Importance of Human Resource Management

This assignment delves into the significance of human resource management (HRM) within an organization. It highlights how HRM plays a vital role in workforce planning, resourcing, and selecting the right candidates for positions to achieve organizational goals. The essay also touches on different HRM practices that are beneficial for both employers and employees, as well as evaluating organizational profit and productivity.

Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Purpose and function of HRM, applicable in workforce planning and resourcing an
organisation............................................................................................................................3
P2 Strength and weaknesses of different approaches to recruitment and selection process. .5
TASK 2............................................................................................................................................6
P3 Benefits of HRM practices for both employer and employees.........................................6
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.............................................................................................................................8
TASK 3..........................................................................................................................................10
P5Analyse the importance of employee relations in respect to influencing HRM decision
making..................................................................................................................................10
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making...................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Illustrate the application of HRM practices in a work related context, using specific
examples...............................................................................................................................12
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17

INTRODUCTION
Human Resource Management is practice of recruiting, hiring, developing and managing
an organisation's employees. It is basically defined as process of managing, hiring, training and
development and motivating employees in an organisation (Foster, 2014). Moreover, it is a way
in which a firm hires new employees so as to ensure effective utilization and maximum
development of human resource, satisfy both individual and organisation. In this report, chosen
organisation is HSBC Bank. It is a British multinational banking and financial services holding
company as well as 7th largest bank in world. HSBC is organised within four business groups that
is commercial banking, global banking and marketers, retail banking and health management and
global private banking. This report is going to analysis purpose and function of human resource
management, strength and weakness of different approaches in selection and recruitment
process. Moreover, importance of employees relations influencing HRM decision making and
impact of employees legislation is defined. Further, application of human resource practices in a
work related context is discussed in this project.
TASK 1
P1Purpose and function of HRM, applicable in workforce planning and resourcing an
organisation.
Human resource management is an strategic approach to effective management of an
organisation that help both employees and firm to gain competitive advantage. (Pattanayak,
2018). The human resource management function is concerned with hiring, motivating people in
an working environment of an organisation. In organisation context of HSBC, employees are
consider as life bone for an organisation. There are some purpose and function of human
resource management are as follows:
Purpose:
It is management process effective in development of employee's work related skills,
knowledge and experience. Moreover, to work together in order to improve performance and
meet organisational goals and objectives.
 Internal employee engagement: Human resource management has various key
purposes as productivity of an organisation directly result with quality of employees.

HSBC human resource management implements purposes and policies that are necessary
to attract its employees and retain a quality workforce.
 Staffing: The main purpose of staffing is employee's recruitment, screening and selection
performed within an organisation or business in fulling job openings. This process help
mangers of HSBC, to select the right candidate for right job. Further, it is beneficial for
both individual as well as organisation to meet its goals and objectives respectively.
 Cultural sensitivity: Human resource management maintains cultural awareness among
employees as responds to needs of an individual and multiple division (Armstrong and
Taylor, 2014). The employee's of HSBC are form different regions, state and city. They
are conducting effective session and activeness that employee's feel comfortable in
working environment without any difficulties.
Functions:
Human resource management function are applied for acquiring, developing,
maintaining and providing remuneration to its employees. It function are designed to carried out
order to maximise both employees as well as organisation.
 Recruitment and selection: Recruitment and selection process is very important function
of every organisation. It is process of captivating, screening and selecting potential and
qualified candidates. HSBC implement this process very effectively for selecting right
candidate for right job for fulling goals and objectives of an organisation.
 Orientation: Orientation is the fundamental function of an organisation as it helps new
employees to feel comfortable in working culture. HSBC, provides this program that
includes goals and objectives of organisation to employees in order to achieve long term
and short term goals of respective firm. Further, it helps an individual to know is rights
and duties of their job position.
 Maintaining good working condition: It is basic and important responsibility of human
resource management to provide good working condition to its employee. HSBC,
provides good safe and comfortable working environment to their employees to carry out
their work effectively (Bratton and Gold, 2017). Moreover, they motivate their
employees to tackle new challenges and opportunities and contribute their best to achieve
organisation goals.

