Importance of HRM in Workforce Planning and Restructuring

This report discusses the purpose and functions of HRM applicable to workforce planning and restructuring, the strength and weakness of different approaches to recruitment and selection, the benefits and effectiveness of HRM practices in raising organizational profit and productivity, and the importance of employee relations in influencing HRM decision making.

Human
Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
LO1..................................................................................................................................................1
P1 Purpose and functions of HRM applicable to workforce planning and restructuring.......1
P2 Strength and weakness of different approaches to recruitment and selection...................3
LO2..................................................................................................................................................5
P3 Different benefits of HRM practices for both employer and employee............................5
P4 Effectiveness of different HRM practices in term of raising organizational profit and
productivity.............................................................................................................................7
LO3..................................................................................................................................................7
P5 Importance of employee relations in respect to influence HRM decision making...........7
P6 Key element of employment legislation and its impacts on decision making..................8
LO4..................................................................................................................................................9
P7 Application of HRM practices in a work related context..................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is an important function for all organization as it helps to
manage all activities and operations effectively. This is a strategic approach that manages all
employees who are working within organization and run a business efficiently (Berman and et.
al., 2019). This is large size organization that also offers advisory services to customer and helps
to continue their business. This report discusses about purpose and functions of HRM, strength
and weakness of HRM approaches that relates to recruitment and selection, benefits of different
HRM practices and effectiveness of different HRM practices that helps to increase organizational
profits and productivity.
LO1
P1 Purpose and functions of HRM applicable to workforce planning and restructuring
HRM is closely related with employees planning that can be consider as strategic in
nature and their resourcing. It is important for organization to focus on HRM functions and
maintain productivity of business. HRM plays a most important role in developing policies that
relate to workforce and their benefits in order to retain them for long term. HRM has wider scope
that is concerned with planning, recruiting, selecting, promoting, training and development for
improving business performance (Morgeson, Brannick and Levine, 2019). The functions of
HRM in Merrill Lynch has been defines as:
Workforce planning and organizing: This is main function of HRM which is
performed by HR manager to manage all employees and organize them for the purpose of
achieving goals. This function helps Merrill Lynch's management to identify, collect and analyse
organization as well employee's needs that helps and make efforts to accomplish them in
effective manner (Functions of HRM, 2019).
Recruitment and selection: This function is related with hiring and selecting skilled and
experienced people according to organization needs and desire which is consider in managerial
functions. The HR manager of Merrill Lynch understand needs of organization and recruits
skilled workforce out of pool of prospectives candidates in order to complete target and achieve
business goals.
Performance appraisals: This is an operative function which is performed by
management to check the performance of workforce and give them appraisals for well
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performance. It helps organization as well as employees to work properly and attain individual
as well as common objectives. Such as Human resource management of Merrill Lynch check and
analyse employee's performance and give them various benefits like performance appraisals,
bonus, promotion etc. that attracts employees and retain them for longer period (Bailey and et.
al., 2018).
Training and development: This function is also important function that allows
employees to gain new skills and knowledge to perform their job profile effectively. In Merrill
Lynch, management provide training and development to workforce that helps to accept the
changes and challenges within organization efficiently.
Purposes of HRM
 The main purpose of HRM is to attain business goals by following HRM policies and
legislations that helps to run a business effectively. In Merrill Lynch HRM manager
decide the goals and make policies that helps to achieve them effectively.
 HRM is uses by organization for the purpose of giving benefits to employees. HRM
department of Merrill Lynch provide vital information to workforce in order to make
sensitive decisions which are relates to employees benefits. The manager of Merrill Lynch identify job vacancy in particular department and also
identify what skills and experience are required to fill such vacancy then allocate them
according to needs of organization in order to increase productivity and profitability
which leads to organisational success.
Hard and soft approaches for planning and resourcing in global organization
Hard approach: When organization treats employees simply as resource of business,
then it consider as hard approach. This approach is used to build strong link with corporate
business planning that helps to know about needed resources, how to get them and at what cost
they can get by organization.
Soft approach: When organization treats employees as mainly resource of business
organization and provide them benefits consider as soft approaches. Merrill Lynch focuses on
needs of employees, their roles, rewards and motivation etc. by using soft approach (Bogner,
2018).
