Importance of Employee Relations in Decision Making Process

This article discusses the importance of employee relations in the decision-making process and its impact on organizational productivity and success. It highlights the role of positive employee relations in retaining talented employees and enhancing overall organizational performance. The article also emphasizes the need for maintaining a healthy and positive work environment to foster effective decision-making.

HUMAN RESOURCE MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determine purpose and functions of HRM through which workforce planning and
resourcing can be done................................................................................................................3
P2 Evaluate strengths and weakness of various approaches of recruitment and selection.........5
TASK 2............................................................................................................................................7
P3 Evaluate HRM practice and their benefits for employee's and employers............................7
P4 Determine effectiveness of HRM practices through which organisational productivity can
be enhanced and profits can be maximised.................................................................................8
TASK 3 ...........................................................................................................................................9
P5 Explain the importance of employee relation which impacts decision making process........9
P6 Determine key components of employee legislations which can affect HRM decision
making process..........................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Demonstrate the application of HRM practices in workplace.............................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Human resource management is an strategic approach through which a business can
strategically plan all activities by following all functions of management. Several strategic
approach help management in managing all people effective and accomplish organisational goal
in most constructive manner. With the help of human resource management, a business can
strategically plan, organise, control and coordinate all functions of management through which
overall productivity of business can be enhanced (Binyamin and Carmeli, 2017). This approach
help business in enhancing employee performance and gain competitive advantage from their
practises. Zara operates in retail industry that provide quality products which includes perfumes,
clothing, accessories, shoes, beauty products and swimwear. Zara was founded by Amancio
Ortega and Rosalia Mera in 1975 in Spain. They provide their services through world and have
2270 stores. This project report is based on practices of human resource management through
which a business can gain competitive advantage and enhance overall performance of
organisation. This report covers all necessary information which is required to perform
operations of management effectively.
TASK 1
P1 Determine purpose and functions of HRM through which workforce planning and resourcing
can be done
Human resource management- Human resource management is a process through
which an organisation can recruit, train and develop employee's through which organisational
productivity can be enhanced. The human resource management of Zara aims to provide quality
products and services to their customers and focuses on their employee satisfaction from their
jobs by providing various employee benefit schemes and through recognizing and appraising
their valuable contribution towards the accomplishment of organisational targets and objectives.
Purpose
Human resource management aims to select potential candidates who can contribute in
enhancing organisation's performance and accomplish organisational goals and objectives
effectively and efficiently (Chakraborty and Biswas, 2019). The purpose of human resource
management in workforce planning and resourcing are stated below:
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 Career planning and development- Human resource management focuses on training
and development of all employees and through providing valuable feedbacks by which
they can enhance their performance and improve their knowledge, skills and
competencies for their desired job roles. Zara aims to provide opportunities to their
employee's through which they can develop career of their employee's. Such practices
help the business in enhancing employee performance which can help in utilizing
resources effectively and enhance employee participation in planning and making
decisions for achieve organisational goals (Chin, Yean and Yahya, 2017).
 Employee motivation- Human resource management aims to motivate their employees
through which a business can enhance employee performance and will increase their
willingness in participating in all activities of organisation. Through motivating
employee's, HRM can reduce employee turnover and absenteeism. Zara focuses on
motivating their employee's through appraising their performance and encouraging them
to participate in decision making and planning strategies for the organisation through
which they can make creative ideas for achieving organisational objective.
 Healthy working scenario- Human resource management aims to maintain positivity in
workplace through resolving conflicts on time and through treating all employee's
equally. Zara aims to maintain positive working scenario in the organisation through
interacting with each other, understanding others opinions and through resolving conflicts
on time.
