Roles and Functions of Human Resource Management

This document provides an overview of the roles and functions of Human Resource Management (HRM) in an organization. It discusses the purpose of HRM and its various functions, including recruitment, selection, training, and employee relations. The document also includes a case study of Diageo plc, a British multinational alcohol company, to illustrate HRM practices in action.

Human Resource Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Roles and functions of Human Resource Management.........................................................3
P2 Strength and weaknesses of approaches of recruitment and selection..................................5
Task 2...............................................................................................................................................7
P3 Practices followed by Human resource manager...................................................................7
P4 Evaluation of HR practices....................................................................................................8
Task 3...............................................................................................................................................9
P5 Relationship between employee relation and HRM decision-making...................................9
P6 Elaborate various key elements related to employment legislation along with its impact on
HRM decision making process:................................................................................................10
Task 4.............................................................................................................................................12
P7 Discuss the applications of Various HRM practices in organisation context along with
appropriate examples:...............................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Introduction
Human Resource Management refers to that segment of a company which has workforce
as its focal point. This means, it is the process of managing workforce or employees in such a
way that maximum productivity can be generated. This process starts from establishment of
contact with potential candidates and ends only with employee existing the company (Siringi,
Letting and Nicholas,2016). There are various functions and roles that a HR manager play in an
organisation, these are discussed in detail in this report in context of Diageo plc. It is a British
multinational alcohol company. It is one of leading beverages brands in market. It is best
illustration for understanding Human Resource practices as the company is famous for their
efficient HR practices. In this report, HRM has been discussed in context of practical examples
of Diageo plc. A thorough study has been conducted on overall subject of HRM.
Task 1
P1 Roles and functions of Human Resource Management
` Human Resource Management can be defined as that segment of management process of
organisation which is concerned with human element of company and its management in terms
of total knowledge, skills and talents, creative capabilities, aptitudes. These all are managed in
such an effective manner that they complement organisational objectives. In context of Diageo
plc., HRM is the process of empowering their employees in order to achieve their full potential
and also aims at creating a welcoming and safe working culture.
Purpose of HRM:
Human Resource Management is a management function that provides help to
management in formulating strategies in relation of workforce of an organisation (Wilton, 2016).
The ultimate goal of this function is to generate maximum productivity from employees.
Purposes of HRM are discussed below: Workforce Planning: This is the process of planning for requirements of workforce
engaged in organisation. This means, management of Diageo plc. identify requirements
of workforce, for example, when, where and what type of candidates are required.
 Motivation and Development: This is one of the primary functions of HRM, as it involves
the cause by which optimized performance of employee can be generated. In Diageo plc.,
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managers have observed that employees who are motivated are more focused in their
work as comparative to those who are less motivated.
Functions of HRM:
The main role of HRM is to plan, develop and administer strategies formulated for
making expeditious use of company's human resources. In this process, HR managers play
various functions which are elaborated as follows (Armstrong and Taylor, 2020): Recruitment and Selection: This responsibility relates to establishment of contacts with
potential candidates and further selecting them after conducting suitable tests. In case of
Diageo plc., they take this process in a serious manner as they believe that a good
selection process leads to efficient production process. Training and Development:In an organisation, there are different job profile, each having
different requirements in term of skills and knowledge. Thus, after conducting selection
process, it becomes utmost important to provide suitable training to employees in order to
make them familiar with their roles. Training and development is not only for new
employees, existing employees may also need them due to some changes in working
pattern of organisation. In context of Diageo plc., they believe that training and
development is important so as to make employee familiar with their roles and also for
making them capable for performing their assigned tasks.
 Managing employee relation: An organisation cannot succeed until and unless its
employees do not perform efficiently. Performance of employees depends upon number
of factors. One of the significant factor is relationship between employees. If they do not
share good equation it will put bad impact on their performance as well. Diageo plc uses
various tools to enhance relations such as monetary reward, promotions, etc.
Workforce planning:
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Workforce planning is a process of analysing the current workforce, determining future
workforce needs, identifying the gap between the present and the future, and implementing
solutions so that an organisation can accomplish its mission, goals, and strategic plan. It’s about
getting the right number of people with the right skills employed in the right place at the right
time, at the right cost and on the right contract to deliver an organisation’s short and long-term
objectives. We believe workforce planning can help to enable sustainable organisation
performance by providing the basis for better decision-making about the future people needs of
the business.
P2 Strength and weaknesses of approaches of recruitment and selection
Recruitment and selection both are directed towards one ultimate objective i.e.
procurement of suitable candidates for vacant position. The difference arises in their scope,
recruitment is a positive approach, while on the other hand, selection is a negative process. A
detail study of above statement is given in later of this answer (Tung, 2016).
