Human Resource Management - Purpose and Function

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Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explain the purpose and the functions of HRM................................................................1
M1...........................................................................................................................................2
P2 Explaining the strength and weaknesses of different approaches of recruitment and
selection..................................................................................................................................2
M2...........................................................................................................................................3
LO 2.................................................................................................................................................4
P3 Benefits of different HRM practices.................................................................................4
P4 Evaluating the effectiveness of HRM practices in the context of raising profit and
productivity.............................................................................................................................5
M3...........................................................................................................................................5
D1...........................................................................................................................................6
LO3..................................................................................................................................................6
P5 Presenting the importance of employee relation to influencing the HRM decision-making.6
P6 Identifying the key element of employment legislation....................................................7
M4...........................................................................................................................................7
LO 4.................................................................................................................................................7
P7 Application of HRM practices..........................................................................................7
D3.........................................................................................................................................10
P8 Evaluate the use of technology,online resources,digital platforms and social networking on
improving the recruitment and selection process.................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Human Resource Management (HRM) is the simple approach to an effective
management in an organization. Report main aim is to understand the importance of HRM in the
firm. The chosen company for this report is TESCO which is one of the top and leading retail
company in UK and provide groceries, clothes to their customers. The present study explain the
purpose and functions of HRM in a quoted firm and evaluate the strength and weaknesses of
different approaches of recruitment methods of HR. further report describes the benefits of
different HRM practices and also evaluate the effectiveness of those HRM practices for raising
company's profit. Moreover, report identify different key element of the employee legislation
and also illustrate the application of HRM practices by using specific examples.
LO 1
P1 Explain the purpose and the functions of HRM
Purpose of HRM: In TESCO, the HRM purpose is to creates a bridge between the lime
management and the company's employee. HRM also defines and implements the process as
well as policies which is necessary for the attracting the quality of the workforce. They also
serves the internal customer management and creates better external relationship (Purpose of
HRM, 2018). Apart from this, the HRM main purpose also includes the structure employment
contracts.
Functions of HRM: HRM plays an important function in TESCO and some of them are
as follows:
Recruitment and Selection: It is the major function of HRM which includes the
screening, selecting the potential and qualified the candidates which are based upon the
set objectives for a particular job. This process is quite important to every organization
because it helps to reduces the cost of mistakes such as under- qualified employees and
unmotivated.
Maintain good working condition: It is the main responsibilities of the HRM in order to
provide the good working conditions to every employees. Thus, they come up with new
system in order to provide the financial as well as non- financial benefits to the
employees so that they will helps to keep engaging them into the firm.
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Managing employee relation: It has been analysed that employees are the pillars of the
organization and to maintain the relationship with them is quite essential because it helps
to raise the production level. For this reason, the management should also organize some
activities which helps to know them personal and professional level (Storey, Ulrich and
Wright, 2019).
Training and development: It is another major function of HRM in which they try to
improve the current and future performance of the employee by providing them training
sessions. So that it will help to increase their performance level.
M1
As HRM main functions are describes but among them training and development will
helps to provide talent and skills which further assist them to meet out the business objectives in
proper way. For instance, the HR of TESCO will provide proper training sessions then it will
help to increases the working performance of the employees. As a result, as the performance
level increases it directly affect the productivity and the goals and objectives of the firm are
automatically achieved. Thus, through training and development, the HRM can easily provide
talent and appropriate skills which helps to accomplish the goals of TESCO.
P2 Explaining the strength and weaknesses of different approaches of recruitment and selection
Recruitment approaches:
Internal Approach: It is one of the most simple method in which the employees are hire
internally. There are many methods through which TESCO recruit candidate internally and these
are as mentioned below:
Promotions: It means that upgrading the position of an employee by evaluating their
performance such that it is a process through which an employee are shifted from lower
positions to higher (Ansoff and et.al., 2019).
Transfer: It means that interchanging from one job to another without any changes in
their rank and responsibilities. Recruitment can be done through shifting of an employee
from one department to another which depends upon the requirement of the position.
Advantages: It is one of the simple, cost effective method. As it did not require any
induction and training because the employees are already knows about their job profile.
Disadvantages: As it prevents new hiring and sometimes, it has been analysed that they
may bring innovative ideas in a business.
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External Approach: It means that hiring the employees outside of an organization and it
has many ways such as:
Direct recruitment: In this method, the job vacancy posted on the notice board through
which the candidates can easily applied for their jobs.
Advertisement: It is one of the most popular and preferred method in which the HR of
TESCO can announce vacancy through print and electronic media which helps to attract
new candidates.
