Importance of HRM Practices in Organizations

The provided report focuses on the importance of HRM practices in organisations. It explains that HRM practices help to identify effective solutions to address business problems, such as decreased productivity and conflicts of interest. The report concludes that HRM practices play a valuable role within organisations by conducting various practices like planning, selection, staffing, training, and development to maintain operations. Additionally, it mentions that the manager of HR maintains healthy relationships between employees and employers based on their interests, specialisation, knowledge, and skills. The report also touches upon organisation's adherence to legislation or laws to safeguard the interest of each individual working within the organisation.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
P1: Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation .........................................................................................................3
P2: Strengths and weaknesses of different approaches to recruitment and selection.................4
P3: Benefits of different HRM practices within an organization for both the employer and
employee.....................................................................................................................................6
P4.Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.................................................................................................................................7
P5: Analyse the importance of employee relations in respect to influencing HRM decision
making.........................................................................................................................................8
P6: Key elements of employment legislation and there impact on HRM decision making.......9
P7: Application of HRM practices in a work-related context, using specific examples.............9
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Human resource management is a practice that includes hiring as well as developing
employees. The human resource department is basically responsible for governing workers and
maintaining relation between employee and management. For better understanding of this topic
Toyota has been selected which is Japanese multinational manufacturer of automotive, it deals in
auto-mobile, luxury vehicle, engines as well as commercial vehicle. In this report following
topics will be covered like purpose and function of HRM and application of work force planning.
Moreover, discussion will be made on strength and weakness of different approaches of
recruitment and selection. Along with this, report carries benefit of various HRM practices for
both employer as well as employee and evaluation on effectiveness of various HRM practices.
Lastly, following topics will be covered like importance of employee relation to influence HRM
decision making, elements of employment legislation and application of HRM practices (Noe,
et.al., 2017).
P1: Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation
Human resources management is an essential integral part of organisation. It include
various functions performed by HR department like planning, recruitment, selection, placement,
training as well as development to maintain the performance and achieve the overall objective of
an organisation. Therefore, various functions of HR are defined below:
Planning: Planning refer to setting predetermined objectives of an organisation in
advance. The manager of Toyota makes essential plan related to workforce and resource
planning like training and development programme for its existing or new employees as well as
anticipating the need of hiring particular number of applicant. Hence, respective company makes
plan to achieve the goal of organisation by adopting best procedure.
Selection and Staffing: Toyota generate large pool of potential applicant and select best
suitable workforce for the vacant place. They basically hire that applicant who has strong work
ethics and should be flexible in adopting changes. After selection of potential candidate and
weeding out unsuitable candidate, the right candidate is placed at right places. Along with that
HR department makes new staff familiar with their respective work as well as surrounding of
organisation (Cascio, 2015).

Training and development: Training and development is significant HR practice for
workforce and resource planning. As Toyota operates in global market due to which they keep
on adopting new innovations as well as technology. Moreover, respective company not only
belief in building cars but also people. That's why Toyota provide various formal training
programme like workshop, lecture delivery by an expert where computers are considered
essential part of training for different level of organisation. This practice not only helps in
enhancing the knowledge and skill of staff but also grooms their personality. Therefore, constant
learning leads to development of employee by ensuring overall growth of an employee.
Managing employee's relation: To achieve long term sustainable growth for resources
and workforce, Toyota firmly focuses on efficiency of total system rather than an individual
efficiency. They build long term relationship with employees through positive reinforcement like
reward, compensation, appreciation, promotion and recognition. Apart from this, Toyota provide
suitable working environment to reduce the turnover and absenteeism rate.
Purpose of HRM practices within organisation
 The department of Human resource run whole recruitment as well as selection cycle to
get suitable workforce. Herein, Toyota workforce planning as well as selection is done
efficiently on the basis of job description to achieve the set objectives of organisation.
 The manager of human resource within respective company conduct training and
development session to update the knowledge as well as skill of its personnel.
 Furthermore, employer employee relationship is maintained through extrinsic motivation
so that employee will consider them as an essential part of organisation and help in
achieving the target (Wright, 2018).
P2: Strengths and weaknesses of different approaches to recruitment and selection
Recruitment: Recruitment is a positive process of human resource management that
attract large pool of desirable candidate to apply for vacancy. The process of recruitment
includes planning, searching and screening.
Approaches of Recruitment
Internal source of recruitment: Under this vacant place are filled by existing employees
through promotion, transfer, employee referral and so on. Toyota, largely depend upon
promotion and transfer approach to fill up higher vacant place.