Functions
The functions of human resource management can be classified into two categories which
can be stated as managerial and operative functions. The managerial functions include planning,
organising, directing and controlling functions of management (Ghasemi, Shahin and Safari,
2018). The operational functions of management can be categorised into various sub categories
which are related to procurement, development of employee's, compensation benefits, integrative
and maintenance functions of management. Several function of human resource management are
mentioned below:
 Planning and organising- One of the main function of human resource management is
to plan and organise functions through which a business can strategically plan all
activities and organise all the resources that are required for performing all tasks
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productively. Zara strategically plan their activities and organise their resources through
which they can set standards of performance, set their organisational goals and create
strategies which can help in accomplishing the targets in most productive manner.
 Controlling and directing- The function of human resource management is to control
and direct tasks and activities through which management can direct their employee's into
right direction which will enhance organisational performance and enhance
organisational productivity (Jordan, Ferris and Lamont, 2019). Zara controls the activities
that will be carried out in the management and guide their employees into right direction
through which organisational goal can be achieved effectively and efficiently.
 Employee participation and engagement- This function of HRM aims to improve
employee participation and engagement in several activities of organisation through
encouraging employees to participate and through appraising their valuable contribution
in accomplishing organisational targets. Zara focuses on encouraging their employees to
participate in all activities through which they can increase their employee engagement
and retention within the organisation. The company encourage their employees to
participate in planning strategies for business through which organisational targets can be
achieved.
P2 Evaluate strengths and weakness of various approaches of recruitment and selection
RECRUITMENT: Recruitment is an approach through which an organisation can select
right candidate at right time for desired job role. The strengths and weakness of various
recruitment approaches are stated below:
Internal approach- Internal approach of recruitment is a technique through which management
can recruit employee's who are already working within organisation. Such technique involves
recruitment of existing employee's through promotion and transfer. Through internal recruitment,
Zara aims to promote their employee's by which they can motivate and encourage their
employees and enhance their performance through which they can achieve the organisational
goal effectively (Lee and Lee, 2018).
 Strengths: Internal approach of recruitment help management to keep track of existing
employee's through which they can select right candidate. Through using internal
approach of recruitment, Zara appraise their employee's by promoting them for vacant
position based on their capabilities through which they can perform productively.
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 Weakness: Internal approach creates a barrier in recruiting new talents through which
efficiency, productivity and creativity of organisation remains static. Internal approach of
recruitment creates a barrier for Zara to recruit talented employee's who can perform
assigned tasks and activities more effectively.
External approach- External approach of management is a technique through which a business
can recruit potential candidates through using various approaches, such as promotions, job
boards, employee referral and other techniques. By using external approach of recruitment, Zara
aims to hire most talented employee's for desired job role (Lee, Park and Baker, 2018).
 Strengths: This technique of recruitment help business in selecting candidates from
talent pool through which a business can hire most suitable candidate for desired job role
who can perform all functions of management in most constructive manner. Zara use
external approach of management through which they can hire the most suitable
candidate for vacant position, build and maintain their goodwill in the industry.
 Weakness: External approach of recruitment creates lack of communication and
management can get negative feedback from candidates. This approach is also time
consuming and involves high cost. External approach of recruitment, Zara can receive
negative feedback from various candidate and this might hinder brand image of business.
SELECTION: Selection is a technique through which an organisation recruits and
selects right candidate for right vacant position who can perform operations of management
effectively and gain competitive advantage from their employee's (Liggans and et.al, 2019).
Some of the techniques that are used for selecting a potential candidate are mentioned below:
 Interview method- Interview method is one of the basic method of selecting most
desirable candidate who can perform all tasks and activities of management in most
constructive and creative manner. Zara use this approach which help management to hire
most competent candidate from talent pool who an use strategic and systematic
approaches of performing assigned duties and tasks.
Strengths: This approach of selecting candidates helps Zara in on-boarding most efficient and
skilled candidate through which they can enhance the overall productivity of the business as
selected candidate will perform assigned tasks and activities with creativity and innovation.
Weakness: This technique of selecting candidates opted by Zara is time consuming and use hight
investment cost.