 Managing employee's relation: Employee's are pillar of an organisation. Managing
employee's relationship is crucial task of human resource department. HSBC, human
resource management are managing employee's relationship very keenly in order to
reduce conflicts and misunderstanding among employers and employees. Well panned
employees relation will promote a healthy and balanced relationship within an
organisation. Thus, it is key for an organisation to success in competitive edge.
Nature and scope of strategic human resource management
Strategic management is well defined approach that is based on effective principles and
process to recognise corporate objectives of an organisation. Its process and beliefs are
determined to control affiliation in vibrant environment. Moreover, its describe approaches and
procedures to help management to attain its objectives and strategies.
Hard and Soft HRM
Hard HRM is very instrumental and practical approach, in which employees are consider
a resource of an organisation. It also help to control resources and achieve best possible profit
and competitive advantage.
Soft HRM emphasises on individual and their self direction and places, commitment,
trust and self regulated behaviour. More over it treats employees as most important resources in
business. Thus, both soft and hard HRM are beneficial for HSBC
P2 Strength and weaknesses of different approaches to recruitment and selection process
Recruitment is process of identifying needs to appoint an individual for post arrived in an
organisation. Selection is a process of selecting right and qualified candidate to fulfil suitable
post in an organisation (Briscoe, Tarique and Schuler, 2012). The recruitment and selection
process is one of most important aspect of running existing and new established business.
Managers of HSBC has applied this process in order to attain a deserving candidate for right job
position in their organisation. That is beneficial for their organisation as well as help to fulfil
need of an individual respectively. Recruitment and selection process is divided in two parts:
Internal recruitment: Internal recruitment process is method of identifying and
attracting candidate's within an organisation. This method is usually used by large organisation
where in any one department of employees are not aware of opportunities in an organisation
through informal modes of communication (Brewster and Hegewisch, 2017). From this

recruiting method HSBC will have certain benefits over recruiting from outside, also have some
critics.
Strength of internal recruitment and selection process Reduce time to hire: This process will reduce time for hiring and selecting right
candidate. Conversely, as internal heir candidates are already part of workplace they are
well know about working criteria of respective organisation. employees engagement:
Promoting or hiring employee for some other post, it will lead to increase to add value
and productive for HSBC. They are providing opportunities to move an employee to
other level of position in an respective organisation.
Weaknesses of internal recruitment and selection process
 Limit of pool candidate's: If the mangers of HSBC are hiring from existing employee
for new post. Thus it lead to decrease to bring new opportunities and new ideas in an
organisation.
 Result in inflexible culture: Hiring from internally may result in a stagnant culture for
HSBC. Because employees of respective organisation gets extreme level of comfortable
with ways of things are done in an organisation. Thus, it may result into problematic in
leadership position and may result to bring changes to in current working culture.
External recruitment: External recruitment makes it possible to draw a wider range of
fresh talent and provides opportunities to bring new and experience and ideas in an organisation
(Chelladurai and Kerwin, 2017). If mangers of HSBC are recruiting from this method it will be
beneficial for them.
Strength of external recruitment and selection process:
 Increased chances: Increased chances provides better availability of skilled and
qualified employees for HSBC organisation. From this process they will have wide
variety of fresh and talented candidate who owns knowledge and ability to handle job
position they are appointed.
 Fresh skills and input: It will help managers of HSBC for having advance opportunities
of candidates of delivering new skills and inputs for better performance of their
organisation.
Weaknesses of external recruitment and selection process:

 Internal disputes with existing employee's: If managers of HSBC are considering fresh
candidates rather than from existing employee than there may be higher possibility on
internal disputes. Eventually, this kind of dispute will lead things completely different
from the existing culture of an organisation.
 High cost: This process complete deals with mainly new process of hiring and selecting
candidates. Managers of HSBC need to come up with high pay scale for selecting right
candidate that suits job profile. Further, it turns out things lit bit costly as they are in need
of new creative ideas from potential candidate's.
Here HSBC has chosen external recruitment and selection process as to have new fresh inputs
foe their organisation. Such as new ideas and innovation from skilled and qualified employees.
But this process to have disadvantages as high cost in recruiting new employees and may also
lead to internal dispute among existing employee's.
TASK 2
P3 Benefits of HRM practices for both employer and employees.
It is a planned approach for developing and managing people in organisation for effective
performance. It helps in achieving departmental objectives and enhances productivity. HRM
practices are basically concerned with employee compensation and benefits and resolving
conflicts among employer and employee (Budhwar and Debrah, 2013). Hence, creating a healthy
motivating environment at workplace. HRM have responsibilities in organisation which protects
the interest of both employer and employee. For employers HRM practices help in maintaining
and managing employee relations and for employees itprotect their rights ensuring employers
operate within scope of employment and labour laws.
Benefits of HRM practices for employees and employers.
Benefits for employees Benefits for employers
Training and development-Employees are
provided training to improve their skills and
enhance work performance. It also allows
employees to develop a career track and grab
further potential opportunities. Mangers at
HSBC bank provide training and development
Analysing benefits and cutting cost- It can
reduce company's cost with link to its turnover,
hiring and replacement of workers (Buller and
McEvoy, 2012). It helps in recruiting
employees with necessary skills and expertise
and increasing profits of organisation. HSBC

needs to its employees to increase their
properly, gives guidelines where the employee
is not performing functionally which brings
back them to track and enhance customer
satisfaction at banks.
bank should provide employee benefits such as
providing compensation benefits for their extra
working hours which most likely attract and
retain them. In turn reduces company's cost of
managing employees
Creates pool of information resource-
Employees are provided with enough
information who feels their rights have been
violated. They are provided with information
regarding to employee benefits, leave of
absence, employee assistance programmes and
other compensation benefits which motivates
them to work functionally. Managers at HSBC
bank provide information regarding new
policies which are benefited to them and also
provides information regarding changes in
policy or scheme which creates healthy
environment at work place (Purce, 2014).
Resolving conflicts in turn increasing
productivity- Good employee relations helps
in achieving high satisfaction level throughout
workforce. These practices provide support to
employees who feels that their rights have been
violated. They interpret anti discrimination and
harassment laws and assist employees with
legal matters. HSBC mangers should resolve
conflict among the employees and the
employers or between employees themselves to
effectively manage the performance, provide
solutions to immediate problems and increase
performance and productivity.
Employee Engagement- When HRM
practices are followed by respective companies
it creates a sense of loyalty in their employees
which motivates them to effectively work for
the organisation. Employees feel themselves
valuable and work accordingly. Management
practices at bank should be engaged towards its
staff which assures them to work for the
organisation to achieve goals and increases
their commitment towards their work.
Recruitment and retention- Obtaining
qualified workers, providing appropriate
training, encouraging them to further increase
their education and awarding them with
benefits and compensation drives organisation
to achieve success. It help organisation to
recruit talented candidates according to job
requirement. HRM practices allows HSBC
bank to get the knowledge candidates which
are required to carry specific job and increase
productivity of the bank.

