Importance of Human Resource Management in Business Entities

This report explains the importance of human resource management in business entities, its functions in workforce planning and resourcing, strengths and weaknesses of recruitment and selection techniques, benefits of HRM practices for both employer and employee, and the impact of employment legislation on HRM decision making.

Human resource management

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
LO1..................................................................................................................................................3
P1 the major aim and purpose of human resource management in a business entity and its
functions that are applicable in workforce planning and resourcing in a business entity............3
P2 various strengths and weaknesses of different techniques to recruitment and selection use
by human resource management..................................................................................................5
LO2..................................................................................................................................................7
P3 Benefits and advantages of different HRM practices in an organisation for both employer
and employee for business development.....................................................................................7
P4 Effectiveness of various HRM practices in terms of raising organisational profit and
productivity in long and short run..............................................................................................10
LO3................................................................................................................................................11
P5 Value and importance of employee relations in respect to influencing human resource
management decision making....................................................................................................11
P6 Key elements of employment legislation and its impact on human resource management
decision making.........................................................................................................................12
LO4................................................................................................................................................14
Application of human resource management practices in work related context.......................14
CONCLUSION .............................................................................................................................17
REFERENCES .............................................................................................................................18

INTRODUCTION
In the era of stiff competition between different companies the human resource management
is considered as a backbone of every organisation. The human resource management is helpful in
increasing competitive strength of a company and is also beneficial in management of different
employees (Bastida, 2018). There are different functions which are performed by human
resource management to effectively manage large number of employees and for the development
of workplace. In this report importance of human resource management is explained in a precise
manner along with different techniques of recruitment and selection. This report also contains a
detailed review of different HRM practices which are part of a business function to maintain
transparency in different operations. This report also covers a brief overview of employment
legislation in order to understand legal environment associated with a business. In this report for
better understanding about functions of human resource management example of Tesco
Company is taken into consideration. Tesco is a multinational retail company which performs
operations all over the world. Tesco was founded in the year 1919 and is headquartered in
United Kingdom.
MAIN BODY
LO1
P1 the major aim and purpose of human resource management in a business entity and its
functions that are applicable in workforce planning and resourcing in a business entity
Mission statement- Tesco mission is to gain lifelong loyalty of their customers through their
products and services.
Vision- Tesco's vision is to lead the market by their business and expand their business
worldwide.
Objectives- Tesco's main objectives are-
 To expand their business to other countries.
 To gain good experience from their customers.
 To gain innovative ideas for their business.
HRM is the process of managing and handling human power of an organisation. It helps to
manage essential resources of an company (Bastida, Marimon and Carreras, 2018). HRM is

important because it makes sure that the work will be assigned according to the specialization of
employees so that work will be done effectively.
In the functioning of an organisation the human resource management plays a crucial role. The
major aims and purpose of human resource management which are helpful in workforce
planning and resourcing are mentioned below:
 Strategy formulation- It is important for an organisation to formulate effective which is
useful for a business to achieve different objectives. The human resource management of
an organisation develops effective strategy which is beneficial for whole organisation.
The HR management also manage different employees who are actively involved in
achievement of strategic goals.
 Optimum utilisation of resources- The manpower resources are utilised with full
capacity with the help of HR management (Chowhan, 2017). It is necessary for a
company to effectively utilise and manage employees for increasing organisational
productivity of the organisation. Organisations gain competitive edge over other
companies with the help of managing different employees in a precise manner.
 Manpower development- The human resource management effectively develops
employee’s capability to perform a specific task. Organisational growth is key element of
an organisation which is majorly achieved with the help of manpower development. The
HR management which is present at Tesco is dedicated to achieve different aims and
objectives with the help of different techniques used to manage employees. Large number
of employees is trained and skilled with the help of functions and tasks performed by
human resource management.
 Business development- Business development is the major aim of human resource
management which is present in a company. There are several organisations in global
business environment which achieves overall development and expansion of business.
Human resource management is dedicated to provide effective solutions for managing
different types of employees who belong to different sections of the society.
 Efficiency- A business organisation also achieves efficiency and effectiveness due to the
presence of human resource management. The companies demand for efficiency and
providing quality products and services at the marketplace. Customer satisfaction is

