Importance of Employee Relationship in HRM Decision-Making

This article discusses the importance of employee relationship in HRM decision-making and its influence on organizational success. It highlights how strong employee relationships contribute to engagement, productivity, and brand image. The article also explores the significance of flexible organization and working practices in fostering employee relationships.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 ...........................................................................................................................................1
P1. Purpose, function and applicable to workforce planning and resourcing of SKVP..............1
P2. Strength and weaknesses of various approaches of recruitment and selection.....................2
TASK 2............................................................................................................................................4
P3.Benefits of different HRM practices to employees and employer.........................................4
P4. Effectiveness of HRM practices in relation to enhancing overall organisation profitability
and productivity...........................................................................................................................5
PART- 2...........................................................................................................................................6
TASK 3............................................................................................................................................6
P5. Importance of employees relationship and its influence on HRM decision-making.............6
P6. Key elements of employment legislation and its impact on HR decision-making................7
TASK 4............................................................................................................................................8
P7. Application of HRM practice................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management can be stated as management function in which manager is
highly concerned with hiring, selecting, recruiting and motivating employees to work hard so
that company can gain and retained its market share. Moreover, HR manager is responsible for
resolving disputes arising among employees by understanding several problems faced by them
thus coordinating them to work as team for achievement of end goals. This report is based on
SKVP which is an enterprise launched by two entrepreneurs within suburb of London, UK. They
have objective of setting six more in upcoming years.
The report highlights points related to purpose of HR key roles and responsibilities, its
function and importance in hiring talented employees. Also include points related to several
approaches of recruitment and selection, benefits of HRM practices for both employees and
employer. At last contain detailed regarding key elements of employment legislation and its
impact on HRM decision-making.
PART 1
TASK 1
P1. Purpose, function and applicable to workforce planning and resourcing of SKVP
Human resources management of SKVP plays important purpose in organisation by
recruiting right individuals at right place so that various task can be completed simultaneously
and end objectives of company can bet meet. Furthermore, it coordinates diverse individuals to
work in an team rather than individuals that helps firm in retaining maximum market share.
Thereby the main purpose of HRM is to manage effectively communication, motivation and
leadership among people so that they are ready to put their best for benefits of organization
(Itani, House and Lane, 2017). There are various function that are performed by professionals of
SKVP in content of workforce planning and resourcing which can be illustrated as follows:
Staffing needs: It is the first and foremost function performed by manager of company as
it understand or estimate type and number of employees required by organisation to complete
particular task. Thereby, manager of SKVP by taking interview or conducting preliminary
screening find talented employees that can be recruited for specific post so that better outcome
can be achieved.
1

Compensation: Another function accomplish by manager is deciding appropriate
compensation needs to be provided to specific individual so that it can be motivated to make the
best use of its existing capabilities and skills. Therefore, SKVP manager has set accurate
compensation or wages need to be provided to employees that contributed in retaining and
having talented individual in the firm (Hasan, Islam and Chowdhury, 2020).
Labour relationship: It is can be stated that manager of company also perform function
related to building strong relationship with employees. Likewise SKVP manager by deciding
appropriate roles and responsibilities which needs to be performed by employees, resolving
conflict and dispute when arise is able to develop better relationship and enhance overall
profitability of company.
From the above study, it can be illustrated that HR plays important role in retaining and
acquiring talented employees in the firm. Such as manager by taking various test, interview or
effectively scrutinizing each individual find right or talented employee can be hired within
organizations. Moreover, the manager by focusing on providing safe and secure working
environment to employees is able to motivated highly talented to work for growth and expansion
of business (Rothenberg, Hull and Tang, 2017). So, all these several steps and functions
undertaken by SKVP manager has helped company in enjoying maximum benefits.
P2. Strength and weaknesses of various approaches of recruitment and selection
Recruitment is an positive process that include various activities such as attracting,
engaging and on-boarding talented employees in the organization. In another words, it is an
process that involves identification and retention of potential individual for filling up of vacant
position and promote smooth operation of business in external environment (Renkema,
Meijerink and Bondarouk, 2017). There are two common method or approaches that are used in
SKVP to recruit talented employees which can be illustrated as follows:
Internal recruitment approach: It is method in which recruiting panel of company
focus on recruitment of individual through internal sources that is by promoting employees to
higher level. So, that they can make effective use of their capabilities and skills in order to
complete task in most effective manner.
Strength Weaknesses
 One of the advantage of making use of  On the other hand there are some of
2

