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Importance of HRM Practices in Organisations

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Added on  2020/09/03

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The project report concludes that HRM is crucial for organisational success, covering functions like recruitment, staffing, training, and development. It highlights how HR departments work, strengths and weaknesses of recruitment approaches, and the importance of employee relations and legislation in HR practices.

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Human Resource
Management

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and function of HRM that are applicable to workforce planning and resourcing...1
P2 Strengths and weaknesses of different approaches to recruitment and selections.................3
TASK 2............................................................................................................................................5
P3 The benefits of different HRM practices for both employer and employee..........................5
P4 Effectiveness of HRM practices for raising profit and productivity......................................6
TASK 3............................................................................................................................................7
P5 The importance of employee relations which influence HRM decision-making..................7
P6 Key elements of employment legislation and its impact upon HRM decision-making........7
TASK 4............................................................................................................................................8
P7 Illustrate the application of HRM practices in a work related context..................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10
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INTRODUCTION
Human Resource Management is defined as the formal systems for managing people in
the company. It plays an important role within the organisation as HR manager is responsible for
managing entire workforce and perform his duty into many areas such as staffing, employee
benefits and compensation, work designing and many more in an effective manner. The major
purpose of human resource management is to maximise profits and productivity through
utilisation of manpower within firm (Altman, 2010). This report is based on Hewlett-Packard
(HP) Company which is an American multinational information technology firm and is
headquartered in California. This company deals in selling variety of products such as hardware
and software components related with consumer service. Report will explain purpose and
function of HRM and strengths and weaknesses of different approaches to recruitment and
selections. Benefits of employer and employees will also be discussed. Analysis of importance of
employee relations and legislation that impacts upon HRM decision-making will also be done
here. The report will illustrate the application of HRM practices as well.
TASK 1
P1. Purpose and function of HRM that are applicable to workforce planning and resourcing
Human Resource Management is a set of procedures where people are recruited and
selected as per their skills and abilities within an organisation. The HR department play crucial
role in developing particular business as they take responsibility of hiring, firing and
development of individuals for the purpose of achieving set goals or targets in an appropriate
manner. There are number of activities which are performed by HR manager in the Hewlett-
Packard firm as they maintain relationship and focus on recruiting best candidates so that better
organisation can be created. It is an essential to achieve growth and competitive advantages in
the information technology sector.
Purpose of HRM
Human Resource management is very important sector in every firm which try to build
an effective bridge between line management and employees of the company. There are several
kinds of hierarchy system in different firm such as small companies have limited workforce so
here is more chances to interact with each members (Sabato, 2010). On the other side, large
companies have number of layers of management so it will be difficult to manage entire team in
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an effective ways. HR manager of Hewlett-Packard perform several functions or activities to
create and maintain healthy environment as well as better working conditions. These are as
follows;
Cultural sensitivity: This is a major role of HR department to form a positive and good
culture so that organisation can work in systematic way. They try to make everyone aware
regarding company's culture for better performance. HR manager generally divides every task or
work among several activities so that cultural differences can be manage or maintain.
Law: HRM department have to understand the legal structure and legislation regarding
labour relations and negotiation as well (Wilson, 2010). It will support in understanding about
the terms or conditions and process that how an organisation can hire, select and terminate
workers as per the legal rules, regulations and code of conduct. Manager of Hewlett-Packard
required to undertake the retirement scheme, plan, barriers or conflict resolution so that healthy
environment can be created.
Employee management: There are number of purpose and functions that considered in
HRM as they always try to generate profits and increase productivity in business firm. It can be
seen in Hewlett-Packard company that HR manager focus on hiring talented people so that they
can bring new innovative ideas and creativity in the Information Technology field. HRM is
interlinked with various performance as financial, IT, operations and many more in an effective
manner.
Functions of HRM
Human Resource Management consider various functions and perform all these in an
appropriate manner for the purpose of attaining set goals or targets. Same in the Hewlett-Packard
company as HR manager focus on creating best products of computer hardware and software so
that they can survive in the competitive market (Battisti, 2011). These functions are as follows:
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Orientation: In this it is defined that HR manager organise a Orientation program for
better interactions among each staff members for adjusting them with working climate.
Employers provide instructions and guidelines to individual to attain particular goals or targets of
Hewlett-Packard.
