Importance of HRM in Organizational Success

The provided document emphasizes the significance of HRM practices in maximizing resource utilization, gaining competitive advantage, and improving productivity within an organization. It also underscores the importance of selecting suitable approaches for recruitment and selection to prevent negative impacts on the employer and employee. The document further highlights the crucial role of employee relations in performance and compliance with regulations set by the government to avoid legal issues.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Purpose and functions of Human resource management..................................................3
P2: Strengths and weakness of different approaches of recruitment and selection................4
TASK 2............................................................................................................................................5
P3 Benefits of different HRM practices to employees and employers..................................5
P4 Effectiveness of different HRM practices in terms of productivity and profit for the
company.................................................................................................................................7
TASK 3............................................................................................................................................7
P5 Importance of employee relation in HRM decision making.............................................7
P6 Elements of employment legislation and impact on HRM decision making....................8
TASK 4............................................................................................................................................9
P7 Applications of HRM practices in relating with the work context...................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is a process of recruiting, deploying and managing
workforce so to maximize the utilisation of resources. Basic function of HRM is to manage the
workplace so to increase productivity of the company thus helping organization to attain their
vision. In this report, ASDA company is taken into consideration. It is one of the largest
supermarket chain in United kingdom headquarters in West Yorkshire, England. Purpose and
function of HRM and how it helps in workforce planning is discussed. Other than that strengths
and weakness of recruitment and selection is also explained. Benefits of HRM of employer and
employee is also explained. Influence of employee relations on HRM decision making is also
scrutinized. Application of HRM with functional examples is also given.
TASK 1
P1 Purpose and functions of Human resource management
HRM plays an important part in success of the organisation. There are different types of
functions which is performed by HRM which are described below,
Job analysis: It is a process of analysing and collecting information about the specific job
at the workplace and helps in while deciding pay of the employee (Armstrong and Taylor, 2014).
It is useful for ASDA while making the Human resource planning, recruitment and selection,
training and development etc.
Recruitment and selection: If a company is recruiting according to the appropriate skills
and capabilities then it would help the company to perform better in a critical situation thus
helping ASDA to gain competitive advantage over others.
Performance appraisal: If employees are performing well at the workplace than they
expects a reward according to that. HRM work is to monitor the performance of a employees and
assign their rewards like promotion, incentives, bonus etc. accordingly. It helps in improving
motivation of the employees.
Training and development: Employee can only perform better in their job if proper
skills and capabilities are inculcate to the employees. HRM duties is to train their employees
according to specific requirements of the jobs. It help employees and ASDA to perform better
while working hence helps them to achieve the sustainable business performance.

Succession planning: It is a perpetual process of scanning the employees of an
organization and make them prepare for senior post in the future. It ensures that company has
potential candidate for future if any senior executives leaves company in a shorter period of time.
It includes training and development, career development etc to candidates who can take replace
the person position of executives in the future (Bratton and Gold, 2017).
Human resource planning: HRP is a process of estimating headcount required for
future at the workplace so that productivity won't get affected or hampered in future if any
situation arises. HRM main work is to make the balance between demand and supply of
employees. It starts with analysing and monitoring the workforce in a company and how it will
change in future according to the work assigned to company.
Purpose of HRM
Purpose of HRM is to help ASDA to achieve their pre set goals and objectives. Main
focus is to train their employees according to required skills and competencies so as to achieve
best performance while performing. Other than that, HRM have to maintain the environment
peace and harmony of ASDA so that their productivity won't get affected by any external factors.
ASDA should use Soft approach of HRM in which employees are considered as asset rather than
machinery. It helps the company to motivate their employees and improves their performance
(Brewster and Hegewisch, 2017).
P2: Strengths and weakness of different approaches of recruitment and selection
Recruitment and selection is one of the most important function of HRM which directly
affects productivity of a company. Proper techniques should be considered while selecting
different candidate which are explained below,
Recruitment: It is a process of attracting the potential candidates for a job vacant in a
company. It is a positive process as in this stage no candidates is rejected. There are two types of
recruitment which are described below,
Internal recruitment: In this, employees are recruited within the company as it saves
acquisition cost for a company. Promotion is one of the types of Internal recruitment
Promotion: It refers to giving extra work and responsibilities to the individual due to
their good performance at the workplace in the past,
Advantages Disadvantage