Recruitment:
Recruitment refers to formation of pool of prospective or potential candidates, hence it is
considered to be as positive process. There are majorly two approaches of recruitment that are
internal approach and external approach. In case of Diageo plc., they believe in talent
engagement, which means they are focusing on procurement of high calibre people. This may be
internally or externally both. Focus is equally stressed on both the approaches. Following is a
discussion of two approaches of recruitment along with their strengths and weaknesses:
Internal Approach: This refers to fulfilling vacant position within the existing set of
employees. This can be done through promotion, transfers, etc. Diageo uses this approach in
order to fulfil that vacant position which requires that candidate who is well familiar with
organisational culture (Bailey and et.al., 2018).
Strengths: In some vacant posts, Diageo requires candidates who are well familiar with
roles and responsibilities such as post of production head. It will require a person who is known
to production sequence, thus, in such cases, internal recruitment is a very beneficial source of
recruitment.
Weaknesses: Employees may complain of biasness in conduction of internal recruitment.
This feeling will lead to cause of decrease of morale in not selected employees. This decreased
morale is harmful for the growth of company.
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External Approaches: In this method,candidates for vacant position are looked into
external environment. This is a process to stimulate as maximum candidates as possible for the
position. Diageo believes in talent engagement, thus, this approach supports this belief by
establishing contacts with well talented candidates.
Strengths: This approach enables Diageo for procuring more talented and qualified
employees. This process is important in terms of acquisition of a employee having new set of
skills and knowledge. This will also lead to increase in profitability as that new employee will
apply upgraded methods.
Weaknesses: This source of recruitment proves to be very costly and time consuming as
well. These resources can also be used in other productive processes. Diageo need to possess a
huge amount in order to invest that in external approach of recruitment.
Selection:
This is a process which starts where process of recruitment ends. As recruitment refers to
establishment of contacts with prospective candidates. On the other hand, selection is a negative
process as it starts eliminating candidates from pool of candidates formed at the time of
recruitment (Collings, Wood and Szamosi, 2018). Final result of selection process is hiring of
best fit candidate for the vacant position. For a large organisation like Diageo, which is operating
in multiple nations, they need to have a strong employee base in order to manage their business
operations smoothly. Selection provides company with this assistance. Approaches are discussed
below:
Preliminary Screening: This is a approach of evaluation and selection of applications
received at the time of recruitment. In this stage, a list of criterion is prepared which represents
all requirements for the vacant position. Application that matches this list moves forward in the
process, others are rejected.
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Strengths: This process assist human resource manager in taking forward only those
candidates who meet up the requirements. This saves both time and cost that may be invested in
these clients unnecessarily in further steps (Shields and et.al., 2015).
Weaknesses: Main task of this step is to evaluate application on the basis of list of
requirements for the vacant position. This may result in rejection of an employee who may
perform the job better that those who are selected. This may prove fatal for the company.
Interview: This is a process which brings employer and prospective employee face to
face. This is basically a test of judging skills, knowledge, behavioural pattern of candidate. These
all are those qualities which can not be judged or evaluated by mere looking at the resume or
application.
Strengths: Through this process, Diageo, are able to acquire the best fit candidate for the
vacant position, as till this step, every academic, non- academic, etc. quality has been evaluated
properly.
Weaknesses: This process is costly in terms of money and time as well. To conduct this
process, selection of right candidate is required which have high know how of subject matter and
procedure as well.
Task 2
P3 Practices followed by Human resource manager
Human Resource practice refers to those processes and actions that are adopted
universally and assist in smooth operation of human resource management. Some of the best
Human resource practices are explained below along with their benefits to employee and
employer:
 Training and development: It is one of the main HR practices that is followed
universally by all the companies. In Diageo, it refers to a setup where employees are
being instructed about their roles and responsibilities and also the way to perform these
tasks. It is a very useful task that helps in achieving organizational goals and objectives in
an efficient manner.
Benefit to employee: This is a very beneficial practice for employees. This process helps in
improving job satisfaction and morale. This provides them with a feeling that they are also an
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important role of company. With this procedure they also tend to improve their skill set which
helps them to improve their future possibilities in professional life.
Benefit to employer: This practice proves to be useful for employer as it increases job
satisfaction within employees which motivates them to perform in a more efficient matter. This
leads to increased profitability of company. Providing sense of importance to employees also
help in decreasing labour turnover rate, which in turn, results in saving of cost that will be
incurred in conducting process of selection and recruitment.
 Reward strategies: This practice refers to paying an employee according to their
contribution in business operations. This is a useful practice adopted by management in
order to retain good employees. This policy refers to formulation of effective
compensation policies that will lead attracting good employees and their increased
productivity.
