Significance of Employee Relations in HRM Decision Making

This report discusses the importance of employee relations in the decision-making process of human resource management. It explores how positive employee relations can reduce conflicts, decrease absenteeism and turnover rate, increase productivity, and boost profit margin. The report also highlights the strategies adopted by McDonald's to develop strong employee relations.

Resource
Management

Contents
Project 1......................................................................................................................................................4
INTRODUCTION.......................................................................................................................................4
Discussion about HRM along with workforce planning..........................................................................4
Explanation about the purpose & functions of HRM, implementation to workforce planning as well as
resource of the company..........................................................................................................................5
Examination of how function & HRM provide talent along with skills applicable to attain business
objectives.................................................................................................................................................6
Critical Evaluation of the strength as well as weakness of different types of application to the
recruitment & selection process used by the organization.......................................................................6
Exploration about the effectiveness of various Human resource management practices.........................7
Critical evaluation of HRM practices along with its implementation within the organization.................8
Conclusion...................................................................................................................................................8
Project 2......................................................................................................................................................9
Introduction.................................................................................................................................................9
Examining the significance of employees relations in context of human resource management decision
making.....................................................................................................................................................9
Essential elements of employment legislation along with its influence on human resource decision
making...................................................................................................................................................10
Illustration of application of two HRM practices...................................................................................11
Critical evaluation of employee relation along with the implementation of human resource management
practices which influence the process of decision making.....................................................................12
Conclusion.................................................................................................................................................13
REFERENCES..........................................................................................................................................14

Project 1
INTRODUCTION
HRM plays very essential role in each and every business entity as it assist in
accomplishing organizational goals and objectives in quicker and effective manner. It includes
different sort of functions which are selection, recruitment, training, employee relation,
maintaining positive atmosphere, developing policies and strategies and so on. All these are
highly responsible in order to perform business functions which raises their efficiency in an
appropriate manner. In this report, McDonald’s is chosen as the base organization. The food
company was established in 1940 and the head quarter was located at the marketplace in
Chicago. McDonald’s provides ample number of products which includes French fries,
Hamburger, coffee, shakes, ice-cream and many more. The report was divided into two section
which includes some functions, scopes, purposes of HRM. It includes discussion about the
strength as well as weaknesses of recruitment & selection method. Apart from this, in this report
employee relation are also included and contains different human resource management
practices.
Discussion about HRM along with workforce planning
Meaning of HRM
Human resource management refers to a strategic approach in order to effectively
manage people working within the organization. Apart from this, human resources department in
a business organization play very significant role in order to manage, control and coordinate each
and every human being working in the company so that they can attain organizational goals
effectively. For this, various functions need to be done by human resource manager and the
department of human resource which includes recruitment, training session, selection, and many
more. It has also been identified that with the assistance of effective HRM, a business entity can
easily develop positive behavior at their workplace which leads towards the enhancement of
effectiveness and productivity of the organization.
Workforce Planning
Workforce planning refers to an indispensable process associated with HRM. In simpler
manner it define as a regular procedure which is mainly adopted by management team in order to

align the demand and priorities of the business entity. This process is usually done to examine
the needs of organization in reference to the experience, skills as well as knowledge. As a result
it assist in building the gap between the current situation and actual demand.
Explanation about the purpose & functions of HRM, implementation to workforce planning as
well as resource of the company
Purpose of HRM
In each and every business organization, human resources management have it’s own
purpose which assist them in attaining their organizational goals. In the present context of
McDonald’s, purpose of HRM are going to be discussed as follows:
 The main responsibility of HR manager is to create healthy working environment at the
workplace so that staff members can perform all their work in an effective manner and
meet their targets effectively.
 Another main purpose is to create some policies related to safety & security of workers
so they can easily conduct all their work in more effective manner.
Functions of HRM
In reference to the present organization which is McDonald’s, it has been said that there
ample number of functions related to HRM which are as follows:
Recruitment & selection function: It define as the most essential human resource
management function which assist them in order to attract new talent towards their business
entity. As a result this will help the manager of McDonald’s to attain higher growth as well as
success at the competitive marketplace in an effective manner. In reference to the present
organization which is McDonald’s human resource manager make sure that they can easily fill
the vacant place at the workplace by hiring skilled candidate who can perform their functions
effectively.
Training & development: Another essential function is to provide training and
development session to their staff members so that they can improve their knowledge and skills.
In relation to McDonald’s, HR department if the company provide effective training session to
their employees so that they can provide high quality food products and services to their