Promotion: Promotion is a kind of positive reinforcement where experienced employee
shift from lower job position to higher positions. This approach changes the position, role, status
and salary package of employee.
Transfer: Transfer refer to the change in surrounding or working environment of
employee by shifting them from one department to other or from specific job location to other.
However, the job responsibility, status and remuneration of an employee remain same.
Strength of internal recruitment
 It is cost effective method in comparisons to external recruitment.
 Saves the time of organisation as there is no need to provide induction and run training
programmes (Armstrong and Taylor, 2014).
 Enhances the feeling of job security among employees.
Weakness of internal recruitment
 It has narrow scope as every vacancy cannot be filled up through internal source
 May lead to conflict among employee and employer
External source of recruitment: In external source of recruitment large pool of candidate
are attracted. Toyota operate its business overseas hires large quantity of workforce for its
various outlets through external source. Therefore, among various approaches of external
recruitment like employment exchange, advertisement etc. some of the method used by
respective company are as follows:
Direct recruitment: In this type of recruitment notice is placed at the notice board this
type of recruitment is basically for an experienced applicant like skilled technical worker.
Campus recruitment: Toyota mostly visit technical, professional as well as management
institute to hire most desirable students.
Strength of External Sources of Recruitment:
 This approach brings new opportunities and inspire them to achieve objective
 Minimise the chances of partiality and favouritism
Weakness of external sources of recruitment:
 It is time consuming as well as expensive process
 External candidate demand for high remuneration and salary
Selection: Selection is a negative process that involve picking up best desirable candidate
among large pool of applicant. Toyota uses complex evaluation round for different position like

shortlist on the basis of CVs or resume and online screening. Apart from this through face to face
interview round and various test like psychometric test, aptitude test, personality test etc. to
select right candidate for right place (Bratton and Gold, 2017).
Strength of interview:
 Under selection process interview helps to identify actual performance of job.
 It is not so easy to manipulate or avoid selection process by both employee and selector. It is cheaper and costs effective for a huge number of employees.
Weakness of interview:
 It is time consuming and sometimes creates complexity to judge the candidate based on
interview round.
P3: Benefits of different HRM practices within an organization for both the employer and
employee
HRM practices are the plans, programs, procedures, policies which influence the
performance, behaviour of the employees engaged within an organization. The practices helps in
bringing the individual goals and organizational goals together to achieve competitive advantage.
Various types of HRM practices are as follows:
Recruitment and Selection: Recruitment is process of searching, attracting and
stimulating the prospective candidate to apply for the job position. Selection is a term used to
place the suitable candidate at the right place at right time. Benefits are as follows:
Employer: Effective recruitment and selection of Toyota employers benefits the
organization to achieve its mission and managing the workplace culture in efficient and effective
manner (DeCenzo, Robbins and Verhulst, 2016).
Employee: Effective recruitment and selection of Toyota employees benefits in
performing their job duties and responsibilities, engagement and retention of employees to
achieve the gaols and objectives.
Work life balance: Work life balance is the healthy environment provided to the
employees in the organization to manage the work with the personal life which helps in reducing
stress and common health problems in order to motivate an individual to perform for longer time.
Benefits are as follows:

Employer: The employers of Toyota are successful in building a healthy environment
which helps in increasing employees efficiency and productivity, reducing absenteeism to boost
competitiveness.
Employee: Healthy work life balance in Toyota motivates an employee to work with
enthusiasm, loyalty, commitment, focus as well as without stress to manage their time in
performing various operations.
Fair evaluation system: The evaluation of performance should be fair enough to
characterise, evaluate and appraise the performance of individual in an organization. This system
helps in measuring the performance of employees and developing them towards high results.
Benefits are as follows:
Employer: The fair evaluation system helps the Toyota employers to successfully
evaluate the employees performances and formulating plans, programs to improve them through
training and development.
Employee: The fair evaluation system benefits the Toyota employees to clarify their
roles, duties and performance also provides them with positive feedbacks along with the areas in
which improvements are required.
Training and Development: Training is a important tool which helps in improving
knowledge, skills through instructions along with practices where as development is viewed as a
supporting activity where employer gives training to its employees to enhance their skills,
knowledge for performing tasks. Benefits are as follows:
Employer: Training and development benefits the Toyota employers in identification of
the key areas, to develop better ways by formulating strategies, programs as well as to implement
them in successful manner to get positive results (Chelladurai and Kerwin, 2018).
Employee: Training and development benefits the employees of Toyota in various ways
as it helps in improving capabilities, competencies, managing changes, cope up with complex
situations as well as enhancing their knowledge and skills to improve efficiency with
effectiveness.
P4.Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.
An effective HRM practices includes various factors which helps in raising
organisational profits and productivity in Toyota which are described as:

 Raising organizational profits: In the selected organization Toyota, recruitment and
selection helps in selection of its candidates who has capabilities to perform the
operations effectively which results in raising selected organizational profits. Fair
evaluation system provides a detailed information regarding who has performed what, till
what extent. Training and development helps in formulating various programmes for its
employees to enhance their skills, knowledge in relation to performing tasks effectively
and efficiently to achieve the profits. Work life balance also provides a healthy work life
balance between work and personal life which results in motivating an individual to
perform its operations. All the HRM practices benefits the selected organization to raise
its profits (Jiang, et.al. 2012).
 Raising organizational productivity: In the selected organization Toyota, recruitment
and selection helps in employee involvement, motivation to perform the operations
efficiently and effectively. Fair evaluation system evaluates the performance while
pointing out the deficiencies in which improvements are required. Training and
development are related to improvements in the deficiencies along with enhancing
potentialities by formulation as well as implementation of training plans, programmes.
Work life balance aims to implement flexible working hours, minimizing workplace
stress, healthy environment for work which results in profit oriented work. All the
defined HRM practices helps Toyota in raising its organizational productivity. Thus, it
may be ineffective process as it sometime over burden the employee in order to achieve
targets. Along with that instead to cooperation within the employee it can lead to
unhealthy competition and internal chaos.
P5: Analyse the importance of employee relations in respect to influencing HRM decision
making
Employees are the base of an organisation, due to which organisations maintain healthy
relationship with its staff to influence the overall working of organisation. Toyota maintains
effective employee engagement and employee relation through its flexible work practice. Along
with that they maintain employee and employer relation to achieve the objective of organisation.
The manager of HR build certain strategies to motivate as well as enhance the working of
employee through reward, bonus, promotion and incentive. This method apart from
strengthening the relationship with employee motivate them to remain engaged in their allotted

task. Therefore, this helps employee to accomplish desired outcomes by maintaining the working
culture of organisation (Brewster and Hegewisch, 2017).
Moreover, to build healthy employee relation, team leader must allot work to their
personnel on the basis of interest, skill as well as specialisation. This methods increases the
chances of employee engagement by reducing the work burden and absenteeism rate.
Maintaining healthy relation with employee helps in the organisation success by maintaining the
healthy environment and safe environment to function. It leads to better decision making as the
employee grievances are handled effectively they are treated fairly which leads help them to
remain satisfies and participate in favour of organisation. Therefore, if the organisation takes
care of the need of employee then definitely they will remain encourage to influence their
behaviour and maintain long term employee employer relation.
P6: Key elements of employment legislation and there impact on HRM decision making.
Employment legislation are the areas of laws which describes the relationships between
employees, organizations and government. There are various employment legislation described
by different countries which are mandatory for an organization to impose. Various key elements
of employment legislation and there impact on HRM decision making are as follows:
Fair Labour Standards Act, 1938: Such act was established to clearly describe the
minimum wage, overtime payment, various restrictions as well as keeping a record of full-time
along with part-time workers in all the organizations. Toyota follows all the provisions described
and makes decision to avoid any criminal violation which results in employee commitment
towards work and more decisions can be formulated at the time required.
Minimum Wages Act, 1998: Such act defines that every skilled or unskilled worker
should be paid some minimum wage for the work they perform. Toyota pays basic salary to its
employees and works as per the rules prescribes under this act results in protecting the interests
of employees to improve satisfaction and morale towards organization and leads to appropriate
HRM decision making (Mello, 2014).
Occupational Health and Safety Act, 2004: The selected act was designed to improve
the standards of safety, health and welfare of employees as well as of others present at work
location. Toyota employers provides high standards of healthy, safe and welfare to employees,
trainees, workers, visitors and general public at work which improves communication in the
organization and makes HRM decision making effective.