major priority of different companies which is achieved as surplus with the management
of large number of employees in the organisation.
 Managing reward- HR department of Tesco is also responsible to manage their reward
system. They manage it by providing rewards to their good working employees so that
they will get motivated to work better in future (Chowhan, Pries and Mann, 2017). This
will also motivate other employees to perform better for gaining rewards. Rewards can be
in any form, whether it is monetary or non-monetary.
P2 various strengths and weaknesses of different techniques to recruitment and selection use by
human resource management
Recruitment and selection is the major function of human resource management in an
organisation. This approach provides professional and skilled employees to an organisation
which are helpful in increasing efficiency of the company (Cooper, 2019). The human resource
management puts regular efforts in process of recruitment and selection to select best employees
for the organisation.
There are two types of recruitment which are explained below-
Internal recruitment- When candidates are selected from organisation to fulfil new vacant job
then it is called internal recruitment. Most of the time company uses this recruitment when they
hire employees for their higher job position. Types of internal recruitment are-
Promotion- Here, employees are assigned to senior position to fulfil their vacant job.
Only those employees get promoted for higher job roles who perform well and have all the
necessary ability to perform the offered job.
Transfer- Here, employees are hired from same company but from different branches
which is presented at different locations (Cooper and et. al., 2019).
Strength and weakness of Internal recruitment are-
Strength-
 Internal recruitment is beneficial
because it helps to save cost and time
of long process of recruiting from
outside. Secondly there is a trust for
employees in internal recruitment.
Weakness-
 It might be possible that conflicts may
arise due to internal recruitment
because most of the employees arise
question that why they can't be selected
for the job role.

External recruitment- Here, vacant job is offered to outsiders who are not the part of company.
This recruitment is selected for lower position of company. Types of external recruitment are-
Campus recruitment- Here, companies went to colleges and campuses to hire pass out students
or going to finish their graduation after checking their communication skill and their
qualification.
Walk- In- Here, companies advertise about vacant job in newspapers or on TVs and candidates
who are eligible to conduct the job directly walk-in and ask for interview conduction process (El-
Ghalayini, 2017).
Strength and weaknesses of external recruitment are-
Strength-
 External recruitment is beneficial to
hire new employees who will provide
innovative ideas for company's
development.
Weakness-
 External recruitment is costly and time
consuming.
Selection- It is the process which held after recruitment. Selecting required number of candidates
for fulfilling vacant jobs in an organisation from various alternatives is called selection. Here,
those candidates are selected who best matches to perform offered vacant job role. Types of
selection process are-
 Interview- The interview is considered as one of the major methods of recruitment
and selection which is helpful in selection of a candidate. Major organisations hire
capable candidates with the help of interview in order to maintain effectiveness of
the organisation. The major strength of interview is it is able to hire a candidate with
practical testing. A candidate is successfully tested in a practical sense in an
interview which is a major advantage of this process. The major weakness of
interview is it is unable to check full practical knowledge of the candidate in respect
to the organisational activities. In this competitive world most of the organisations
take support of interview process for achieving effectiveness at the marketplace.
 Telephonic call- Many organisations at the marketplace hire candidate and take job
interview with the help of phone call. Tesco also conducts interview of different
employees with the help of telephonic call to hire a candidate for a job role.

