Benefits of HRM Practices for Employer and Employee
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This article discusses the benefits of different HRM practices, such as training and development, performance management, and reward systems, for both employers and employees. It highlights how these practices contribute to the growth and success of an organization.
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Human Resource Management
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Table of Contents INTRODUCTION...........................................................................................................................3 P1- Purpose and the functions of HRM, for workforce planning and resourcing.......................3 P2- Strengths and weaknesses of different approaches in recruitment and selection.................5 P3- Benefits of different HRM practices within an organisation for employer and employee...7 P4. Evaluation of effectiveness of different HRM practices.......................................................8 P5 Analysis of Importance of employee and employer relations in decision-making................9 P6- Influence of employee's legislation on company's decision-making..................................10 P7- Application of HRM practices in a work-related context, using specific examples.........11 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION HRM comprises of all those activities the which are essential for managing human resource of a company. Staffing, training and development, orientation, performance appraisal all are practices of human resource management. In this assignment, principles and theories of Human Resource Management are applied on UK based supermarket chain Morrisons. Morrison is the fourth largest supermarket chain in the world. It was founded by William Morrison in the late 19thcentury. The assignment contains detailed explanation of purpose and functions of human resource management practices, merits and demerits of different methods of recruitment and selection, advantages of various HRM practices for employees and employers, how HRM practices accelerate the growth of an organisation, significance of employee's relations in influencing decision-making of a company, identification of major elements of employees legislation and their effect on decision-making process, illustration of different HRM practices using examples. P1- Purpose and the functions of HRM, for workforce planning and resourcing Human Resource Management has the responsibilities of managing the formal systems of people in an organization. The people in an organisation are its life blood and to manage them efficiently a certain process and direction is needed. In other words it can be understood as the management of the overall work force of the organisation. Thus the job of a HR manger does also comprises the attraction of job candidates, staffing, selecting recruiting, controlling in environment, resolving conflicts and enhancing the strength of the organisational people by providing preferential means(Troth, A.C. and Guest, D.E., 2020).Main purpose of HRM is to maintain the maximum quality in production by encouraging the right person on to right places. The core objectives and strategic approaches of the organisation are as follows:- Mission -The mission of the company is to provide the most efficient product and services in the market. Vision –To become the leading organisation in the retail sector of UK and USA Objectives –To generate optimum revenue and earn more profit from the existing and forthcoming sales . Functions and purpose of HRM
The human resource departmentof Morrisons performsvariousfunctionssuch as Analysing the future demands of the operations, training, keeping record of current workforce, closingthe gap, evaluation of organisational objectives, monitoring and controlling the people (Fattaah, and et. al., 2020). Apart from that the major purposes of a HRMis to do the hiring, selection,maintaininggoodemployeerelationsinvolvementinthecareerdevelopment, motivating the employees and compliance with the laws in respect of the organisation. Analyse future Demands-The fundamental job of the HRM department is to do the futureplanning of the organisation in respect of its people and their needs. It is also a integral part of human resource management function to analyse and forecast the upcoming demands as expansion and growth of the work force, needs for the replacement of current staff, countering the upcoming reasons for increase absenteeism and employee dissatisfaction. The purpose of identifying such demands is to achieve the standards of management as well as to prepare the certain planning and for doing the preparation. People resourcing-A manager is needed to be clear with the vision of analysing the present time situation of the work people. The need and demand of the organisation in respect of human resource, acknowledging the satisfaction of people are the crucial functions of analysing the current work force (Ahammad,Glaister, and Gomes, 2020). The main purpose examining the work force is to do selection and staffing of the best talent and to solve the internal conflicts. Among the HRM department of Morrisonsworkforce analyses is performed by collecting the staff audit data, calculating the service turnover ratio, monitoring the trend flow and evaluating the average survival rate of executives by performing the cohort analyses. Close the Gap-Gaps among the people and organisation often arises in respect of certain terms and conditions. These gaps promotes the inefficiency, less productivity and disputes at the workplace. It is a human resource managerial function to avoid such gaps and rectify the gap encouraging issues. The reason behind doing this is to identify the capability and capacity gaps to enhance the efficiency of organisational people Evaluate, Monitor, and Revise-All those policies which are formed in respect of efficient management of Morrisons are called as the principles and regulations of organisation. Unlike other managerial departments HRM is also bound to functionalize these policies, by evaluation of the overall scenario of working people (Sarat, and Srinivasan, 2020). Monitoring the staff conditions regarding the need and demand in respect of both the people and business.
