Human Resource Management and Its Importance

The assignment explores the role of HRM in developing a workforce using different practices like recruitment and selection, rewards and compensation, and flexible working options. It also emphasizes the importance of implementing employment legislations to protect employee rights and interests.

Human Resource
Management

Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Purpose and function of HRM, applicable to workforce planning and resourcing of an
organisation............................................................................................................................3
P2 Strength and weakness of different approaches to recruitment and selection..................4
TASK 2......................................................................................................................................7
P3 Benefit of different HRM practice with in organisation...................................................7
P4 Effectiveness of different HRM practice in term of raising organisational profit and
productivity............................................................................................................................8
TASK 3......................................................................................................................................8
P5 Analysis importance of employee relation in respect to influence HRM decision making
................................................................................................................................................8
P6 Key elements of employment legislation and the impact on HRM decision making.......9
TASK 4....................................................................................................................................10
P7 Illustrate the application of HRM Practices in a work related context using specific
examples...............................................................................................................................10
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
Human resource is considered as an asset of an organisation due to which it is very
important to manage their performance level through motivating them using different HR
practices. For this, Human resource management plays an important and crucial role to
develop skilled and knowledgeable workforce so that an organisation can easily achieve its
desired goals and objectives. It performs various important functions such as recruitment and
selection, training and development, flexible working options etc. which maximises the
working behaviour of employees. The present assignment report is based on National
Westminster Bank which is commonly known as NatWest. It was established in the year
1968 and having headquartered is in London, United Kingdom. The report discusses the
purpose and functions of HRM along with the strength and weaknesses of different HR
practices. Along with this, importance of HR practices toward employees and employer are
also describes under this report. Apart from this, employee relations along with their
importance to achieve organisational objectives, key elements of employment legislations
and its influence on decision making process, application of HRM practices are also covered
under this report.
TASK 1
P1 Purpose and function of HRM, applicable to workforce planning and resourcing of an
organisation
The term Human resource management is deliberate approach by which workforce of
an organisation is effectively managed. It help to gain competitive edge against the rivals of
company. Main motive of an HRM department is to increase the performance of company
(Bloom and Van Reenen, 2011). Apart from this it help an organisation to manage their
employees need effectively. With this it is the responsibility of HR manager to solve
financial, legal etc. grievances that are faced by workforce of company. Some purpose of
human resource department are mention as follow:
Compensation- It is the right of every employee to get fair remuneration against the
input or efforts that are essential to complete the project. For this HRM department analysis
the performance of employees and modify pay structure of company if it is necessary. Along
with this they provide workforce for company that help to accomplish goal and objective of
company (Functions of HRM, 2017). The HR department of Natwest bank create policy and
help management to understand state law, federal law and local law in circumstances to

reimburse like salary and wage act that address about safe work environment of company
(Cox, Arnold and Tomás, 2010).
Performance appraisal- Human resource department monitor and observe all the
performance of an employee. They also take information about employ performance from
their manager or supervisor. It is the responsibility of Natwest bank HR manager to create
performance appraisal of each employ. As it one time process that take place once in the
whole year. As it important for every organisation to do this process as it help to get
promotion, retention and termination ofemployees according to their performance.
Law compliance- As employees are working for an organisation so it is the
responsibility of an management for the safety and security of an employ. There are different
laws such as health and safety act to develop safe working environment for employees. So the
HR team of Natwest bank always update and adopt changes that are necessary for the
welfare of employees (Daley, 2012).
Staffing needs- The role of human resource department is to hire or recruit those
employees that work as an asset for company in upcoming future. This process start with the
announcement of vacant seats that is exist in internal department of company. It include all
the process regarding job responsibility, skill, duty and determination that is required for
vacant seat. Apart from the HR department also ensure that they can terminate any existing
employ without violation of law. This are responsible for provide training and development
to an employees and promote and transfer to them where they are needed in the organisation.
The HR department of Natwest is handling all the needs of employees that work for
accomplishing company project (Difference Between Training and Developmen, 2017).
P2 Strength and weakness of different approaches to recruitment and selection.
Recruitment and selection is essential process for company that is the responsibility
of human resource department. As it is very beneficial for company to recruit those candidate
that work effectively for the organisation. They take care of promotion, incentives that are
given to employees for welfare of company and organisation. The HR manager of Natwest
bank is responsible to provide and manage workforce of the company. Few HR approaches
are specified as below:
Approaches to workforce planning- A workforce planning is the process that is
related with to achieve the goals and objective of company by matching them with the needs
of employees. Example- Bank want to increase in customer so they provide high incentive to

