Human Resource Management: Functions, Practices and Importance

This report discusses the purpose and functions of HRM, applicable to workforce planning and resourcing and organization. It also explains the strengths and weaknesses of different approaches to recruitment and selection. The benefits of different HRM practices within an organization for both employee and employer are evaluated, along with their effectiveness in terms of raising organizational profit and productivity. The importance of employee relations in influencing HRM decision making is analyzed, along with the key elements of employment legislation and their impact on HRM decision making.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Purpose and functions of HRM, applicable to Workforce planning and resourcing and
organisation.................................................................................................................................3
Explain the Strength and Weaknesses of different approaches to recruitment and selection.....4
TASK 2............................................................................................................................................7
Explain the benefits of different HRM practices within an Organisation for both employee and
employer......................................................................................................................................7
Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity..........................................................................................................................8
TASK 3............................................................................................................................................9
Analyse the importance of employee relations in respect to influencing HRM decision making
.....................................................................................................................................................9
Identify the Key elements of employment legislation and the impact it has upon HRM
Decision making.......................................................................................................................10
TASK 4..........................................................................................................................................10
Application of HRM practices..................................................................................................10
Application of HRM practices in an organisation.....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is an activity of managing people from hiring, providing
training, firing and motivating employees in an Organisation. The objective of human resource
management is to achieve business goals by developing positive attitude among staff. It is one of
the important functions of company that focuses on few areas such as talent management,
training and development, Workplace safety and HR Compliance. The human resource
management mainly plan, control, direct and organise the activities of Organisation
(Aburumman and et.al., 2020). They help in gaining the competitive advantage by increasing the
performance of staff and making maximum use of resources. Workforce planning is a concept of
forecasting, analysing, and planning the activities related to workforce by ensuring that company
has right people with great skills. The chosen organisation for accomplishing this project is
McDonald's, it is an American Fast food Company which was founded by Richard McDonald
and Maurice McDonald in 1955 (Rodrigues, Nikhil and Jacob, 2021). The project is divided in
two parts which is based on human resource management, the first part of report covers the
purpose and scope of human resource management and its effectiveness in an organisation. The
second part of project includes the internal and external factors that affect human resource
management decision making and its practices in work related context.
TASK 1
Purpose and functions of HRM, applicable to Workforce planning and resourcing and
organisation
According to (Collins, 2021) Human resource management is the important functions or
activity in each organization that means to manage people and getting work done timely. This
mainly uses to hire people, retention, pay and perks setting which satisfy employees and get
ready to work.
As per view point of (Gigauri, 2020), Workforce planning is the main aspects of analysing,
forecasting and planning for arranging people for the purpose of motivating and accomplish
business goals. This is important for each organization to have right planning for managing
people as it helps to develop the business activities.
Functions of HRM

Planning – This means looking ahead and formulating the plans which can helps to
develop the organizational performance. This is main function of HRM where management
perform all functions clearly by formulating effective plans and strategies. In relation to
McDonalds, HRM function is running by formulating the different planning and strategies for
the purpose of arranging people as well work.
Staffing – This function is related to finding the right worker with appropriate
qualifications and experience for the purpose of filling specific job position role. In McDonald’s
position are needs to fill through staffing function as it helps to analysis the market position and
select the candidates. Thus, management of selected company use staffing function to select the
right person and manage good activities (Anlesinya and Susomrith, 2020).
Organising – This means when employees are recruited and selected then it needs to
organise or arrange the people at the right place so that they could work effectively. In relation to
McDonalds, HR management is having major role as it organises employees at the different
position as per their skills and abilities which can help to develop the organizational
performance.
Decision making – This is most important function of HRM in which decision are taken
by human resource management department by researching each function and activity. The HR
management of McDonald’s require to search market, provide products and make the right
business decision by doing well at the workplace (Ansari, Farrukh and Raza, 2021).
Purpose of HRM
 The main purpose of HR is to identify the needs of their employees and provide the
various benefits which can motivate them.
 To recruit the candidates internally and externally after analysing vacant position and
managing each activity.
 The purpose of HRM is to manageing each function and activity to perform well along
with employees for increasing business performance.
 McDonald is using HRM to fill vacancy, placing right people, and getting the work done
from employees which can help to develop the organizational performance.
Explain the Strength and Weaknesses of different approaches to recruitment and selection
Recruitment – This is the process of actively searching out, hiring, and rejecting the employees
for the purpose of getting right people at right place. The HR management of McDonald is using

