Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in HRM decision making and its impact on organizational productivity and profits. It explores how effective employee relations can improve employee engagement, satisfaction, and overall performance. The article also highlights the role of HRM in creating a positive work environment and fostering communication transparency. Additionally, it emphasizes the significance of employee relations in reducing turnover and retaining talented employees.

Human Resource
Management.

Table of Contents
INTRODUCTION ..........................................................................................................................3
P1: Explain purpose and functions of HRM applicable to workforce planning and resourcing
an organisation........................................................................................................................3
P2 Explain the advantages and disadvantages of various methods of recruitment and
selection..................................................................................................................................4
P3 Explain how HRM practices of an organisation benefit both employer and employee
within an organisation............................................................................................................6
P4: Explain effectiveness of HRM practices in terms of raising organisational productivity
and profits...............................................................................................................................7
P5 In respect to influences in HRM decision making , analyse the importance of employee
relation....................................................................................................................................8
P5 analyse the important elements of employment legislation and its impact on HRM decision
making....................................................................................................................................9
P7 Depiction of HRM related practices in a work related context ......................................10
CONCLUSION ............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is a necessity for organisations of all sizes. Whether its a
small organisation or a large organisation, it is necessary to employ talented and skillful people
who can contribute in higher productivity. HRM helps an organisation in managing its
workforce in order to achieve better performance. It helps employees to engage in work so that
they become more productive and make customer happy by delivering high quality work. It acts
as a bridges of the gap between employees performance and management's strategic operations.
An effective HRM team gives the company an advantage over its competitors. One of the major
task of them is to provide training to employees so that they can develop right skills for right job
also training and development gives satisfaction to employees as they are improving and
upgrading their skills.
In this report, two entrepreneurs have recently started industrial kitchen in order to
expand their business of Indian street food takeaway. In order to manage the staff of 50 people
working at different locations for which they need a HR person so that right people can be hired
who can provide greater productivity and higher output.
P1: Explain purpose and functions of HRM applicable to workforce planning and resourcing an
organisation.
PURPOSE OF HRM
The purpose of HRM is to prevent employees from issues such as unsatisfactory
compensation, job insecurity, poor work-life balance, etc. and to prevent employer from hiring
wrong people as they will quit soon and the money invested in recruitment and selection will go
in drain. Those who work in HRM field have the knowledge, skills and tools in order to find and
employ top talent and also ensure good working environment for employees so that they can
succeed in their job roles(Barrena-Martinez and et. al., 2019.). In context to SKVP, the human
resource management aims to recruit people who can manage the cooking as well as servicing
side of the industrial kitchen. They will help the company to recruit right people required for the
job so that the recruitment and selection cost can be saved and higher output with less employees
can be achieved.
Functions of HRM

Job analysis and design: It involves the process of describing operations, duties and
responsibility of a job. In order to hire right employees based on research and rationality, it is
important to identify the traits of candidate who will be most suitable for that job.
Employee hiring and selection: In order to achieve goal and objectives of the
employees it is important to obtain and retain efficient and qualified employees(Chapman and et.
al., 2018.). HRM helps to source right people for interview and selection.
Employee training and development: HRM helps organisation to prepare employees
for bigger tasks and responsibilities which can boost the overall productivity and efficiency of
workforce and also leads them towards the holistic development at work.
Compensation and benefits : It is important to plug the expenses but it is also important
to pay the employees well for their efforts in order to retain the employee as they will be
satisfied that their hard work is paying off. HRM needs to formulate efficient benefits and
compensation packages so that they can attract more talent without disturbing the finances of the
business.
Employee performance management: HRM requires to do effective performance
management in order to ensure that the goals and objectives of an organisation meets the output
of the employees.(Farh, J.L.L., 2017). In order to achieve better outputs, performance
management not only focusses on employee's performance but also the performance of
department, team and organisation as well.
Compliance with the law: In order to protect the interest of employees in various areas
there are numerous laws failure to comply of which can bring lawsuits against business which in
turns affects the business's profit. Human resource department's aim is to keep companies up-to-
date of these rules and regulations so that company can get proper information and ensures that
all rules and regulations are followed by the company.
P2 Explain the advantages and disadvantages of various methods of recruitment and selection.
Recruitment: When the organisation decides to have additional or replacement employees they
need to think about a method in order to generate applications.(Lim and et. al., 2017.) In order to
generate sufficient number of applications, most of the organisation choose both external and
internal sources.
Internal recruitment: It includes generating voluntary active participation of employees
already working in the organisation. The position for which employee has applied may represent