sales department by which necessity of both will be fulfilled. For this HR department of
organisation provide training to their employees.
Approaches to performance management- The manager of Natwest bank analysis
and evaluate the performance of employees at small intervals to improve the performance of
employees. As it is very important for organisation because it help management to promote
an employ and to solve problems that create barrier for employ to perform role and
responsibility (Farndale, Scullion and Sparrow, 2010).
Approaches to rewards- The reward management is the approach that focus on
providing other than salary benefits to employees such as commission, incentive, bonus etc.
In context of Natwest bank management focus on tangible reward and intangible rewards. It
include financial stability under tangible reward and motivation or to fill luxurious needs for
employ under intangible reward.
Approaches to training and development- Basically two types of training are
provided in Natwest bank to their employees. For betterment of employees on the job training
as well as off the job training option are available for company. It include employee
orientation, apprenticeship, mentoring and coaching that help workforce to achieve their task
easily.
Recruitment and selection process of Natwest bank
Recruitment process of Natwest bank is efficient and effective and perform major role
in company that is to recruit right candidates at right time. For this company uses internal and
external recruitment process (Fulton and et. al., 2011).
External recruitment- In the external recruitment process the candidates are select
and hire from outside the organisation. This type of recruitment helps to bring new ideas and
concept through fresher. For this budget are made by company by which expenses are control
for hiring the employees.
Strength Weakness Candidate that are hire from outside
the organisation bring innovative
ideas with them that help organisation
to expand their business. There are large number of individuals
are present for HR manager to select
 The external process is very
expensive for company. As it require
high investment to advertise and
promote that attract more individuals.
 It is time consuming and complex
process in case for quick recruitment.

best candidate for the vacant job.
Internal recruitment- This is the process of recruitment by which vacant position of
company are fulfilled within existing employees. Some major points that show strength and
weakness for internal recruitment is as follow:
Strength Weakness
 Existing employees are already aware
with business operation. So it save
time and money to provide training to
employees.
 All the existing employees that are
working with company are motivated
to get promotion in company.
 This process bound the organisation
to search for potential candidate for
company.
 New ideas and method to complete
the job are not introduced in company
for completion of task.
Method of selection in Natwest bank
The HR manager of Natwest bank not just go through with CV but they follow
sequential steps to recruit or select best candidate from wide option. This steps are mention as
follow:
Register interest- It is the first step of recruitment that invite application for vacant
seat. In this a basic form is filled that contain personal detail of employ and some question are
asked to check the skill and ability of employees (Huselid and Becker, 2011)
Business insight stage- In this a person is placed in hypothetical business situation in
which issue and problems are involved in business operation of banking industry. After that
manager are asked several question based on case or video. Along with some problems are
also asked that block the path of Natwest bank to complete their project or task.
Barclays business meeting-It is the final stage to chose that candidate is hired for
company or not. This process take place for 3 to 5 hours in this candidate is asked to
complete task in area of his interest.
Offer or feedback- At last after completion of Barclays step or process selected
individual are provide appointment letter. While unfortunately candidate which are not
selected are given feedback to increase their skill that help them to perform well in future.
Strength Weakness At early stage it include only simple
forms that are filled by candidate. It provide feedback to candidate if
 To complete this process lot of time is
required by company.
 Sometimes candidate are evaluated on

they are not selected in this process. different skill that does not show
capability of an employ.
TASK 2
P3 Benefit of different HRM practice with in organisation
Practices play an essential role in human resource department of an organisation. It
include implementation of HR strategy and system that are required by company for
completing their regular operations (Iles,Chuai and Preece, 2010). The best human resource
practice is a process by which HR manager is able to satisfy need of employ and staff. HRM
practice include recruitment and selection, work life balance, compensation and training and
development this are briefly explain as below:
Recruitment and selection- Management of Natwest bank developed sequential
recruitment process for company that help in hiring best candidate for company. This steps
are created to check skill and capability of employ that are essential to complete job role for
company. In this an individual is evaluated on different scenario by which directly or
indirectly relate to business. As it helps to achieve company objective quickly & cost
effective way. This process is expensive but with this best candidate is hire for company.
Training and development programs- The human resource management of Natwest
bank provide different methods that help to build career in banking industry usually training
and development. It include some special training such as apprenticeship training, mentoring
and coaching, health and safety for the staff. As for employees company organise different
development programs such as seminar, programs that increase productivity of an employees
and generate confidence and enthusiasm in them (Jiang and et. al., 2012).
Benefit to employers Benefit to employees
 This process help organisation to
increase their profits by providing
guidance to employees that bring
productivity in their work.
 With effective HRM practice
employees less turnover is reduced in
company.
 With recruit and select candidate who
deserve vacant seat help organisation
 With the execution of training and
development program it help to
improve the skill of employees and
staff. It help to gain competitive
advantage among its rivals.
 With HRM practice management of
Natwest bank develop positive
environment in company. It
automatically increase motivation in