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P2 Strength and weakness of different approaches to recruitment and selection
Recruitment and selection is the essential approach of business organization in which
employees are recruited and selected by Human resource management. Recruitment is the
process of attracting many people by giving advertisement and other method where as selection
is the process of choosing best candidates out of many applicants. There are different approaches
which is used by Merrill Lynch to recruitment and selection are mentioned as below:
Recruitment: This means to identify the vacancy within organization and fill the vacant
job by recruiting the candidates. It is the process of identifying and hiring right candidate. In
Merrill Lynch, managers identify the needs of employees for particular department and recruit
employees that helps to work accordingly.
Internal approach: This means when organization recruit employees within the
organization for the purpose of filling vacant post, then it consider as internal recruitment. There
are various method to recruit internally such as promotion, employee referrals, transfer etc. that
helps managers to hire the employees from the organization.
Advantages Disadvantages
 This is easier process to fill the vacancy
which is require to recruit experienced
person for responsible position.
 It helps to maintain relation between
employer and employees effectively. It
is a cost effective process of recruiting
candidates.
 This method do not give opportunity to
other person as they feel stress.
 It can create conflicts among existing
employees because and only one person
is getting promotion among those who
are working at same level.
 It stops company to bring new ideas
and learning as existing employees are
working with traditional way.
External approach: This means organization hire the candidates out from the
organization where pool of applicant shows their skills and knowledge. It helps applicants to get
opportunities for showing their talent and experience. Some of the methods are applied by
Merrill Lynch Management that are as explained:
Advertisement: This means organization uses newspapers, magazine, websites etc. to
recruit employees externally. Such as Merrill Lynch is an investment management company, use
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such methods to hire people. For instance, Merrill Lynch updates websites that helps to fill the
job vacancy (Kay and Alder, 2017).
Advantages Disadvantages
 It helps to hire candidates with new
skills and experiences as organization
wants.
 It helps Merrill Lynch to fill the
vacancy and achieve business
objectives effectively by attracting the
many people.
 This is time consuming and cost
effective method that takes time and
money while advertising about
vacancy.
Employment agency: This means organization recruits candidates through agency that
gives details of employees with their skills. Merrill Lynch hire candidates with the help of
employment agency that provides skilled employees to fill the vacancy within organization.
Advantages Disadvantages
 It is beneficial for organization to fill
the temporary position (Advantages
and disadvantages of employment
agency, 2017).
 Merrill Lynch can select best
candidates that helps to meet with
professional face.
 It may be risky method for organization
as employees have limited
understanding and not friendly with
new corporate culture.
 Lack of trust to fulfil employees needs
within organization.
 Lack of good communication between
candidates and employer.
Selection: This is a process of selecting the best candidate from the pool of candidates
who helps to achieve business objectives effectively. It is used by Merrill Lynch to choose best
candidate which is suitable for vacant job profile and working effectively. It involves different
approaches which are as explained:
Interview: In this approach, interviewer takes interview of interviewee and make final
decision to select that person in their organization or not based on the interview. Such as HR
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Manager of Merrill Lynch conducts interview programme and judge employee's skills and
capabilities in order to complete target by filling the vacancy in their company (McDonnell and
et. al., 2017).
Advantages Disadvantages
 It helps to evaluate skills and capability
of employees so decision can make
quickly.
 It helps to develop relationship between
interviewer and interviewee.
 It is flexible process that can make
changes.
 It is time consuming and costly
approach that consume times to
conduct interviews.
 Candidates may be panic while
interview process, so decision may be
wrong.
Employee Testing: In this approach, managers of Merrill Lynch take different test of
candidates like aptitude test, mathematical, reasoning, current affairs, knowledge about
competitor etc. in order to select best candidates.
Advantages Disadvantages
 It helps organization to choose best
candidates by evaluating all skills
which are required to perform job role.
 It helps to judge the aptitude of
candidates in order to accept future job.
 It helps to face the challenges as
organization selects candidates after
conducting various test.
 This is lengthy and time taken approach
that consume times as well as money to
choose right candidates.
 Some tests like lie detection test are not
advisable which demoralize candidates.
 It is not always suitable measure of
selection.