It helps in boosting the motivation and morale
of individuals in ASDA
It increase the competition among staff thus
destructing environment of the ASDA.
Employees are well aware of rules and
regulation of the ASDA.
It can demotivate employees working in ASDA
if promotion is done on the basis of favouritism
rather than on performance.
External recruitment: In this, candidates are selected from outside ASDA hence bring
fresh and new talent for the company, Posting jobs on online platforms comes under this,
Online job posting: When the company post their vacant jobs on online platform so to connect
more potential candidates.
Advantages Disadvantage
It helps ASDA to connect more potential
candidates.
Due to large response rate, relevancy of data
required by the company decreases.
This process is cost efficient. Process is lengthy and time consuming.
Selection: It is a process of selecting potential candidates out of pool of individual
collected through recruitment process. One of the type of selection process is discussed below,
Panel interview: In this, more than 2 interviewer are present at the time of interview to
assess capabilities of individual (Bailey and et. al., 2018).
Advantages Disadvantage
Better assessment of skills and behaviour
candidates.
Chances of conflict while selecting candidate is
high as perceptions of all the interviewer
present are different.
Chances of partiality or favouritism decreases. This process is time consuming and expensive
in nature for ASDA.

TASK 2
P3 Benefits of different HRM practices to employees and employers
HRM practices helps a company to improve their employees performance hence helping
ASDA to improve their productivity to a certain level. Different types of practices which can use
by ASDA are described below,
Performance management: PMS work is to monitor the performance of employees in
the workplace and how it can improve in future to get more productivity.
Benefits to employee: If weakness of the employees is removed with different techniques and
strengths is strengthen than it helps individuals to improve their performance to a certain level.
Benefits to employer: If all employees are working at their full productivity than overall
performance of ASDA will also increase.
Compensation: It means amount paid by the company in return of work employees have
done.
Benefits to employee: If ASDA is paying appropriate amount of money to employees than it
will leads to high motivation thus improve in performance of employee's while working
(Marchington and et. al., 2016).
Benefits to employer: If employees are full committed to their work than they will perform at
its full potential. Hence helping ASDA to perform better as compare to other competitor.
Manpower planning: It is a process of placing right candidates, at the right time at the
right place to achieve maximum utilization of employees capabilities.
Benefits to employee: If work assign to the candidates is according to their skills than they will
able to perform it better. Besides this it will also improve the productivity of the employees.
Benefits to employer: If employees are performing better while working than it leads to
improvement of overall efficiency of ASDA.
Training and development: Training means providing proper skills and behaviour of
the employees according to their specific work. Training is directly proportionate to
development. If proper training is given then development of individuals and company also
affects in a positive way.
Benefits to employee: If the employees is performing at its best due to training given to them
then motivation level of employees also increases.

Benefits to employer: If all employees are working at its full potential then it directly affects the
balance sheet of company in a positive way.
P4 Effectiveness of different HRM practices in terms of productivity and profit for the company
If HRM practices is properly implemented to the company than it affects the productivity
and profitability of ASDA in a positive way. Benefits of different practices are describe below,
Performance management system: If weakness of the employees is removed then
motivation and performance of individuals also increase significantly. ASDA can use this
techniques to improve their employees weakness thus improving overall productivity of the
company.
Compensation: If employees are getting satisfactorily amount of pay from the company
then motivation level of the employees automatically goes up and vice versa if pay is less as
compare to amount of work individual is doing. ASDA should give proper salary to their
employees as it is one of the crucial factors for increasing productivity of an individual.
Consequently increasing profitability of ASDA. Apart from that proper leaves, incentives, bonus
etc should be given to employees according to their performance (Brewster, Mayrhofer and
Morley, 2016).
Training and development: Training is the important part in individual learning and
organizational learning. Proper training is given to employees so to inculcate proper skills which
helps in achieving goals of the job. ASDA should provide training to their new employees as
well as the old employees. Improvement in skills of old employees will help company to tackle
unique and difficult situation faced by the company. Therefore increasing profitability and
productivity of ASDA.
Manpower planning: If the work assign to the individual is according to their skills and
competencies then it helps individual to attain their maximum productivity thus improving the
overall efficiency of ASDA.
TASK 3
P5 Importance of employee relation in HRM decision making
Employee relation is important for maintaining peace and harmony of the workplace. If
workplace environment is not healthy or full with conflicts than it decrease motivation of the