Conducting telephonic interview is majorly the responsibility of human resource
management for the development. It is ethical responsibility of a business to take
honest telephonic interview to hire right employee for the interview. Most of the
business organisations take effective interview for skilled candidate.
 Face to face- Most of the global companies conduct face to face interview with
different candidates to hire appropriate candidate. The conversation and
communication skills of a person are dependent upon the face to face interview.
There are different management employees who are present in operations of Tesco to
conduct face to face interview. The major strength of face to face recruitment is it is
able to check communication skills of a person. On the other hand the major
weakness of this whole process is it is unable to judge the whole personality of a
candidate. Major companies at the marketplace like Tesco gives preference to face to
face conversation for performing right type of recruitment in the organisation.
Strength and weakness of selection process are-
Strength-
 Face to face interview helps to analyse
personality and confidence of candidate
that whether they are eligible or not for
selection.
Weakness-
 During face-to face interview most of
the candidates get nervous and due to
their nervousness they are unable to
perform well in interview according to
their skills and capabilities.
LO2
P3 Benefits and advantages of different HRM practices in an organisation for both employer and
employee for business development
HRM practices are considered as major function performed by human resource management
to deal with day to day functions of organisation. In the competitive world human resource
management play a crucial role by performing different organisational activities. Many
companies hire professional human resource management to deal with different organisational
activities (El-Ghalayini, 2017). The culture is maintained in an organisation with the help of
different HRM practices imposed by human resource management.

 Providing security to employees- Human resource management of an organization
provides crucial employment security to employees. The employees feel job satisfaction
with their jobs with the help of this HRM practice. For a business entity it is essential to
effectively provide tenure related security. Major companies at the marketplace provide
security to different employees. The main advantage of this function is it helps in overall
development of business and provides effective employment security to different
employees. It is beneficial for employees because when employees get full security from
their organization context then they will get more satisfied (Emeagwal and Ogbonmwan,
2018). Tesco provide security for their employees. It is beneficial for employer because
when employees get more job satisfaction then it directly impact upon their performance
and hence, their performance get developed which further help the company to increase
their overall production.
 Selective hiring: Hiring the right people- In order to compete at the marketplace it is
essential for a company to hire appropriate employees. It is the major responsibility of
human resource management to deliver and provide skilled and trained employees to
organization. The successful companies at the marketplace maintain efficiency in the
operations with the help of appropriate human resource management. In the era of stiff
competition between different companies develop different methods and techniques to
manage large number of customers. Many companies in this competitive world are
required to enhance their operations through this approach for leading the marketplace.
Selective hiring is beneficial for employees because here employees are selected
according to their skills and talents and it is a good opportunity for various skilled
employees to apply for reputed companies to get selected. Secondly, it is also beneficial
for employer because when skilled employees are hired then all tasks will be done in a
effective manner by those specialists.
 Self-managed and effective teams- Team development is requirement of every company
in the organization to effectively manage employees. The self management in an
organization is also facilitated with the help of professional management is the major
responsibility of the human resource management. In the operations of Tesco human
resource management facilitate team development for achievement of different
objectives. The major global companies also effectively hire different employees who are

professional and skilled to manage large number of employees. The team development
creates unity in the organizational functions and also creates harmony between different
employees.
 Fair and performance-based compensation- Providing right amount of compensation
to different employees is the major function of human resource management. There are
different objectives of every company at the marketplace which are essential to be
achieved in a specific time frame (Emeagwal, 2018). The human resource management
which is present at Tesco increases performance of the employees by providing right type
of compensation to employees. Providing compensation on the basis of performance also
effectively manages different employees who are present in the company.
 Training in relevant skills- Human resource management which is part of a company
also trains different employees for increasing organizational productivity. Training
increases performance of different employees on different basis to lead the workplace.
Overall workplace related experience is also developed by different practices which are
performed by human resource management.
 Creating a flat and egalitarian organization- It is essential for an organization to
achieve uniformity in different operations in order to survive at the marketplace. Major
companies at the marketplace like Tesco perform employee management in order to lead
different team of business entity. The overall growth of whole organization is also
facilitated by application of different human resource practices. In this competitive world
major companies take support of human resource management to develop team
management. There are several companies in global market which trains human resource
management for effectively managing employees.
 Making information easily accessible to those who need it- In the era of information
and technology it is compulsory for an organization to provide crucial information to
every employee. The major advantage of providing crucial information to employees is
that it increases efficiency in operations. The major disadvantage of this approach in
human resource management is that it brings rigidity in functions of the organization.
Data management is also another function of human resource management which deals
with providing right information to different employees.