Managing employee relations: HR manager perform his duty to manage or maintain
relationship among people at the work place. Hewlett-Packard has positive working environment
due to harmony systems in the firm. There can be seen an effective team work to achieve
predetermined objectives.
Recruitment and selections: This is an important function which is performed by HR
department of Hewlett-Packard, as they take decisions regarding recruiting and hiring suitable
candidates for creating better software and hardware components in the firm.
Training and development program: It is also another major function that must be
organised in an appropriate manner (Perry, 2011). HR manager always ensure about employees
performance and analyse needs to conduct training or learning sessions for enhancing their skills
or knowledge in the Hewlett-Packard.
P2 Strengths and weaknesses of different approaches to recruitment and selections
Recruitment and selection of particular candidate is very important and difficult task for
every firm because in this, HR department make effective decisions and corrective actions
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Illustration 1: HRM functions 2017
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regarding hiring talented persons for specific job. There are several approaches available that
companies consider while making any decisions. Hewlett-Packard can approach with a reactive
and proactive attitudes during recruitment. They respond very fast for new job applications as
they make strategies for building a pool of qualified or skilled candidates before any new
vacancies opening. Hewlett-Packard firm also consider an appropriate approaches for hiring
experienced and skilled individuals who are able to bring new ideas as well as innovative
thoughts for producing quality of products and hardware, software in the organisation. Here are
some approaches of recruitment and selections such as;
Job analysis: It is the procedures where data or information are gathered regarding
existing job vacancies and formulate an activities for the purpose of recruitment and selections in
an effective manner (Blackburn, 2013). In this required specific qualities and skills for
performing entire activities so that expected outcomes can be received. Hewlett-Packard firm
consider the job analysis in a proper manner.
Job description: In this phase, a systematic process of hiring policies starts in which by
using effective job descriptions. In this included whole detailed information regarding any
particular job such as pay scales, particular tasks, reporting requirements as well as
responsibilities of supervisors. It is an essential that support to every individual in finding
suitable job with their interested areas and different positions so that they can satisfied with
particular work.
Person specifications: In this phase, HR department outlined some specific qualities,
knowledge, skills and abilities of individuals for particular job vacancies. It consider that person
must be able to achieve specific goals or objectives (Hart, 2013). It is relevant with job
descriptions which identified suitable individuals to fulfil job requirements.
Strategies of job posting: HR department focus on creating effective strategies for the
procedure of recruitment and selections so that better workforce can be created. In this,
organisation adopt best method for providing information about any job vacancies that are
available in the Hewlett-Packard firm, to those candidates who are eligible and interested to do
any job.
Multi phase recruitment: In this consider a systematic process of recruitment and
selections to hire best talented candidates with matching their profile and eligibility regarding job
within an organisation. There are several process and steps which are following in interview
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round so that right candidate can be recruited at the right time. It included telephonic round, test,
examinations and face to face interview while recruitment procedure.
Strengths and weaknesses of recruitment and selections
Strengths Weaknesses
Internal recruitment is one the best
method for hiring individuals for
particular job (Wainwright, 2013). It is
cheaper or costs effective techniques
which takes few time for recruiting
persons.
External recruitment is also another
important source that support in
bringing new ideas, innovation and
creativity because it hire people from
outside of the firm.
These are helpful in finding best
candidates regarding suitable job to
achieve organisational goals or
objectives.
Its main aim is to hire talented and
curious person who are passionate
regarding work completion and
concentrate on achieving set targets.
They perform important duty in finding
flexible people so that they can adjust
and able to do work in any shift.
Internal recruitment process may be not
suitable because it restrict to enter fresh
talent within the firm. As innovative
thinking and creativity will be narrow
in this method.
Recruit any candidate by using external
sources can be more expensive as it
will increase costs while recruiting
person because it use advertisements
for providing informations to desired
candidates.
It also takes huge time for finding and
hiring best candidates for organisation.
It can be said that external recruitment
is lengthy process and consume more
time as well as efforts.
Sometimes, it can be less effective
process because recruiter might be able
to find talented people for organisation.
