Human Resource Management Practices in Orion Electrotech Ltd: A Critical Analysis

This report provides a comprehensive analysis of the Human Resource Management (HRM) practices employed by Orion Electrotech Ltd, a recruitment company. It examines the functions and purpose of HRM in resourcing and workforce planning, evaluates the strengths and weaknesses of the company's selection and recruitment processes, and explores the benefits of different HRM practices for both employers and employees. The report also delves into the impact of employment relations on HRM decision-making, identifies key elements of employment legislation and their influence on HRM practices, and illustrates the application of HRM practices in a work-related context using specific examples. The report concludes with an evaluation of the effectiveness of HRM practices in enhancing productivity and profit, highlighting areas for improvement and suggesting strategies for optimizing HRM practices to achieve organizational goals.

Human resource management
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Table of Contents
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P1. Explanation and application of the functions and purpose of HRM in resourcing and
workforce planning in Orion Company.......................................................................................5
P2. Explanation of strength and weaknesses of selection and recruitment of Orion Company. .7
P3: Explanation of different HRM practices in the company and its benefits on employer and
employees....................................................................................................................................9
P4: Evaluation of different HRM practices and their effectiveness in productivity and profit. 11
Task 2.............................................................................................................................................13
P5 Impact of the employment relation in the decision making of HRM...................................13
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making for the chosen organisation.............................................................................15
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples for the chosen scenario..............................................................................................17
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Executive summary
The current report highlights on the systematic analysis of different HRM practices in the Orion
Company. The human resource management is the most significant management body for a
company. In case of Orion Electrotech, the human resource management is effective to
incorporate more employees in the company. Thus, the role of the HR management is to manage
and provide the proper remuneration of the employees. Effective employee motivation can be
provided by performance bonus, incentives, credit point allowances, promotion and other
techniques. The Orion Company does not possess effective training module which put barriers
on enhancing the production and profit of the company. Along with this task, the HR
management conducts the job analysis and resource planning for Orion Company. At the end of
this report an evaluation has been conducted with regulation and effective conclusion has been
drawn.
3

Introduction
In order to run a successful business in the competitive market, it is necessary for the companies
to develop an effective Human Resource Management to draft the plans for the progression of
the companies. The main aim of the HRM practices lies in generating effective services for the
growth of the company. It helps the company to understand the relevance of respective
employment practices and the importance of employee relations. The implementation of proper
HRM practices instigates the success of a company. In the case of the recruitment company
Orion Electrotech Ltd, it has to deal with a lot of employees to provide services in different
sectors. Talking about the company Orion Electrotech Ltd, they also have adopted a set of
Human Resource Management Practices to enhance the performance of the employees while
ensuring the improvement in the productivity.
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Task 1
P1. Explanation and application of the functions and purpose of HRM in
resourcing and workforce planning in Orion Company
Explanation of functions and purpose of HRM
The human resource management is the most significant management body for a company. In
case of Orion Electrotech, the human resource management is effective to incorporate more
employees in the company. It has been noticed that being a small and medium enterprise (SME),
there are around 50 employees present who looks after the recruitment work for other
companies. Thus, it is necessary for the company to incorporate more employees. According to
Welch and Björkman (2015, p.303), the most significant HRM practice is to manage the
employees and to look after their necessity and demands. Thus, in order to maintain effective
workplace environment the human resource management plays significant role. On the other
hand, Tansel and Gazîoğlu (2014, p.1260) argued that, in case of a business organisation which
deals with a number of employees, the business turnover can impact on the revenue.
Figure 1: Human Resource Management
(Source: Welch and Björkman, 2015, p.305)
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Thus, the role of the HR management is to manage and provide the proper remuneration of the
employees. However, Sylvester et al. (2015, p.38) opposed that, the employee motivation and
their retention is the purpose and function of the HRM in order to improve the overall
performance of a company. It has been noticed that, along with these task, the HR management
conduct the job analysis and resource planning for Orion Company. Critically, it can be stated,
being a recruitment company, the Orion Company is requiring a strong human resource
management system who can manage the current and future employees. About 16% turnover
intention can be seen in the company which is the result of the ineffective human resource
management system of the Orion Company.
