Benefits of HRM Practices for Employer and Employee

This document discusses the purpose and functions of HRM, key roles and responsibilities of HR functions, and the benefits of different HRM practices for both employer and employee. It also explores the methods used in HRM practices and their effectiveness in raising organizational profit and productivity.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Overview......................................................................................................................................3
Explain the purpose and functions of HRM and the key roles and responsibilities of the HR
functions including workforce planning and resourcing an organization....................................4
Assess how the functions of HRM provide talent and skills to fulfil the business objectives.. . .5
Critically explain the strengths and weaknesses of different approaches to recruitment and
selection.......................................................................................................................................6
TASK 2............................................................................................................................................8
Explain the benefits of different HRM Practices within an organization for both employer and
employee......................................................................................................................................8
Effectiveness of different HRM practices in terms of raising organizational profit and
productivity .................................................................................................................................9
Explore the different methods used in HRM practices..............................................................10
Critically evaluate various HRM practices and application within organizational context, using
a range of specific examples......................................................................................................10
TASK 3..........................................................................................................................................11
Analyse the importance of employee relations in respect to influencing HRM decision-
making........................................................................................................................................11
Identify the key elements of employment legislation and the impact it has upon HRM
decision- making........................................................................................................................11
Critically evaluate employee relations and the application of HRM practices that inform, and
influence decision-making in an organizational context...........................................................12
TASK 4..........................................................................................................................................12
Covered in PPT..........................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is the formal system which is devised to manage the people
of an organisation effectively. It include activities like staffing, designing compensation and
benefits for employees in order to maximise the profitability as well as productivity of firm. The
core responsibility of HR department is to develop the organisation and enhance its culture (Al
Ariss, Cascio and Paauwe, 2014). For this they focuses to develop the competitive team that can
help in the successful operations of business.
HRM is basically the comprehensive approach that contribute to give direction to the
overall organisation required for better administration of activities. It simply involve the different
activities like recruitment, selection, performance appraisal, training as well as development to
retain and attract the potential talent. This encompasses systematic management of people by
sustaining employment relationship which enable the internal department to coordinate their
effort and emphasize to gain shared target. Thus, it add value for the strategic utilization of
personnel to ensure that all the recommended programme designed for employees leads to the
positive impact within business. For the better understanding of topic Asda company has been
selected which is the supermarket retailer of United Kingdom. It deals in the products like
grocery items, general merchandise and beside this it provide financial services to the local
residence. The company has wide range of stores which is around six hundred that help to fulfil
the basic requirement of each and every corner of the geographic area. This report cover topic
like explain the purpose as well as scope of HRM to appropriately manage the talent of
workforce within organisation. Determine the effectiveness of the key elements of HR within
organisation. Along with that analyse the internal as well as external factors that can affect the
decision making of HRM. Further, apply appropriate HRM practices within work related context
are covered within report.
TASK 1
Overview
Asda is the supermarket retail stores of United Kingdom that offer diverse products and
services to the customer under one roof. The company was founded in 1949 by Peter and Fred
Asquith with the vision to deliver quality offerings to the customer. Currently it has around 633
stores for which the manager has offered employment opportunity to more than one lac people.