Advantages: It helps to encourages the new opportunities for a good job- seekers and the
firm's branding also increases.
Disadvantage: it consumes more time and the selection procedure is high higher as
compared to others.
Selection Approaches:
Using personality test: This method is now becoming popular way to interview in order
to determine the personality of a candidate. Such that if the person is not comfortable to
speak with a strangers then they are not suitable for the sales job.
Interview: It is the most common method in which a panel ask questions to the candidate
and they also observe their promptness and they all see different things such as in the
terms of body language, tone and way of answering (Domínguez-Falcón, Martín-Santana
and De Saá-Pérez, 2016).
Advantages: Helps to measures the presentation and verbal skills. It is cost effective
method.
Disadvantage: It is time consuming method and employee can easily evaluate their own
result through this method.
M2
Strength and weaknesses of the different approaches are as follows:
Approaches Strength Weaknesses
Internal method This method helps to motivate
their employees and also
increases the work relationship
with the organization.
This method has limited
scope because the vacant
positions cannot be filled.
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This method also helps in
developing the employee loyalty
for an organization.
External method Helps to encourage new
opportunities for the job-
seekers.
No biasing and partiality can be
done.
The cost incurred during
this method is quite high.
Candidates demand more
remunerations and benefits
(Jaw and et.al., 2016).
Interview This method is cost effective
only if the manager adopt the
time management strategies.
Selection methods are quite
time consuming method
because their methods is
long.
LO 2
P3 Benefits of different HRM practices
Benefits for employee: In TESCO, HRM also helps employee in many ways such that:
Conflict resolution: HRM also helps the manager to resolve the disputes between the
management and employee and they also attempt to resolve many matters like poor
attitude, inappropriate language etc.
Training and development: They also provide different training sessions in order to
raise the working performance of their employees. Further they introduce training system
in TESCO for the employees so that they take advantages to gain additional experience.
Employee relation: HR managers also provide support to their employees such that they
motivates their employees for their better performance and provide different
compensation when they perform well.
Benefits for the employer: HRM practices also provide benefits to the employer as well
in many ways:
Provide satisfaction: HRM in TESCO also helps to keep their employers satisfy within
a workplace. Such that these practices are encourage them to contributes towards a
company's intellectual assets.
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Motivation: Through different HRM practices, the employer also helps to maximizes
the employee performance and they also tends to hire or promote different workers to
manages the work in effective way (Crocker and Moliterno, 2016). As HRM also
provides different compensation and incentives which helps to keep motivating their
employer to keep producing the best variety of products as per the demands of their
customers.
P4 Evaluating the effectiveness of HRM practices in the context of raising profit and
productivity
Recruitment and selection: It is the major HRM practice in which the HR select the best
candidate because they will help to raise the company's production level which further assist to
raise financial performance of the firm. Moreover, HR of TESCO also provide incentives offers
in which many candidates also attract towards the job, so that it will help to keep hold on within
a firm in order to produce the best variety of products.
Training and development: It is another HRM function in which new employee get
proper training sessions in order to keep increasing their existing performance which further
helps TESCO to raises the profit margin by raising production level. Beside this, as HR of the
firm training and development practices reflect the promotion within a practice and also support
their employees in order to keep raising their production level (Wehrmeyer, 2017). As a result
the business objectives are automatically meet.
Compensation: It is the way through which the HR appreciates their employees by
providing them reward system in monetary or non- monetary form. Employee compensation is
the basic strategy which helps to keep their employee promoting to produce the best good and
increases the level of production within a firm. So that it will help to maximize the profit margin
as well. Thus, though this HRM practice, the company also increases its productivity.
M3
Through training and development method, the HR of TESCO also makes their new
employee comfortable in the firm. Such that the quoted firm keep organizing different training
sessions through which the firm can easily raises the production level and also maximizes the
profit. On the other side, it has been evaluated that through service quality enhancement (another
practice of HRM) that also helps to increases the productivity and also enhanced the efficiency.
So that staff may take more initiatives in order to serve best for their customers.
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D1
As the internal recruitment methods are one of the most simple and cost effective method
as compared to other methods, however it has been critically evaluated that external method of
recruitment and selection methods helps to select the best candidates. Though the selection
procedure method is not adopted by every firm because it time consuming method. For example,
TESCO is many two branch such as Brand A and B, an employee is resigned and HR of the firm
recruit the candidate by using internal method. At that time, the firm transfer the person from oe
department to another in order to fill the vacant position.