Application in Resourcing and workforce planning
The Orion Company is consisted of only 50 employees who look after the recruitment service of
other companies like Amazon, Unilever, and other fields of aerospace, engineering, technology
and construction. In this scenario, the employment recruitment and retention of potential
employees are essential aspects for the company for achieving their sustainability in the
competitive recruitment market. According to Sikora et al. (2015, p.1908), in order to maintain a
healthy workforce and retaining them in an organisation the human resource management team
can incorporate strategies to provide motivation to the employees. With the help of effective
motivation, the work intention can be enhanced. As stated by Marchington (2015, p.176),
effective employee motivation can be provided by performance bonus, incentives, credit point
allowances, promotion and other techniques.
However, in case of the Orion Company, the human resource management and the leaders are
lacking this strategy as a result annual 16% employee turnover and 23% employee turnover
intentions can be noticed. Along with this, the team based support is not provided by the
employer and manager which make the employees dissatisfied to their jobs. On the contrary
Sikora et al. (2015, p.1908), opposed that, in order to maintain healthy workforce based
practices, the HR team needs to arrange training, motivational seminars and others which is
completely lacking in the company. However, the resourcing or the recruitment is quite
satisfactory and the company provided training to the employees in the initial phase about how to
handle recruitment calls, job posting and others.
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P2. Explanation of strength and weaknesses of selection and recruitment
of Orion Company
Strengths Weakness
 The Orion company provides training
to the recruited employees
 The selected employees are known to
work within the work environment
and culture of the company
 Provides opportunity of getting
promotion right after three months of
joining
 In the selection process the company
evaluates each and every candidate in
order to select the best one.
 The company offers an attractive
remuneration to their new joined
employees.
 The weakness of the recruitment and
selection process in the company does
not choose the probable employees
based on their experiences, as a result,
a huge amount of time required during
the training session
 After the recruitment the company
does not provide their employees any
long term contractual bond for
retaining the employees in the
company.
 The company does not provide
training further after the first training
completed.
 The Orion Company put tremendous
workload on the shoulder of
employees that de-motivated the
employees at the beginning.
Table 1: Strength and weakness of HRM of Orion Company
(Source: b.co.uk, 2018)
With this context, it can be stated that the employee recruitment and selection process has both
some drawbacks and advantages. According to Marchington (2015, p.176), with the help of
effective recruitment process, a company can achieve their knowledgeable employees. Karanges
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et al. (2015, p.129) supported and commented that, the effective human resource management
system can increase the skill and proficiency of the employees by the help of training. Thus, the
Orion Company does not possess effective training module which put barriers on enhancing the
production and profit of the company. Along with this task, the HR management conducts the
job analysis and resource planning for Orion Company. Being a recruitment company, the Orion
Company is requiring a strong human resource management system who can manage the current
and future employees. According to Jamali et al. (2015, p.125) selection of employees based on
their behaviour, attitude and preferences.
On the other hand, in order to maintain the effective workforce the HR management needs to
monitor the discriminating activities among the employees. Thus, at the time of joining the
company and the human resource management needs to conduct an orientation programme
which can help the employees to adjust themselves within the environment and work culture of
the company. Thus, with the help of these aspects the Orion Company can achieve performance
appraisal their skilled and proficient employees in the company. Jackson et al. (2014, p.1) stated
that, in order to maintain a healthy workforce and to retain them in an organisation the human
resource management team can incorporate strategies for creating the motivation to the
employees. With the help of effective motivation, the work intention can be enhanced.
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P3: Explanation of different HRM practices in the company and its benefits
on employer and employees
The strategic employment management is the key role of a human resource management. In case
of the Orion Company, recruitment management and the payroll management is the most
challenging functioning for the HRM. According to Graham et al. (2015, p.449), with the help of
effective payroll management the HRM can regulate the revenue and also satisfy the employees.
Thus, both the employees and employer get satisfied with the efficient payroll management
system of the Orion Company. Similarly in case of the companies like Amazon and Unilever,
instead of a huge revenue loss of the company, the employees are paid properly by the
management. As a result, the employee retention rate is quite high. However, Eby et al. (2015,
p.1275) argued that, the employment and the revenue of a company is equally proportional to
each other. Thus, the Orion Company can look after the payroll system of the company.
