Impact of Employment Relations on Decision-Making

This article analyzes the impact of employment relations on decision-making in organizations. It explores how good employee-employer relations can lead to faster and more positive decision-making outcomes. The article also discusses the importance of flexible organization structures and flexible working practices in improving employee-employer relations and facilitating efficient decision-making.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and Functions of Human Resource Management....................................................1
P2 Strength and weaknesses of distinct approaches of Recruitment and Selection....................2
TASK 2............................................................................................................................................4
P3 Benefits of different HR practices for both employer and employee....................................4
P4 Effectiveness of HR practices in terms of increasing organization productivity and
profitability..................................................................................................................................6
TASK3.............................................................................................................................................6
P5 Analysis of impact of employment relations in decision-making.........................................6
P6 Impact of employee's legislation on decision-making...........................................................7
TASK4.............................................................................................................................................9
P7 Demonstration of HRM practices in a job related circumstance...........................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
(What is Human Resource?. 2020[Online] Available
through<https://www.humanresourcesedu.org/what-is-human-resources/>./)..............................14

INTRODUCTION
Human Resource Management is the process of management which basically concerned
with recruiting, directing and controlling the human capital of an organisation (What is Human
Resource?. 2020[Online] Available through<https://www.humanresourcesedu.org/what-is-
human-resources/>./). In this assignment the concept and theories of human resource
management are applied on Tesco. Tesco is a UK based groceries and merchandise retailer. It
was founded by Jack Cohen in early 20th century. This report cover the functions and objectives
of HRM and their application on HR planning. The report also explain pros and cons of various
approaches of recruitment and selection. Moreover report also explicate the advantages of HRM
practices for employer and employees. Further the report contains the evaluation of HRM
practices in terms raising firm productivity. Further report analyse the significance of
employment relations in impacting decision-making. Report also identify the importance of
employee's legislation in influencing decision-making. Lastly report demonstrate the application
of HRM in job related circumstance.
TASK 1
P1 Purpose and Functions of Human Resource Management.
Human resource is that department of management that concern in tackling overall
aspects of personnel staff in an organisation. It contains numerous functions regarding planning,
analysing job description and specification, conducting recruitment and selection process,
organizing orientation event, training and development programs and more (Albrecht, and et. al.,
2015).
PURPOSE OF HR FUNCTIONS
 Staffing needs: Main role of HR team is to determine the need of workforce that
company requires for completing organisation tasks and objectives. To satisfy these
needs manager conducts recruitment and selection programs for placing right person on
right post. In context with TESCO, it is a retail organization so the management needs
huge variety of personnel for both stored or non stored based positions includes people
like checkout staff, inventory handlers, supervisors. For this purpose manager analyse
necessities of organisation and frame strategy accordingly.
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Key responsibility of HR is to focus on hiring talented personnel through examine job related
duties and degree of KSA (Knowledge, Skills and Attitude) required for position.
 Compensation: every person is fully concerned about their payment packages so HR
department plays a vital role here. The need of this function is to create and evaluate pay
structure of organization via studying compensation patterns following by competitors
within industry. HR manager of Tesco designs pay structure in a way that covers all
aspects of contribution given by employee. Majorly, pay scales is depends upon TESCO
store location and position enjoyed by individual and also work schedules affects the
salary outlook (Kianto, Sáenz, J. and Aramburu, 2017).
The core responsibility of HR function is to make sure that pay scale of company composes with
changing federal laws and regulation of country also consider the fair distribution of salary to
employees.
 Performance management: Another, crucial function performed by HR team is to
sustain and cultivate a climate of higher performance management in smooth attainment
of organisation goals. The purpose of this function is to enhance productivity level of
employees in terms of gaining profitable outcomes. In case of Tesco, the duty of HR
manager is to evaluate and appraise employee performance in order to keep them inclined
towards their job tasks with help of offering regular appraisals and other benefits. This
entire approach will upgrade organisation performance (Milliman, and Clair, 2017).
Responsibility of HR manager is to organise effective performance appraisals programs and
implementation of same to ensure that everyone in organisation is appraised efficiently.
P2 Strength and weaknesses of distinct approaches of Recruitment and Selection.
Recruitment refers to the process of identifying new candidates for filling the vacant job
positions at different levels of organisation. Is a positive process as it motivates and attracts wide
range of individuals to participate in hiring activities and everyone get equal chance to be
selected. There are two kind of approaches for hiring potential applicant which contains some
benefits and drawbacks:
1. Internal Approach: This refers to inward method of recruiting where unfilled job place is
filled by existing workforce within the organisation. It covers various intrinsic techniques
such as promotions, transfers, Intra-advertisement, circulars, employee reference etc.