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Upgrading the regulation, modifying and revising them according to the demand of situation, to provide more dynamic and flexible environment for its people. Thus building up of a strong and effective management in the company is the foremost purpose of evaluating, revising and monitoring its plan of action. Reward management– The offering of any value in financial or non financial term to enhance the motive of the potential worker, which is used to boost the moral of a deserving candidate is termed as the reward . A reward can be of any means it could be monetary benefit, promotion or any other gifts etc. The efficient planning of providing these rewards to the deserving and potentialcandidate is necessary thus it is an important function to be managed by the human resource department of the organisation. P2- Strengths and weaknesses of different approaches in recruitment and selection. Selection and recruitment is the the most crucial task of HRM. There are different platforms with different approaches to achieve the standard objectives of hiring and choosing the preferred human asset of organisation. Recruitment It is the process of interacting, short-listing, interviewing and appointing the potential candidatesfor therequiredjob positionin a company.It involvesthe six stepprocess respectively as planning, developing strategy, identifying, screening, evaluation and control (Herrera, and de las Heras-Rosas, 2020). The two major approaches of recruiting people are internal recruitments and external recruitment. Internal recruitment-It comprises of various platforms such as promotion, transfer, internal job posting for organisational needs etc. Promotions –The first important factor in the internal recruitement is the promotion it could be understood as the vertical shifting of the employee with enhanced values. Strengths- It promotes the goodwill of the respective company among its people as well as it also increases their faithfulness and dedication towards their roles and responsibilities. Weakness – It increase the gap between job and people Transfer –The transfer can be understood as the horizontal shifting of the existing employee on to some differer job location with same designation. Strengths -It incurs lesser cost and time to execute the plan for the HRM .
Weaknesses -It does not allow to bring the fresh talent from outside increase the gap between job and people. Externalrecruitment-Thesecondandmostefficientapproachofhiringisit encompasses of giving jobs to the potential people who are out side from the business. External recruitmentsourcesincludesadvertisement,walk-ins,factorygates,labourcontactors, employment exchanges, etc. Walk ins-It is refereed as the selection of a candidate by taking an interview of the person who walked in the organisation seeking for the job. Strength- of external recruitment are that it promotes lesser office politics, better growth of organisation, it increases a competitive strength of work. Weakness -External recruitment is the higher cost and time consuming process as risks are also gets increased. Employment exchanges-the employment exchange is an official system which provides jobtothepotentialcandidatesbyinterlinkingwiththejobvacantorganisation Strength-employment exchange gives the right job to the right person which enhances the efficiency of HRM in an organisation. Weaknesses – the increasing unemployment rate making itmore hassle for the emplyment exchange offices to justify the jobs regarding the personnel. Selection It is the process of choosing the most effective and efficient job candidate, suitable with the need and demand of the organisational job post (Farndale, E. and et. al., 2020). Selection process have multiple approaches as the major section of selectionare online screening and interviews. Online screening-It is a an effective way to cut out the time and cost as the multiple job applications can be screened and sorted according to the requirement. Strength - of performing online screening is that it saves a lot of time and finance of company. Weaknesses -Selection team needs a technological specialist personnels which increases the chance of technical errors. Interview-The process of creating an interaction for the selection of the potential candidate is referred to interview.
Strengths - Conducting the interview process as the selector can judge and qualify the candidate on various aspects. Weakness -It is more time consuming and can increase the fatigue of executive. Assessment Centres -An Assessment Centre is the recognised place to assess the qualities of job applicant. By creating the job stimulations, and all other critical situations which may arise at the time of performing the job and tasks. Strength–Thegradingofthepersonnel'sattitudeandoverallbehaviourtowardsthe organisational context can be done. Weakness– This is a huge time and cost taking process, which incurs the loss of other resources. In-tray tests-It is a kind of paper test which is taken at the time of interview to analyse the aptitude of the job candidate. Strength- these tests allows to find out the maximum reasoning and mentalability of the job applicant. Weakness- such tests can sometimes goes irrelevant with the profile of job and other respective tasks. P3- Benefits of different HRM practices within an organisation for employer and employee. Training and Development:It is a process of making hired candidates productive for an organisation. Training is provided to newly employed individuals to teach work according to their job role. This is a program conducted to develop the skills in employees required for work. As Morrisons is a retail industry therefore there should be more focus on soft skills development training. Soft skills are abilities to deals with humans. It comprise of communication skills, body language, presentation skills, problem-solving skills and so on. Firm should emphasis more on developing communication and presentation skills in personnels (Duarte, 2020). Benefitsoftraininganddevelopmentfor employee:- It clarify their roles and responsibilities. Itenhancetheoverallperformanceof employees Benefitsoftraininganddevelopmentfor employer:- It reduces employee turnover It helps in retaining talented staff.