transfer, promotion or perhaps demotion. Internal recruitment can be done through various
methods such as personal records and skills bank, job posting and bidding or informal methods.
New hires from this source are already a part of teams and know company's culture and policies
well which will also saves the cost of training and development of new recruits.(Siyambalapitiya
and et. al., 2018.)
Strengths: If a company hire employees through internal recruitment process then it
reduces the time consumed in the process of hiring also it will saves the cost of the company as
the cost of posting ads or payments for background checks are not there.
Weaknesses: When a person is promoted through internal recruitment the old position
becomes vacant which can disrupt the smooth workings of an organisation and in order to fill
those vacant seats the company may eventually need to do external recruitment along with
internal recruitment.
External methods: In order to get new, fresh and talented workforce on right time the
company adopts recruitment from external sources. (Yusliza and et. al., 2017.) In order to avoid
shortage of workforce the organisation needs to become proactive in their recruitment efforts so
that smooth functioning can be continued .
Strengths: By recruiting through external sources company can include fresh and new
talent in their organisation which is necessary in order to have creative and better ways of doing
same old work and can also have a fresh perspective towards the work . New and qualified
candidates will also give better competition to existing employees which will motivate them to
do better. This recruitment process protects company from internal politics as well.
Weaknesses: It is a time consuming process and involves high costs of training and
development of new employees as it also invites unsuitable applicants which is a complete waste
of time and funds. As the new recruits will have a limited understanding about the workings then
the company needs to invest funds in training and development which can turn into loss if the
company unable to satisfy and retain the employee.
Selection: It is a process of acquiring qualified individuals who can complete a job efficiently
and effectively also deliver valuable contribution to business. In order to select right employee
for right job the selection system must depend upon job analysis.( Zaid and et. al., 2018.) By this
system the company can make sure that selection criteria is related to the job and will provide
value. Some of the examples are given below:

Interview: When there is opening for a job post the company invites number of
applicants for interview. The aim of interview is to observe the candidate by asking them series
of questions so that the performance of each candidate can be measured and compared.
Strength: Personal interviews usually has a high percentage of returns. More correct and
accurate information about the candidate can be achieved as compared to other techniques.
(Zhao, Y., 2018.) Any irrelevant or inaccurate answer can clear up on the spot.
Weaknesses: interview method requires a more cost, time, energy which makes it
uneconomical and often inoperable. It is often observed that efficacy of interview depends upon
the skills of interviewer as well. If the interviewer does not have proper skills then the data
recorded may be inaccurate or incomplete.
Group activities: in order to test the skills of the candidates company sometimes gives them a
group task so that their abilities of working in a team can be identified.(Shanock and et. al.,
2019.)( While completing the task the behaviour of the candidate can be observed to identify that
they can work well with the team.
Strengths: These activities increase the motivation level of employees as successfully
completed team activity can boost the confidence of the employees. With the help of group
activities the efficiency in the work of candidate can be measured.
Weaknesses: By assessing candidates through this activity the company may loose
candidates who can independently work better. (Korff and et. al., 2017.)In order to complete a
task the workload must be divided equally among all the team members but some people likes to
sit back and let others do most of the work which can lower the morale of the team.
P3 Explain how HRM practices of an organisation benefit both employer and employee within
an organisation.
Human resource management is is a process of linking the workings of the employee with the
goals and objectives of the company. HRM involves recruiting, managing, hiring employees in
order to achieve greater productivity. The most important asset for a company is its workforce
and if a workforce of a company is not working or managed properly then the efforts towards the
goals of the company will waste.
Employer benefits: It helps the company to manage its workforce whether of 50 people
or of 500 people. It may not be possible for employer to reach each and every employee and