consumers which leads towards the growth and development of an organization at the
competitive marketplace.
Workforce planning as well as resource applicable to the organization McDonald’s
Workforce planning help in order to foothold the employees reservation and commitment
levels. It has also been identified that the process of workforce planning is mainly conducted in
two forms which are long term as well as short term forecasting. In reference to short-term trends
it mainly consist of peak volume roles, requirements of succeeding projects. On the other hand,
in reference to long-term forecasting it includes calculated growth along with accomplishments
of expertise. This is the result assist McDonald’s in order to effectively manage their workforce
as well as recruit best and most suitable candidate at the right time and right manner.
Examination of how function & HRM provide talent along with skills applicable to attain
business objectives
It has clearly been identified that the functions of human resource management assist a
business entity in order to create positive and strong atmosphere at the workplace so that each
and every employee can perform its functions in more potential way. In addition to this, it has
also been said that Training & development is the another best function which assist the
managers in improving skills and knowledge of staff members so they can effectively fulfill
objectives of McDonald’s. By hiring highly talented candidate, manager of the company can
increase their profit margin at the competitive marketplace by accomplishing their organizational
goals and objectives. By performing all the functions in an effective manner business entity can
easily meet their predefined targets and goals within specified time period.
Critical Evaluation of the strength as well as weakness of different types of application to the
recruitment & selection process used by the organization
It has been determine that each and every business organization need to adopt some
methods for their recruitment and selection process so that they can hire best and most suitable
candidate for the business organisation. In reference to McDonald’s, it has been said that
managers adopt face to face interviews sessions and promotion methods so that they can fill the
vacant job position effectively. Along with this, it is said that promotion technique easily attract
talented workers towards their organization. Weakness of this method is that it consumes lot of
time and investment. On the other hand, interview process for selection help in gaining detail

knowledge about the candidate qualifications and skills in an appropriate manner. Herein
weakness of this method is that manager sometimes unable to examine the knowledge of
candidates.
Exploration about the effectiveness of various Human resource management practices
There are various sort of human resource management practices which assist business
organization to accomplish their objectives effectively. Some most effective HRM practices
includes 360 degree performance appraisal, reward system, training & development sessions and
so on. For gaining better knowledge about the HRM practices a comparison is going to be done
between two organizations belong to similar sector which are McDonald’s and KFC.
Rewards system: In this, organizations usually provide rewards to their employees in
both monetary as well as non-monetary terms so that they feel motivated and conduct all the
functions in an effective way. One of the major strength of these practices is that it assist in
executing all the functions so that the goals and objectives of the company will be attained in an
appropriate manner. On the other hand, this is the practice which have the weakness where
employees feel insecure and jealous with their colleagues which leads towards disputes and
conflicts. Due to negative environment, performance of the company will decline.
McDonald’s KFC
This is the most effective HRM practice assist
managers of McDonald’s in order to motivate
their staff members to perform all their
functions in a better way. Apart from this, it
help in producing high quality service so that
employees feel satisfied.
It has been identified that the organisation
has their own system where they give rewards
to their employees so they feel encouraged
and give their contribution to attain
organizational objectives.
Training and development session: It is another most important human resource
management practices which assist in improving the skills of staff members. With the help of
training sessions, organization can easily improve the knowledge and skill of employees so they
can perform all the task in more accurate manner. Biggest strength of this practice is that it help
in developing new skills and understanding so that they can easily increase the performance of