internal recruitment is it reduce overall
time to hire talented employees. As
SKVP manager by promoting
employees to higher level can easily
promote smooth operation of business
and delivery of services to customer's.
 Another advantages is that it saves
money of company as it does not have
to incurred expense related to
advertisement for specific post in the
firm (Saks and Gruman, 2017).
the disadvantages of internal
recruitment create conflict among
employees. As most of the individual
wants to grow and develop within
organization.
 Moreover, it can be stated that it limit
pool of application as manager of
SKVP is planning to hire employees
form internal source only.
External recruitment approach: It is another approach which is used by manager to
recruit and select talented employees within organisation through different medium such as print,
web advertisement, social media and recruitment agencies. SKVP manager in order to promote
employees make use of social media platform as well as web advertisement that helps in getting
highly skilled employees in the company.
Strength Weaknesses
 SKVP can have employees that have
more innovative and creative skills or
fresh skills related to the way particular
task can be completed. Thus, it gives
opportunities to company to have
qualified, experienced and effective
employees in the firm.
 Through external recruitment SKVP is
able to bring new ideas and energy in
the firm. Thereby motivating
employees to effectively adapt changes
so that company can retained its market
 The biggest limitation of external
approach used by HR manager is that it
involves more time and cost to hire
talented employees.
 Moreover, it can be stated that
company needs to incurred cost in
order to provide training to employees
so that it can easily complete the task
(Ueki, 2017).
3

positioning.
Selection
On the other hand, it can be illustrated that selection is negative process which involves
scrutinizing of employees from pool of candidate to have talented and more skilled employees.
Therefore, several methods that are used by manager of SKVP to select right individual is online
screening, short-listing, interview, ability and aptitude test and many more. So, strength and
weaknesses of selection approach used by manager can be explained as follows:
Online screening: With development of technology, SKVP manager has planned to
make use of online screening method to select person. In it HR get application form through
email, scrutinizing the candidate on basis of qualification and experience thus contribute in
saving time and effort of HR (Mamatov and et.al., 2018). But weaknesses is that HR must have
better command on digital technology to select individual through online process.
Interview: This is also one of the approach used by SKVP manager as it has conducted
interview of candidate by asking them specific questions. So, on the basis of answer given by
individual manager take right decision to recruit or not.
Strength Weaknesses
Selection method contribute in identifying
best possible human resources that can work
hard for growth and success of company.
On the other hand, lot of time and efforts need
to be invested by manager to select right
candidates for benefits of organization.
TASK 2
P3.Benefits of different HRM practices to employees and employer
Human resource manager of SKVP by making use of various practices to motivate,
enhance performance and productivity of employees is able to provide maximum benefits to both
of them. There are different practices which has been used by manager to increase overall
capabilities and skills of existing employees so that company can enjoy maximum market share
and profitability (Moshonas, 2018). So, various HR practices that yield benefits to both
employee as well as employers of SKVP can be explained as follows:
4

Ensure safe, healthy working environment: The first practices that is performed by HR
manager is providing safe, healthy and workplace to several individual that are working in
organisation. Thereby, recruiting manager of SKVP by taking steps to provide more open,
friendly and safe environment to employees is able to motivate to give their best so that company
can enjoy huge market share. Provident fund and insurances policies are also some of the method
that contributed in ensuring safety of individual thereby increasing company productivity and
brand image.
Providing training and development: Another practices that has been performed by
manager of SKVP is providing training and development to employees about the way particular
task can be completed. Thus, it benefits employees of company as they are able to get
confidences about the way particular task can be completed so that end objectives can be
achieved. At the same time it benefits company as trained and developed employees contribute
more to growth and expansion of business (Maduravoyal, 2018).
Performance management: Manager of SKVP has also adapted practice of evaluating
of performance of each individual that helps it in understanding actual performance and the way
it can be improved so that maximum profit can be enjoyed by company. Thus, evaluation helps
employees to know their actual capabilities and put more efforts to enhance them so that they can
get higher success in professional career. On the other hand it benefits employers as it helps in
increasing employees performance and achievement of company goals.
P4. Effectiveness of HRM practices in relation to enhancing overall organisation profitability
and productivity
There are more HRM practices which has been promoted by manager so that company
can attract more and more customers and enjoy higher revenue, market share in future
circumstance. It by managing conflict, recruiting and retaining highly talented employees and
ensure healthy organization culture contribute in growth and expansion of SKVP in other places
of United Kingdom. Such as:
Management of conflict: SKVP manager in its practices has put its best efforts to
manage conflicts that arise between two or various individuals so that they are coordinate and
motivated to work together as team for achievement of common goals. Thus, manager by
reducing amount of conflict and confusion is able to influence employees to put their time in
delivering services rather than fighting with others (Kavanagh and Johnson, 2020). Thereby
5