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Performance Management:It is a process used by HR manager to monitor and evaluate the performance of employees. This tool is used to create such a environment where employees can give their best performance. Morrisons should take feedback and reviews from customers. Identify the weaknesses of system and take measures to overcome weaknesses. Firm should calculate the average of reviews to evaluate the performance of business. If average is low than company should optimized the business operations (Cooke, Dickmann, and Parry, 2020). Benefitsofperformancemanagementfor employees:- Employees can give their best performance. It increases job satisfaction. Benefitsofperformancemanagementfor employees:- It provides high return on investment. It enhance the growth of an organisation. Reward System:The monetary and non-monetary profits which an employee receive becauseoftheiroutstandingperformanceintheirrespectivefieldiscalledreward.The framework of company which define the criteria for reward is called reward system. Company should adopt a reward system for best performing employees like incentives and perks. It would encouragepersonnel to work in best way possible to enhance the brand equity of the supermarket chain. Company should enforce a moderately difficult reward system to motivate sales associate for conversion of prospect into final consumer. Benefits of reward system for employees: It motivate them to perform well. It increases job satisfaction. Benefits of reward system for employer:- Ithelpscompanyingainingmaximum revenues. Itattractstalentedpersonneltothe organisation. P4. Evaluation of effectiveness of different HRM practices HRM practices plays a crucial role in success of an organisation. Every HRM practice has its own importance. It helps in enhancing of growth of company. This article give a brief overview of how different HRM approaches raise productivity of a company . Training and Development:Training improves the morale of personnels. They learn to work in an effective manner which boost up the growth of an organisation. Training remove the
weaknesses of new employees and make them proficient in their respective work. It acts as a catalyst for the growth of an organisation. Employees becomes capable of handling diverse situations and easily adapt their work style according to new technology. It enables employees to use new technology and adjusting themselves in new work culture. It insert a sense of enthusiasm and excitement in workers towards their work. They execute projects in perfect manner which satisfy clients and customers therefore goodwill of company gets enhanced. It convert good into better and better into best. It impart growth oriented skills in employees. Hence conducting training and development program is beneficial for organisation' s growth (Lloyd-Walker and et. al., 2020). Performance Management:It streamlined the functioning of a company. It encourage employees to perform their best. Performance management enables managers to evaluate the proficiency of personnels which determine which worker deserve promotions and incentives. It induce the positive competency in the personality of employees. They compete with each other to accomplishfirst level outcome that is recognition as a top performer. It is a ladder to perfection because it aids in identification of weaknesses in the overall functioning of an organisation and suggest measures to overcome that weaknesses. It also increases job satisfaction in employees which leads to decrease in employeeturnover. Low employee turnover create a stability in the system which result in growth of an organisation. It increases competitiveness of employees as well as product of the company. Hence performance management is highly recommended approach to an organisation. Reward System:It encourages employees to work better than before. It increases personnel's energy to work more in the greed of reward. Reward system is mutually profitable for both employees and organisation. It motivates workers to work in a more smarter way to gain benefits which result in increment in the growth of the company. It makes employees more loyal and sincere towards firm which reduce employee turnover and create a stable environment. It improves employee morale therefore they becomes able to cope up with difficult situations. It also reduces absenteeism and increases punctuality in employees therefore work completes before deadline (Malik, Pereira and Budhwar, 2020). It encourages employees to work in a team. Teamwork createa socialbonding amongworkerswhichasa consequentmakework environment more socialize. Hence framing an efficient and moderately difficult reward system is profitable for the growth of an organisation.