to achieve their task with high
efficiency.
employees.
P4 Effectiveness of different HRM practice in term of raising organisational profit and
productivity.
Human resource management manage and control different functions that are related
with welfare of workforce of an organisation. The HR department of company organise
different training and development programs that are for benefit of employees. There are
different HRM practice that is executed in Natwest bank but they all work for single motive
that is to recruit eligible candidate for vacant job. As good candidate bring more productive
and better outcomes for company. Some of major practice that helps to bring effectiveness in
business operation is as follow:
Performance management system-human resource department use this process for
evaluating the performance of human workforce that are working with Natwest bank. It
include to assign the roles to employees that match with mission and vision of company. As it
help company to decide scenario and aspect on which base company is able to evaluate the
performance of its employees. With performance management system company provide
feedback to its employees that help to improve their skills (Lewis, Packard and Lewis, 2011)
Manpower planning- It is the most essential part for the human resource management
and this action bring more productivity for an organisation. As in this first plans and strategy
are developed that help to fill the gap between supply and demand of an organisation. The
Natwest bank help its employees by providing continuation chart by which they are able to
evaluate themselves to achieve organisational goal and their personal goals.
TASK 3
P5 Analysis importance of employee relation in respect to influence HRM decision making
Employ relation refer to the bond that is created by organisation between workforce
of an organisation. Employ relation and management approach is implemented by Natwest
bank. This approach help to create healthy environment in company. Along with this it is also
help to reduce the conflicts and fights between employees at workplace. The good employ
relation helps company to bring more effectiveness in project or task of company because
they are engaged towards their work. This help to increase efficiency and effectiveness in the
internal department of company. Natwest bank follows this approach so they bring more

innovative ideas that result in growth and development of company. The HRM decision
making is relay with employees relation in following ways:
1. The human resource management of company involves manager and employees to
make a decision because they all are inter-relate with each other and work together to
complete project.
2. Staff, employees and manager bring healthy relationship between them. As it help
employees to communicate their needs to manager. While HRM department take
decision after analysing need of employees as it is beneficial for employees and
organisation. In Natwest bank there is good relation between all employees and their
collaborative results help to implement better result for organisation (Mitchell,2013).
3. Healthy relationship between different teams help organisation to manage their
resources effectively and to control unnecessary element that result in waste of
products. The HR department of Natwest bank is responsible to bring more efficiency
and productivity in their employees.
P6 Key elements of employment legislation and the impact on HRM decision making
Every organisation has to follow some rules and legislation that are required to
operate their business in industry. With the implement of this legislation, Natwest bank
ensure that they do not violate any law which create negative impact on brand of
organisation. Some laws are that impact on HRM decision making is as follow:
Health and safety act, 1970- This act is implement in the year 1970. It is US labour
law occupational health and safety act secure the safety of working environment in which
employ has to perform their task. Natwest bank develop and understand this law as in this top
management of company play role that is no violation of this act.
Civil rights act, 1964- This law help employees to save them from discrimination
specifically based on colours, gender, religion etc. After execution of this act in Natwest
bank, human resource management and top management decided to implement this act so the
employees work comfortably and it also ensure fair running of activities that take place in
organisation (Ployhart and Moliterno, 2011).
Fair labour standard act, 1938- This act was sanctioned in the year 1938 and after
that it was reviewed several times. This act cover the law that relate with minimum wages to
the workers and to pay for the extra work like overtime, compensate etc. Natwest bank know
the importance of this act and it execute in their policy because it develop and train
employees easily.