The company makes effort to leave positive impact within society for which it has adopted
sustainable methods like reducing the chances of carbon emission, abolished plastic bags usages
by replacing it with 100% recycled material. Additionally, the motive of company is to lower
down the wastage of food by 50% till 2030. Therefore, this led the company to gain trusts of
internal as well external stakeholders for the better performance of business.
Explain the purpose and functions of HRM and the key roles and responsibilities of the HR
functions including workforce planning and resourcing an organization
Human resource is an important part of business organisation as it helps to manage all the
function and perform business activities as well. This is closely linked with employees planning
and resourcing them from different places (Alfes, Truss and Soane, 2013). HRM is playing
important role within organisation and controlling all business activities by formulating policies.
Such as ASDA is a super market which is managing by HRM by focusing on all function and
sourcing skilled workforce. The meaning of workforce sourcing is to recruit the skilled and
capable candidates in their organisation which helps to increase the profits by selling the
products. It involves different functions to source the workforce such as:
Recruitment - To collect the various applications and selects capable candidate for
required vacancy is known as recruitment. Internal and external method are consider in this
method such as:
Internal recruitment - Workforce are recruited by management of ASDA internally
consider as internal method such as promotion, demotion, etc.
External recruitment - The management of selected company recruit the candidate out
of the organisation by using job analysis, job description and person specification are consider in
external method such as advertisement, contractor, job agency, job portals etc.
Selection - This means process of picking candidates out of pool of applicants by
analysing qualification, skills and abilities are consider in selection process (Armstrong and
Taylor, 2014). It has different methods such as:
Online screening and short-listing: This means when employees are recruited by using
online method, official websites etc. are used by ASDA to select the employees.
Strength Weakness
It helps to increase the number of applications. Lack of personal round and face to face round.

It helps to save the time and cost in selecting
the candidates.
Not information about confidence level of
candidate and work flexibility.
Interviews: This means when employees are selected through interview method by
asking questions that helps to select the skilled employees.
Strength Weakness
It helps to know about confidence, skills and
working capabilities of employees.
It consumer time and cost of business
organisation.
It helps to enhance knowledge and right person
for right job.
It can create difficulties for interviewee to
understand the interviewer. And onboard
induction.
Purpose of HRM
 The main purpose of HRM is to formulate strategy and legislations in order to run a
business successfully.
 ASDA has purpose of to recruit the skilled and experienced employees so, it can increase
the business sale and profitability.
 To allocate the workforce in employee's task as per their skills and experience which
helps to accomplish business objectives.
 To fill the job vacancy and increase productivity of business industry.
Assess how the functions of HRM provide talent and skills to fulfil the business objectives.
HRM function is main function in business organisation that helps to run a business
activities and accomplish business objectives. The different function of HRM such as training
and development, recruitment and selection that helps to accomplish the business objectives. It is
important for HRM to focus on such function and attain the business goals. By using such
function talent and skills of employees as well as employees increases which helps to attain the
business objectives (Bamberger, Biron and Meshoulam, 2014). Moreover, it helps to deal with
difficulties and maintaining higher productivity.

Critically explain the strengths and weaknesses of different approaches to recruitment and
selection
Recruitment encompasses the process to attract and reach out the various people who
are qualified and looking for the job to start their career or switch from one organisation to
another. So this is the linkage process that helps the candidate to discover vacant position for get
the opportunity to become the part of particular organisation.
Internal recruitment: Within this process the manager fill up the higher vacant position
through promotion and transfer. This generate the sense of belongingness as well as job security
because they consider them as an essential part of Asda organisation. The strength as well as
weakness of the internal recruitment process is defined below:

Advantage Disadvantage
This process helps Asda company to retain the
talented employee of an organisation because
they perceive personal growth and opportunity
by working in particular organisation.
If the organisation widely depend upon the
internal recruitment method then it may affect
the innovative thinking ability as it restrict the
fresh talent to be organisation's part.
External recruitment: Within this method the organisation makes effort to hire the
potential aspirant outside the organisation (Bloom and et.al., 2012). This lead to divergent
thinking ability where employee from different fields share their opinions or values for the
welfare of an organisation. The manager of Asda company uses this method to get the skilled
workforce and help in systematic business functioning.
Advantage Disadvantage
This process assist the organisation to get the
skilled workforce or fresh talent that can be
part of an organisation and attain organisation
objective.
Sainsbury company basically rest upon this
method to get the pool of desirable candidate
with whom they can make the innovative
strategies.
This method involve huge time and cost
because of the involvement of different
activities like preparing job adverts or e-
recruitment activities.
Selection: After recruitment comes selection process under which the most desirable
candidates are selected and become the part of an organisation. Within, Asda company the HRM
effectively concentrate in this process to get the team of competitive employees.
Assessment test: To test the candidate's ability various tests such as technical, verbal,
technical as well as numerical test are organised. Herein, Asda company uses this process to
enhance as well as test the ability of aspirant.
Advantage Disadvantage