recruitment process to seeking and looking towards best candidates who gets ready to work and
manage the functions. The approaches to recruitment are:
Internal – When employees are recruited within the organization who works in the organization
then it is considered as internal recruitment.
 Promotions – This means to promote or appraise their employees from their current job
position to another along with higher pay and responsibilities. The management of
McDonald can be use promotion approach to filling accountable or responsible position
(Davidescu and et.al., 2020).
 Recruiting former employees – Whenever organization needs talented and experience
staffs then it can recruit its former employees who currently are not working due to
retirement but willing to work as they have experience that can help to develop the
organizational performance and productivity.
Pros and Cons of internal recruitment
Pros Cons
 Internal recruitment reduces hiring
time as existing employees are hired
within the organization.
 Internal recruitment also promotes
good and effective work culture
where employees could work
collectively.
 In McDonald, Internal recruitment
encourages employee engagement
and morale.
 In internal recruitment it is difficult
for organization to give opportunity
to external employees that limits the
innovation and new technology.
 This can create conflicts between
working staff and they don’t work
well (Ghouri and et.al., 2020).
 This limits the pool of candidates and
manage each task.
 External – This means when staff are recruits and plans to get new talent from outside
the organization is known as external recruitment.
 Job fair – This means provide job to all candidates who are willing to work as number of
candidates are registered in job fair where companies can hire massively (Guest and
et.al., 2021) (Kshetri, 2021).

 Recruitment agencies – This also can be use by McDonald to fill their job vacancy by
contacting with recruitment agency. It helps to manage the higher performance and
productivity at the workplace by managing people as per their skills and abilities.
 Pros and Cons of External recruitment
Pros Cons
 External recruitment gives more
option as there is having bigger pool
of candidates.
 This influences skilled and qualified
candidate who ready to work in
rotational shifts.
 This avoids the internal problems
which arises between employees that
might arises while working.
 McDonald faces the issue of time
period as it consumes much time.
 This might be creating the challenge
to recruit staff from outside the
organization.
 There is a risk of company culture
change that faces by McDonald’s
employees after recruitment
Selection – This is the process of picking up individuals out of number of candidates and
complete task properly. This is important for organization to select the right person after
analysing its skills as well as abilities. In relation to McDonald, HR management selects the right
person and getting the work done complete which can help to improve the business performance.
 Advertising – This is the main approach of selection process in which whenever
organization needs employees it posts on their websites along with job responsibilities
that can helps candidate to apply for job and being selected.
 Screening – This is different approach which used by organization to screening the
employees as per required skills and abilities that could help to develop the business
performance and productivity. McDonald can be use screening approach as external
recruitment which can help to fill the vacant position and managing the higher
productivity.
Pros and Cons of Selection
Pros Cons
 Selection is the important aspects of
filling vacant position by giving
 This might be creating the challenge
to select the right individuals as