Benefit to employee: This practice leads to increased satisfaction among employees
which make them motivated to work with more dedication. This leads to increased profitability
of organisation.
Benefit to employer: Through this practice, employer is able to retain good employees as
well to attract new and capable employees. This leads to better relationship between employee
and employer.
 Motivation: This is an useful practice that is adopted ny Human Resource managers in
order to gain maximum productivity from employees. Under this system, Diageo’s HR
manager attempts to motivate his employees by various techniques like rewards, awards,
recognition or some activities. These can be financial as well as non financial both.
Benefit to employee: Through this process, an employee is completely pumped up to work
with full dedication and provide his complete productivity. This led him to gain
recognition in company.
Benefit to employer: Under this system, an employer is able to gain maximum productivity
is a cost efficient manner and also establishes good employee relations.
P4 Evaluation of HR practices
Behind every successful business, one necessary condition is effective human resource
management. If Human resources are not managed properly, than it may lead to wastage of cost
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and time both. It is necessary that efficient HRM practices are adopted by managers so that
optimized performance of employees can be achieved. These practices may relate to leadership
development, performance management and rewards proportionate to their performance.
Management of Diageo believes in development of each and every employee as they advocate
for the point that every employee contribute in success of business. In this context, effectiveness
of Human Resource Management practices is discussed below (Zhong, Wayne and Liden, 2016):
 Training and development: Training is the process of making employees well familiar
with technologies and working system that are required to perform their job role. This
helps an individual in performing their job in a more satisfactory manner. Diageo helps
their employees to work in a more efficient manner by providing them suitable training
programs. This process also provides an edge to company to introduce a new technology
or system in order to serve their customer better. This also led to increase in profitability
level of organisation.
Strengths: This process helps management to take improved productivity from employees
and assist employees to improve their potential for future career endeavours also.
Weaknesses: this process can prove to be very costly for employers.
 Incentives and Rewards: Incentive refers to compensation that is paid to employees in
link with their performance. This is a perfect tool to motivate employees and to receive
increased productivity. Diageo uses various programs which help to earn workers loyalty
towards them. Employees who are motivated through financial factor perform better
through this method (Brewster, Mayrhofer and Morley, 2016). Reward management
plays an important role in effective management as they provide a base for which
employees are motivated to so a job. Therefore, it is essential that an effective and
efficient reward system is formulated in the company.
Strengths: This process helps management to establish strong employee relation with
employees which ultimately reflects in improved performance of employees and also
employee retention is improved.
Weaknesses: This process is very complex due to diverse workforce having different skills
set.
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Task 3
P5 Relationship between employee relation and HRM decision-making
Employee relation refers to relationship between organisation with its employees. This
relationship is established due to efforts made by employer to create a positive relationship.
Effective employee relation ensure job satisfaction in employees and organisation earn their
loyalty which make them stay for a longer period of time. Diageo is operating in a highly
competitive environment, therefore, it becomes essential for managers to not maintain relations
with customers but with employees also, so that they do not move to other competitors in market.
While formulating decisions or strategies for human resources, employee relation is a significant
point to consider due to following reasons:
 Increases commitment: When management put their effort in establishing healthy
relationship with their employees than latter feel committed towards organisation Diageo
management stresses on a healthy work environment due to the fact that employees need
to feel participative in company. According to this, employees will perceive a feeling that
their opinions do matter and this will motivate them to further participate with more
enthusiasm. This whole process will also lead to increase in profitability of company.
When employees feel satisfied, they can give some crucial inputs in decision making
process which makes it more effective (Marchington, 2015).
 Empowering employees boost their morale: Due to healthy employee relation status, it
become easy to adopt participative or free rain management style. This means, in these
style, employee is empowered to put their opinion forth in decision making matters.
These inputs comes directly from executive level, thus, they proves to be very crucial in
decision making process. Diageo provides various programs to employees which make
them more efficient in giving their inputs.
 Enhance work culture: It is a quite often scene when employee and management are at
opposite sides of pole. With the help of employee relation, they are able to come at same
page. This improves communication throughout whole channels of hierarchy. This
smooth communication also facilitate faster decision making. Diageo is continuously
inviting employees to give their suggestions. The company have also established a
grievance cell where employees can go and directly talk to related authorities about any
problem faced by them. Open door management also helps in better decision making.
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P6 Elaborate various key elements related to employment legislation along with its impact on
HRM decision making process:
Employment legislations are the rules and regulations that formulated for the upliftment
of human resources working in an organization. There are various laws such as safety, labour,
employment relations, gender discrimination and many more. (Andreeva and Sergeeva, 2016).
