Importance of Employee Relations in HRM Decision Making

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