This is an effective practice that helps to
identity the intellectual ability of the candidate
based on which further decision can be taken.
Only on the basis of assessment test it is not
viable for the firm to reach out at a particular
conclusion.
Interview method: This is the face to face interaction round conducted between the
interviewer as well as interviewee (Daley, 2012). It is considered as the most appropriate basis to
determine where the applicant needs to be the part of an organisation.
Advantage Disadvantage
This is most effective as well as unbiased form
of the selection process on the basis of which
final decision can be taken by company.
Conducting one or more rounds of interview
involves huge time and dose not guarantee that
the selected candidate can easily attain the
targets.
TASK 2
Explain the benefits of different HRM Practices within an organization for both employer and
employee
There are different HRM practices which are designed as well as implemented for the
welfare of both employer as well as employee in order to gain organisational success. This even
leads to maximising the profitability for firm to enhance the business performance and gain long
term profitability. Explanation of the different practices are determined below:
HRM practices Benefit for employee Benefit for employer
Recruitment & Selection This HRM practice is desirable
for employee as they get the
chances to present their
knowledge and skills which
are desirable enough to be the
part of an organisation. This
lead the personnel to become
independent and remain
encouraged to be placed in the
Employer gets the team of
competitive member with
whom they can work and
carry out the business
function. This lead the
whole team to attain the
target due to which the
employer gets recognition or
appraisal.

highly reputed company like
Asda.
Training and development It is the special practice which
involve the activities like
organising seminars or
conferences where the expert
or the manager helps the
existing employee to enhance
their skills or capabilities
required to perform the
specific task. This lead the
employee to become valuable
asset which the company will
not afford to loose.
Training is required for the
change management process
or to fill the gap that leads to
deviation. The employer
makes valuable effort to set
the benchmark in order to
sort the issue and attain
standard position (Daley,
2012). This benefits the
employee to enrich the
function of an organisation
due to which they are
promoted to higher
positions.
Effectiveness of different HRM practices in terms of raising organizational profit and
productivity
HRM practices are the effective part of business that offer wide range of services within
an organisation. It leads to the effective functioning of business that help to enhance the overall
profitability as well as productivity of the firm. Some of the practices that leads to the
effectiveness are described below:
Training and development: This practice completely emphasize to improvise the roles
as well as performance of business in order to gain the better position within business. On the
basis of these session the current skill or ability of manpower are empowered and sharpened that
leads to gain the overall objective effectively. In context to the Asda company, primary adopts
the changes due to which they immensely focus on training so that their personnel welcome the
changes and acquire new regime. This led the company to guide the manpower and take them in
right direction to attain the long term productivity and profitability effectively.

Conflict resolution: There are certain situations like internal conflict, negative politics
and internal chaos which are very common in business and can affect the performance of
personnel. So it is the responsibility of the manager of Asda company to resolve the queries of
business and make them understand the importance to build competitive team that can
effectively function. Thus, by managing conflict the organisation can help the employee to
remain focused towards the goal which enrich the chances to gain productivity and profitability.
Explore the different methods used in HRM practices
Human resource practices have the immense impact within the organisation as well as
workforce in order to monitor and improve their functioning. This lead the organisation to
manage and attract the personnel to move beyond their boundaries and attain the organisational
needs. Thus, the explanation of the different practices are defined below:
Recruitment and selection: This process function on the basis of mission as well as
culture of an organisation that help to embrace the performance of workforce (Glendon and
Clarke, 2015). This recognises the generate the value by attracting large applicant and help them
to be the part of an organisation. Within Asda company different platform such as its website,
job portals or posting the vacancy on notice board to spread the awarenesses regarding vacant
spaces. Base on this potential member gets opportunity to be the part of company and enhance
the effectiveness.
Maintaining work life balance: Flexible work structure is highly adopted with the Asda
company where employee are encouraged to put forward their opinion. Along with that focuses
is given to the wide areas like managing or scheduling work, conducting training programme as
well as modifying technology to maintain work life balance.
Compensation and benefits: This is the comprehensive area which is presented by the top
level management in order to evaluate the existing performance of employee and reward them
accordingly. Herein, Asda company the senior manger set the reward as well as incentive fro all
personnel which help them to measure their actual performance and remain motivated to attain
the long term targets effectively.