These laws are prepared in order to ensure smooth functioning of various business activities and
to create a positive environment at work place. These legislations put a great influence on the
decision making process of HRM (Siringi, Letting and Nicholas, 2016). Diageo, applies several
laws defined by government to create a healthy work environment within the company. That are
given below:
Employment Right Act, 1996: It ensures that all the employees working in organization
get the rights related to different aspects such as leave policy, unfair lay-off, gender gap,
paternity and maternity leaves and many more. Human resource managers of Diageo, provide a
written employment document to its employees so that they get aware with the work policies of
company.
Health and safety at work place Act, 1974: It consist the rules related to safety and
protection of staff within the organization. It is the duty of HR manger to ensure a safe and
secure environment at work place. Diageo is specific for the protection and safety of their
employees. They provide insurance policies such as life and health insurance to protect work
force from uncertainties (Belloc, 2016).
Working Times Regulations,1998: According to this law, there should predefined
working hours for staff. For instance, there should be policies related to break during the
working hours, paid as well as unpaid leaves, one paid break during the whole week, overtime
payment for extra hours worked by employees. HR manger of Diageo, apply strict working hour
rules. They have predefined working hours, lunch breaks and holiday policies. Apart from this,
they also make necessary changes in their standards as per modifications in government
regulations.
The Equality Act, 2010: It emphasis to minimize discrimination at work place on the
basis race, gender, nationality, religion and may more. It states that equal opportunities should be
given to all staff members without giving consideration to various discrimination factors. HR
manager of Diageo, ensure that all the employees get chance to demonstrate their potential and
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capabilities. They encourages work force to contribute in companies growth and success
regardless their caste, status, gender,etc.
Minimum Wagers Act, 1996: This act has been formulated by higher authorities to
ensure that each ans every employee pay off for their contribution in the success of organization.
This law is applicable on every organization regardless their size, type and other factors (Gould-
Williams, 2016). HR manager of Diageo make sure that all their employees get at least minimum
pay determined by government authorities. They emphasis to provide various monetary benefits
to work force to motivate them due to this they are able to maintain lower retention rate within
the company.
It has been analysed that HR department of organization give consideration to various
laws while formulating their policies and strategies (Latorre and et. al., 2016). Apart from
above stated regulations they also adopt other laws such as Paternity Act 2008, data protection
Act and so on.
Task 4
P7 Discuss the applications of Various HRM practices in organisation context along with
appropriate examples:
Human resource Department of Diageo is planning to invite applications for the role of
HR manager for company (Opoku and et.al. 2017).
Job Advertisement : Human resources of company are advertising job opening in the following
manner to get maximum number of applications:
HR MANAGER
Required Human resource manger
Applications are required for position of HR manger
Essential skills needed for suitable candidates:
 Graduation with 55 % or above
 Work experience of 2-4 years
 Posses management skills as well as exponential communication skills
 Excellent team handling and leadership skill
If interested, kindly connect at:
[e-mail]
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JOB DESCRIPTION: The description for vacant position is given below:
Name of organisation: Diageo
Department: Human resource management
Designation: HR manager
Location: London, England
Job summery
A capable candidate who have potential to mange all roles and responsibilities assigned by HR
manager. Directing & controlling of team for a specific task. Proper utilisation of leadership
quality to take subordinates of team along with them.
Role :-
 Monitoring and guiding personnel
 Forecasting of employees requirement
 Organize recruitment drives
 Selection of suitable candidate
 Resolve conflicts arises at work place
Offer Letter: Job offer letter for the post of Human resource manger is given below:
Diageo PLC
Lake side,
London, United Kingdom
25 October, 2020
Dear Mr./Ms. Last Name,
we are glad to inform you that you have been selected for the designation of HR manger. You
posses all necessary skills and potential for the vacant post. As per our discussion you need to
join the office from 30th October 2020.Enclosing details regarding to the compensation,
employment policies and other benefits for your considerations.
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We are looking forward to onboard you soon.
Role & Responsibilities:
 Designing and planning of recruitment process for different vacancies
 Performing all activities of HR manger
 Support senior HR managers in various task and responsibilities
Regards:
HR department
Diageo
Signature______________________
Date---------------------------------------
Conclusion
In the above report various aspects related to Human resource management has been
discussed. It has been monitor that employees are significant part of organization and HR
policies are necessary to enhance their productivity and outcome. It has been analysed that it is
essential to maintain good relation between higher authorities and employees of company. This
will help the managers of organization to attain the goals in predefine period of time. The above
report gives an overview about employment relations, different laws related to human resources
that influence the overall decision making process of Diageo. It stated all the practices that are
being used by managers of company to ensure a good environment at work place. Therefore, it
can be concluded that company is able to maintain on a friendly and healthy work environment
where the entire staff member can grow and excel to achieve the objectives.
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