However, Cristiani and Peiró (2015, p.381) opined that, along with the effective payroll system
the company can conduct various motivational payment system. These systems are credit
allowances, incentives, attendance grace and other in order to motivate the employees and to do
more hard work.
Additionally the payroll system of the Orion Company also demands to include the basic
payment along with health insurance, travel allowance, retirement payment and others which can
make the organisation ideal for working. On the contrary Conway et al. (2016, p.901) argued
that, another important aspect that impacts on both the employee and employer satisfaction is
recruitment. It has been noticed that the recruitment and selection function of the Orion
Company is limited to the soft skills of the candidates. However, Coetzee and Harry (2014, p.90)
argued that, the recruitment of a company must be based on the effective behavioural, attitude
and knowledge of the candidates. In case of the Orion Company, being a service provider
recruitment company, they need the knowledgeable candidates who can access different fields of
the recruitment fields. The company is conducting their business in many fields such as
technology, engineering, construction, aerospace and gas where the employees need to have a
wide range of knowledge and a skill to motivate the candidates. However, the company provides
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their employees good salaries along with childcare vouchers, days out with family, gym
membership, health insurance, holiday incentives and excellent commission.
Thus, both the employees and employer get satisfied with the efficient payroll management
system of the Orion Company. As a result, the employees get attracted by the proposal of the
company although the retention rate is very low. The company does not provide proper training
in the after period of recruitment which impacts on the skills of employees. On the other hand,
the Orion Company put tremendous workload on the shoulder of employees that de-motivated
the employees at the beginning. In case of the Orion Company, being a service provider
recruitment company, they need the knowledgeable candidates who can access different fields of
the recruitment. Thus, the workload management needs to be effectively done by the company in
order to retain the employees. As for this reason, the HRM of the company can start recruiting
more employees in order to increase their sales. On the other hand, the company is having
business turnover of Euro 30 billion in the last year which states that the company requires more
employees in order to maintain the revenue and sustainability of the company.
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P4: Evaluation of different HRM practices and their effectiveness in
productivity and profit
The productivity of a company is directly proportional to the employment. As opined by
Brewster et al. (2015, p.451), with the help of proficient and knowledgeable employees the
growth of any organisation can be enhanced. It has been noticed that, the annual business
turnover is of Euro 30 billion of the company which is due to the high quality service of Orion
Electrotech in the giant companies like Amazon, Unilever, Accenture and others (b.co.uk, 2018).
Hence, with the help of more employees the rate of cope up with the market can be enhanced by
the company. As for this reason, the HR management of the company can play a significant role.
They can provide motivation and communicate with the employees for generating new ideas.
Beer et al. (2015, p.427) supported and commented that, in the generation and collection of new
ideas for organisational betterment the human resource management is responsible. In this way
the Orion Company can enhance their financial and reputational growth in the competitive
market with the strength of HRM. On the contrary Brewster et al. (2016, p.532) argued that, not
only the revenue of a company enhance by the effective HRM model, but also the production
increases.
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productivity
profit
HRM

Figure 2: HRM practices and their effectiveness in productivity and profit
(Source: Beer et al. 2015, p.427)
In case of the Orion Company, being the service provider recruitment organisation, the ability of
the performance of the employees can be enhanced. With the help of effective payroll
management the HRM can regulate the revenue and also satisfy their employees. Thus, both the
employees and employer get satisfied with the efficient payroll management system of the Orion
Company. As a result, the employees get attracted by the proposal of the company although the
retention rate is very low. The company does not provide proper training in the after period of
recruitment which impacts on the skills of employees. The HRM along with the director of the
company Chris Benham also highlights on the employee retention rate and their impact on the
production of the company. Hence, as for this reason, the HRM can provide motivation to the
existing employees not only by monetary means, but also by the emotional support which leads
the company retain the potential employees. According to Beer et al. (2015, p.427), employee or
resource retention rate of the company is the most effective way to enhance the financial growth
and productivity of a company. Thus, this can be done by the HRM of Orion Company and
enhance the production and profit.