P5 Analysis of Importance of employee and employer relations in decision-making Employer employee relations define as the level of harmony between each other.The degree of respect and importance they give to each other.There is a significant influence of of employee and employer relations on decision making. If relationship between employee and employer is good than there would be slow but right decision-making.The parties involved in employee relations are employee, employer, employee's association, labour union and trade union.There are four HR policy useful for improving employer and employee relationship that are flexible organizations, flexible working practices, employer of choice and psychological contract. Discussion about impact of employee and employer relationship on decision-making are given below. Flexible Organisation:This type of organisation adjust their operations according to flow of external factors. It is a decentralise organisation in which power is divided among large number of employees.When organisation is flexible than there is a slow decision making which is usually decentralized. Opinions and frame of reference of all the employees are considered than final conclusion being made as a result decision-making becomes slow but the probability of positive consequences increases. Flexible organisation is lack on irrational decision making which need to be quick and immediate.Trade union is accountable for maintaining good relationsbetweenemployerandemployeeinflexibleorganisationthroughcollective bargaining.Collective agreement include compensation policy or terms and conditions between employee and employer. It clarify the policies of the company to the employer of choice. (Dumont,Shen, and Deng, 2017). Flexible Working Practices:This HR policy helps in efficient decision-making because employee and employer relations are positive. Employee have good work life balance and flexible working hours therefore they can take correct decision in a casual approach with calm mind. Drawback of this approach is that employees will cannot come out of their comfort zone when there will be decision-making regarding uncertainties happened. There would be mismatch in employees time due to which conducting a meeting for taking decision would be difficult. Trade Unionprotect employees from decisions regarding wage cutdown, increment in working hours and all other decisions which affect employee's welfare adversely. It enforce employer to address grieviances of employees properly.
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Employer of choice:When a company have exceptionally good working environment, handsome salary, perks and good reward than that company is known as employer of choice. There is extremely good relations between employees and employers therefore decision-making in this company is highly optimized. Employer of choice status is itself a result of good decision- making (Moore,and Jennings,2017). Decision making in this organisation is very effective becauselowemployeeturnoveranddelightedemployeesenablesfirmtotakeeffective decisions. Decision-making in this companies are fast and correct however decision-making can be adversely affected by negative external factors.Trade union is an effiecient tool for making employeerelationspeacefulandpositiveinemployerofchoice.Itincreasesemployee satisfaction and thus maintain a stable environment in the organisation. It improves employee relations by adressing the grieviancesa and removing redundancy practices. It promote mutually agreeable decision-making. Psychological Contract:It is the untold expectations between employees and employers from their respective duties. It is an invisible contract between employee and employer. If psychological contract is in a good flow than there would be efficient decision-making otherwise probability of favourable outcomes of decision-making would be very low. Psychological contract have significant effect on decision-making. It subconsciously refined from behaviour and attitude of employer. P6- Influence of employee's legislation on company's decision-making Equality and Diversity Act 2010:In 2010, a new act enforced to protect employees from discrimination on the basis of place of birth, race, gender, caste and religion. This act came to be known as equality and diversity act 2010. It combine 116 isolated pieces of legislation into one single act. It has a significant influence during recruitment and selection. There cannot be any biased approach. HR manager cannot select or reject any candidates on the basis of characteristics other than talent and skills (Westerman and et. al., 2020) . Working Time Directives:It is a legislation implemented by European Union in 1998 to ensure health and safety welfare of workers. It provides certain rights to workers to protect them from exploitation. This legislation is concerned with working hours and annual leaves of employees.Thisactisimplementedby UnitedKingdom asWorkingTimeRegulations. Company has to consider working time of employees while taking any decision. Employers
cannot extend the working hours in the lure of additional revenue. Decision related to expansion of business must not compromised with the working hours of personnels. National Minimum Wage Rate UK:According to this legislation employers are obliged to pay minimum living wage prescribed by government to their employees. Living wage is the minimum wage required by labours to survive in the country. HR manager have to take into account that every employees must get minimum living wage while distributing salary.This statute law impact the decision of making compensation framework of organisation. Employer have to take decision of number of employees to be hired keeping in mind that each employee must get minimum living wage. If company's budget is low than HR can employ apprentice for low scale work instead of full time employee (Wilkinson, Redman, and Dundon, 2017). GDPR 2018:GDPR stands for