P4 Effectiveness of various HRM practices in terms of raising organisational profit and
productivity in long and short run
The human resource management which is present in an organisation is beneficial in
increasing overall productivity of the business entity. HRM practices which are performed by
concerned human resource management are helpful in achievement of different formulated goals
and objectives. Human resource practices are also helpful in development of motivation in
employees in order to increase organisational productivity. The HR management provides right
type of manpower to a business organisation which is helpful in accomplishment of day to day
goals and tasks (Khandakar, 2020). The strategic management which is present in an
organisation is also facilitated and supported by HR management which is present in the
company. Most of the successful business organisations at the marketplace take support of HR
management for manpower management.
The human resource management is also known as people’s management which is helpful in
providing support to top level management for different tasks and functions. Tesco every year
receive a good amount of increase in profit with the help of professional human resource
management. The organisational productivity is raised in a precise manner with the help of
different tools and techniques used by human resource management. Many different companies
take support of professional managers who are part of top level management to achieve business
objectives. In the overall development of the organisation a company generally perform
recruitment with the help of HR management in order to develop a precise strategy. The strategy
which is developed by human resource management is also effective in achieving short and long
term goals (Maharjan, 2017). Human resource management which is working for Tesco is also
beneficial in providing competitive edge by managing large number of employees in a precise
manner. The team and overall development of the organisation is also facilitated by human
resource management to increase organisational profit.
Here are some HRM practices which contributed to increase productivity and profitability of
Tesco-
Training and development- It is one of he most important HRM practices of any organisation
to provide training to their new employees and provide development schemes such as
promotions to their good working employees (Khandakar and Pangil, 2020). In context of Tesco,
they provide 2-3 month training to their employees so that hey will understand clearly that what

and how they have to work. Training further helps to enhance the skills of new comers which
further help to produce more products. More production for Tesco will directly contributed to
earn more profit for organisation. Secondly, development schemes will help the employees to get
self motivated to perform better in the organisation and with their good performance company
will increase their overall productivity and profit.
Reward management- Here, HR manager distributed rewards to those employees who perform
well in their organisation. This will help to motivate employees to perform more well to gain
more rewards. It also motivate those employees to did not perform well so that in future they will
also earn rewards. Self motivated employees always perform well for their company and
contributed well to produce more products and services which directly increases productivity and
profitability of the company.
LO3
P5 Value and importance of employee relations in respect to influencing human resource
management decision making
Employee relationship are consist of relationship between employees and management team of
an organisation (Maharjan and Sekiguchi, 2017). Employee relation management is major
motive of human resource management which is present in an organisation. A business
organisation in domestic or international market compulsory achieves several aspects of decision
making with HR management. The main value and importance of maintaining employee
relations in the functions of Tesco are mentioned below:
 Harmony between employees- It is major aim and function of an organisation to
develop harmony between different employees for organisational growth. In order to
encourage team spirit and team development harmony play an important role. Tesco
maintains effective and crucial employee relations between different employees for
achievement of different business goals. The company tries to maintain professional and
precise relationship between different employees for organisational development.
 Coordination- In organisation maintenance of employee relations is helpful in increasing
coordination between different departments. The coordination is necessary in
achievement of accomplishment of a task within a short time period (Moustaghfir, 2020).