These all practices creates a healthy environment and provides benefits to its employees
and employers.
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.
Those practices which enhances ability of workforce, providing motivation to its
employees and lead to increase in profit and productivity of its business. These practices are
important for organisations to ensure higher organisational performance. There are different
HRM practices which organisation adopts to enhance their performance.
 Payment and reward management- Payment and reward management is concerned
with formulations and implementation of policies that provide fair and equitable reward
in accordance to value of organisation (Nickson, 2013). It is a pay control system which
covers salary and other benefits of employee. Main benefits of providing fair payment to
employees is to motivate employees to work with great enthusiasm and zeal which in turn
increase organisation profit and productivity and sustain it for long term. HSBC Bank
providing fair and equal distribution of remuneration along with certain perks and
benefits increases dedication of employees towards their work and helps bank to provide
better services to its customers and hence increases profit of respective bank.
 Employee performance management and monitoring- It is an systematic approach
which continuously identifies, measures and develops the performance of individual
workforce in organisation (Pieper, 2012). Hence it is both an systematic and integrated
process by which overall performance of an organisation can be improved by enhancing
performance of individuals within team work. Monitoring allows managers to review
employee performance and provide feedback to employees towards reaching its goals.
Performance management and monitoring of its employees hep them to work under
supervision of managers which provide them solutions to problems they arise which help
them to fulfil their task properly without any problem and helps in increasing
productivity of organisation. HSBC bank should monitor performance of its employees
by providing adequate training and guidelines and helps in achieving higher profits and
target large customer base.
 Flexible working options- These HRM practices provides creative approaches for
completing task and providing balance between work and personal commitments (Kim,

2012). There are flexible work options such as compressed work schedules, job sharing
or part time work which offer employee suggestions and helps in managing work
schedules with their other personal commitments and which increases employee
dedication towards their work and employee feels valuable start enhancing performance
which increases productivity of organisation. HSBC bank employees are always
burdened with work they should provide some flexible options such as sharing of work
between employees to motivate them to complete task completely and achieve higher
profits.
 Learning, development and training practices- Training is and learning process which
involves sharpening of skills and changing of attitudes to enhance performance of its
employees (Kehoe and Wright, 2013). On the other hand development is much more a
elaborated term, emphasizing on employee growth and development. Organisations
involved in providing such services increases productivity and profits by more utilisation
of resources. HSBC Bank should adopt such learning practices for its employee to
improve their skills and enhance their performance by conducting monthly training
sessions for its employees to sharpen their abilities of conducting task effectively and
efficiently.
These all HRM practices adopted by HSBC bank helps to motivate employees by
increasing their skills and knowledge which increases its profit and productivity.
TASK 3
P5Analyse the importance of employee relations in respect to influencing HRM decision
making.
Employee relation means efforts of company to maintain relationship between employers
and employees. An organization which has good employee relationship program gives fair and
equal treatment to all employees so that they will committed to their jobs and be loyal to
company (Salvendy, 2012). It generally deals to avoid and resolve issue concerning individual
which arise in workplace. When an employer involve employees in decision making process, it
will contribute in success of the company. In HSBC employer maintain healthy relationship with
their employees and involve them in decision making process. There are certain importance of
employee relation which influences HRM decision making process mentioned below:-

Productivity:- When superior involve employees in decision making process they
achieve professional and personal value in an organization and its overall success. This leads to
increase in productivity because by this employees are contributing in various activities of
company and want to be succeed overall. It is beneficial for the employees as well, it provide on
the job training to employees which increase responsibilities, expand employees skills set and
prepare them for future additional responsibilities. HSBC involves their employees in decision
making by which they get numbers of new ideas which leads to productivity and loyalty of
employees toward company.
Teamwork:- If employer involves employees in decision making it gives them
opportunities to say their opinion and to share their knowledge with others, it improve
relationship between superior and subordinates which leads to strong sense of teamwork among
workers. Through this every co worker open with each other and present individual strength to a
project. For respective company it is good way to gather information about employees and
effectiveness to work in a team environment and to whom training is necessary, all of this leads
to increase in effective good teamwork and performance of HSBC.
Internal Resources:- An organization must use their employees in decision making
process rather than outsource, it save money, time and give company corporation well person
which assist them in long term (Drucker, 2012). Outsourcing from consulting firm is expensive
and time consuming for company. HSBC aware their employees about these process which
motivate subordinates to participate in decision making process.
Improving Moral:- Many organization delegate powers between management and
workers, actively participation in decision making low gap and open lines of communication
between superior and subordinates (Harrison and Lock, 2017). Employees of HSBC participate
in decision process and understand that their ideas are play important contribution in their
company. All these power influence result of their work which leads to maximise job
sanctification and positive attitude towards their position and respective company.
Conflict Resolution:- If an organization involves their employees in decision making
process, through it they will understand each other and feel free to discuss any problems to
higher authority and management which create friendly and effective working environment in an
organization, it will reduce situation of conflict in workplace. HSBC maintain good working
surrounding which leads to less conflict. To maintain this superior delegate tasks to employees

