, administrator can
fill the vacancy by recruiting candidates from the organization. It uses following sources:
Internal advertisements: Job related information or notices are hang on notice boards and
break rooms in order to provide fill vacancy. It helps to perform responsible job responsibilities
within organization.
Temp to permanent: To upgrade temporary employees in permanent or full time position
is consider as internal recruitment. This process make feel happy to employees by providing full
time job opportunities. Some benefits and limitations of internal approaches are as given:
Benefits along with shortcomings of internal recruitment approaches:

Benefits Short comings
 This is quicker and cheaper to recruit
candidates for Merrill Lynch that get
employees from organization. .
 It is beneficial for Merrill Lynch as it
already knows the strength and
weakness of employees.
 This method limits the potentiality of
various applicants who are already in
organization and outside.
 There is chances of conflicts between
various employees.
Job analysis refers to as accumulating and examining data regarding the job vacant in the
company along with this context in which jobs are performed. Normally it is used to measure
placement of jobs.
Selection: To select and put a right individual for right position is consider as selection. It
involves skills, experience and talent of individual person and then provide a job opportunities.
In Merrill Lynch manager are using this process to select the skilled and suitable candidates for
responsible position.
Selection approaches:
Group exercises: Herein, organization provides a job role to a group with same topic and
evaluate their performance that helps to select best candidates within organization. For instance,
administrator of Merrill Lynch provide a job role to all applicants with same topic and analysis
their performance in order to select best employees (Abstein and Spieth, 2014).
Reference checking: Some times organization also check reference and backgrounds to
know the behaviour and skills of candidates in order to select the person. In Merrill Lynch,
manager select the best person to perform job responsibilities with the help of reference and
getting information from past company.
Shortcomings as well as benefits of selection approaches:
Benefits Short comings
 Selection of employees from
diversified applications of candidates
which describes capabilities and
 There is chances of wasting amount and
time as it need number of interviews
round to select best one.

potential of employees.
 Merrill Lynch perform good in
challenging business environment as it
select knowledgable and experienced
staff.
 It is negative procedure decline other
candidates and increase conflicts.
 It affects decision making within
organization as different legislations are
followed by employees.
Therefore, different sources are opt by Merrill Lynch to recruit and select best candidates
within organization. By selecting good candidates it can achieve business goals and objectives
properly.
Induction is explained as introducing new employees with the existing staff members so
that they they easily involved with them and can adjust with their new job role.
There are various issues affecting induction and socialisation of employees are, giving to much
information at once, impersonal induction experience, trying to do everything in day one etc. by
this negative impression is build in the mind of the employee and chances of turnout raises.
Task 2
P3 Benefits of HRM practices for employer and employees within organization
HRM practices are related term that defines systems, regulations, policies and activities
which are followed by organization in order to achieve business goals. Moreover, it helps to get
competitive advantages by implementing the HRM practices. The management of Merrill Lynch
opt HRM practices that are:
Training, development together with learning practice: It is one of the good HRM
practice which improves the performance of employees and business organization. Under this
practices Merrill Lynch provides proper training and development education to its employees
that is used to face the challenges and changes within organization. Superiors and employees are
benefited with training and development learning practices that are:
HRM practice Benefits to employers Benefits to employees
Learning, training
with development
practice
 It is useful for employers to
expose the new and latest
technique in professional area
 Training and
development increases
employees morale and

and adopt it perfectly.
 It helps to make higher
productivity and profitability
by enhancing knowledge and
skills.
motivation that leads to
complete individual
goals.
 Training is the way of
enhancing knowledge
of employees that
processed to job
satisfaction.
Training gap is discussed as understanding the difference or gap among employee
training and needs of training. There are numerous types of training such as, job instruction
training, refresher training, vestibule training and apprenticeship training. According to the type
of business they adopts this of training sessions for their co-workers.
The several types of evaluation of training are , assessing application, assessing learning,
assessing satisfaction etc. all this aid in evaluating the training programmes effectively. By this
improvements can be done accordingly for better results.
P4 How HRM practices are effective for raising organizational productivity and profitability
Another HRM practice is applied by Merrill Lynch that is providing them rewards such
as, extrinsic (bonus, public recognition, salary hike etc.) and intrinsic (motivating workers from
within to perform better about any external reward, by reading books, watching video etc.) from
work (Marler and Parry, 2016).
Motivational theory (Maslow need hierarchy model) is linked with reward as both the
aspects helps them to perform better in cut throat competitive world. Motivational theory raises
the standards of the people by fulling each stage as same as when rewards are provide to them
they are reached to the next position as compare to other team mates.
Job extension techniques is the most important method of job design and it covers certain
steps such as, job rotation, job enrichment, work simplification and job enlargement. This helps
in attaining the set goals and objectives effectively.
There are various types of flexibility such as, numerical, structural and functional
flexibility. By examining all this flexibility in the premises firm can gain best outcomes as
compare to competitors.