organization. Weakness of this method is that it is time consuming method which affects the
whole profitability of the company in a negative manner.
McDonald’s KFC
Higher authorities of McDonald’s provide
training and development session to their
employees on a day to day basis so their
knowledge and skills can be improved
according to the changing situations.
In reference to KFC, top management team of
the company provide effective training
session to their employees so they can
increase their knowledge related to the
environment and satisfy the requirements of
customers effectively.
Critical evaluation of HRM practices along with its implementation within the organization
In reference to the present organization which is McDonald’s human resources manager of
the company adopt different sort of technique for attaining their goals and objectives in desirable
manner. In this context, positive influence of these practice is that it assist in maximizing their
performance and effectiveness of the company and leads towards the growth at competitive
marketplace. On the other hand, negative effect is that it needs lot of in-depth understanding
related to human resources HRM practices.
Conclusion
With the assistance of above stated information, it is said that human resource management
plays very important role in the growth of business entity. In addition to this, it has also been
identified that there are ample number of recruitment approaches which help in recruiting highly
skilled workforce at their workplace. By recruiting and selecting highly skilled candidates at the
organization, managers can easily attain their goals in an effective manner. Along with this, I
there are some human resource practices which help in motivating staff members so that they can
help in fulfilling their goals within specified time period.

Project 2
Introduction
Human resource management refers to one of the most essential factor assist an
organization in order to gain success at the marketplace. In a business organization, it is the
human resource department who is highly responsible for hiring most suitable candidate for the
vacant job position so they can fulfill their targets within given time period. It has also been said
that for an organization it becomes necessary to implement HR practices which assist in
achieving goals of the organization effectively. In the second part of this report, a detail discuss
about significance of employee relations along with its impact on the decision-making process
are going to be included. Furthermore, different sort of employees legislation are included which
assist business entity to perform their functions more accurately. At the end, application of HRM
practices are also going to be developed.
Examining the significance of employees relations in context of human resource management
decision making
Human resources managers need to provide healthy and positive working atmosphere to
their staff members which as a result assist them in developing effective relationship with them.
Therefore, Employee relation is the most essential and crucial aspects which play very vital role
in the growth and development of the business entity and for attaining their organizational goals
within given time period. In reference to the present context McDonald’s, top management team
of the company adopt various strategies in order to develop strong relation among employee and
employer. Some of the significance of employee relation are going to be discussed as follows:
Reduce in the level of conflicts: It has been identified that by developing positive
employee relation at the workplace help in reducing conflicts and disputes arise at the business
entity. In reference to the present organization McDonald’s, the HR manager of company ensure
that there must be effective relationship with employees must be maintained so that there might
not be any kind of conflicts arise at the workplace.
Decline in Absenteeism and turnover rate: Another significance of employee relation
is that it help an organization in order to reduce the turnover ratio and absenteeism in an effective
manner. If a worker have good relationship with their colleagues and other members they don’t

want to leave the workplace and stay their for longer duration. In relation to McDonald’s, it
assists in order to save extra cost of manager from hiring new employees and train them
according to the situation. Furthermore, it has been identified that it has positive influence on the
process of decision making.
Rise in productivity: By emphasizing on developing employee relation, a business
organization need to create positive atmosphere at their workplace so they feel safe and secure
while doing their business operations. In the present context of McDonald’s, it has been said that
with the help of providing positive and good environment, employees feel motivated and
encouraged and perform all their functions with more zeal. This as a result leads to raise the
productivity of the company in more effective and efficient manner.
Rise in profit margin: It has been identified that by developing good relation with staff
members assist business entity in order to form effective teams and attain their task in a proper
manner. In the present context of McDonald’s, employee relations help them to develop effective
teams & allot them activities according to their requirements. This assist a business organization
in order to improve their performance level as well as gain huge profits & revenue in appropriate
way.
With the help of above mentioned discussion, it has been identified that it becomes
necessary for a business entity to emphasize on formulating positive and strong relationship with
their staff members so that they can increase their profitability and productivity in an effective
manner. In terms of McDonalds managers of the company adopt different sort of policies like
collective agreement, conducting informal meeting sessions, handling grievance handling &
many more. Apart from this, all these have direct influences of the process of decision making
which leads towards the growth and development of business entity at the competitive
marketplace.
Essential elements of employment legislation along with its influence on human resource
decision making
For conducting the business operations in an effective manner it becomes very important
for the managers to adopt some employment legislations linked with the advantages, safety,
security and health of the employees. These legislation help in attaining positive results by
maintaining positive brand image of the company at the competitive marketplace. In relation to