increase overall outcome or production and satisfying needs of large number of individuals that
are residing in society.
Recruitment and retention of employee's: It can be illustrated that manager by
recruiting and retaining employees that have more capabilities, skills, knowledge and experience
is able to contribute company in retaining competitive advantages. Moreover, new employees
enhance competition in the firm thereby motivating existing employees to improve their overall
performance to get higher promotion or more success in future circumstance.
Healthy working culture: Organization culture also plays an important role in
motivating employees to work on their performance and productivity so that more benefits can
be enjoyed by company. SKVP manager by promoting healthy and positive working culture is
able to make optimum utilization of available capabilities and skills of talented employees.
Thereby it can be interpreted that healthy working culture practices adopted by manager of
SKVP has yield in increasing productivity and performance of company.
PART- 2
TASK 3
P5. Importance of employees relationship and its influence on HRM decision-making
Manager by focusing on building and retaining strong employee's relationship in SKVP
is able to provide more benefits to organisation. Every individual within firm has certain
relationship with its fellow ones that contribute in satisfying its social needs to some extend.
People like to share their feeling, ideas and opinion to others thereby manager by promoting
open communication has helped in developing strong relationship and growth of organization.
There are various reasons which clearly state why employee's relationship for SKVP such as it
leads in more engagement, satisfaction, more productivity of employees and creation of strong
brand image of company (Rigby and Ryan, 2018). Likewise: Strong relationship between
employees contribute in motivating diverse individuals to work together so that best outcome can
be achieved in minimum time frame. Coordinate employees are more ready to put efforts to
enhance productivity of company or provide better services to customer's for benefits of
organisation in longer run. Effectiveness of employees relationship and engagement in context of
flexible organisation, work practices and employer of choice can be stated as follows:
6

Flexible organisation: It is type of firm that is ready to accept change that are happening
in external environment to retained its market share and delivered the best value to customer's.
SKVP manager continuously analysis various opportunities and threat in environment in order to
make use of them or cope with threat so that company can grow and sustain for more time frame
(Hou, Hu and Butt, 2017). Therefore, strong relationship among employee's has contributed in
motivating employees to adapt change rather than resisting so that it can maintain its market
share.
Flexible working practice: It is type of working environment in which employers are
given flexibility to complete the task in whatever time they preferred. Such as there are various
work shifts in SKVP so employees have flexible working time to select in order to work and
contribute in higher growth and success of organization. Thus, it has provided more ease and
comfort to employees to complete the task in most effectively manner.
Employer of choice: It is company that provide healthy work culture and environment to
employees or more emphasized on well-being of individual. Thereby such type of organisation
normally fit each employee's as it helps in satisfying their needs in the best possible manner.
SKVP employers has ensured that all needs of employees are satisfied and their problem are
resolved in limited time frame thus it helps in building strong relationship with employees and
achievement of company goals (Maduravoyal, 2018).
P6. Key elements of employment legislation and its impact on HR decision-making
The employment laws refers to relation that company manager is having with its
employees, the employees have different right that represent the workers, company and the union
of the trade. The employment laws show how the staff should behave at the work place. These
laws are complex affair for SKVP. The company is following different type of employment laws
so that employees are satisfied at workplace and behave properly.
Employment Right Act, 1996: SKVP is following employment right law as this
involves different type of subject that employees have when they work in company or any other
organization. Redundancy, unfair dismissal and many more are the different type of issues that
can arise. Manager is using these laws to manage the human resource and the employees as well.
The human resource management is influenced by these act as human resource make sure that all
the employees in the SKVP are treated equally. The employees are able to get their employment
7

right and able to protect themselves from different unfair practises. Human resource make aware
its employee about the health and safety matter.
National minimum wages Act, 1998: This law is for providing the minimum wages that
has to be allotted to the employees who are working of SKVP. The provisions of these laws
constantly change as per the time so the company should have updated knowledge of this act. As
per this law, the human resource management uses to provide the salary keep in mind about this
law so that every employee get favourable wages.
Employment relations act 1999: This act includes different rights at work that are trade
union, industrial action, recognition and de-recognition. With the help of this company can grab
competitive advantage. The human resource have to fix certain rights for trade union, right of
negotiation that help SKVP to retain its employees interest in the company.
Workplace discrimination laws: This law is for the discrimination that most employees
face in their organization. Company is following workplace discrimination laws for that
employees get satisfied and work more effectively. Within SKVP, it is responsibility of
departmental managers to ensure that all rights that are offered to employees who are working
for the company. All the workers are treated in a common direction with equal opportunities.
TASK 4
P7. Application of HRM practice
Applying human resource management practices helps professionals to recruit and select
suitable candidate for vacant position. A decision is undertaken in SKVP about establishing
industrial kitchen, for which a job position of HR personnel manager is vacant. Administrators of
SKVP have applied following practices so that the vacant position could be filled as early as
possible:
Job Description
Job Description
Job Title: HR Personnel Manager in SKVP
Job Location: Birmingham, London as well as Manchester in United Kingdom
Job Summary: HR Personnel Manager is an individual that is responsible for managing
available human resource function for staff. Apart from this, HR Personnel Manager have
responsibilities to look after administrative works and assist employees for advancing together
8