Handy model of flexible is studied as it focus on building interaction of humans and
nature. This model is focusing more on long term behaviour instead of short term behaviour.
Flexible working options are available in the firm so that personal and organization goals
can be meet in the set time frame. As 24/7 hour of services are provided to the customers so there
is less time with employees to deal with personal life. So flexible tome is permitted in the
company so that personal and firm's aims and objectives can be attained.
Benefits to employer by flexible working practices are :
 Set standards are achieved
 Less turnout ratio of skilled employees
Benefits to employees by flexible working practices are :
 Render their hundred percent in the work to complete the assigned work-related
 Personal life is managed properly along with professional life so they remain satisfied.
Key performance indicator (KPI) is used by the form in order to measure the performance of
employees for productive outcomes in intense competitive world.
Online payment method is used to transfer the amount so that cash less mission can be
full filled. As well as non-monetary rewards are offered to the employees in which gifts, holiday.
Vacation with family etc. are given.
There are distinguish method of determination such as, Book value, discounted cash
flow, weighted average method, common discount, transaction comparables etc. Organization is
using Book value method of determination because it the easiest way to conduct.
Task 3
P5 Importance of employee relations which influences HRM decision making
Human resource is the foundation key of any business organization that influences
decision making. Employees are important for organization who understand the needs and works
accordingly to achieve goals. The importance of employee relation are as follows:
Reduces absenteeism: The employees of Merrill Lynch are more serious about their
work and they works properly by reducing the absenteeism. Employees feels secure and healthy
in case of maintaining good relation by employer. It helps to get best results within organization
that motivates employees and employer to make right business decisions.
Strategies for building and improving employee relations and engagement are as follows:

Involve in decision making process: By involving teammates in the decision making
process healthy relation among employer and employees can be build as co-worker think that
their values are given importance and priority in the decision making process.
Resolve the quarries immediately: Management by resolving big or small issues of the
staff members again helps to build clear and transparent relation among firm and sub-ordinate.
By this smoothly working environment is provided for the working and feeling of equality is
build in the eyes of the workers.
P6 Employment's Key legislation which impacts on decision making
Employment law is build at the workplace so that any kind of illegal activity and
discrimination can not be performed in the firm premises. The various legislations are used by
Merrill lynch that are:
Healthy and safety Act, 1974: This act is related with health and safety of employees
which make feel them good and retain long time. This act states that organization should thing
about their employees who are working at workplace. Such as Administrator of Merrill Lynch
are providing good health and security to its employees that impacts on decisions positively.
Anti discrimination Act, 1977: Some laws and regulations that prohibits racial
discrimination and sexual discrimination at workplace is characterised as anti discrimination act.
This act should follow by all organization at workplace that gives equal opportunities to
employees by preventing from discrimination. (Bondarouk and Ruël, 2013).
Above mentioned laws are applied by Merrill Lynch that helps to retain employees for
long term and it increases productivity and profitability. Such organization treats employees
equally and provide them good health and safe environment so decisions can make properly
without any hurdles.
Ethical and social responsibilities are performed by the organization so that good will can
be raised in the open market place. By doing so living standard of the people can be raised
accordingly. All this directly or indirectly raises national economy.
The role of trade unions at national level is that they safeguard the right of the workers
and fight for the employees if they are ill treated in the working premises. They fight for staff
members, salary, overtime payment, holidays, promotion etc. They work day and night to
provide them their human right as well as justice.