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 Psychometric test- This approach of selecting candidates help management in analysing
their capabilities and their personality traits in each and every situation (Lucia-
Casademunt and et.al, 2018). By using psychometric test of selection, Zara observes
personality traits and characteristics of candidates through which management observes
their skills and competencies which are required to perform assigned tasks and duties.
Strengths: This selection technique help Zara to recruit most capable and competent employee
who can handle any situation and take effective decision through which overall productivity of
organisation can be enhanced and competitive advantage can be gained.
Weakness: This approach used by Zara for selecting candidates can make candidates nervous
and thus it is an expensive approach of recruitment. The accuracy of data collected by using this
approach of selection can be very low.
TASK 2
P3 Evaluate HRM practice and their benefits for employee's and employers
Selective hiring: This practice of human resource management help business in hiring
most suitable and potential candidate who can bring value to the organisation (Mahfod and
Khalifa, 2017). Zara use this practice of HRM through which they can hire exceptional
candidates who can perform assigned job roles and responsibilities in most constructive
approach. Various benefits of this HRM for employee and employer is mentioned below:
Benefit for employee's-
 Enhanced business growth: Through using selective hiring practice, Zara hire most
potential and competent candidate who is skilled enough to carry all operations that can
enhance the growth of business by using most effective and productive approaches for
completing the tasks and duties.
Benefit for employer-
 Build and maintain goodwill: This practice of HRM help Zara to create and maintain
their brand image in the industry through hiring the most suitable and desirable candidate
for desired job role.
Training and development: Training and development of candidates is an practise of
HRM through which management can access training needs by which employee skills,
competencies and their knowledge can be developed. Buy assessing training and development
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needs of employees, Zara monitors their employees and analyse their training needs which
needed to be provided for performing all tasks and activities effectively and efficiently (Malik,
2017). Various benefits of this HRM for employee and employer is mentioned below:
Benefit for employee's:-
 Job satisfaction- Through training and development, Zara aims to develop competencies
and skills of all employee's through which they can effectively perform all tasks and this
will increase the willingness of the employees through which they can get maximum job
satisfaction from their job's.
Benefit for employer-
 Reduced employee turnover and absenteeism- This HRM practice help Zara in retaining
talented employees by developing their skills and competencies which will increase their
knowledge and willingness in participating and in accomplishing organisational goal in
most constructive and creative manner.
P4 Determine effectiveness of HRM practices through which organisational productivity can be
enhanced and profits can be maximised
Human resource management is an systematic and strategic approach through which
business can enhance their productivity, earn maximum profit and gain competitive advantage
from their operations (MYLONI, 2017). Some of the HRM practices and their effectiveness
enhancing productivity and earning profits have been quoted below:
 Selective hiring- This practice of HRM help management to hire most suitable candidate
for desirable vacant position who can perform assigned job role effectively and
efficiently. By using this practice of HRM, Zara hire right candidate at right time for right
job role which the business can enhance their organisational productivity. Selective hiring
approach of Zara help business in hiring desirable candidate who perform assigned job
role by using innovative methods which can enhance organisational productivity and
maximum profit can be earned.
 Training and development- Training and development is an practice through which
management an asses the training requirements and provide training sessions to their
employees. In context of Zara, organisation asses the training requirements of their
employee's through which they can provide training session on time which will enhance
their skills, knowledge competencies for performing their assigned job roles and
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responsibilities. These HRM practices improves employee performance which enhances
overall organisational productivity and maximum profits can be earned through
competent employee's by using various innovative approaches (Newell and Scarbrough,
2017).
TASK 3
P5 Explain the importance of employee relation which impacts decision making process
Employee relation- It is a relationship between the employer and employee which
directly or indirectly influences all functions of management. The organisation must focus on
maintaining healthy and positive employee relation through which management can retain
talented employee's who can contribute in achievement of organisational goal n most
constructive manner. By maintaining positive employee relation, management can make
effective decisions through which all activities can be carried out through using most innovative
approaches (NIKOLETT, 2019).