so that they concentrated on tasks which is in their hand it help in arise productivity because
happy workforce is a productive workforce.
Trade Union :- Trade Union are important because they create standard for education,
skill levels, wages, working condition and quality of life of employees or workers. They
basically represent the workers in front of employer and negotiates on behalf of them to secure
better wages and working conditions.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making.
Employee legislation is the law which govern employees, employer and management
who work within workplace and it affect employer, employees and unions directly. Main aim of
employee legislation is to maintain relationship between business and its employees. By various
relevant legislation both employers and workers can ensure their process of hiring, dismissal
process and other workplace law to maintain fair surrounding for everyone. The rules and
regulation that are adopted by HSBC are mentioned below:-
Sex Discrimination Act:- This is an Act of the parliament of United Kingdom establish
in 1975, it protect men and women from discrimination on basis of sex or marital status. This
Act concerned about employee employment, training, education, harassment, provision of goods
and services and disposal of premises. Managers of HSBC make such HRM practices in
organization related to sex discrimination, that no one discriminates anyone on basis of sex and if
anyone do so they must get some strict punishment.
Disability Discrimination Act:- This Act is establish in year 1995 and it deals with
discrimination on basis of person's disability in employment, education, access of goods, services
and premises (Salvendy, 2012). This Act is created to promote right of employee with disabilities
and confirm that they are not suffer from discrimination due to their disability. To protect rights
of disables employees HR manager of HSBC created rules and law so that they feel protected
and safe in respective organization. Manger should done some HRM practices for disables
people to motivate them so they feel connected to the organization.
Holiday and Pay Act:- This law is enable by Minister of Labour in 1938 and it tells
about paid holidays such as government announced holiday, maternity leaves or sick leave off in
an organization. According to this employees eligibility criteria to receive holiday pay start as
soon as they become employees of company, there must be no waiting period as it is commonly

the case of vacation pay. HR manager of HSBC must fix holidays criteria and number of days to
their employees so that their will be no confusion should be on the basis of leaves and pays.
Minimum Wage Act:- It is establish in 1998 across the United Kingdom and from
1April 2018 it was £7.83 per hour for workers whose age is over 25, £7.38 per hour for workers
whose age is between 21 to 24 and workers whose age is between 18 to 20 they will get £5.90
per hour (Drucker, 2012). HSBC HR manger decide their employees payment or salary
according to the law so that their will be no discrimination is done on basis of salary.
Equality Act:- This Act is established in 1970 and revised in 2010, the purpose of this
act is treat equal to every employees in organisation, their must be no discrimination on basis of
age, disability, gender, marriage, race, religion or belief and civil partnership. It is responsibility
of human resource manager to make reasonable adjustment at their workplace to overcome
barriers experiences by disable people. HSBC must create different department which take care
of all rules and regulation in their organization and who also solve problems of employees who is
suffer from discrimination and punish the person who do so and do HRM practices or activities
in which they aware workers about all the rules and regulation of the workplace.
TASK 4
P7 Illustrate the application of HRM practices in a work related context, using specific examples.
Their are numerous of HRM practices done by Manager in HSBC to maintain smooth
running of an organization (Harrison and Lock, 2017). It involves all things from recruiting right
person to managing all other things like exit interview, employees engagement, motivation etc.
Some major practices done by Manager of HSBC are describe below:-
Job Description:- It is written statement which contain essential components of job
which include summary of work to be performed, primary duties, responsibilities, minimum
qualification, salary etc. It is summary which is derive from analysing of job. HSBC publish Job
specification for Finance Manager that is given below:-
Company:- HSBC
Job Details:
Job Title:- Finance Manager
Department:- Finance
Reporting To:- Head of Financial Management & Planning