Equal pay act, 1970- This act is revised that was based on the pay act of 1963. The
main motive of this act is to reduce discrimination between employees that relate with their
salary, and also salary difference between men and women. This act state that employ is paid
on the scale of working conditions and performance. With execution of this act Natwest bank
promote gender equality that increase goodwill of company.
Impact of employment legislations upon HRM decisions making.
The HRM department is responsible and authorise to take decision that are directly
relate with human resource department of company. HR manager of Natwest bank is
responsible to implement all the above legislation in the organisation and to ensure that their
employees follow this law. To provide training in all department and to execute this law in all
operation activities is the responsibility of HR team. At last manager is responsible to ensure
that all the decision that are taken by human resource department should be strictly followed.
This helps department to address their activities or services as per the manner that is
stipulated in law. With this Natwest bank ensure anyone of their department is not violate any
law that damage their image (Song and et. al., 2010).
TASK 4
P7 Illustrate the application of HRM Practices in a work related context using specific
examples
Application of HRM practices in Marks and Spencer
Human resource management is held responsible to manage and monitor the
performance level of employees with an objective of increasing their contribution towards
achievement of organisational goals and objectives. For this, motivation is provided to the
employees through providing trainings, coaching, guidance and sessions (Tarique and
Schuler, 2010).
Job Description
Job Details
Post : HR Manager
Company : NatWest Bank
Job Purpose
Hard working and new thinker are invited to apply for the job position of HR manager in
NatWest. Along with this, good communication skills are also required which help while

communicating and interacting with clients coming from different nations. In addition with
this, an applicant should have knowledge about implementation of training and development
programs so as to maintain healthy working atmosphere.
Roles & Responsibilities
 HR manager should have knowledge to implement different HR practices which brings
beneficial result to both employees and organisation.
 Building healthy employee relations through organising different programs and
trainings.
Person Specification
 Post: HR Manager
 Department: HR department
 Key: This shows what is required as an evidence:
 (A): Application form, (I): Interview, (R): Role
Attributes Essential Desirable
 Qualification &
Experience
 Post-graduation in
specialisation of HR
from any college.
 Atleast 3 years of
working experience as
working in a HR
department
 Experience of working
in HR in Banking
sector.
 Skills or knowledge  Effective
communication skills
in both written and
verbal.
 Ability to get work
done from others
through maintaining
mutual healthy
relationship.

Creation of structured interview- The HR management of NatWest invites applicants
using various advertising tools such as job portals, newspapers, magazines, websites,
newspapers, social networking sites, etc. The HR manager of the company takes interview of
different applicants regarding basic questions related to ambitions and goals of the individual.
 What are the roles of HR Manager in development and growth of organisation?
 Why there is an need to develop positive relationship among employees at
workplace?
 How can trainings affect the performance of employee?
 Why our bank should hire you?
Job Offer Letter
Mr./Ms,Last-Name
Address
City, State Zip Code
Dear Mr./Ms. Last Name,
Our organisation NatWest Bank is privileged to offer you the position of HR Manager.
According to our company's judgement, your experience and skills is appropriate as per our
requirement.
As discussed in assessment your joining date is 1st June, 2019. The salary offered to you is
$30,000 per year and it will be paid on a monthly basis. Company will offer medical insurance,
conveyance charge, accommodation and food facility. NatWest Bank is offering LOP facility, if
any urgent leave is required by any employee. In addition with this, the eligibility for the
retirement plan from company begins from 3 months after your joining date.
If you accept this offer, please let us know by signing the second copy of this letter and
return it to us as soon as possible.
When your acknowledgement is received, we will discuss about other formalities with you
in the company itself.
If you have any doubts or query then please let us know if we help you any case or we can
provide any additional information to you.
Sincerely,
First-name,Last-Name
Director,Human-Resources
NatWest Bank
____________

I hereby accept the HR Manager, HR department position.
_____________________________
Signature _____________________________
Date ----------------------------
CONCLUSION
It has been concluded from the above project report that HRM plays a valuable role in
the growth and success of an organisation by developing its workforce using different HR
practices such as recruitment and selection, rewards and compensation, flexible working
option etc. Hard and soft are two approaches of management which are used and adopted by
the managers in different business situations. It is important for HR manager to implement
various employment legislations act such as equality at, 2010, Fair labour standard act, 1938
etc. which protects the interest and rights of employees at workplace. It brings motivation
among them to work hard and perform their best to achieve its desired goals and objectives.

REFERENCES
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Online
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