LO2
P3 Different benefits of HRM practices for both employer and employee
HRM practices refers as system and polices which is adopted by organization in order to
influence employee's behaviour and performance. There are different types of HRM practices
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like learning, development and training practices, employee performance management and
monitoring, payment and reward management, flexible working option etc. Merrill Lynch is
following HRM practices that are as explained:
Learning, development and training practice: This is an effective HRM practices that
aims to improve individual and group performance by increasing the skills and knowledge. This
practice states that manager should provide training and development programme to its
employees so they can learn new skills and working methods. It helps to increase the
productivity within organization with the efforts of employees (Shuck, Adelson and Reio Jr,
2017).
Another HRM practice is payment and reward management that should be use by
organization in order to motivates employees for their good performance. It helps organization to
ensure continual growth and exponential company performance.
It is beneficial for employer and employee in such company that are as explained:
HRM practice Employer Employee
Learning,
development and
training practice:
 It is beneficial for employer to
identify skill gaps between
individual and groups then find
the suitable training method to
fill gap.
 It helps to maintain good
relations between employer and
employee which helps
organisation in workforce
retention.
 It is beneficial for
employee to improve
their skills and also
increase their morale.
 It helps to improve
their performance
and provide them
higher level of
satisfactions.
Payment and reward
management
 It helps to increase motivation
level of employees that perform
business activities more
effectively.
 It helps to complete target and
achieve business objectives.
 It encourages other
employees who are not
performing well.
It helps to get high satisfaction
and rewards that make feel
good.
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P4 Effectiveness of different HRM practices in term of raising organizational profit and
productivity
HRM practices are important for all organization that helps to improve performance by
applying effective HRM policies and standards. With the help of training and development
programme, employees of Merrill Lynch enable to accept the challenges and achieve business
goals (Tjosvold, 2017). The effectiveness of Learning, development and training practice are
given as:
 Training and development practice enable employees to adopt new challenges and
improve performance within organization.
 This practice improves skills and efficiencies of employees that helps in
improving productivity of company.
 It helps to make successful planning in order to perform job role effectively.
 It increases communication between employer and employees and helps to
understand needs of each other(Webb, 2017).
LO3
P5 Importance of employee relations in respect to influence HRM decision making
Employees are the integral part of organization who contributes in all functions of
business industry. Organization hire skilled and experienced employees while using recruiting
and selecting approach that helps to maintain relations between employers and employees. All
organization are following HRM practices which is important for making decisions (Gelfand,
Harrington and Jackson, C., 2017).
Employee engagement: This means organization should engage the employees in
business activities that helps to complete business goals. In other words, this is a fundamental
concept that helps to maintain a relationship between organization and employees.
Merrill Lynch uses different approaches or strategies to improve the employees relation such as:
To create friendly environment: The management of Merrill Lynch create an eco
friendly environment within organization by understanding needs of employees. Managers
encourages employees to focus on goals and achieve them effectively.
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Proper communication: This strategy can be use by all organization as it helps to share
the information and make right business decision. In Merrill Lynch, employer and employees
can follows this approach in order to maintain proper communication that helps to make right
business decisions and engaging employees in firm's activities (Nguyen, Young and Cooke,
2017).
Listen employee's issue and get solution: The manager of Merrill Lynch listen
employee's problems while running a business and provide a optimum solution that helps to
make right business decision.
The importance of employees relation which influences HRM decision making is defined as
 It is important to make right business decisions by maintaining good relations
between employer and employee that is beneficial for Merrill Lynch.
 It helps employees to adopt new technology and challenges because employees
are working together in order to accomplish goals collectively (Nielsen and et. al.,
2017).
P6 Key element of employment legislation and its impacts on decision making
Employees legislations refers as laws and regulations which are developed by
government for employees welfare. It is also beneficial for organization such as if organization
follows employment laws and provide higher satisfaction to employees then they retain them for
long term. Different legislations are as explained:
Data protection act, 1998: This act is important for all organization which is developed
by government in order to protect the personal data of employees. According to this legislation,
employers are not allowed to share data of any employee with others. Manager of such
organization follows this legislation and does not share any personal information with others that
helps to maintain the trust and reduce employee turnover within organization.
Health and safety 1974: This act is related to employer's duties and responsibility
towards the health and safety of employees. It states that employer should provide good health
and safety to their employers as they are working within organization(Myers, 2019). It impacts
on HR decision making such as HR department keep documentation of all hazardous materials
used and provide a proper training to employees.