Job Type:- Full Type
Salary:- £63,240 per year
Location:- London
Job Purpose:
 To lead team of Finance Manager and Assistant Finance Managers.
 To responsible and leads for monthly reporting of income and expenditure.
 Support Financial Manager and Assistant Finance Manager in creating Cash Releasing
Efficiency Scheme (CRES) and financial modelling.
 Support the Head of Financial Management and Deputy Chief Financial Officer in
delivering corporate task.
Responsibilities:
 Manage and handle whole finance team .
 Assign and get work done through team and solve their problems.
 Collecting, interpreting and reviewing financial information.
 Predict future financial trends.
 Prepare and present financial reports related to budget, account payable etc. to head of
financial department.
Interested candidates kindly send their resume at [e-mail] or contact on given number.
Thanks & Regards,
XYZ,
HR Manager,
HSBC, London
08870754379
Person Specification:- It is a description of individual qualification, skills, experiences,
knowledge and attributes which required to perform the job duties. The job specification is
derive from job description and forms foundation for recruitment process. Personal specification
of Senior Finance Manager create by HSBC is mentioned below:-

Personal Specification:
PERSONAL SPECIFICATION
JOB TITLE:- SENIOR FINANCE MANAGER
Experience Necessary Demanding
Working experience as a
Financial manager or
executive
3-4 years Minimum of 3 Years
Skills/knowledge/cognition Necessary Demanding
Skills and certification in
computer technology
Certified diploma in
accounting software
A Grade
Qualifications needed in
educational sector
Necessary Demanding
 Graduate (Accounting
& Finance)
 Masters in Business
administration
(Accounting &
Finance)
 Chartered Accountant,
Company Secretory
 Advance diploma in
finance
Minimum working should be
in Accounting & Finance
A Grade
Personal skills Necessary Demanding
 Excellent knowledge
of taxation, policies,
norms, auditing etc.
 Knowledge of
accounting software
Candidate should have know
different communicating
languages so that they can
communicate with the
students from different
English(UK),(US) and (AUS),
Spanish and French.

(Essential)
 Experience in
Computer fast
accounting.
countries.
Interested candidates kindly send their resume at [e-mail].
Time of reporting: 10:00 am to 07:00 pm
Curriculum Vitae:- It is a written document which contain all essential information
about candidates who is going to apply for job such as education, personal details, experiences
etc. CV of a person who is going to apply for Senior Finance Manager at HSBC is given below:-
Curriculum Vitae
Name:- ABC
Contact Number:- 05178969312
Email Id:- [e-mail]
Address:- 27 Old Gloucester Street, London
Position:- Senior Finance Manger
Strategic leader with excellent interpersonal skills who build and maintains strong relation while
motivating teams and complete projects successfully.
Key Skills:
 Financial Analysis & Forecasting
 Research & Data analysis
 Risk & Portfolio Management
 Creative thing and problem solving
Professional Experience:
Company :- SCOTIA BANK
Duration:- 2nd Feb 2015 to present
Position:- Senior Financial Manager
 Manage and handle whole finance team .

 Assign and get work done through team and solve their problems.
 Collecting, interpreting and reviewing financial information.
Educational Qualification:- Masters ( Finance & Accounting)
University of College London
Year- 2014
CONCLUSION
From the above discussion it has been concluded that human resource management plays
very effective and crucial role for an organisation. It helps human resource director to know
importance of purpose and function applicable in workforce planning and resourcing. As well as
strengths and weakness where they were lacking behind in recreating and selecting a right
candidate for right position in order to achieve is gaols and objectives. Moreover its also help
HSBC to know different practices of HRM that is beneficial for both employers and employees
as well as evaluating organisational profit and productivity. Thus, human resources management
department is lifeblood of an organisation

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