P7: Application of HRM practices in a work-related context, using specific examples.
HRM is an approach used to manage the performance of people effectively by adopting
flexible management style. These practices are adopted to enhance the overall productivity and
achieve the objective of organisation.
Toyota: Toyota is one of the leading automotive brands which is operated in more than
150 countries all around the globe. Moreover, respective company has generated trust because of
its quality and services, some of its famous car models are Camry, 4Runner, luxury lexus line,
Sienna and so on. Apart from this, Toyota in its growth phase faced lot of challenges like
increase demand of consumer for fuel efficient car, customer dissonance due to not fulfilment of
order on time, shift in preferences of customer etc. Hence, respective company made productive
efforts to overcome the challenges like with the help of research team they collected information
based on recent trend and customer preferences. Accordingly, the manager adopt certain HR
practices to maintain healthy relation with customers.
Positive reinforcement: In order to fulfil the order on time and promote flexibility in
adopting changes, the HR manager of Toyota motivate employee through extrinsic motivation
that include reward, incentive etc. They associated reward on the basis of performance and target
of employee. Therefore, this method encouraged the efforts of individual by increasing overall
productivity of organisation (Renwick, Redman and Maguire, 2013).
Selection of experienced person: With the change in market demand and innovation
respective company hire experienced engineers who have better understanding of market. These
expert helped Toyota to overcome the challenges by making high quality product satisfying the
demand of their existing customers.
Job description: Job description refer to the roles, responsibility and duties to be
performed for a given position. It also describe specifies qualification and skill required to
perform for the specific job profile.
Company Toyota
Department Technical
Job profile Automotive Engineer
Job location London, United Kingdom

Job summary Toyota is looking for an applicant who can actively engage in
product development, effective design, conduct test and then
produce new product. Candidate must be recognized for
designing and mechanical engineering which can decrease the
need for re-engineering.
Roles & Responsibilities  Appropriate knowledge of designing and technical work.
 Make design through computer modelling software and
select best material for execution of design.
 Conduct research, practice changes by using innovative
technology and give presentation to their superiors within
respective company.
 Write report and make improvement on the vehicle based
on the customer feedback.
Personal specification: Personal specification include skill, experience as well as knowledge
that a candidate should posses to perform job responsibility (Buller and McEvoy, 2012).
Name: John Cooper
Address: Gloucester avenue, near Primrose Hill, United Kingdom
Contact number: 22441023120
Job Experience: Toyota is looking for candidate that have more than five years of job
experience in respective field. Applicant must uses new technology to product innovative
product and gain advantage over its competitors.
Specialization:
 Specialization in design, control, robotics as well as neutral engineering
 Fluent in Microsoft office package especially in excel and power point presentation
 Understanding of visual art and 3D designs
 Experience in designing various content as well as design disciplines
Skills:
 Creative designer
 Effective technical as well as problem solving skills

 Excellent communication, negotiation and presentation skill
 Ability to work in team
Qualification:
 Certificate of Adobe Photoshop and digital designing
 Degree in respective subjects like engineering design, manufacturing engineer and so on
 Diploma in web design
 Five years of work experience in respective field.
Declaration: Hereby, I ensure that all details provided by me is valid.
Date: 01/02/2019
Place: United Kingdom
Interview Questions:
 Tell me something about your self?
 What is your highest qualification and achievement?
 Why you left your old organisation?
 How would you define a axle system and car's wheel to a common man?
Justification: The candidates who apply for the job are selected on the basis of their
skills, knowledge, experience, nature, communication etc. Recruiter selects them by analysing
various factors about them such as their capabilities and urge to be a part of the company.
Job Offer of Toyota to Cristina Mathew:
7th June 2019
Toyota
Welwyn Garden City, England.
Dear Ms. Cristina Mathew,
We are glad to inform you that you have been selected by us for the post of Mechanical
Engineer in Toyota. Your salary will be around £93000. We are looking forward to see you.
Thanks & Regards
Human Resource Manager
Toyota

Rationale for conducting HR practices: In Toyota HR practices helps to identify the
effective solutions to address the business problems successfully. These problem can be decrease
in productivity and conflicts of interest. Thus, HR practices help to deal with these problem and
enhance the overall productivity and profitability of business.
CONCLUSION
From the above report it has been concluded that HRM practices plays a very valuable
role within organisation. It conduct various practices like planning, selection, staffing, training as
well as development to maintain the operations of organisation. Apart from this the manager of
HR maintains the healthy relationship between employee and employer by engaging them on the
basis of their interest, specialization, knowledge and skill. Moreover, organisation follows
certain legislation or laws to safeguard the interest of each and every individual working within
the organisation.

REFRENCES
Books and Journal
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Cascio, W. F., 2015. Managing human resources. McGraw-Hill.
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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
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Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
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outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
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