Importance of Employee Relations in HRM Decision-Making

This article discusses the importance of employee relations in influencing HRM decision-making. It explores how maintaining good employee relations can create a healthy work environment and impact overall organizational profit. The article also highlights the key elements of employment legislation and their impact on HRM decision-making.

Human Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation. ........................................................................................................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................4
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................5
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................6
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................7
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making..........................................................................................................................8
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples......................................................................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term Human Resource Management refers to the effectively managing the
employees of an organisation by recruiting, selecting, giving orientation, motivate manpower,
train them and maintain good relations so that organisation could get skilled and talented
employees who can be able to work efficiently and helps organisation to achieve the targets.
In this report Appirio, a multinational information technology consulting company offers
technology services to the companies and offer them to adapt public cloud applications. The
report will discuss about the purpose and functions of HRM, strength and weakness of
approaches of HRM. It also evaluate and analyse the importance of employee relations and how
the practices of HRM is applicable in work.
TASK
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation.
Human Resource Management plays a vital role in an organisation, as it involves
selecting and placing the right person at right place and help them for their professional
development. Workforce Planning refers to the steps of examining, predicting and plan the
workforce by accessing that organisation has right skilled people at right direction. The main
purpose and function of HRM is discussed below:
Purpose
 Appreciating employee's performance: Human resource department appraise the
performance of the employees when they are performing good, and the superiors reward
them for their efficient working. Appirio, also appreciate their employees on the basis of
employees so this helps them to feel motivated and perform good in near future. By
appreciating they can retain the employees for long time and can increase the
productivity of company. Thus it increase the profits of Appirio, and leads to growth and
success.
 Remuneration: Human resource management needs to pay fair remuneration to their
staff members so that they can feel satisfied(Arunprasad,2017) with it. In the context to
Appirio, the company abide themselves with the Remuneration Act and they provide fair

salary and wages to their employees. For this, organisation need to focus on the
working efficiency so for that they can evaluate their performance.
 Fulfilling vacant position: Its main purpose it to recruit and select talented and skilled
candidates for filling the vacant position of by critically examining and judging various
applicants and select the best among them(Gope,Elia, Passiante,018 )who is suitable for
the vacant position. Appirio, human resource management also recruit and select staff
who is skilful and talented to perform the assigned duties. Organisation needs to have
good reputation so tht it can attract more skilled and talent towards them.
There are various functions performed by the human resource management, some of which is
discussed as under:
Function:
 Recruitment and Selection: It refers to the procedure in which the candidates apply for
the vacant position in an organisation and the organisation critically examine them by
conducting variety of test and select the best suitable among them for the vacant post. In
context to Appirio, they need to have trained managers who can help to examine the
candidate skills and hire fresh talent. This can maintain flexibility in their working and
make a strong workforce in the company.
 Training and Development: It refers to developing and improvised necessary skills and
competency of the employee by giving training to them so as to overall develop their
career. This helps employee to boost their(Breidbach, Brodie,2017) performance and
achieve goals of company. In the context to Appirio, it helps the company to develop a
skilled and strong workforce. Company must have trainers and coach so that they can
give better training for developing new skills and guide them so that they can work
efficiently using new techniques and skills to make their work better and efficient. And
increase their morale and retention. Thus it will enhance the overall performance on
organisation..
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment: It refers to the process of attracting and short listing candidates for the
vacant position in the organisation. In this process the candidates apply for the position vacant in
the organisation, and then the unwanted or less capable candidates are short listed.

There are various approaches to recruitment process which are:
 Direct Advertising: this approach is used for external recruitment, in which job adverts
are placed on billboards, in newspaper and pamphlets. This helps to attract more
candidates and increases the reputation of company.
Strength Weakness
 It can provide talented employees to the
company and hence increases the
productivity and profitability.
 As this recruits from outside source it
involves high cost.
 It increases the employer brand and
also gives positive impact on the
reputation of Appirio.
 Sometimes irrelevant applications can
also there which waste the time od
employer.
 Promotion and transfers: Promotion refer to shifting the employees from existing to top
position, and Transfer refers to shifting employees from on branch or office to other at
similar position. Through internal recruitment, the existing employees can fill the vacant
positions in the company.
Strength Weakness
 Promotion increase the salary and post
status thus, it motivates employee to
perform well.
 If employees get transfer, sometimes
they do not get adjusted in the
environment.
 This can be a cheap source as the
recruitment will be take place from the
existing person. Management is also
familiar with them.
 Fresh talent cannot be there so this can
lead to less generation of new ideas.
Selection: It refers to the process of selecting the short listed candidates by evaluating and
examining them on various basis, by conducting(Cheng, Hackett,2021) test like aptitude, skills,
emotion quality and many more. So that,organisation can get best talented and skilful employee
for fulfilling t vacant seat and perform the assigned task effectively.