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Task 2
P5 Impact of the employment relation in the decision making of HRM
The process of decision making has an effective impact on the HRM practices that are related to
the employee relations (Albrecht et al. 2015, p.31). As per the theory of Anitha (2017, p.308),
there are some external and internal factors that are affecting the process of decision making.
Talking about the internal factors the effects of the pay packages, workplace environment, size
and shape of the company, the products that the company is manufacturing or selling, including
career planning regulates the decision-making process. Whereas, the external factors can be
categories as the socio-economic structure of the company, employment rate, relation of supply
and demand, current market condition, reservation and application of technological
advancements (Armstrong and Taylor, 2014, p.45). Talking about the HRM practices of the
company Orion Electrotech Ltd, the internal factor of employee relations influences the business
practice of the company. Apart from the internal and external factors, the application of some
employee legislations has also controlled the HRM practices of the aforesaid company. The
external factors that are likely to affect the HRM practices include the economic, legal,
demographic, political technological and cultural aspects. These factors affect the Human
Resource Management Practices to improve the employee relations. As the strategic HRM
practice is the outcome of globalisation, it gets influenced in a global manner to control the
direction of a specific business.
The employees are the major pillars of any organisation as they provide the basic support to the
structure of the company (Beer, 2015, p.429). In order to conduct a smooth business in the
current competitive market, it is an unavoidable part for the company to deal with serious
consideration (Brewster et al. 2016, p.39). According to Coetzee and Harry (2014, p.94), the
active cooperation of the employees in a business ensures the level of success of the respective
company. Hence, it is very important to build an effective communication with the employees to
generate a proper business structure. As the company, Orion Electrotech Ltd is a recruitment
management company; the main business of the company is the employment or recruitment of
proper person in the proper field. In order to produce an effective service to the client companies,
13

the company has to build up effective employee relations. It has to be done for the growth of the
company to be able to provide the required service to their client. The impact of the employment
relationship in the workplace determines the level of motivation and the employee performance.
The level of comfort of the employees in the workplace and their relationship with their
respective colleagues has a great impact in controlling the process of decision making of Human
Resource Management. Considering the success of a business, the performance of the employees
is the most important pillar of an organisation. As the improvement of a business lies in the
relationship of the employees, it becomes more important for a company to look into the basic
demands and needs of the employees. In order to get success in the business, the recruitment
company Orion Electrotech Ltd follows the Guest Model which covers the sectors of
development, retention and giving the reward to the employees to encourage them for better
performance. This attempt to build an effective employee relationship has helped the company to
achieve their desired goal while enhancing the productivity.
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P6 Identify the key elements of employment legislation and the impact it
has upon HRM decision making for the chosen organisation.
Ever since the area of business has been expanded, the chances of instability in the organisations
have been increased (Conway et al. 2016, p.911). With the intention to put a limitation in this
kind of violations, several legislations and laws have been introduced in the business sectors. The
implication of the laws and legislation is an important aspect of business procedure (Cristiani and
Peiró, 2015, p.384). The rules have been implemented in the business sectors to ensure a stable
business process while enabling both the company and the employees to enjoy their respective
rights. The application of the legislation like Equal Pay Act, The Employment Rights Act, The
Disability Discrimination Act, Sex Discrimination Act and The National Minimum Wage Act
have controlled the process of decision making in the Human Resource Management Practices
(Jackson et al. 2014, p.57). These acts have been implied into the workplace to ensure a non-
violation of the basic rights. The application of these laws has guided the companies to conduct a
strategic business process to generate an improved employee relationship.
Legislations Covered Areas
Equal Pay Act This act has been put into action to ensure an equal pay
scale for all the employees having a similar qualification
and recruited in the same position.
The Employment Rights Act It ensures the equal right for employment without any
discrimination in age, sex or race.
The Disability Discrimination Act This law has enhanced the scope for the qualified disabled
persons to claim their rights of getting equally employed.
Sex Discrimination Act The preference for any particular gender has been
prohibited in this act. It depicts the equal rights of
15

employment for both the male and female.