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TASK 2
P3 The benefits of different HRM practices for both employer and employee
There are number of benefits of human resource management for both employers and
employees in the firm (Bridge, 2012). HR manager of Hewlett-Packard company take
responsibility for managing entire workforce as they try to build positive relations among
employees and management so that better harmony system can be created. Some benefits are as
follows;
Benefits for employers Concentration on assignments and tasks: It is beneficial for employer that they focus on
tasks or work and find the way that how these can be completed in an effective manner. It
helps to both as employer and organisation in attaining set targets. Utilisation of working time: Employers can focus on effective utilisation of time and
efforts for completing tasks or work with in firm. HRM practices can be beneficial in
accomplishing objectives in Hewlett-Packard with minimum time period.
Decrease of absence: This will be also supportive as HRM practices reduce absenteeism
as well as leaves in an appropriate manner (O'Neill, 2012). Hewlett-Packard can increase
its productivity and profitability with these practices.
Benefits for employees Realisation in new areas: It is a biggest opportunities of employees that they can take
more experiences and gain knowledge through realising of new areas in an appropriate
manner. Employees can learn more unique things to enhance knowledge and skills. Training and development opportunities: Employees can gain experiences and enhance
knowledge through learning sessions as it beneficial for them to increase the abilities.
They can apply it in achieving goals or objectives by performing particular tasks or work
in an appropriate manner.
Satisfaction of personal and cultural interest: This is also another benefit for
employees as they can be satisfied in order to personal and cultural interest with the help
of HRM practices.
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P4 Effectiveness of HRM practices for raising profit and productivity
In every organisation, HRM practices are different that have several policies as well as
rules, regulations (Carraher, 2015). They apply all these in achieving specific goals, as Hewlett-
Packard firm also consider this for increasing profits and productivity. Here are some
implementation of HRM practices such as;
High performing and innovative workers: It is an effectiveness of HRM practices as
Hewlett-Packard can promote innovative and creative ideas in the firm. They can use better
positive environment and more effective climate in which provide facilities to employees so that
they can focus on targets achievements. This will be effective in attaining goals of the company.
Effective setting of directions and executions: HR manager and other leaders are
responsible for providing guidelines and set directions, purposes, objectives, priorities, goals and
responsibilities of the workforce in the Hewlett-Packard. Therefore, firm always try to appoint
effective leaders and managers for increasing profits and productivity.
Team and individuals goals by appropriate communication: Human resource
management helps to set and attain team objectives in the firm. HRM practices are beneficial in
providing various mode of communication to employees for avoiding major gaps.
Update workers skills for maintaining productivity: There are several competitors
available in the market in the field of Information technology (Paridon, 2015). Therefore
Hewlett-Packard always focus on providing better training and development programs to
enhance employees skills and knowledge so that they can survive from competitors.
Rewards and drive performance: It is the duty of organisation that provide various
benefits to employees so that targets can be achieved in an appropriate manner. Hewlett-Packard
provide some extra benefits to its employees so that they will perform their task with better
ways.
TASK 3
P5 The importance of employee relations which influence HRM decision-making
Employees relations play an important role in achieving goals or objectives in effective
manner as good relations helps in building strong team and collaborate in efficient way. In this
consider that human are not machine who will work non stop, so it is an essential that makes feel
them more important as well as comfortable in the company (Gronum, 2012). HR department of
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Hewlett-Packard focus on employees performance and productivity regarding work through
motivations. They encourage them to perform any particular task so that organisational
objectives can be achieved in an appropriate manner.
Work will become easy through sharing it: It is very easy to reduce work load by
sharing it among people as workers can complete any tasks or work to attain the objectives of
company. This will be helpful in increasing productivity and generate profits through better
relationship among people.
Resolve conflicts and barriers among workers: It is other benefit of HRM that positive
relations can be created which will support to remove any chances of conflicts and overcome
barriers in an effective manner. It reflects on the team as better collaboration can be seen in the
organisation.
Loyalty of the employees: For effective and successful organisation, there are required
pleasant and positive environment which always help in bringing profitability and productivity in
the firm. This can lead loyalty of workers as well as motivate to them for attaining particular
goals.
Ensure equality through communication: it is necessary to have effective mode of
communication as it is essential for reduce conflicts and solve problems through providing
appropriate or adequate information to the employees (Verreynne, 2012). In Hewlett-Packard
company, they do not partial among employees as there are equality which helps in creating
better organisation.