LO3
P5 Presenting the importance of employee relation to influencing the HRM decision-making
Employee relation is the efforts which are made by the company's manager to manages
the relationship between the employers and employees. It is quite necessary for the TESCO to
maintain the employee relation because of the following points:
In a firm, there are many issues on which an individual cannot takes decision alone, at
that time they needs a support, guidance and advice. In this situation, maintaining
employee relation is quite necessary.
Beside this, the organization becomes more happy place when all the employees are
working together to achieve the defined goals. If the employees are happy with the
working environment, then they will easily helps to achieve the defined task and in this
way this also influence the HRM decision in positive way (Kapoor and Chowdhury,
2017). On the other side, if the employees feels low and demotivated because of internal
disputes then it also affect the productivity and as a result, the company's performance
got affected.
It has been analysed that a healthy relations with employee also reduces the problem of
absenteeism at the workplace and it is possible only, when the employees stop
complaining against each other. Through this way this HR of the firm also influenced in
positive way and the employee relations are also maintained. Apart from this,
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P6 Identifying the key element of employment legislation
In TESCO, there are various employment legislation that creates impact upon HRM
decisions and some of them are a follows:
Data Privacy Act: This act helps to protect all the personal information from being
misused by anyone. It also provides the rules for how to collect, use and disclose the
information. Thus, it is quite essential for the firm to use this act into the workplace.
Equality Law, 2010: Under this act, the firm did not discriminate the person on the basis
of age, gender, disability and race. Even the employers cannot refuse to hire an employee or
discriminate them on the basis of their caste or gender. As per this, TESCO also follow this law
and select the candidate on the basis of their skills as required by the firm.
Minimum wages law: As this law states that the firm has to pay minimum wages to their
employees and if the employee do their extra work then it is the responsibility of the firm to pay
them extra. Therefore, in the context of TESCO, it has to follow this act, as it also creates impact
upon the HRM decision making process. As, HR continuously verify the accuracy of an amount
which is paid to their employees.
M4
Maintaining employee relation is quite essential for the firm because if the employees
feels positive then they easily raises the productivity of the firm and helps to complete the work.
While on the other side, if the firm did not comply with all the legislation then it directly affects
the decision making of the firm in negative way (Storey, Ulrich and Wright, 2019). Such that in
TESCO, as the firm follow anti- discrimination law in which they select the candidate without
discriminating, therefore it helps to create positive impact upon the employee and hence, the
employee relation is maintained.
LO 4
P7 Application of HRM practices
Job description: It is a document that describes all the task, duties, qualifications and the
responsibilities of a position which is to be filled by recruiting the best candidate.
As TESCO required a candidate for Assistant Manager position and for that, JD is as
mentioned below:
Retail Assistant Manager
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Job Description
Report to : Manager
Summary of the position:
The Assistant Manager is responsible for the complete day to day operations of the store in the
absence of a manager. Further, the assistant manager is also responsible for daily staffing and
general administrative duties and also provide the leadership in the area of customer service.
Duties Includes:
Greeting and serving customers.
Displaying the skills in a leadership
Being a liaison between the staff and management.
Handling all staff concerns
Preparing bank deposits and inventory control.
Determine the customer needs
Assisting in training of sales and supervisory staff
Receiving the inventory from suppliers.
look after other duties which is assigned by the manager
Personal Specification: It describes those skills which a candidate must posses in order
to complete the task of a position which is offered by a firm such that it outlines, the educational
requirements, training experience etc.
Essential Desirable
Physical requirement Able to undertake the
requirement of the post. Must
have the good record of
management and efficient
performance of a role.
Education and Qualification Must posses post graduation
degree in Management
Skills and knowledge Communication skill,
computer skills and
Easily handle the complex
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management skills, provide the
best customer service.
issues.
Personal Characteristics Self motivated and able to do
work independently, good time
management skills, ability to
work under pressure and
prioritise workload, Flexibility
Posses good presentation
skills, a good understanding of
new technologies and
development.
Interview question: For the vacant position in TESCO, HR selected two candidates
which are go for interview round i.e. George Boss and Jaimin De Rosh.
Q.1. Are you able to handle long hours and stress?
Answer by George: Yes I am completely comfortable with my long hours of working because
in my previously job, I easily manage my work and always keep my colleagues away from extra
work, even tough I work more as compared to them.
Answer by Jaimin: Yes I can manage my long hours of work easily. Such that I can assign the
task to all my co-workers so that the work will be completed on time.
Q.2. How do you comfortably dealing with low level employers and upper management?
Answer by George: As the firm describe the roles, I am able to convey all the material without
leaving out a single detail and when the issues arises I am the one who let upper management
know about this.
