Benefits of HRM Practices for Organizational Profit and Productivity

This article discusses the benefits of different HRM practices within an organization for both employers and employees. It explores the importance of learning, development, training, and reward management in improving organizational profit and productivity. The effectiveness of these practices in terms of raising organizational profit and productivity is also evaluated.

Human Resource
Management
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1. Purposes and functions of HRM which are applicable to workforce in planning and
resourcing....................................................................................................................................1
P2. Description of strength and weakness of different approaches of recruitment and selection
.....................................................................................................................................................3
TASK 2...........................................................................................................................................5
P3. Describing the benefits of different HRM practices within organisation for both employer
and employees.............................................................................................................................5
P4. Evaluate the effectiveness of various HRM practices in terms of raising organisational
profit and productivity.................................................................................................................6
TASK 3............................................................................................................................................7
P5. Analyse the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................7
P6. Identify the key elements of employment legislation and impact it has upon HRM decision
making.........................................................................................................................................8
TASK 4............................................................................................................................................9
P7. Illustrate the application of HRM practices in work-related context, using specific
examples......................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Human resources management is the main process which is required at every place and
maintaining the good performance of a business. This is people who have ability and knowledge
about policies and regulation that are used to run a business by influencing employees. This is
important for management there should be a HR manager who can understand the problems and
formulates policies for the purpose of running business and increasing profits (Beaven, 2012). To
understand about HR and its policies Mark and Spencer has been taken that is multinational
retailer company headquarter in London. This is specialises in selling high quality of clothes,
food products and home products which helps to fill the customers requirement and running
business efficiently. This report covers different topics such as functions of HRM, different
approaches which re related to recruitment and selection, methods to recruitment and legislations
which are used to complete the task and influence employees. Apart from this application of
HRM practices with examples helps to retain good performance.
TASK 1
P1. Purposes and functions of HRM which are applicable to workforce in planning and
resourcing
Human Resource Management (HRM):- Human resource is the process of managing
and controlling the activities which helps to run a business and maintaining good performance. It
is considered as procedure which is adopted by all companies where HR manager is playing
important role as recruiting, organising, directing and controlling the activities which help to
maintain the business activities in effective manner. In context to Mark and Spencer, HR
manager understand requirement of each employees and provide them services accordingly
which helps to improve the organisational productivity and profitability (Driskell and Salas,
2013).
Functions and activities of HRM:- HRM is playing different functions and roles in
business activities that helps to manage the productivity and profitability effectively. In Mark
and Spencer, HR managers are playing important functions that are as defined:
Planning –This is important functions which is required at every stage to complete the
decide task and retaining goals in relation to organisation. In Mark and Spencer, HR manager
make plans to increase activities and profitability by selling products and services.
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Organising – When activities are organised in systematic manner then goals and
objectives can be attained effectively. Such as manager of Mark and Spencer organise this
activities and functions by implementing plans appropriately.
Directing – The manager of Mark and Spencer give directions and motivation to their
employees which can help to bring improvements and run business effectively (Doppelt, 2017).
Controlling – All activities and functions which are planned by HR manager of mark and
Spencer who analysis all functions and control them which helps to attain the business goals and
objectives.
The Best Fit Approach v/s Best Practise:-
Best fit approach – This approach mainly emphasise the importance of defining that HR
strategies which are appropriate to the circumstances of business organisation. This involves
operational process, culture and external environment which helps to face the changes in
organisation. In Mark and Spencer, HR manager use this approach by taking in account of the
particular needs of organisation and people.
Best practice approach – This is related to practices which helps to run a business
making public health strategy that impacts on organisation effectively. the manager of Mark and
Spencer are following this practice by conducting research, field lessons etc.
Workforce Planning:- This is consider as continual process which is align with needs
and wants of organisation and workforce who ensures that all activities are dine properly. In
Mark and Spencer many employees are working collectively by understand needs and complete
the task which helps to improve organisational productivity.
Types of labour market and trends and PESTLE
 The internal labour market : An administrative unit in business organisation where
allocation of labour and pricing are governed by government rules and regulations is
consider as internal labour market. The manager of Mark and Spencer is following this
all rules and regulation which are welfare of organisation and employees.
 Analysing turnover, stability and retention : Employee turnover means number of staff
who leave the organisation due to some reason where as retention is they retain in firm
for long period of time. In Mark and Spencer, HR manager determine the number of
employees who let go over the working time. Herein, manager formulates different
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policies for employees welfare that helps in stability and retaining them for long period of
time.
 The impact of legal and regulatory frameworks:- This is important for organisation to
follow all legal and regulatory framework which has impacted positively and improve
organisational performance. As it ensure employees that they are treated fairly and un-
discriminatory, maintain good relation with business and competing with others
effectively.