listen to their problems so HRM acts as a bridge in between employer and employee. Some of
the benefits are:
Managing conflicts: when their is moment of conflict between employees, the HRM acts
as a mediator in order to avoid a situation which can affects the workings of the company.
Develop good relation: HRM helps the employer to establish good relation with the
internal management of the company. This not only ensures low turnover but also motivate
employees as it improves communication between employer and employee also they feel that
they are valued and they are contributing towards the success of the company.
Employees benefit: HRM helps the employee to share their issues and enjoy their rights
in order to make sure that the workplace in the company is healthy and productive. Employees
are satisfied as they can share their problem and concerns easily with the management and can
also take adequate help from them.
Recruitment and training: No matter if a employee is a fresher or experienced they need a
little help in order to understand the culture and workings of the organisation. HRM helps the
employee through training so that they can understand the environment of the organization also
can develop and mould their skills according to the requirements of the company.
Performance management strategy: when an employee works hard in order to fulfil the
objective of the company in return they expect some rewards which in turns not only increases
the motivation of employee but also increases the productivity of them. HRM makes sure that all
the employees get appropriate reward in return to their hard-work.
P4: Explain effectiveness of HRM practices in terms of raising organisational productivity and
profits.
The impact of HRM policies and practices on organisation's productivity and profits is
directly related as it helps in boosting up the deliverance and compensation in the field of
management system, utilizing high performance work practices and broader employee
participation and training.
HRM offers incentives to the employees in exchange of their hard work. Rewards make
employees feel valued and more motivated to reach a specific goal of a company. It also helps in
educating an employee through workshops or training programs which gives employees a
chance to improve their skills. Letting employees know that their company is concerned about
their welfare and opinion boosts employee morale. It is necessary for employees to have a good

balance between 'work and play” which prevents them from burnout and also keep them healthy
both physically and mentally. It is the responsibility if HR management to provide right tools for
right job to employees in order to boost their efficiency and reduce time taken for a specific task.
Providing employees flexible work schedule and arrangements will increase their creativity and
also make them more dedicated towards their work. As when company gives more responsibility
to employees, they feel motivated and more valued which in turns increase to confidence and
helps the company to increase output.
Often an organisation's culture can be its enemy as sometimes senior management does
not support human resource department and that may cause a poor communication which can
make things bad for the internal environment of the organisation. The major responsibility of
HRM is to create a positive work environment and a results oriented culture, provide
communication transparency so that no misunderstandings can take place, it makes sure that
right people are hired for right job and also on right time.(Santoro, G. and Usai, A. 2018.) All
these HRM practices helps the employee to overcome all the obstacles coming in the way of
achieving higher productivity. As these practices increase motivation and provide employee a
sense of satisfaction which helps the organisation to retain the employee and also reduce the
employee turnover ratio.
P5 In respect to influences in HRM decision making , analyse the importance of employee
relation.
Employee relation and communications are some of the factors that influence employee
engagement and satisfaction. In order to keep workplace healthy, more and more companies are
investing in resources that can improve employee relations. In present scenario, companies are
becoming more faster, transparent and agile in order to improve relationship between employer
and employee so that smooth operations within the organisation can continue.( Presbitero, A.,
2017.) Employee relations are important for an organisation as it is easier for them to motivate,
engage, retain and understand their employees. Employee engagement is necessary as it is
directly related to employee satisfaction which ultimately leads to more productivity.
HRM decision making process highly affects employee relations as HRM must consider both the
things while strategic planning in order to run operations properly while considering employee
satisfaction. It helps the organisation to implement new changes in the organisation effectively.
In order to maintain good relation with the employees the manger before taking any decision.

must look at the perspective of both employer and employee.(Gilal and et. al., 2019.) The
decision must be made to benefit both the parties. Decision in which employee can feel their
benefit motivates them to perform better which will increase both productivity and profitability
of the company. One of the major factor of good employer employee relationship is that it
reduces the conflicts in the organisation. Conflicts are unavoidable in any company and can be
on matters about working conditions to discriminatory employment practices. Conflicts can have
an adverse effect on the productivity of an employee. Handling conflicts can be easier when
mangers focusses on maintaining good relationship with employees.(Murphy and et. al., 2017.)
Reduction in conflicts can increase the productivity of an employee which will ultimately be
beneficial for the company. Reduction in employee turnover makes sure that employee stay with
the company for a longer duration of time which helps them to attain extensive knowledge about
the company's policies and practices which can be a great resource as they can be very efficient
and also provide training to new employees.
P5 analyse the important elements of employment legislation and its impact on HRM decision
making.
Employment legislation refers to all laws applicable to employment in any way including labour
relation, worker's compensation, employment standards, equity pay or safety of employees. This
legislation covers the right of workers and regulate the relationship between employer and
employee. When, it comes to employment legislation in workplace, people can relate issues of
health and safety, but this legislation covers many other issues as well such as general
employment issues like working hours, recruitment, contracts, holiday, sick leaves, allowances,
employment status, etc. It also includes laws and regulations regarding retirement and
redundancy.(El-Ghalayini, Y., 2017.) It also provide laws related to protection of interest of
employee as well as employer on workplace. Some of the laws related to protection of
employee's interest are anti-discriminatory laws, bullying and harassment, data protection,
transfer of company's undertaking, whistle-blowing, etc. HR management of an organisation
takes all of their decisions keeping in mind all the necessary laws and rules so that operations of
an organisation can run smoothly. Some of the acts that comes under employment legislation
are:

Equality act, 2010: This act is passed during the brown ministry of parliament of the
United Kingdom with the primary purpose of updating, consolidating and supplementing prior
laws that formed the basis of anti-discrimination law. The act protects employees against
inequality, discrimination, and harassment during employment(Cavanagh and et. al., 2017.). The
user of this act is protected against nine characteristics such as age, disability, gender
reassignment, marriage and civil partnership, pregnancy, race, religion, beliefs, sexual
preferences. The employer or the company cannot discriminate between employees on the basis
of these 9 characteristics. In terms of SKVP, the HR department of the company must consider
that no discrimination is going on in the workplace or with employee of the organisation.
Corrective measures must be taken against those who practice such discrimination in the
workplace so that the same does not happen in future.
Health and safety act, 1974: This act was passed by parliament of United Kingdom in
2011 which defines fundamental structure for rules and regulations related to the health, safety
and welfare on the workplace within United Kingdom. This acts describe that it is a fundamental
duty of employer, employee and all those people who are related to the workings of the
organisation to maintain healthy and safe environment in the organisation. Proper and adequate
provisions must be made by the organisation and adequate training must be provided to ensure
that health and safety procedures are understood by everyone. Government has appointed “The
health and safety executive” which is a body that is responsible for enforcing health and safety
legislation at workplace. (Hee and et. al., 2018.). The HR management of SKVP must ensure
that health and safety procedures are adequately met as it is a industrial kitchen which is related
to food and proper sanitization is required where food is concerned.
P7 Depiction of HRM related practices in a work related context
By identifying the present requirements of the respective organisation, it is analysed that
SKVP needs to fill the vacancy of head chef in their establishment. HRM practices related to the
post of head chef in SKVP are provided below:
JOB DESCRIPTION
Job title: Head Chef
Job summary: The position of head chef requires the employee to organize kitchen activities
and inspect dishes before they arrive to the consumers while to ensure that high quality food is

being served at the food truck.
Responsibilities:
 Supervise the process of food preparation
 Construction of menus with unique or authentic Indian cuisine
 Arrange orders for ingredients according to shortages Oversee the work of subordinates
Qualifications:
 Bachelors degree in hotel management or culinary arts
 Good knowledge of food profession principles and practices
 Experience cooking Indian cuisine and good knowledge of Indian food experience
PERSON SPECIFICATION
Particulars Essential criteria Desirable criteria
Personal characteristics  Ability to handle stress
under pressure
 Time management
skills
Qualification  Bachelors degree in
hotel management or
culinary arts
 Masters in culinary arts
from a reputed
university
Experience  Minimum 5 years of
experience as chef in
an eating establishment
 Minimum 5 years
experience as chef at an
eating establishment
which offers Indian
cuisine
Skills  Cooking skills
 Interpersonal skills
 Leadership skills
Curriculum Vitae for the position of Head Chef

Curriculum Vitae
General information:
Name: XYZ
Father's Name: ABC
Mother's Name: KLM
Email ID: [e-mail]
Objective:
Talented kitchen leader and team motivator successful at mainlining staff focus efficiency and
productivity in fast paced operations. I aim to use my culinary skills and knowledge about
Indian cuisines to provide exceptional dining experience to consumers.
Qualification:
Bachelors degree in hotel management or culinary arts from DLF university.
Experience:
8 years of experience as a sous chef at reputed Indian restaurant in London from the may 2012
to march 2020.
Skills:
Menu planning
Sanitation guidelines
Food planning and presentation
Budgeting and cost control
Preparation of signature Indian cuisine inspired dish
Kitchen equipment operation and maintenance

CONCLUSION
From the above report it ids determine that HR division plays a vital role in growth and
progress of an organisation. Human resource department conducts various functions such as
recruitment and selection, performance management, employee training and development which
help the company build and retain a talented workforce. The HR division utilises various
methods of recruitment and selection such as internal recruitment and interview to fill vacancies
in the company with the most skilled employees. HRM is advantageous to employees as well as
employers. HRM decision making is affected by employee relations and employment
legislation . The HR division considers employee relation and employment legislation in order to
make effective decisions. Human resource management helps business organisations increase
overall output of the workforce. This contributes to the swift growth and high profitability of the
organisation.

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