employees to a certain level which leads to lower productivity of ASDA. Importance of
employee relation are described below,
More productivity in the workplace: If relations among the employees are good than it
generates motivation within the employees to work harder. For instance if the employees of
ASDA are giving their best performance at work than it leads to maximization of resources to its
fullest. Thus increasing the efficiency of HR manager to take decision in favour of ASDA.
High retention rate: If relationship between the employees of ASDA are good than
employees will perform with their full potential. If individual is satisfy with their perform than
they will retain more in the company hence reducing employee turnover ratio to a greater level.
It will help HRM to take decision effectively and efficiently thus improvement in performance
of the employees.
Reduces absenteeism: Employees will prefer to work daily if relations between the
employees are healthy. If absenteeism reduces than automatically overall productivity of
ASDA increases (Storey, 2014).
P6 Elements of employment legislation and impact on HRM decision making
Company should follow rules and regulation made by the local government to avoid
legal issues. If proper laws is followed than it makes workplace environment healthy and
motivating. Different types of law which could affect ASDA decision making are given below,
Equality act 2018: This act spells out that company should not discriminate the
employees working in their company and pay should be according to their performance rather
than on discrimination. If this act is properly implemented on ASDA environment then overall
efficiency of the company will increase drastically.
Data protection act 1988: According to this act, company should protect the personal
data of employees working there and they can not sell or share information with other party for
any favour. Employees of ASDA will feel safe if this act is properly implemented on the
workplace (Albrecht and et. al., 2015).
Health and safety act 1974: This act states that company should maintain and upgrade
their working environment so to keep safe their employees. Healthy working environment
includes proper sanitation, clean water and air, clean workplace etc. If the workplace is
according to the standard than it motivates employees to work harder and fully commit
themselves to work just to attain maximum productivity.

Employee contract: Employee contract states that company should provide certain
amount of money if they let employee's to go. But if company is firing someone for their
mistakes like stealing, disciplinary issues than organization won't give anything to the guilty
person. Its employee responsibilities to read contract before signing the document (Reiche and
et. al., 2016).
TASK 4
P7 Applications of HRM practices in relating with the work context
Proper and accurate job description help the candidates to understand needs of the job
and if the person is qualified than they might apply for job. Job specification and person
specification is described below,
Job advertisement
Market research
Qualification: Minimum 70% in MBA from top B-schools
How a candidate can apply?
Qualified Candidates can upload their resumes on our career page.
Application submission will end on 1 December 2018
Website: Www.xxx.com
For more queries please contact on xxxxxxxxxx
Job Specification
Qualification MBA from top B school.
Specialization of MBA should be Marketing
with Human resource.
Experience Should have minimum 5 years of experience
working for a large organization. Preferably for
MNC.
Area of expertise Candidate should have knowledge of Brand
management, Market research and advertising.

Qualities Should have unique and attractive thinking.
Preferably to work in night for foreign clients.
Must be hard working
Job description: JD is a documents which includes task and responsibilities of the
person which they should do if selected for the company. It should be properly written by HR
manager so that candidates can check that if they are qualified for the job or not (Jackson,
Schuler and Jiang, 2014).
Job advertisement and person specification: It should be properly explained in
advertisement that what kind of individual is required for the job. Other than that job
advertisement should be available on all platform so that more candidate can be attracted for the
job.
Recruitment and Selection in practice:ASDA should use different types of recruitment
like internal and external approach so that more candidates would be attracted and company can
pick the best from them. Selection approach should be use according to the budget and money of
company.
Designing and placing job advertisements: Job advertisement should be properly
designed by ASDA so that candidates can easily understand the job and its requirement. As if
advertisement is hard to understand than un qualified candidates will also apply for the job thus
creating more work for ASDA HR manager (Kramar, 2014).
CONCLUSION
HRM plays an important part in the success of the organization. If maximum utilization
of resources is attained than it will help the company to gain competitive advantage over others.
HRM should properly implement their functions on the organization as it will help them to
achieve maximum productivity. Organizations should properly select the approaches of
recruitment and selection as wrong candidates if selected can affect organisation in a negative
way. HRM practices affects the employer and employee that's why it should be implemented in a
correct manner. It also helps the organization to raise its profit and productivity. Other than that
employee relations plays a crucial part in performance of the employees and the company.

Company should implement rules and regulations made by the government so to avoid the legal
issues which could be faced by the company if not applied.

REFERENCES
Books and Journals
Albrecht and et. al., 2015. Employee engagement, human resource management practices and
competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance.2(1). pp.7-35.
Albrecht and et. al., 2015. Employee engagement, human resource management practices and
competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance.2(1). pp.7-35.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bailey and et. al., 2018. Strategic human resource management. Oxford University Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European resource
management. Springer.
Jackson, S. E., Schuler, R. S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management. The Academy of Management Annals.8(1). pp.1-56.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management.25(8). pp.1069-1089.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Reiche and et. al., 2016. Readings and cases in international human resource management.
Taylor & Francis.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.