McDonald’s, the human resource manager of organization adopt various policies and implement
them in an effective manner so that they can develop positive outcomes from them. These
employees legislation are going to be discussed as follows:
Health & Safety act: According to this act states it becomes necessary for the human
resource managers in order to provide safety and security to each and every staff member. This
nay help them in order to conduct all there functions in more effective and appropriate manner.
In the present context of McDonald’s, it has been identified that the business entity make sure
that they provide healthy and secure environment to their workers and follow each and every
condition for securing the workers as it directly influence the overall performance of the
company.
Sex Discrimination act 1975: As per this act, there are no individual person within the
business organization who are discriminated on the basis of age, gender, sex and religion. Along
with this, it has been said that most organization discriminate their employees and does not
provide equal opportunities to both female workers as compared to man. In order to eliminate
such biasness from the organization, government develop some effective legislation which
needs to be adopted by the management team of every organization. In reference to McDonald’s,
managers provide equal opportunities to both male and female workers so they can attain their
organizational goals and objectives in an appropriate manner. Along with this, it assists business
entity in order to create positive brand-image at marketplace that has direct influence on
performance of organization. Therefore, it becomes essential for the higher authorities to create
such environment where both male and female workers feel motivated as they get equivalent
opportunities at workplace.
Illustration of application of two HRM practices
(A) Job specification
Title: HR Assistant
Address: McDonald’s, United Kingdom
Overview of job role:
 The main role of human resource assistant is to create positive and healthy working
environment at the workplace by providing their employees equal opportunity.
 To develop an effective and appropriate employee relations with the help of formulating

appropriate strategies as well as policies.
 To recruit as well as select best and most suitable candidate which have the capability to
perform each and every task properly by adopting effective recruitment and selection
process.
Qualification:
 Post- graduation in the field of Human resource
 Certification of Human Resources courses
 Degree in the field of business administration
Experience and knowledge:
 Knowledge related to various recruitment and selection approaches
 Knowledge and understanding about payroll
 Having experience related to training & development sessions.
Skills:
 Best and effective communication skills
 Conflict management skills
 Time management skills
 Problem-solving skills
(B) Curriculum vitae:
Richard David
Address: ABC street, United Kingdom
Mobile number: 48652-08652
Objectives: To perform business functions in a well known business where I can implement
my knowledge and understanding in a proper manner so that I can contribute my share in the
growth of business and can easily attain business objective in timely manner.
Work experience:
 Minimum 16 month experience in HR field
 Internship in the field of HR
 Participation in various seminars & workshops associated with HRM.

Qualification:
 Masters degree in Human resource field
 Degree in the department of Business Administration
Critical evaluation of employee relation along with the implementation of human resource
management practices which influence the process of decision making
Employee relations as well as legislation related to employment are the two most
important element for an organization which assist in developing healthy and positive
environment at the workplace which increases the performance in an effective manner. It has
been identified that both these aspects have the capability to influence the whole decision
making process of HRM. In addition to this, it has also been examined the identifying the needs
of employees, checking their performance, communication with them which assist a business
organization in order to make their workers comfortable at their workplace. This will assist them
in retaining their workers for long duration. On the other hand, in relation to employment
legislations, it is said that by adopting different sort of laws which help them in maximizing their
efficiency along with their performance. In the present context of McDonald’s, it can easily be
examined that human resource manger emphasis on developing employee relations with the
assistance of effective HRM practices. In associated with employment legislation, managers of
the company adopts legislation like healthy & safety law, anti discrimination act, gender equality
and many more. These acts have their positive as well as negative impact on the whole
performance and decision making process of the organization.
Conclusion
With the help of above stated report, it has clearly been concluded that for attaining
organizational goals in an effective and appropriate manner, employee relation is quite essential
element which includes ample number of positive aspects. It assist business organization in order
to create positive working environment by reducing issues, increase in performance, providing
equal opportunities to each and every person and so on. Furthermore, by adopting effective
employment legislation organization can make positive image of the company at the marketplace
which leads towards increasing their profit margin and sales in an appropriate manner. Along

with this, it is also very necessary to examine the effectiveness of employee relation as it directly
influence the overall performance of the company in both positive and negative way.

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