Anti discrimination: This legislation refers to the laws which are designed to prevent
discrimination against individual and group of people. This law says that there should not be
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discrimination on the basis on sex, age, nationality, ethnicity, disability, sexual orientation,
gender, religious etc. The HR treats equally all employees and pay equal wages to employees
who are at same positions that affects business decisions positively.
LO4
P7 Application of HRM practices in a work related context
HRM practices consider different process, policies and system that influence employee's
behaviour, attitude and performance that effects organization. It is developed by managers of any
organization who has control over all business activities and they achieve business objectives
effectively. In Merrill Lynch, HR management maintain proper communication and solve all
problems that helps to achieve business objectives effectively. Therefore, organization follow
HRM practices for improving production level (Hislop, Bosua and Helms, 2018).
C.V. : A C.V. is an important document for any person that is used to search the job in
which person mention their skills, experience, qualification and other details that influences
employer to select the candidate in their organization.
CV for Human Resource management lecturer profile
Name: Marina shein
Address: The Turk head market place, UK
Email: [e-mail]
Contact: 9638502741
Professional Summary:
Good, experienced and skilled human resource management lecturer who can motivates
students to gain knowledge in academic as well as in management skills. To accept the
challenges and manage all business activities effectively by sharing with people.
Objectives:
To get a good opportunities in managing human resources and increase own knowledge in such
field. To understand the problems of student while learning and provide them easy way to learn
HRM practices.
Highlights:
 Pubic speaker
 Time and work management
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 Advanced knowledge about management
 Self motivation
 Interpersonal communication
 Record keeping
 Inspiring lecturer
 Able to make more research in human resource management
Accomplishment:
Awarded as high grade professor from Oxford and London university.
Won the debate competition in human resource management and article published in honoured
journals.
Experience:
 01/2015 to current: HRM professor at Briton University, England
 Providing guidance to students and improve their business skills
 Associated with placement team and to place the student for their bright future.
 Providing training to student for management.
Education:
Ph.D.: Management
University of Oxford – Oxford, England
Master of business administration- University from England
Bachelors of Business Administration - Briton University.
Declaration: All above information are accurate and valid in my knowledge.
CONCLUSION
From the above report, it can be concluded that Human resource management is integral
part of any organization which plays an important role. It develop different HR policies and
legislation for the welfare of employees as well as organization. By following different
legislations, organization can increase productivity and profitability effectively that impacts HR
decisions positively.
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REFERENCES
Books and Journals
Berman, E. M., and et. al., 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Morgeson, F. P., Brannick, M. T. and Levine, E. L., 2019. Job and work analysis: Methods,
research, and applications for human resource management. Sage Publications.
Bailey, C., and et. al., 2018. Strategic human resource management. Oxford University Press.
Bogner, M. S., 2018. Human error in medicine. CRC Press.
McDonnell, A., and et. al., 2017. Talent management: a systematic review and future
prospects. European Journal of International Management. 11(1). pp.86-128.
Kay, R. and Alder, J., 2017. Coastal planning and management. CRC Press.
Shuck, B., Adelson, J. L. and Reio Jr, T. G., 2017. The employee engagement scale: Initial
evidence for construct validity and implications for theory and practice. Human
Resource Management. 56(6). pp.953-977.
Tjosvold, D., 2017. Cross-cultural management: foundations and future. Routledge.
Webb, S. P., 2017. Knowledge management: Linchpin of change. Routledge.
Gelfand, M. J., Harrington, J. R. and Jackson, J. C., 2017. The strength of social norms across
human groups. Perspectives on Psychological Science. 12(5). pp.800-809.
Nguyen, V. M., Young, N. and Cooke, S. J., 2017. A roadmap for knowledge exchange and
mobilization research in conservation and natural resource management. Conservation
biology. 31(4). pp.789-798.
Nielsen, K., and et. al., 2017. Workplace resources to improve both employee well-being and
performance: A systematic review and meta-analysis. Work & Stress. 31(2). pp.101-
120.
Myers, M. D., 2019. Qualitative research in business and management. Sage Publications
Limited.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A critical
introduction. Oxford University Press.
Online
Functions of HRM. 2019. [Online]. Available through:
<https://medium.com/@swaticbindia/human-resource-management-its-core-functions-
managerial-operative-fc0335ef616a>
Advantages and disadvantages of employment agency. 2017. [Online]. Available through:
<http://www.netcreativemind.com/blog/advantages-and-disadvantages-of-recruitment-
agencies/>
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