 The impact that advances in technology have upon improving the efficiency of HR
practices – Technology is increasing day by day where organisation who are adopting
this, taking advantages by improving their efficiency level. The manager in relation to
Mark and Spencer are using new technology in recruiting, implementing policies, and
increasing the selling activities which impacts good and increase business profitability.
P2. Description of strength and weakness of different approaches of recruitment and selection
Recruitment – A process which is used by managers in order to identify needs of vacancy
and recruit employees for their companies is consider as a process of recruitment. In other words,
a process of attracting, shortlisting, directing, selecting and appointing a candidates for
performing the job is recruitment. There are different sources of recruitment that are as defined
below:
Sources of Recruitment
Internal recruitment- Within this method, the management of the company will recruit
the employees with in the business environment of the company to fill the vacant position of the
firm (Geissen and et. al., 2015). For this the HR manger of the Mark and Spencer can used
different methods such as promotion to an individual to high level, transfer one place to another
etc.
Strengths Weaknesses
It help employees of mark and Spencer in
understanding the work of various departments
and enhancing the knowledge or experience in
a number of areas. It help in making strong
relationship between departments.
This kind of recruitment does not help in bring
new skills within the firm and minimize the
vast possibilities of innovative thoughts. It
provides demotivation to those employees who
are not promoted.
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External recruitment- It is the process of hiring employees from the outside of the company to
fill the vacant position and making contribution in the growth and success of the firm. Mark and
Spencer Firm, the management of the company can use campus recruitment, online hiring etc.
Strengths Weaknesses
In mark and Spencer employees are proving
new talent and skills to the company. This kind
of recruitment has wide scope and cover wide
areas of job demand.
It is cost and timing consuming process and
hard to find out a suitable individual for the
vacant position (Frankland and et. al., 2014).
Selection – A process of picking and selecting the right candidates that suits to the
organisa6tion and contribution to run a business effectively. This helps to fill the vacant post in
Mark and Spencer by identifying vacancy and selecting best applicants. There are different
methods in recruitment and selection methods that are as defined:
Interview – A process which is formed by management by identifying job’s requirement and
preparing questions in order to ask from an applicant that helps to selects the best candidates. For
instance, HR manager of Mark and Spencer are preparing interviewing question for selecting the
marketing executive who have best knowledge and experience (Giacalone and Rosenfeld, 2013).
Strength Weakness
This helps to select the disciplined, enthusiasm,
dedicates and capable employees who always
ready to work.
This states hard time to letting know the
employees and take time to conduct interjviews
round.
Testing- This is consider as activity which is used by managers in order to select best
person by monitoring and testing the employee’s skills and competencies which helps to improve
the organisational performance. In Mark and Spencer, employer testing their employee’s skills
and abilities which helps to run a business effectively and increase selling activities (Glendon
and Clarke, 2015).
Strengths Weaknesses
This testing method is used by manager of It is not appropriate for all organisation that
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Mark and Spencer to select the best candidates
by using different testing method that helps to
run business.
can give unauthentic results to company.
Therefore, selection of best employees can be
negative.
On-Boarding and induction:- This is the process of collecting number of employees
and providing tm training and development programme so that they can accept the challenges
and changes effectively. With On boarding process, the manager of Mark and Spencer increases
employee retention, satisfaction and increases productivity efficiently.
The issues affecting successful induction and socialisation of employees – There are
different issues such as characteristics of employees, induction period, buddy allocation,
manager support, line manager characteristics and nature of work which helps to run a business
and increase organisational profitability (Hawkins, 2017).
TASK 2
P3. Describing the benefits of different HRM practices within organisation for both employer
and employees
Learning:- This is a learning process which is used by managers in order to increase
their learning which helps to improve organisational performance and practices. In Mark and
Spencer, managers are using learning practices in order to increase the learning of employees
who are working in organisation and maintaining profits effectively (Hayes, 2018).
Development:- This practices is related to improvement in current and future employees
performance by increasing employee’s ability and capacity which helps to increase the
organisational performance. In Mark and Spencer, employers uses this practices in order to
improve their employee’s performance by running development programme and event.
Training:- This is considered as a process which is used to increasing the learning, and
experience of employees and also increase their confidence level to work properly which helps to
increase the organisational performance and profitability. In Mark and Spencer HR manager
identifying training needs and provides different types of training such as on job training and
off job training which helps to increase the learning.
Benefits of learning, development and training for employer and employee
Employer Employee
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The employer of Mark and Spencer are
completing goals and objectives of
organisation which helps to improve business.
This increases employee perfection in business
activities as they become highly capable and
experience to accept the changes.