An organisation achieves efficiency and development of different functions in a precise
manner by increasing coordination between different employees for development.
 Communication- Employee relations in a business entity increases communication
between different employees for organisational development. The communication is a
necessary and essential element which helps in accomplishment of day to day tasks.
Different companies at the marketplace take help of human resource management to
perform development of whole organisation in a precise manner.
 Individual and team goals- It is essential for an organisation to achieve individual and
team related goals within a specific period of time. The major organisations take support
of HR management for achievement of individual and team goals. Decision making is
also facilitated by different functions and activities which are performed by human
resource management.
A good relationship between employees and management team is essential for an organisation to
grow. Tesco is having good relationship between their employees and they influence them to
make more better relations with each other and for this they are providing awards to those
employees who contributed more in making better environment for organisation. It is good and
effective to take good decisions. Allowing participation of employees for suggesting good ideas
for decision making process is helpful to build better relationship between management team and
employees. Good relations between employees help the company to create a good organisation
culture for them which further help to motivate employees to increase their performance
(Moustaghfir, El Fatihi and Benouarrek, 2020). Increased performance of employees further help
the company to achieve their organisational goal. Good relationship further help the company to
create a good discipline at organisation and reduces conflicts and grievances which help them to
create a good reputation in market. Less conflicts and more discipline at workplace will
contribute to focus more on achieving organisational goal or organisation profit.
P6 Key elements of employment legislation and its impact on human resource management
decision making
In the corporate world it is compulsory for a business organisation to follow different rules and
regulations which are formulated by government. It is compulsory for a business organisation to
follow different rules and regulations which are formulated by government in order to perform
ethical business. Most of the companies follow all rules and regulations developed by

government and local authorities in order to deal with several consequences of business
functioning. In the era of stiff competition between different companies human resource
management implement different ways and methods that are useful in following employment
laws. Tesco also follows different rules and regulations that are developed by government to
conduct an ethical business at the marketplace. In the functioning of a global company at the
marketplace it is influenced by different political factors which are present in the external
environment (Nassar, 2018).
Different rules and regulations which are formulated due to rules and regulations imposed by
government impacts on major operations of the business. It is important for a business
organisation to comply with policies of government in order to maintain different business
activities in the market. The government of United Kingdom has formulated different
employment related laws which are compulsory to be followed by a business in order to maintain
safety of different employees. There are various companies present at the marketplace which are
involved in conducting safe and secure business to prove example in front of different
companies. The human resource management which is present at Tesco also provides regular
training to different employees for organisational development.
Equality Act 2010: Tesco provides equal opportunities to the employees without any
discrimination in the business. Tesco also provides the proper working hours to the employees as
discussed during their interviews so that conflicts cannot take place in the business. They do not
discriminate among their employees which further helps in increasing the growth chances of the
business. If the any organisation denies following this law then various action is taken by the
government towards the business which can affect the goodwill of the business in the
marketplace. Major companies at the marketplace consider in providing equal opportunities to
different employees at the marketplace. The business development related goals are achieved by
maintaining precise equality in major operations of the company. Tesco ensures that it is
providing equal opportunities to different employees for development of whole organisation. In
order to gain competitive advantage at the marketplace it is compulsory for a business to develop
a comprehensive approach.
Employment Rights Act 1996: It states that the employees are also having various rights in an
organisation such as unfair dismissal, maternity leave, dismissal and paternity leave. Supervisors
should also involve their employees in the decision making so that their skills can get developed

and new ideas can take place in the business which will helps in achieving the goals of the Tesco
effectively. If the organisation wants to survive for the long period of the time then they have to
maintain healthy relation with the employees so that profit of the business can be increased by
providing best services to the customers (Presbitero, 2017). It will also helps in developing the
goodwill of the business in the market because if proper services will be provided to the
customers then it will helps in increasing the demand of the profit of the company in the market
due to which organisation focus on satisfying the requirement of the employees in the business
by following various laws which is given by the government so that their performance cannot
affected in the market.
Health and safety law 1974: A business must ensure a healthy environment in the
business to develop performance of different employees. This law is concerned with providing
major opportunities to employees related to enhancement of safety practices in the business.
Many organisations at the marketplace follow this law to deal with different health related
consequences. The human resource management which is working for a company must ensure
implementation of this act to develop safety measures. Major companies at the marketplace
follow this law to comply with different government policies which are helpful in business
development. Companies apply this law in order to maintain smoothness in operations and
development of business is also achieved.
LO4
Application of human resource management practices in work related context
The human resource management of Tesco is majorly dedicated towards increasing strength
of the company. Internal environment of a business organisation is effectively managed by HR
management in a crucial manner. The productivity of an organisation is also increased by
different employees who are managed by HR manager. In order to enhance the workplace
experience of whole organisation it is necessary for an organisation to hire trained and
experienced employees. There are several organisations working in global business environment
that hire employees through training (Zaid, 2018). Human resource management provides
growth opportunities to different employees for managing large number of employees. In order