personal touch to each employees.
 Selection approaches are uses by
McDonald to select the right people
that would be able to handle all
business activities.
wrong candidates are selected that
affects working negatively.
 Sometimes it does not focus on
experience of employees due to
selecting staff by using referral that
limits the skilled people.
TASK 2
Explain the benefits of different HRM practices within an Organisation for both employee and
employer
Recruitment and selection- This practice is related to identification of vacant position in
an organization and make decision to select the right person. Employees are the assets of
organization who understands goals and contributes in each working. With the help of
recruitment and selection practices of HRM, McDonald is filling all vacant position at the work
place by searching the vacant position and selects the right candidates out of applicant pool. This
is important for management to use recruitment and selection practices as it fill organization
demands by providing the talented people at the work place (Laužikas and Miliūtė, 2020). This is
beneficial for employees and employer such as:
For employees For employer
 This provides the good job
opportunities to people and feels as
important part of organization.
 This can help employees to show their
talent and manage the working properly
that develop the organizational
performance.
 Recruitment and selection is beneficial
for McDonald as it fills all job position
which are empty by analysing their
talent as well as abilities.
 This can help McDonald to accept the
challenges and changes at the
workplace that provides competitive
advantages.
Training and development – This means educational activities in an organization which
is created to enhances the knowledge and skills of staff while providing information. Training

and development is the main function that should be uses by organization to increase the abilities
of employees and builds their confidence to work. In relation to McDonald, HRM management
use this practice to provide the proper training and development programme to their staff that can
help the same to accept the new working method and activities (Mousa and Othman, 2020). This
provides various benefits to employer and employees such as:
For employees For employer
 Employees who works in McDonald
get motivated to work more effectively
with the help of training and
development programme.
 This increase the morale and learning
capacity of working staff at the
McDonald.
 Training and development is beneficial
for employer as it builds confidence to
accept more challenges.
 This can help to develop the
organizational productivity by
improving working abilities of their
staff.With the help of training and
development McDonald creates a good
working environment and manage the
work properly.
Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
HRM practices are most important and effective for each organization as it brings change
and new activities at the workplace for the purpose of developing organizational performance.
Recruitment and selection is the main HRM practice which is used by organization to analysis
the vacant position and recruit skilled people who can works and manages the all activity at the
workplace. The HR management of McDonald apply the recruitment and selection practice to
know vacant position and selects the skilled employees that can helps to arranging people in
different activities and maintaining higher productivity. This can help to develop the
organizational productivity and profitability by manages all actions and providing the
employment opportunity to their staffs (Ogbeibu and et.al., 2020).
Training and development is also an HRM practice which is used to increase the learning
abilities of employees and complete the task properly. In relation to McDonalds, HRM
management provide the training and development programme to their staff which helps to

accept challenges, influence customers, and develop the business productivity. This is useful
practice of HRM in selected company as it provides the competitive advantages in the changing
environment by managing all activities.
TASK 3
Analyse the importance of employee relations in respect to influencing HRM decision making
In organization pool of employee are working where it is important to have good relations as it
supports to work collectively and developing the organizational performance. The meaning of
employee relations is to having healthy relation between employer and employee which can
helps to managing each work and provides higher profitability. In relation to McDonalds,
different benefits are taken by creating employee relation that also influenced decision making
such as:
Retaining loyal employees: The main role of HR is to recruit and retain loyal staff by
formulating different planning and making decision. The management of McDonald understand
the problems of their staff and provide them various benefits that encourages employees to feel
good and retain loyal at the workplace (Oluwatayo and Adetoro, 2020).
Increase productivity: By maintaining good relations between employer and employees,
it will be good opportunity for organization to increase their productivity and profitability. In
context to McDonald that is the large size corporation increasing the organizational productivity
by maintaining positive employee relations where all introduce new food items as per customer
taste that influences customer more. In having good relations, employees always being ready to
accept the changes and manages each task.
Fewer workplace conflicts – For each organization it is essential to have strong employee
relations as it supports to organise people at the right place and gets the work done timely. In
relation to McDonald, employer and employees are taking benefits of low workplace conflicts as
all staff member works collectively and solving each other problems. The HR management of
selected company, analysing the situation and division the work that needs to be follow by all
employees for the purpose of resolving conflicts and developing the business productivity.