The employee relation within Zara is one of the key factor that promotes healthy working
scenario, performance of overall organisation can be enhanced and most productive decisions
can be taken through effective interaction between the employer and employee. Some of the
importance of employee relation which can influence decision making process, are highlighted
below:
 Employee satisfaction: Employee satisfaction from their job role is a key component for
effective performance of employees which can be met through providing quality services,
understanding opinions of employee's and encouraging them to participate in all activities
of business. The retail industry Zara focuses on valuing their employee's through which
they can enhance employee engagement and management can met the employee
satisfaction. With satisfied employee's, Zara can make effective decision as such
employee's will use creative and innovative approaches for making a final decision
through which organisational productivity can be enhanced (Obeidat and et.al, 2020).
 Employee productivity: Through providing training and development opportunities to
employee's, it can enhance the productivity of all employee's that can be beneficial for
overall organisation and through this organisation can gain competitive advantage. Zara
monitor and analyse the training requirement of all employee's through which they can
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enhance employee productivity and encourage employee's to make effective decisions
through which business can gain maximum profit and use constructive approaches for
effective management.
 Employee engagement: Through encouraging all employee's to participate in activities
and in decision making process of management help business to maintain healthy and
positive working scenario through which they can engage maximum employee's who will
use innovative approaches and make productive decisions through which all activities of
management can be carried out effectively. In context of Zara, employee engagement is
one of the key factor that can enhance employee performance and encourage employee's
in using innovative and constructive decision making process.
P6 Determine key components of employee legislations which can affect HRM decision making
process
Employee legislations- Employee legislation is a composition of employee standards,
labour retention and other rights of employee's. These legislations states all the rights of
employee's and also regulates employer and employee relation (Ouyang and et.al, 2019). All
laws, rules and regulations are stated by government can also create an impact on decision
making process of management. Zara aims to follow all protocols, rules and laws that are
required to be followed by companies. These legislation acts also help business in building
effective and constructive decisions through which management can gain competitive advantage
from their operations. Some of the employee legislation acts are quoted below:
 Wages and Salary Act, 1996- This legislation states that employees must get salary
based on industry average. A minimum amount of wages must be provided to all
employee's based on their job role. This act help employee's to know their rights for their
salaries and employer cannot take advantage from all employee's. Zara provides fix
remuneration to all their employee's as the business have good and sound salary structure
through which they can motivate their employee's and retain their top talents.
 Sexual Harassment Act, 2013- This employee legislation act focuses to protect
employee's of management fro people who misbehave and provide safety and security fro
such misbehaving personalities (Panda and Sahoo, 2017). This act states that any sexual
offense or any inappropriate behaviour incurred in an organisation with employee's will
not be tolerated and legal actions can be taken against organisation and employer. Zara
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follows strict rules and regulations and make their employee's aware about such
employee rights where they can take actions against such code of misconduct. The
organisation aims to make their employee's feel safe in workplace.
 Equality Act, 2010- This employee legislation act states that all employee's must be
treated equally through which business can retain maximum talented employee's, utilise
resources effectively and enhance overall productivity of organisation. This act states that
all employee's are equal no matter their age, gender, religion, cast, values and beliefs and
they must be treated equally without doing any discrimination (Ramaprasad and et.al,
2017). Zara operates with employee and customer centric approach through which they
make their employee's feel valued in their organisation and it also helps business in
enhancing performance of employees and of overall organisation. By treating all
employee's equally, Zara can promote diversity in their workplace and all employee's can
get maximum opportunities for their career growth.
TASK 4
P7 Demonstrate the application of HRM practices in workplace
Human resource practices followed in workplace help business in attracting and hiring
best candidate who is potential, competent and skilled who can follow all functions of
management in most desirable and effective manner.