General Data Protection Regulations. It is a law imposed by UK government on 25thMay 2018 to protect data and privacy of companies. This legislation succeed former data protection directives 1995. It influences the decision making in such a way that if company decided to not disclose salary in job description than salary would remain disclosed until candidates appear for the interview. GDPR ensures that data and privacy of all employee's and employer are protected. P7- Application of HRM practices in a work-related context, using specific examples. All of the strategic practices enables a HR manager to create systematic plan of action, and it gives foundation for company to establish efficient coordination and control among its people (Geda, 2019). The major HR practices are as follows: Job Specification-Job specification consists of certain guidelines and qualities which are essential for a job candidate to perform the relent tasks and operation in respective position. The preferred job specification for the position of HR manager at Morrisons is as follows: Human Resource Manager Morrisons Reports To HR manager will report to the director of human resources management. Job Overview This job will involve all the major roles and responsibilities of human resources. This job will encompasses time restrictive 5 days a week work schedule. Supporting business by providing
the fundamental principles of management. Responsibilities and Duties Advising existing people and potential job candidates other than their tasks and jobs Regular assignments will be given to the manager for effective completion of tasks. Manager has to take part in the activities of recruitment and selection from both the online and offline platforms. Conductingjoborientationandintroducingnewpeoplewiththeorganisational environment. Qualifications Education- MBA / Post graduation Experience- minimum 1 year in HRM Specific skills- Have effective communication skills and familiar with digital platforms Certifications- A diploma or certification course in HR planning. Personal characteristics- Tactful, obedient and Polite Physicalabilities-Certificationfromregisteredmedicalofficerregardingthemental conditions. Person Specification-A subset of the specific skills and qualities which arte segregated according to the need and desire of employer. BasisEssentialDesirable SkillsKnowledgeEffective employmentworkinglaw knowledge Compliancewithcertain organisationallawsand regulations.
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Technical awarenessHRregulationsawareness Aware of current policies of organisation. Maintenanceofpayroll system. AttitudeHave emotional intelligence and commitment to overall development of organisation Moderated strategic approch regardingthevarious commercialand organisational conditions. Educated to degree level or equivalent Notes EfficientHumanresource management experience in a verifiedsupermarket. Encounteringthefuturistic issuesGood with situational problemsolvingskills Effective managerial skills to manage andlead, the teams in organisation Familiar with certain organisational trends. Involvement with any other nonprofitorganisation, experienced in retail sector Awarenessaboutcertain economicandemployment policies.Familiarwiththe demandandnecessitiesof customer. Preparatory notes for interviews-HR manager is needed to go through with essential and desirable characteristics and skills of the potential interviewee. And this is performed efficiently by preparing the respective notes before interview.
Interview questions for the prospective candidates for the job role of HR manger- Q1 What was your greatest achievement at your previous work ? Q2How you can be productive for the organisation at the same time of managing the human resources ? Q3 On what level of the designation you would feel worthy towards this organisation? Q4 what are the skills which can make you the best suitable choice for this job ? Job offer letter-A job offer letter is provided document by HR department of organisation to the candidate in respect of the selection for the job position. Offer letter Wm Morrison Supermarkets plc, Bradford,England,UK 08-02-2020 XYZ BCD Street ABC City, ST 000001 Dear XYZ Wm Morrisons Supermarkets plc, is inviting you on aboard as aHR manager. There are a few formalities in a way of the joining. Kindly consider the job offer. It includes all the details regarding the job benefits and other terms and conditions of your expected employment with Morrisons. Morrisons is offering a permanent position for HR manager, reporting to the director of
HR. Commencing from 10 of February 2020 at Bradford England. Expected work hours are 9 AM to 5 PM. Morrisons is offering to start this at a payment rate of $15000 per year. That will be paid on a monthly basis, starting from 10 March 2020.Please confirm the agreement with these terms and conditions and accept this job offer by signing this agreement on or before 10- 02-2020. Sincerely, HRM Department Morrisons CONCLUSION From the above report the conclusion drive are that HRM practices is very beneficial for both employee and employer. Training and development, performance management and reward systemenhancetheproductivityofemployees.HRMpracticeshasasignificantrolein improving the overall functioning of an organisation. It is highly recommended to impart training, monitor and evaluate performance of employees and implicate moderately difficult reward system. HR manager required to weigh pros and cons of different recruitment and selection approach in order to choose the best suitable method for organisation. Report conclude that good employer and employee relations leads to efficient decision-making and vice versa. Assignment also conclude that employees legislation also has important influence in decision- making process. Legislation assure that decisions of employer must not have adverse effect on welfare of employees.
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