Answer by Jaimin: I can easily deal with both such that I firstly listen from upper management
and then tell the necessary things to low level of employees and when they found any issue than I
try my best to solve those and when I am unable to dissolve the disputes then can proceed to
upper management.
Q.3. How would you handle a difficult employee?
Answer by George: Firstly I bring it to the attention of a manager and then I manage those
issues at my own level and then manager speaks them. If the employee did not listen then finally
we terminate him.
Answer by Jaimin: At my level, firstly I speak with them, if he faces any problem regarding
workplace then I bring him in front of the manager and tells about the entire scenario. Then they
take decision about that employee such that to keep him or fire.
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Q.4. How would you motivate yourself and others at work?
Answer by George: I start interacting with the workers and listen them properly about the
negative and positive things about the workplace. If they feel low then I also organizing training
sessions to them for their betterment.
Answer by Jaimin: I motivate my employees by keep providing them training session and also
work for the welfare so that they feel positive in the workplace.
Offer letter: From the above interview, George is efficient person and the offer letter is
as follows:
Mr George Boss,
TESCO
Line street, UK
Dear,
We are pleased to offer you employment at TESCO. We feel that your skills and background
will be valuable assets to our team.
As per the discussion, we are offering you for the Assistant manager and your starting date will
be 14th Feb, 2019. If you choose to accept this offer, please sign the second copy.
We look forward to welcoming you as a new employee in TESCO.
Sincerely,
Jack Cohen
(Director)
Enclosed
D3
Employee relationship is quite helpful for TESCO as it helps to provide positive
environment and increases the profit margin and in the same way, the job description and
personal specification are the application of HRM which helps to select the best candidate who
posses the required skills. If HR of the firm will easily select the candidate then it will be help to
influence the decision-making process.
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P8 Evaluate the use of technology,online resources,digital platforms and social networking on
improving the recruitment and selection process.
Online resource: Online resources are one of the most important advance use of
technology in which the HR of the firm will improve their resources. In this, the online resources
are help to provide exact information so that the new candidate will easily get the information.
Digital platform: using this, the the HR of the quoted firm will easily improve the
recruitment and selection procedure such that through this, they can easily take the interview
online and even they will hire the employee by taking interview through video whether they are
at any place of world.
Social Networking: it is one of the most important advance technology that helps to
attract wide range of candidate towards it. Further using Facebook and twitter the company's HR
will easily post their new vacant position so that students will come and can easily reach directly
to an interview. Through this, the recruitment procedure is also enhances and fast as compared to
past.
CONCLUSION
By summing up above report it has been concluded that HRM plays a significant role in
TESCO. As report concluded different methods of recruitment and selection and also describe its
strength and weaknesses. Further it concluded the benefits of HRM practices in the terms of
employee as well as employers and then evaluate the effectiveness of training and development
methods which helps to raise the production level of the firm. Beside this, report conclude that
maintaining employee relationship is quite necessary for the firm because it directly influence
the HRM decision-making. Moreover, it concluded different key elements of employment
legislation and its impact upon HRM and also illustrate the application of HRM practices by
using Job Description and personal specification.
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REFERENCES
Books and Journals
Ansoff, H. I. and et.al., 2019. Implanting strategic management. Springer.
Crocker, A. and Moliterno, T. P., 2016. The Role of Experience Depth and Breadth in the
Performance of Emergent Human Capital Resources. In Academy of Management
Proceedings (Vol. 2016, No. 1, p. 16123). Briarcliff Manor, NY 10510: Academy of
Management.
Domínguez-Falcón, C., Martín-Santana, J. D. and De Saá-Pérez, P., 2016. Human resources
management and performance in the hotel industry: The role of the commitment and
satisfaction of managers versus supervisors. International Journal of Contemporary
Hospitality Management.28(3). pp.490-515.
Jaw, C. and et.al., 2016. Complexity Theory and Human Resources Management: Transcending
Variable and Case-Based Perspectives of Service Employees’(Un) happiness and Work
Performance. In Bad to Good: Achieving High Quality and Impact in Your Research (pp.
245-292). Emerald Group Publishing Limited.
Kapoor, M. and Chowdhury, J. K., 2017. Management of human resources & Firm
performance. ZENITH International Journal of Business Economics & Management
Research.7(10). pp.6-10.
Storey, J., Ulrich, D. and Wright, P. M., 2019. Strategic Human Resource Management: A
Research Overview.
Wehrmeyer, W., 2017. Greening people: Human resources and environmental management.
Routledge.
Online
Purpose of HRM. 2018. [Online]. Available through: <https://bizfluent.com/info-7750751-
purpose-hr-management.html>.
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