Job specification- Job specification is an layout through which business states all
necessary roles, responsibilities, tasks and duties of specific job role that needed to be performed
by that individual. Zara is hiring for an talented HR Manager who can perform all activities of
management and make organisational change through which business can gain competitive
advantage. For the required vacant position, Zara have stated all the roles and responsibilities
that needed to be carried out by selected candidate (Saks and Gruman, 2017). The job
specification provided by Zara has been mentioned below:
JOB SPECIFICATION
Company: ZARA
Job position: HR Manager
Job purpose: The purpose of HR Manager is to make organisational changes which can
enhance productivity of business. HR Manager must follow all functions and activities through
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which they can review organisation's effectiveness. The HR Manager must review performance
of all employee's through which they can provide them valuable feedbacks, improve employee
performance and contribute in growth and success of organisation.
Roles and responsibilities:
 Ability to strategically plan and implement all planned activities
 Ability to manage team effectively
 Is skilled and have proper knowledge about HRIS
 Must be able to maintain positive working scenario
Required experience and skills:
 Minimum 5 years of experience as an HR
 MBA from a recognised university and in HRM field
 Good communication skills
Curriculum Vitae:
Kevin Pearson
Address: GH Street 12th lane, London, UK
Contact no: 00786-21630
Objective: To work in an well recognised organisation where I can enhance my career and gain
knowledge in my domain which is human resource.
Work experience:
 Total 3 years of work experience
 Worked as an assistant HR Manager for 2 year
 Worked as an HR Executive for 1 year
Qualification:
 Bachelor's degree in Business Administration
 Master's degree in Human resource management
Preparatory notes for interview
1. To analyse the interviewee and their knowledge about the company and about job roles
and responsibilities.
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2. Observe resume of desirable candidate and check their awareness about their stated
information.
Offer letter
Dear Mr Kevin Pearson,
We are glad to inform you that you have been selected for the vacant position of Human
Resource Manager for our company, Zara.
Job roles and responsibilities:
 Must be able to use HRIS software
 Must analyse the training requirements within business and conduct necessary training
sessions
Salary offered: $30,000
Working Hours: 10:00AM – 6:30PM
Process of recruitment
There are several stages of selecting and hiring a desirable candidates which are followed
by the organisation:
 Telephonic interview: This stage involves screening of employees which can be done
through calls by which right candidate can be shortlisted.
 Versant round: This round help organisation in checking the competencies, knowledge
and communication skills of desirable and shortlisted candidates.
 Face to face round: This is the final round in which face to face interaction is done and
several question are asked on the basis of that most suitable and talented candidate is
selected for vacant job role.
Evaluation of recruitment process and rationalise HR practices that are conducted
This recruitment process followed by Zara help company to hire most potential and
talented candidates through which organisational goals can be accomplished effectively. The
above stated recruitment process is time consuming and is an expensive method but will ensure
pool of candidates that aid in accomplishing stated organisational objectives.
For enhancing employee performance in Zara, management use intrinsic and extrinsic
rewards by which they focus on motivating and retaining employee's. Human Resource Manager
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of Zara observes the performance of all employees and provide them regular feedbacks through
which they can improve their performance and enhance overall productivity of business.
CONCLUSION
Human resource management is an strategic and systematic approach through which
business can plan, organise, direct, control and coordinate the functions of management. Human
resource management aims to enhance organisational productivity of overall business through
which they can gain competitive advantage and maximum resources can be utilised. There are
several approaches and practices of HRM through which a business enhance their performance
and accomplish organisational goals in most constructive manner. HRM practices help
management in retaining their talented employees and boosting their morale which will improve
efficiency and performance of employee's and of overall organisation. Various strategies are
opted by management to retain talented employees that can contribute in accomplishing
organisational targets. There are numerous laws, rules and regulations that are followed by
management through which they can fulfil government requirements, provide safety and security
to employee's and provide other benefits to their employee's.
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