P6 Key elements of employment legislation and its impact upon HRM decision-making
In any organisation, it is necessary to undertake several legal rules and employment
legislation in the company. Hewlett-Packard firm also consider these legislation at the workplace
because it has major impact on the HRM decision-making in the organisation. They focus on
managing as well as maintaining employment legislation while performing any activities and
functions such as recruitment and selections in an effective manner. Here are some legislation of
employees such as;
Defining positions: It is necessary to defined the positions of employees within an
organisation which support in providing their details (Kastelle, 2012). Company can ensure
about employees roles and responsibilities as in Hewlett-Packard firm, it described employees
duties so that better decisions can be made.
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Proper compensation: This task must be performed by the HR department as provide
compensations to its employees as per the discussions. They define about compensations to
workers during the process of recruitment. In this discuss regarding wages and salaries according
to working hours.
Ensuring equality: In this legislation, company have to ensure regarding equality in the
firm as there should be not any discrimination among employees on the basis of wages, gender,
working hour, sex and races etc. this act was formulated by government. Therefore, employees
have rights to ask legislative regarding this and helps to meet their desired expectations.
Time of work: It is necessary that every workers are aware about particular working hour
or timing in the firm. In this consider the weekly, daily working hour to perform any work or
task. On the other side, it is the responsibility of manager of Hewlett-Packard that allow
employees leaves in any specific occasions or festival.
There are some employment legislation that must be considered by Hewlett-Packard
company in the procedures of recruitment and selections in effective manner so that it will
impact positively upon HRM decision-making in the firm.
TASK 4
P7 Illustrate the application of HRM practices in a work related context
HRM practices concern with personnels who have abilities for performing entire
activities so that organisation can be developed. In this required qualities, skills and traits of
leadership in effective manner (Herbane, 2010). It included several activities such as training and
development programmes, motivations, work divisions, performance appraisal and functions etc.
here are some HRM practices or applications and defined that support in effective business
operations and activities such as; Career management: It is the important duty of organisation that care about it employees
as every staff members have dreams and expectations in future perspective (Malhotra and
Temponi, 2010). It is an essential that motivate to employees regarding task completing
tasks with better performance so that organisation can achieve objectives and goals.
There are wide scope in IT sector so people can make their career in this area. Training and learning programmes: Employees can enhance its skills, abilities and
knowledge through training and development (Rae, 2010). It can be influence on HRM
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decision-making in retaining employees so Hewlett-Packard consider this for adopting
new ideas and innovation in the firm.
Recruiting hiring persons: This process is very necessary as whole workforce is depends
on the recruitment and selections, therefore, Hewlett-Packard conduct this procedures in
an appropriate manner for the purpose of making skilled, qualified and effective
workforce.
CONCLUSION
From the project report, it has been concluded that HRM is very important as it play vital
role in managing entire workforce within an organisation. In this included several functions such
as recruiting, staffing, training and development of people to accomplish predetermined goals in
better ways. This report defined about Hewlett-Packard firm as how its HR department works for
organisation contributions. HR manager perform various functions and find suitable candidate
for particular job. It also described about strengths and weaknesses of recruitment and selections
approaches. Importance of employee relations and legislation of HRM practices and applications
also discussed here.
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REFRENCES
Books and Journals
Altman, E.I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2).p.95.
Battisti, M. and Perry, M., 2011. Walking the talk? Environmental responsibility from the
perspective of small‐business owners. Corporate Social Responsibility and
Environmental Management. 18(3). pp.172-185.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1).pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2).pp.89-98.
Gronum, S., Verreynne, M.L. and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2).pp.257-282.
Herbane, B., 2010. Small business research: Time for a crisis-based view. International Small
Business Journal.28(1).pp.43-64.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1).pp.28-37.
Rae, D., 2010. Universities and enterprise education: responding to the challenges of the new
era. Journal of Small Business and Enterprise Development. 17(4).pp.591-606.
Schaper, M.T., and et. Al 2014. Entrepreneurship and small business.
Southern, A. ed., 2011. Enterprise, deprivation and social exclusion: The role of small business
in addressing social and economic inequalities (Vol. 2). Routledge.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Online
Functions of HRM 2017. [Online]. Available through:
<http://humanresourcebasic.blogspot.in/2017/04/human-resource-management-
definition.html>.
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