Job and workplace design:-
Reward management: Organisations are increasing their production and profitability
with the help of employee who understand the requirement of organisation and work
accordingly. This is important practices which should be use to run and increase productivity. In
Mark and Spencer, HR manager is using extrinsic and intrinsic rewards which help to
motivate employees to work. In extrinsic reward it involves money related rewards such as
promotion, incentive, bonus etc. which satisfied them. Where as intrinsic rewards are related to
non-monetary such as transfer, achievement, congratulate and good health which helps to
improve the organisation productivity (Lizano and Barak, 2012).
Benefits of reward practices for employer and employee
For employer For employee
Mark and Spencer is increasing its business
activities and selling the products and services
which helps to make higher profits. Moreover,
this helps to retain employees and maintain
stability of business.
Employees of such organisation feel
satisfaction and work more progressively
which helps to fill their all needs and wants.
P4. Evaluate the effectiveness of various HRM practices in terms of raising organisational profit
and productivity
Performance management:- HRM practices are formulated by governing body for the
purpose of running a business effectively and increase organisational profitability. Performance
management means a practices which is used by organisation in consistently working in order to
develop their employees, establish goals and offer consistent feedback by increasing
organisational performance. In context to Mark and Spencer, managers are using a performance
management practice which helps to run a business by improving organisational performance
and maintain high profits (Xiaofeng and Xiang, 2013).
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Methods of performance management used to monitor employee work:- there are
different methods which are used by manager of Mark and Spencer to evaluate and monitor the
performance such as 360 degree, MBO and assessment centred methods which helps to improve
the organisational performance.
Types of payment and reward system:- Types of payment having two types such as
direct and indirect which helps to provide payment to employees. In direct method manager of
Mark and Spencer consider salary, commissions, wages, bonus, incentives, allowances etc.
Indirect payment includes pensions, paid leaves, medical insurance, paid sick leaves, purchases,
discounts etc.
All these practices in relation to Mark and Spencer, manager are using performance
management practices in which it evaluate performance of each employees and give them
intrinsic and extrinsic rewards which attracts employees and helps to improve the organisational
productivity and profitability. The managers of such organisation evaluate the needs of
employees and provide them proper assistance which helps to improve the organisational
performance and productivity by completing goals and objectives (Mehta and et. al., 2015).
TASK 3
P5. Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employee relations:- In organisation employer and employees should be working
collectively which can help to increase effectiveness by making right decisions. This is important
for organisation to maintain good relation with employees so they can accept the challenges and
changes which helps to improve the organisation productivity and profitability. In Mark and
Spencer, managers maintain good relations with their employees and give their efforts to
complete the task in certain period of time. If employer and employees are maintaining good
relations then it they can share information and data that helps to work accordingly and
complete task effectively (Morris, 2015).
Strategies for building and improving employee relations and engagement: There are
different stages which are used by Mark and Spencer to improve the employees relation and
engagement. The strategies are as defined:
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Involve team member – The manager of Mark and Spencer should involves their all
team members in business activities.
Encourages individuals to share their work with all – The manager should uses
different practices and methods to involves employees for sharing information.
Assign them target – Management should assign the targets which helps to understand
roles and responsibilities effectively.
Motivation – This is important strategy which should be used to motivate employees and
complete the task effectively (Mosier and Skitka, 2018).
Accomplishment of target by improving employees relation. This strategy is used by
manager of Mark and Spencer to get involved in activities, share information and complete the
goals effectively by maintaining good employees relations.
P6. Identify the key elements of employment legislation and impact it has upon HRM decision
making
Legislations are important for organisation which should be followed by management in
order to retain employees and run a business effectively. In Mark and Spencer, managers are
using different legal issues and constraints are as defined:
Equality Act, 2010 - It is a law which is developed by the government of UK to provide
equal rights to the employees within a firm. If the management of Mark and Spencer Firm follow
this act then they can provide equal employees right to those employees who are working on
same post. With the help of it they can pay equal pay, equal rights regarding employment and
training and selection of emplacement to male and female candidates and minimise sexual
discrimination.
Data protection law – All employees wants that their data and information should be
secure and safe that can make happy to employees and retain them within organisation for long
period of time. In Mark and Spencer, manager is protect and stored employees data which helps
to run a business and increase organisational profitability (Myers, 2019).
Collective agreements - This is important agreement which is governed by management
in order to run business with the help of employees. In Mark and Spencer, employer are
following collective agreement where employer and employee create agreement by mutual
consent and work accordingly which helps to increase organisational effectiveness (Samnani and
Singh, 2013).