Strengths and Weaknesses of Internal approach
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 Foremost advantage of this approach is it brings equal opportunity for employee to get
promoted to higher post along with higher pay scale because of this feature they get
motivated and more loyal towards job and organisation (Ahmad, 2015)(Delery, and
Gupta, 2016).
 It is an inexpensive and quick way to recruit within less time frame. There is no need of
conducting training and orientation program since employees are habitual with business
environment and they know exactly its operations.
 Sometimes, it create a situation of conflicts between employees as everyone tries to pull
each other down so they get promotional benefits this develop frustration environment at
workplace. This emerge the condition of delaying in recruitment process cause if there is no one who
able to fill certain job then recruiter needs to start again which maximise wastage of time
and resources.
 2. External Approach: this is an outward method of hiring where vacant post is being
filled by new candidates outside the organization. This refers to the process of searching
people who are not part of firm. It includes advertisement, campus recruitments,
internships, waiting lists etc.
Strengths and Weaknesses of External approaches
 It increases the chances for getting fresh and different skilled individual who have their
own exclusive competences to perform a job. This creates healthy competitive
environment within organisation (Dumont, Shen, and Deng, 2017).
 It is an expensive and time-consuming process as recruiter needs to deal with large
number of applicants and choose the best of them that takes huge amount of time. It
requires funds for conducting hiring events outside firm.
Selection refers to the process of taking hiring decision in regard with choosing best candidate
from application pool with appropriate required skills and knowledge. It is a negative process as
number of individuals are rejected due to unmatched skills. There various approaches like online
screening, interviews, testing, group discussions etc. some of them are discussed below.
 Interview: This refers to the two way communication process between recruiter and
candidate in order to evaluate the eligibility of applicants. The advantage of this
approach is that it develop an understanding and cooperation between interviewer and
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interviewee during interview process. The drawback of interview is sometimes selection
results are influenced by the biasedness of interviewer due to which suitable candidate
slip out from hands (Delery, and Roumpi, 2017).
 Psychometric Testing: this indicates the method of measuring the mental abilities of an
applicants. It covers various other tests such as ability testing, aptitude testing,
personality testing. The strength of this approach is that it provide exact judgement about
whether candidate is appropriate for the job role or not. Whereas the weakness of testing
is that for conducting test approach management needs professionals which increases the
costs.
TASK 2
P3 Benefits of different HR practices for both employer and employee.
There are various human resource practices that are need to be executed and implemented
in an appropriate manner so that it can be beneficial for both employer and employee of Tesco.
Some HR activities are explained below in context with organisation.
1. Training and development: these are programs or plan used by management to upgrade
the skills and knowledge of its workforce and help them in giving better performance in
particular tasks. It is the process of shaping employees concept and abilities according to
the changes prevailing outside organisation. Tesco is one of the leading retailer
organization in the world and enjoys a brand loyalty from its customers. To sustain high
customer satisfaction Tesco management arranges training educational programs to
enhance the communication and personality skills and upgrade knowledge regarding
products or technology of its employees so that they can attend the customers with more
efficacy (Jabbour, . and de Sousa Jabbour, 2016).
Benefits for TESCO employer
 It reduces cost and time of supervision as employee are well trained and updated. It eliminates the pressure and burden of employer because after getting proper training
employees become self managed.
Benefits for TESCO employee
 It increases the core competencies of individuals which enhance their work behaviour.
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 It cultivate sense of job satisfaction in employees which increases employee retention and
less labour turnover.2. Performance Management: It refers to process of organizing or setting different
activities and results for completing organisation goals and objective effectively. The
focal point of this practice is to consider the whole performance of organization and it
helps employees to realize their full potential. TESCO management make use of unique
concept of corporate steering wheel along with balance scorecard to measure the
performance level of workforce. This wheel includes various parameters like customer,
community, finance, operations and people which provides a basis for evaluation.
Benefits for TESCO employer
 By proper management, employer can preserve skill full and talented workforce. Employer can manage and cultivate controlled management environment through proper
feedback and supervision.
Benefits for TESCO employee
 It boost up employee morale and motivates them to contribute there best efforts in
attainment of ultimate goals.
 It helps employees in setting personal performance goals in context with organisational
objectives.
3. Workforce planning: It is a process of arranging and prioritizing the needs of organization
with its personnel to ensure it can attain its business requirements and goals. It indicates the
mechanism of developing workforce strategies in order to acquire better staff with required
ability. As TESCO tap new market with opening new store at different locations its creates
various job opportunity for people and requirement of staff for company. For this manager will
formulate workforce strategies to determine what kind of employees are demanded by firm and
how to implement the same (Jamali, El Dirani, and Harwood, 2015).