Collective agreements is explained as it is a written contract among employer and trade
union in which all the terms and conditions of employment are mentioned in the form of
bargaining unit. covers grievances, discipline and redundancy which are explained below:
Grievances: In the contact policies regrading grievances resolution are mentioned so
that best solution can be attained in the near future without any kind of conflict.
Discipline: Proper formate is followed while framing the contract. Proper sequence is
followed so that all the points are covered in organized manner in order to reduces mis-
understanding in the near image.
Redundancy: Terms and conditions regarding redundancy is mentioned in the contract
held between employees and employer. Here, redundant refers to as too many people working
together and are performing the same job.
Grievances is the best practices because it helps to resolve the issues of workers. By this
potential workers are retained for longer time duration in the firm. By solving the issues of the
co-workers immediately smooth working environment can be build which is a positive mark for
the business.
Task 4
P7 Application of HRM practices in organizational context
CV or Resume for Human resource management Lecturer profile
Philip Johanson
445 Garratt Ln, United Kingdom
Email Address: [e-mail]
Contact Number: [phone]
Professional Summary:
Highly talented and experience lecturer in Human resource Management that provides
education to management students in order to build personal excellence. Knowledge about pay
scale, all HRM legislations and employees benefit policies.
Achievements-
 Top performer in Human resource academic skills.
 Rewarded by high grade professor from University of Exeter, UK.
Highlights:

 Good listener and speaker.
 Motivating and inspiring lecturer.
 Good communication and coordination skills.
 Strong leadership skills.
Experience:
05/2015 to 2016: Worked with Arden University as an Human resource management Lecturer
by providing right path and directions to students to managing all activities and improving
performance.
06/2017 to 2018: HR manager in Thomas cook group which is hospitality industry. To develop
effective policies for employees and organization welfare that helps to maximizer production
and profitability.
Education:
Course name University Grade
Ph.D ST. Andrew University, London A+
Master of Business
administration
Oxford University, London A
Bachelor of Commerce Exeter University, London A
Declaration: All above written information is correct and valid as per my consideration.
Person specification: This document is very useful for the company as it helps them to
identify about the skills, qualification, training experience and other attributes of a person.
Person Specification
Designation: Lecturer in Human resource Management
Department: Administration
Key: This represent that what is need as an evidence:
(A): Application form, (I): Interview, (R): Role
Attributes Essential Desirable

 Qualification &
Experience
 Graduation or Post-
graduation in
management field from
any college.
 Minimum 2 years of
working experience as
lecturer in Human
resource Management
 Experience of working
as a lecturer in Human
resource Management t
 Skills or knowledge  Effective
communication skills,
Strong leadership
skills, multitasking,
and good listener and
speaker.
 Ability to understand
the working situation
and informing others in
an effective manner.
Modern technology has improved recruitment and selection method. As this aspect can
be done through the use of online resources, social networking and digital platforms. Digital
technology has greatly impacted their day to day working as well as made their work easier. By
this skilled and experience employees are hired in short time span.
Designing and placing job advertisements: This is the way through which huge
applicant can be attracted to apply for the post through online resources. By promoting the
vacant position by making it attractive more candidate will be interested to share their CV on the
site.
Short listing and processing applications: Modern tools has made the HR work easy as
through online sources the short-listing of candidate and applicants can be done smoothly in
organized manner. Also, it saves time and money.
Interviewing and best practices: In order to place deserving candidate at the vacant
position interview session is must in order to understand the customer perception and mind set.

Also, in order to cross check their data and information gathered through online sources. So, it is
the best practices which need to conducted by the HR of the company in effective manner for
better results.
Selection best practices: Through modern tools and techniques it has become easy to
select appropriate candidate for the job position. Before arriving at the interview physically their
CV are scanned properly and telephonic round are taken as well as through Skype interview are
conducted. All this saves time of both employer and employees because it consumes lot of time
to visit the place for interview in the initial stage. In the final round candidate is called for
interview or for other basic formalities. It is the best practices in the limited time duration the
most suitable candidate is selected for the vacancy.
CONCLUSION
From the above discussion it has been summarised that there are different function like
HRM, marketing, financing, IT etc. which are managed by HR manager in order to run business
successfully. HRM is consider as important function which is perform HR manager by
formulating HRM practices and legislations. It focuses on recruitment and selection of potential
person by conducting interview programmes and testing process. Different sources are used by
organization to recruit the employees like media advertisement, external and internal method that
helps to call many applicants in organization. Health and safety act, 1974 and Anti
discrimination act, 1977 are used by organization for providing employees benefits and increase
productivity.

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