There are various approaches to selection process which are:
Interviews: It refers to the one to one interaction between a candidate and interviewer ,which is
conducted to analyse the potential and knowledge of the applicant by giving the answers of the
questions asked by interviewer.
Strength Weakness
 It helps to receive detailed information
of a candidates by one to one
interaction.
 It is a long process hence involves lots
of time and efforts of company.
 It can make it easier to check the
confidence and skills of candidate.
 Sometimes it becomes difficult to
analyse the complex views of
candidate.
Aptitude test: This test includes problem and numeric solving task, which help to check the
ability of candidate in different situation and how they react to it. It (Hazen, and et. al., 2016)
judges the knowledge of employees by conducting mental ability test, general awareness test and
many more.
Strength Weakness
 This helps Appirio to check the
knowledge and ability skills by
conducting test.
 It does not involve judgement of soft
skills.
 Helps in analysing the employee to
make selection easier.
 Sometimes candidates do not able to
clear the test because they have test
anxiety and fear.

P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
Human resource management practices help an organisation to work effectively and
efficiently. These practices found beneficial for both the employee and employer as this can help
to move towards the organisational aims. The HRM practices are discussed below along with
their benefits for employees and employers.
 Motivation: It refers to process of encouraging the staff of company to perform their
work efficiently, putting all their efforts so as to attain organisation goals.
Benefits of Employee an Employer
Employee Employer
It can help employee to increase their
performance level. Appirio give reward,
monetary and non-monetary incentives to
employees so that they get motivated and
perform well.
It helps employer to maintain good efficiency,
this can help(Furnham,2017) employer to
concentrate on other work too.
This reduces the absenteeism of employees in
Appirio.
It builds their morale and trust level for the
company. Thus, reduces conflicting situations.
This maintains healthy relation with
employees, this creates friendly environment.
Employers can get their work done from
employees with less arise of conflicting
situations.
 Training and development: It is a system used by company to improve the skills of
employees and help them in professional growth by developing their career. This concept
helps to learn new and gain knowledge.
Benefits of Employee an Employer
Employee Employer
 It helps employee of Appirio to
increase the capability to adopt
advanced technologies.
 It help employers to promote the
existing employees to the higher
vacant position so that it can reduce

expenses.
 It makes employee skilful, this increase
morale and make employees motivated.
 Employers could be able to achieve the
objectives a bit early then they thought
of.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity.
HRM practices helps organisation to improve their firm’s performance by select, train
employees for better performance. The effectiveness help in raising organisation profit can be
possible if Appirio follow these HRM practices:
 Training and Development: If employees get proper training, this can help them to
learn new skills and adopt advanced technologies, this make employees to gain
knowledge and learn new concepts. This leads to growth of employee and development
of their career. It employees of Appirio get training ,then they can work will full potential
and start using new technologies, this increases their working efficiency and Appirio's
profitability will increase.
 Motivation: It encourages employee to perform well in an exciting manner, by giving
incentives and benefits so that it can attract employees ,boost their morale and make them
work with utilising full potential so that they can perform well, these incentives involve
cost thus, it can increase their additional expenses. But once employees get motivated
they put all the efforts , this brings efficiency in productivity ans helps Appirio in raising
their profits.
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making.
Employee Relation refer to maintaining good and healthy relationship between the employers
and employees. An organisation needs to put all the efforts so as to maintain good environment
and healthy relation. It is important to maintain good employee relation in Appirio as it creates a

healthy environment and maintain good performance of (Breidbach,Brodie,2017) employees. It
is necessary so that company can boost team spirit so as to increase performance efficiency and
thus impacts the overall profit. Employee relation influence the decision making of human
resource management in many ways, which are detailed below:
 Organisational culture: HR managers need to provide a healthy environment so that
they may be less occurrence of disputes takes place in Appirio. They need to create a
positive atmosphere along with proper flow of communication to ensure good relation
between the employees and employers.
 Motivating employees: Managers of Appirio, needs to focus on decisions related to
motivating employees, so that they work together ensuring coordination and cooperation,
so as to achieve goals.
 Developing sense of belongingness: Managers need to take decision which are in
favour of both employee and employers and found beneficial for both of them. It reduces
the occurrence of partiality and employees and employer feel satisfied and develop a
sense of belongingness towards organisation.
 Increase employee retention: The management must enrich their job which gives them
satisfaction while performing their task. This can reduce the thought of leaving the
organisation, and employees can work there for (Russo,Shteigman,Carmeli, 2016)longer
period. By taking decision to make employee stay at work place for long run, can
increase the productivity and maintain good employee relation.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making.
Laws and legislations are necessary to be followed by every organisation so as to prevent
them from any legal issues. There are various laws which has impact on the practices and
decision making oh HRM which are Equality Act, Health and Safety Act, Remuneration or
Equal Pay Act and many more. These laws were kept in consideration by the human resource
management of Appirio, and they also need to abide by these laws so as to avoid any legal
actions. These laws are discussed as under:

 Equality Act, 2010: The laws states that there must be no discrimination on the basis of
caste, gender, religion, colour and creed. (Russo, Shteigman,Carmeli,2016) Every
employee must be treated equally in the company. In context to Appirio, the company
treat their employees equally without doing any partiality between them. They treat all
the employees of each department equal and give opportunities to them. Appirio
implements the rule and regulations take strict action if someone is bullying or torturing
any employee whether on caste or gender basis and take action against them.
 Equal Pay Act, 1970: This law states that the employee must be given fair and equal
remuneration on their fixed or performance basis. If the company does not pay the fair
salary, then employee have right to do complaint for the same as it will be considered as
illegal and government can take immediate action against the company. Appirio pay
same structured salary to similar position employees. This effects the decision making of
human resource managers as they need to give monetary and non monetary benefits to
the employees on the basis of their overall performance.
Appirio, work as per the rules and regulations stated by the government of country and ensure
that employees feel comfortable safe (Sharma,Sharma,Agarwal,2016) and satisfied while
working in the environment. This creates healthy environment in the organisation and foster their
overall performance and productivity of Appirio.
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
As a human resource internee, on be half of human resource officers, the main task is to recruit
and select the best and talented Marketing Manager. For this necessary documents are required
so that the applying candidate can know the working or the job profile. So a job description is
been prepared for that.
In other way, it is necessary to have a resume, so that the company can came to know about the
person whom they are hiring. It describe the qualification, skills and past experience which helps
to judge the employee and take corrective decision for hiring.
Job description: It refers to a document which specifies and explains all the task which
is to be performed by the selected candidate on daily basis. (Torraco,2016) It includes the key
responsibilities, details of company profile and the skills required for the suitable job.

In Appirio, the HR department need to analyse the needs for marketing manger and also identify
what all qualities thy need to fulfil the job. In context to Appirio they require Marketing
Manager,for the vacant post. For this, they require some specialisation in the candidate who can
perform the task in better way. Have deep knowledge in the field of marketing, and have work
experience in the field of marketing. The main responsibilities perform by them is, to plan
marketing strategies and execute them, managing day to day operations, handling their teams
report the details to their senior levels.
It is also necessary to have creative thinking and decision- making skills to take marketing
decisions. They must aware with the updated and latest trends of marketing.
Job analysis: It is the analysis of the job, which is to be offered, the analysis of job
include nature, specification, suitability of job.
 Job Description:
Job designation: Marketing Manager
Company's Address: Appirio, UK
Job role: The role of Marketing Manager is to plan strategies for marketing their services and
handle their team and assigned the task to be performed by them.
Qualification Required:
 Bachelors of business administration or business management
 Masters in marketing specialisation
 Completed digital marketing course
Knowledge requirement of the job:
 Aware of the latest marketing trends
 Have digital marketing knowledge
Required mandatory skills:
 Good communication skills
 Decision-making skills
 Creative thinking

 Aware about latest trends
 Information technology skills
The human resource department needs to advertise for the vacant position using different
sources, so that they can select the best and suitable candidate as Marketing Manager, who could
be able to perform all the duties and responsibilities.
CONCLUSION
From the above report it is been analysed that, Human resource management helps and benefits
company by selecting right person for the job and also focuses one every activity of human
resources. It provides good and talented manpower to organisation and allocate on right place by
keeping their comfort and needs in consideration. Also the HRM follow and work accordingly to
the laws made by government, this keeps the trust of employees safe and they also work with full
motivation, putting all their efforts so as to increase the productivity and profitability of
organisation ant maintaining healthy environment at the workplace.

REFERENCES
Books and Journals
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theory, and practice. Human Resource Management Review. 31(1). p.100698.
Furnham, A., 2017. Methods in Recruitment and Selection. The Wiley Blackwell Handbook of
the Psychology of Recruitment, Selection and Employee Retention, p.202.
Gope, S., Elia, G. and Passiante, G., 2018. The effect of HRM practices on knowledge
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Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
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Sharma, N.P., Sharma, T. and Agarwal, M.N., 2016. Measuring employee perception of
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development. Employee Relations.
Soares, S.C.R., 2016. Trainees programmes: a recruitment & selection tool to young talent or a
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Storey, J., 2016. Human resource management. Edward Elgar Publishing Limited.
Torraco, R.J., 2016. Writing integrative literature reviews: Using the past and present to explore
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