Benefits for TESCO Employer
 It allows employer to act quickly and strategically towards change. It encourage the employer abilities to understand employees profile.
Benefits for TESCO employee
 Employee get healthy workplace without any chaos or conflicts.
 Better understanding of job roles and descriptions.
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P4 Effectiveness of HR practices in terms of increasing organization productivity and
profitability.
1. TRAINING AND DEVELOPMENT: This particular practice can optimizing the
degree of TESCO's productivity and profitability as manager can easily address the
employee weaknesses and strengths according to which management can plan out its
training program. If organization have well trained workforce then it can able to achieve
its mission goals effectively and efficiently. Training increases the skills and knowledge
of employee due to which they become self competent and able to face challenges. This
impact positively the profitability outcomes of firm.
2. PERFORMANCE MANAGEMENT: This HR practice enhance the overall
performance of organisation if implemented properly. With help of this activity TESCO
management can easily identify the gap actual and standard performance on basis of
which manager can properly control by corrective measures. Also helps in finding out
ineffective personnel so that appropriate guidance can provided (Budhwar, and Mellahi,
2018).
3. WORKFORCE PLANNING: TESCO management can upgrade its productivity as well
as profitability through strategic planning of acquiring well-defined personnel staff. A
talented workforce cab easily adopt new concepts and theories which ensure effective
implementation of operations. This can help in sustaining competitive advantage in
particular industry.
TASK3
P5 Analysis of impact of employment relations in decision-making
Employees and employer relations have significant impact on the pace and outcomes of
decision making. Good employment relations leads to fast decision-making with greater
probability of positive outcome. Company can adopt various approaches to improve employees
and employer relations like imparting flexibility in organisation, performing flexible working
practices and employer of choice (Ehnert, and et. al., 2016).
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Flexible Organisation: Companies which automatically make itself compatible and
responsive to the micro and macro environment by adapting the changes is known as flexible
organisation. These organisation are dynamic in nature as these firms percept alteration as an
opportunity which should be welcomed rather than treated as a threat from which company need
to be escaped. Relations between employees and employer is good in flexible firms. Structure of
these organisation is more horizontal instead of vertical due to which there is execution of fast
communication which result in efficient decision making. Flexible organisation is decentralised
in nature that means power is divided among all employee in an optimal manner.
Decentralisation also acts as a catalyst for fast, efficient and effective decision-making (Inkinen,
2016).
Flexible Working Practices: When company adopts flexible working practices than
employer and employees relation becomes better. Flexible approach of working comprises of
telecommuting, remote working, condensed work weeks, customized working hours, part-time
positions, job sharing and flexible vacation time. This approach render liberty to employees to
work in their comfort zone. Decision-making in this context is somewhat effective if employees
does not misuse it. It reduces the stress and anxiety of employees as a result employees can take
decisions with more calm and happy mind. Since calm and happy mind enhance the productivity
of workers therefore personnel can take efficient and effective decision. One of the biggest
drawback of this approach is it becomes difficult for an employee to enter optimum anxiety zone
from their comfort zone when some serious decision-making has to be done regarding growth
and sustainability of organisation.
Employer of choice: It refers to an ideal company which have a perfect environment for
employees to work in. Employer of choice provides good salary with large number of
allowances, various perks and an effective reward system in order to attract highly qualified and
talented employees. Circumstances created by employer of this kind increases the morale of
employees. There is a very good relations between employees and employer due to which
decision-making in this companies is up to the mark. Decision-making in this organisation
consequent in positive result which reflect by reputation of the firm (Tortorella, and et. Al.,
2015).
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P6 Impact of employee's legislation on decision-making
Employee's legislation is a set of laws and regulations imposed by government which
protect employees from exploitation of any kind in workplace. Government enforced several acts
for welfare of employees in an organisation. Some of the major acts are equality and diversity
act, working time directives, national minimum wage rate UK and Sex discrimination act. These
plays an important role in influencing the decision-making of human resource management. The
influence of employee's legislation on decision-making is discussed below:-
Equality and Diversity Act 2010: This law is implemented in 2010 which prohibits
employer to discriminate employees on the basis of race, caste, religion, gender and place of
birth. This law grouped together 116 individual laws of legislation into one single law. This act
mainly impact the decisions regarding best candidates to select from pool of applicants for
vacant position. Employer cannot adopt a partial approach in recruitment and selection of
employees. Recruiter is required to set only skills and qualification as an eligibility for
employees to be hired (Ding, and et. al., 2015).