Identify the Key elements of employment legislation and the impact it has upon HRM Decision
making
The decision of HRM needed to be taken properly as it influenced all employees to work
more or not. The employer is required to follow all rules and legislations which are formulated
by management for the benefits of growing business in changing environment. The HR
management of McDonalds is following the different employment legislations that are defined
below:
Health and Safety Act 1974 – This act is formulated for the purpose of providing different
benefits to employees who are working at the workplace. This can help to develop the business
activities and performance by taking right actions. The HR management of McDonalds using
health and safety act at their workplace in which employees feel good and safety while working.
In this legislation, employer should be arranging all facilities and provides the compensation to
staff in case of any injury happened that helps to make feel good and managing all functions
effectively.
Equality Act 2010 – This act is related to protects the employee from discrimination on
the basis of gender, pay, and religion. This is similar to anti-discrimination act which should be
follows by organization for by providing equal opportunity to work and managing higher
productivity. McDonald is operating its business with the help of staff where employer make
sure that all employees are treated equally and systematically (Shukur and et.al., 2021).
Data protection Act 2018 – This legislation is related to protecting the personal data and
information of employees who are working at the workplace that helps to manage each task and
personal information of their staffs. The employer of McDonald uses this practice to provide the
safety and confidentiality of personal data that can helps to feel well and complete the
organizational task.
TASK 4
Application of HRM practices
There are various types of HRM practices which can be applied within the organization.
Therefore, it is quite important that the identification of the HRM practices can be done in a right
manner. Therefore, the following HRM practices in relation to MCDonald is defined below-
Application of HRM practices in an organisation.

Person Specification
Position: HR Journalist
Functional unit: Human resource
Reporting to: Administration Manager
Attributes Essential Desirable
Qualification & Experience The application is require to
have PGDM and MBA degree
in human resources
management with minimum
70% marks. Moreover, it
should have more than 2 year
of experience in HR
Journalist.
The person who is applying
should have good knowledge
about human resource
department and ability to
solve all employee’s issues.
Skills or Knowledge The skills which required in
HR Journalist are
communication, problem
solving, influencing and well
understanding skills that can
be used to perform well and
maintaining higher
performance.
The candidates who is
applying for such specific role
should be able to handle many
task and allocate the work
between employees as per
their skills that contributes in
each function.
JOB DESCRIPTION
Organisation: McDonald
Designation: - HR Journalist
Job Address: London
Job summary
We are pleased to inform that organization is looking an active, charming, and experience
candidate for the profile of HR Journalist who would manage all employees, their payrolls, and

conflicts that arises at the workplace. The candidate should be operating their roles and
responsibilities clearly and contributes to retain the staff for long period.
Role: -
To maintain employee work records.
To understands the issue of employees and solve them
Formulating and updating HR policies that would be beneficial for organization and staff.
To conduct different activities that help the organisation to grow their business.
OFFER LETTER
26th August 2021,
McDonald
Dear Steffy Jones
Congratulations as you have selected in our organization as the position of HR Journalist
out of many people. This is a great opportunity for you as well as our company to work here as
you match with all requirement. Your current CTC is 10,50,000 per Annum. The joining date is
1st September 2021 So, please let us know the confirmation regarding this. Please carry your
official documents along with you.
We are excited to meet you.
Best regards,
Olivia Smith
CONCLUSION
From the report it can be concluded that human resource management is the function of
business enterprises where different roles and functions are performed to complete the task and
attaining goals. Planning, organising, decision making and controlling is the main functions of
HRM which is used to understand requirement and fill it properly. Internal and external
recruitment are approaches of recruitment that used by McDonald to fill empty place and
managing work responsibilities. Health and safety, data protection and other legislation are used
by selected organization to run their business and increase effectiveness.

REFERENCES
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(Aburumman and et.al., 2020) (Anlesinya and Susomrith, 2020) (Ansari, Farrukh and
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(Gigauri, 2020) (Guest and et.al., 2021) (Kshetri, 2021) (Laužikas and Miliūtė, 2020)
(Mousa and Othman, 2020) (Ogbeibu and et.al., 2020) (Oluwatayo and Adetoro, 2020)
(Shukur and et.al., 2021) (Vrontis and et.al., 2021)