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TASK 4
P7. Illustrate the application of HRM practices in work-related context, using specific examples
Job analysis – A process which is used by organisation to identify and determine details of
particular job duties and requirement in order to fill vacancy is consider as job analysis. This is
used by management of Mark and Spencer to make judgement by collecting data regarding a job
(Thornton, 2015).
Job description – This is an internal document which is prepared by organisation to
provide the details of required qualities and responsibilities in order to perform functions
effectively. Job description for post of marketing executive in Mark and Spencer is defined:
Job description of Team leader in Marks and Spencer can be following:
Job Title Team Leader
Job Purpose  Should be able to handle and manage
team and its performance at M&S.
 Communicable purpose, policies and
objectives
Job Duties  Helping managers and playing role as
superior in case of absent of authority
Supplying of quality customer services
Skills and Qualification  Knowledge about policies and
regulations.
 Motivational skills.
 Attractive personality.
Personal specification – This is a document which is prepared by individuals in order to show
their skills and experience for getting jobs (Udall, 2017). The personal specification is designed
below:
Curriculum Vitae
Joseph Wishi
99, City Road, London
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Email Id: [e-mail]
Career Objective: Aim to be connected with innovative and developed institute that provide
scope to utilize my talent and competencies with hard work and determination and to be part of
the group which impulsively works towards the maturation of the institute.
Qualification:
 Master of Business Administration in Human Resource and Marketing from a
recognised university.
 Bachelor of Business Administration in related field.
Work experience:
 1 year experience in an University as taking lectures of subjects in HRM related
organisational behaviour, Environment management, employee relations and
performance measurement.
Skills:
 Effective communication skill.
Hobbies and Interest:
 Learning different languages
 Gardening
Interview questions?
 Tell me about yourself?
 What is your strength?
 How will you help the organisation in accepting challenges ?
 How employees can be motivate and stop the strike that can arise in organisation ?
 What is weakness ?
 How sales and productivity of organisation can be increased ?
 How a business can be improve and increase the working in competitive environment?
Job offer
The Human resource department
Mark and Spencer
Dear Joseph, I am glad to tell you that you have been selected in our organisation for the role of
marketing manager that can help you to show their talent and go ahead that an help to increase
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the organisational productivity. All work will be done that can help to increase the organisational
performance. The joining date is 1 august 2020 which can help to improve the business
profitability.
Thanks and regards.
CONCLUSION
According to the previous information, it can be summarized that HRM is an important
component that is efficient for the company's proper management. The report also covered
recruiting and selection strengths and weaknesses. The benefits of HRM practices help both
employers and employees and increase efficiency in terms of maintaining profit and productivity
in organizations. There are different methods which are used for staff enhancement and
performance increase, for example on and off work.
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REFERENCES
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Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Giacalone, R. A. and Rosenfeld, P., 2013. Impression management in the organization.
Psychology Press.
Hawkins, F. H., 2017. Human factors in flight. Routledge.
Frankland, R. and et. al., 2014. Applications in Internet Time LLC, 2013. Integrated change
management unit. U.S. Patent 8.484.111.
Morris, M. H., 2015. Entrepreneurial intensity. Wiley Encyclopedia of Management, pp.1-5.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Lizano, E. L. and Barak, M. E. M., 2012. Workplace demands and resources as antecedents of
job burnout among public child welfare workers: A longitudinal study. Children and
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Mehta, R. L. and et. al., 2015. International Society of Nephrology's 0by25 initiative for acute
kidney injury (zero preventable deaths by 2025): a human rights case for
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Mosier, K. L. and Skitka, L. J., 2018. Human decision makers and automated decision aids:
Made for each other?. In Automation and human performance (pp. 201-220).
Routledge.
Udall, S. L., 2017. Battle against extinction: native fish management in the American West.
University of Arizona Press.
Myers, M. D., 2019. Qualitative research in business and management. Sage Publications
Limited.
Xiaofeng, M. and Xiang, C., 2013. Big data management: concepts, techniques and challenges
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Thornton, G. C., 2015. Assessment Centers. Wiley Encyclopedia of Management, pp.1-3.
Samnani, A. K. and Singh, P., 2013. Exploring the fit perspective: An ethnographic
approach. Human Resource Management. 52(1). pp.123-144.
(Beaven, 2012)(Doppelt, 2017)(Driskell and Salas, 2013Frankland and et. al., 2014)(Giacalone
and Rosenfeld, 2013)(Hawkins, 2017)(Hayes, 2018)(Lizano and Barak, 2012)(Mehta and et. al.,
2015)(Morris, 2015)(Mosier and Skitka, 2018)(Myers, 2019)(Samnani and Singh, 2013)
(Thornton, 2015)(Udall, 2017)(Xiaofeng and Xiang, 2013)
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