National Minimum Wage Rate UK: This legislation forced employer to compensate
employees with at least minimum living wage prescribed by sovereign authority. It impact the
decision-making of a company as employers have to draw compensation structure in such a way
that every workers can get minimum living wage. It also affect the decision regarding the
strength of workforce to be undertaken.
Working Time Directives: It is a set of rules and regulations imposed by government
regarding health and safety of employees. This law assure that working hours of employees must
not be exhausting. Workers must get rest of 11 consecutive hours in a day and one full day off in
a week. This law is enforced by United Kingdom as working time regulations. Employer is
required to take into account that the worker's rights given by working time regulation while
taking any decision. Company have to keep in mind that decision regarding expansion of
business must not outlook the health and safety of employees(Aryanto, Fontana, and Afiff,
2015).
Sex Discrimination Act: This act came into the force in the year 2010. This act defend
employees from discrimination on the basis of their gender. This legislation assure that men and
women must get equal opportunities, salary, workload and growth. Employer must not be partial
towards a particular sex. The act cover prevention of indirect discrimination, direct
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discrimination and harassment. Employer cannot take any decision which hurt the sentiments or
acts a threat for a particular sex (Bratton, and Gold, 2017).
TASK4
P7 Demonstration of HRM practices in a job related circumstance
Job Description
It is a written report that is made to let applicants know about roles and responsibilities
for job they are applying for.
Job Role: HR Associate
Job Description
There is a vacant position of Human Resource Associate in our company. We need an
experienced HR Associate to manage and maintain our employee's record. HR Associate is
accountable for procuring and recording HR information and in helping new employees in
enrolment by issuing forms and application.
HR Associate Responsibilities
 Communicating with qualified applicants.
 Calling applicants references and substantiating education database.
 Maintaining employee's privacy.
 Explicate employee's perks.
HR Associate Requirements
 Degree of PGDM/MBA in HRM with first class division.
 Experience of 3 to 5 years in HR domain.
Person Specification
1. Candidate should be first-class in communication.
2. Candidate should have good social skills.
3. Must have knowledge of employment law.
Educational Qualification
1. Must have degree of PGDM/MBA in human resource management from
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recognised institute
2. Applicants must have three to five years of experience. Fresher cannot apply.
Curriculum Vitae
It is written document which carry information of candidate which is used by employer to
analyse candidate's potential for job. It contains information like educational qualification, traits,
achievement and technical skills.
Curriculum Vitae
Personal Information:
Name: ABC
Date of birth: 08/10/1996
Contact No.: 7782798719
Email Id: [e-mail]
Career Objective:
To become a successful HR Manager in corporates.
Educational Qualification:
Post Graduate Diploma in Management in the specialisation of human resource
management with 95%.
Bachelor of Business Administration with 56%.
12th with 98%.
10th with 58%.
Technical Skills:
1. Knowledge of advance excel.
2. Excellent command in SPSS.
Achievements:
1. Secured 1st rank in PGDM
2. Secured 1st rank in 12th
Experience:
Experience of five years as HR Executive in Google.
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References:
XYZ
CEO of Google
6796875657
[e-mail]
Interview questions
These are common interview questions interviewers ask to analyse the potential of
candidates. Interview should select questions beforehand. Interviewer needed to read resume
carefully.
Q.1 Tell me something about yourself.
Q.2 Why should we hire you?
Q.3 What do you learn in previous company.
Q.4 Why do you think you are suitable for this job?
Offer letter
Offer letter is a written document employer distributes to selected candidate that contains
information about employee's designation, cost to company structure, company's policies, terms
and conditions.
Sample Offer Letter
Email: [e-mail]
ITC Limited
Dear ABC,
We glad to inform you that you have been selected for the position of HR Associate. We are
impressed by skills and traits.
This is a full time job of 6 days in a week and 8 hours in a day. You will be reporting to the HR
Manager at 10:00 AM.
We are offering you annual salary of 6 lakh plus incentives.
Your joining date is 20.01.2020
We will like receive your reply by 19.01.2020. You can contact HR Manager for any query.
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We are looking ahead to see you in our company
Best Regards
XYZ
Signature
Pros of f2f Interview
 It is easy to examine the calibre of candidate.
 Interviewer can interpret body language.
Cons of f2f Interview
 It is very time consuming process.
 It is very expensive method.
CONCLUSION
From the above research analysis, it can be summarise that human resource is a crucial
element of organization management. This area handles all factors that are related with
employees development. It carry various functions that have their own purpose which helps in
building strong workforce. Moreover, HRM exhibits different practices which improvise
productive and profitability level of organization that are beneficial for both employer and
employee. Further, HR manager works for developing fruitful relations between employees so
that brings transparency in decisions. This function also consider legislation laws or acts related
to employment according to which strategy can be framed.
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Online
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