Importance of HRM in Workforce Planning and Restructuring

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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