Critically evaluate various HRM practices and application within organizational context, using a
range of specific examples
Asda company falls under the retail industry which experiences huge competition from
the existing rivalries such as Tesco and Sainsbury. For the systematic internal performance
concentration is given in the different HRM practices to plan out the smooth functioning of firm.
Each practices had its strength and weakness like in case of external recruitment the organisation
may experience rising issue of the turnover rate because the employees perceive that the
organisation does not consider their performance (Griffin, 2013). Similarly, training which is
vital to enrich workforce capability and gain global dominance but simultaneously it led the
company to put in high efforts in terms of both energy and cost. Thus, each and every practice
needs to be effectively used by an organisation.
TASK 3
Analyse the importance of employee relations in respect to influencing HRM decision- making.
Employee relation represent the relationship which is shared by the employer as well as
employee of an organisation. If the internal member share effective relationship then it leads to
the fair as well as consistent performance of the business by which overall workforce remain
committed towards the effective functioning of an organisation. This even generate the sense of
loyalty through the positive environment that leads to the synergy. Further, this ensure that the
human resource strategy leads to the competitive advantage and support the work life balance for
safe and smooth working condition. In context to the Asda company need to manage make
precaution to manage the employee relation and handle the problem of staff. Like, whenever
company uses the advance technology it involve the efforts of employees to make them
understand regarding the work and hoe to effectively operate different tools and technique.
Further, this generate the job satisfaction and enhances the efforts of employee to participate in
the brainstorming and group discussion that leads to effective decision making (Hobfoll, 2012).
Identify the key elements of employment legislation and the impact it has upon HRM decision-
making
Employment legislation refer to the rules and regulation made by the local authorities and
is necessary to carry out the different activities of business. The organisation needs to make
successful strategy and analyse that it won't hamper the interest of different members who are the

part of organisation. Thus, employment protection determines the necessary regulation that is
concerned with the hiring, firing as well as during the time when employee are the part of the
specific company. Explanation of the different legislation which is adopted by Asda is defined
below:
Minimum wage rate: As per this act it is the responsibility of the employer to follow the
standard of minimum wage rate. Like, within UK there are certain set figures regarding this like
people who have the age over 25 years needs to get 7.83 pounds per hour. Similarly, this figure
is set for both the age group of 21 to 24 as well as 18 to 20 age group which is 7.38 as well as
5.90 pounds. So on the basis of these figure minimum wage rate need to be decided by the
manager in order to participate in the decision making process and encouraging the employee to
retain with the organisation.
Employment relation act 1999: With this act is the the responsibility of firm to maintain
employment relation. As per this the vital details are shared and effective relation need to be
shared between the employee as well as employer (Hwang and Ng, 2013). The manger of Asda
company share all the vital information with the staff so even they understand the existing
position of company. This help the firm to take collective decision making and better
achievement of the target.
Critically evaluate employee relations and the application of HRM practices that inform, and
influence decision-making in an organizational context.
It is relatively vital for the organisation to build strong employment relation in order to
carry out the different business activities. For the adequate communication and invitation of the
employee to put forward their opinion needs to be encouraged by firm (Vaiman, Scullion and
Collings, 2012). Group decision making leads to the creative thinking ability but in the same way
it may create huge time to reach out to the specific conclusion. Thus, the relation need to be
suitable managed to gain long term sustainable advantage.
TASK 4
Covered in PPT
CONCLUSION
From the report it can be concluded that Human resource management is playing important role
within organisation as it identify the needs of employees within organisation, recruitment, and

select the best employees with the help of recruitment method. The main purpose of HRM is to
retain the employees and get work done effectively. HRM practices are helpful to influence the
employees and accomplish business goals. Moreover, it helps to increase the organisational
profit by using different HRM practices.

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