to gain competitive advantage at the marketplace it is compulsory for an organisation to hire
right employees with the help of appropriate selection technique.
A company generally focus on human resource management for maintaining effective
culture in the organisation. There are different employees who belong to different sections of the
society. It is one of the major responsibilities of HR management to resolve different grievances
that arise in organisation on day to day basis. A company hire and select different leaders for
organisational functions to manage decision making in the organisation. The HR management
also takes support of democratic style of leadership to deal with several consequences in the
organisation. Minimisation of associated with management of large number of employees in a
business organisation is also developed with the help of several human resource related
activities. Tesco also enjoys competitive advantage and achieves different organisational goals
within a short period of time with the help of human resource management.
Job description- It is the written document which describe the job and job roles within an
organisation.
JOB DESCRIPTION
Job title- Marketing manager
Reported to- HR manager
Summary- Marketing manager is one of the most essential job position of an
company which helps the company to analyse marketing conditions.
Roles and responsibilities-
 To analyse marketing current and future trends and report to senior authority.
 To handle all tasks related to marketing department.
 To analyse customers demand and preference in the market.
 To make strategies for gaining customers loyalty.
Qualification and experience required-
 MBA with marketing stream and minimum marks will be 65% with true
university.
 It is essential to have 3-4 years of experience as an marketing manager or
marketing assistant manager in a reputed company.

Person specification- It is also a written document which cover all required information
related to candidate like skills and talents(Nassar, 2018).
Person Specification
Qualification- MBA in marketing course is required with minimum 65% marks with
true university.
Experienced- Minimum 3-4 year of experience is required in reputed and popular
company.
Required skills-
 communication skill
 coordination skill
 analysing skill
 decision making skill
Desired skills-
 time management skill
 presentation skill
Job advertisement- here, vacant job is advertised on TV, newspapers and on social media to
aware candidates about the job so that they will apply.
Job advertisements
HIRING !! HIRING !! HIRING
We are searching for appropriate candidate for our vacant job.
Be the first to apply in a well reputed company.
Marketing Manager ( full time job)
We have a vacant job position for marketing manager. Its a good opportunity to get
job in highly reputed company.
Training and all equipments will be provided at work place at the time of induction.
Prove your skills and talents and get the job.
Deadline for application is 30th July (Friday) 2021.

Pays and benefits
1 28 days annual leave.
2 London living wage will be
provided.
3 Good incentives on good
performance and bonus on
occasional days.
Contact us
Interested applicants must send their CV
at 66/4 Mark'O Street, London or mail it
to [e-mail] website.
Interview- It is the process which helps in identifying best candidate among all alternatives
by having face to face conversation between employer and employee. Candidate are supposed to
answer the questions which were asked by employer to represent their available skills and
talents. Few of the interview questions and given below-
 Introduce yourself and your previous occupation.
 Why you applied for this company and for this job role.
 What are you expecting back from company after performing good performance in the
company.
 What are your other interested area in professional field.
CONCLUSION
From the above discussion it can be concluded that human resource management is a crucial
part of every organisation which is helpful in achievement of business goals. It is essential for an
organisation to hire professional human resource management for performing different
operations in competitive corporate world. This report concludes that different HRM practices
are helpful in increasing competitive strength of the company. A business follows employment
legislation in a precise manner to achieve different business targets in a short span of time. This
report also concludes that human resource management is effective in maintaining precise
culture in an organisation which is beneficial for business development.

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