with qualifying for promotions.
Reporting to: The HR Personnel Manager needs to report to HR Executive of the entity.
Working Condition: Friendly and healthy work culture will be provided to manager so that it
can devote more time to complete the task.
Job Duties:
 Initiating policies for staff
 Coordinating the strategies of various department
 Meeting requirements of human resource
Job Specification:
Job Specification
Qualification: MBA in marketing, bachelor degree.
Experience: 2-3 years of experienced will be required.
Training: Appropriate training will be provided
Skills
 Communication Skill
 Creative Skill
 Decision-making skill
 Good teamwork skill
Responsibilities
 Creating strategy and practices for growth of employees.
 Building effective workforce
 Generating awareness among staff.
 Enhancing human resource motivation and experience.
Emotional characteristics
 Self-aware
 Inspired
 Socially skilled
9

Job Offer Letter
Dear John Johnson,
This letter is to inform you that you are being appointed as HR Personnel Manager of SKVP
starting from April 21, 2021. From management side, I would happy to welcome you in our
organization wishing you all the best for the job.
Please refer the provided document to know more about the advantages, working hours with
timing and other detail of employment. Don't hesitate if there is any question directly contact to
HR department.
Wishing your success in your role welcome.
Thanks and regards
Human Resource Departmental
SKVP
Evaluation of process and rationale for conducting appropriate HR practices: It can
be evaluated that the HR Personnel Manager of SKVP has used better way of recruitment and
selection of employee's. As they created a good job description accordingly to need than they
have post that job vacancy on its website so that they can select good candidate from the
applicants who are interested in this. Company has organized interview so that they can select
best in them (Hou, Hu and Butt, 2017).
CONCLUSION
This file concludes that the human resource management is management of people that
are working for the organization the recruiting, motivating, controlling activities are done by HR
manager. The SKVP is an organization that is regularly making afford to make its products at
reasonable prices. The human resource is having different role and duty to manage the people of
SKVP so that they can enhance the productivity. Recruitment and selection have various
approaches which is undertaken by human resource department for smooth function.
10

REFERENCES
Books and Journals
Hasan, I., Islam, M. N. and Chowdhury, M. A. F., 2020. Transformational human resource
management: Crafting organizational efficiency. In Handbook of research on
managerial practices and disruptive innovation in Asia (pp. 264-281). IGI Global.
Hou, Y., Hu, B. and Butt, M., 2017. Are high-performance human resource practices in
organizations creative or noncreative?. Social Behavior and Personality: an
international journal. 45(2). pp.243-252.
Itani, S., House, H. and Lane, W., 2017. Ideological Evolution of Human Resource Management.
Emerald Publishing Limited.
Kavanagh, M. J. and Johnson, R. D. eds., 2020. Human resource information systems. SAGE
Publications, Incorporated.
Maduravoyal, C., 2018. Artificial Intelligence in Human Resource Man-agement. International
Journal of Pure and Applied Mathematics. 119(17). pp.1891-1895.
Mamatov, A. V and et.al., 2018. Information support system for regional human resource
development. Amazonia Investiga. 7(17). pp.426-432.
Moshonas, S., 2018. Power and policy-making in the DR Congo: The politics of human resource
management and payroll reform (No. 2018.01). Universiteit Antwerpen, Institute of
Development Policy (IOB).
Renkema, M., Meijerink, J. and Bondarouk, T., 2017. Advancing multilevel thinking in human
resource management research: Applications and guidelines. Human resource
management review. 27(3). pp.397-415.
Rigby, C. S. and Ryan, R. M., 2018. Self-determination theory in human resource development:
New directions and practical considerations. Advances in Developing Human
Resources. 20(2). pp.133-147.
Rothenberg, S., Hull, C. E. and Tang, Z., 2017. The impact of human resource management on
corporate social performance strengths and concerns. Business & Society, 56(3).
pp.391-418.
Saks, A. M. and Gruman, J. A., 2017. Human resource management and employee engagement.
In A research agenda for human resource management. Edward Elgar Publishing.
Ueki, Y., 2017. The roles of top management characteristics, human resource management and
customer relationships in innovations: an exploratory analysis. Asian Journal of
Technology Innovation. 25(2). pp.206-227.
Online
What is employment law?, 2020, [Online]. Available
through:<https://croner.co.uk/resources/employment-law/legislation-list/>.
Why employment legislation matters, 2020, [Online]. Available through:
<https://www.startuploans.co.uk/business-advice/employment-law-key-employment-
legislation-every-uk-business-should-know/>.
11