The National Minimum Wage Act The implication of this act has a great impact on the
business structure of different companies. This legislation
announces that all the companies have to maintain a
minimum wage for the employees.
Table 1: Legislations related to employment issues
(Source: gov.uk, 2018)
The application of these legislations in the business organisations has helped the employee
relation to growing up (Graham et al. 2015, p.467). In the case of the above-mentioned company
Orion Electrotech Ltd, the implication of these laws has generated an effective employee
relation. Being a recruitment company, it has been able to provide equal opportunity to both the
male and female candidates to get recruited. On the other hand, the introduction of new laws and
legislation has made the company incur some changes in their structure for the development of
employee relations. Along with these the introduction of new medical legislation has helped the
company to ensure the mental and physical health of the employees.
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P7 Illustrate the application of HRM practices in a work-related context,
using specific examples for the chosen scenario.
In order to generate a stable business while ensuring a secure a positive growth of an
organisation, the issues of effective management are the inseparable concept (Karanges et al.
2015, p.130). The Human Resource Management comprises the sectors of employment
management, recruitment management, payroll management, shift management, attendance
management and leave management. These various HRM practices are implemented in the
business organisations to influence the decision-making process. In order to enhance the area of
business the application of proper Human Resource Management is a must. The collaboration of
the effective business plan and employee relationships can determine the decision-making
process of HRM practices to improve the success rate of the respective company [Refer to
Appendix 1].
The application of HRM practices helps the organisations to expand their area of business in a
smooth way (Marchington, 2015, p.177). The application of the Recruitment practice is one of
the major aspects of HRM practices; it enables the company to choose their employees in a
systematic way according to their requirement. This practice comprises of several recruitment
procedures like recruiting the managers, investments in the skilled managers and trains them,
development of a strong candidate pool and analysing the strategies of the recruitment process. It
will be smooth and easy for a company to prosper in their respective business while following
these practices. For example, the Green Recruitment Company has observed a significant
improvement in their business by following the above-mentioned HRM practice. They have been
successful to generate skilled professionals to their clients while ensuring the success of their
own business.
On the other hand, the motivational aspect of HRM practices proves to be effective to motivate
the employees to generate a better workforce (Sikora et al. 2015, p.1908). The motivational
aspect of Human Resource Management helps the executives to motivate the employees to get
more intimidated by their respective work. It enables the employees to understand the
importance of communication and effective workforce. Along with this, the training and
17

education programs for the improvement of performance of the employees help both the
executives and the employees to get better accommodated with the business (Sylvester et al.
2015, p.40). It also allows them to improve their skill and knowledge for the improvement of the
company. For example, the Hakim Group has applied the training and education programme to
get their employees ready to handle the new technological advancements. This UK based optical
industry was struggling to survive in the present competitive market. The implementation of the
training programmes has helped the company to train their employees regarding the application
of new technology.
Though the company focuses on the effective HRM practices for the effective decision making
to improve the performance of the company, several issues occur in the business (Tansel and
Gazîoğlu, 2014, p.1261). Concerning the business of the aforesaid company Orion Electrotech
Ltd, they are going through a struggling phase of not being able to cope up with the current
demand for recruitment. An analysis of the business structure and business process of the
company shows that the lack of training and education programme is creating a hurdle for the
company's success. The company Orion Electrotech Ltd is a recruitment company and it
provides the clients with the required employees. Hence, the skill and knowledge of the
recruiters and employees must be considered as one of the important aspects to be discussed. A
lack of training of the employees is creating the hazardous environment for the company to
understand the requirement of the clients and supply employees as per the demands. Another
major issue of the company can be marked as the communication gap between the employees
that have created a chaos in the performance of the employees. The unstable relationship
between the executives and the managers has created an uncomfortable workplace environment
which is not acceptable for the growth of the company. In order to restore the previous success
record while improving the performance of the employees, Orion Electrotech Ltd needs to
modify their HRM practices for the betterment of the employee performance and employee
relations.
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Conclusion
The implementation of HRM Practices in the business sectors has enabled the opportunity for the
companies to understand the significance of the employee performance and the importance of the
employment relationship as well. An effective Human Resource Management provides the
respective company to understand the importance of the employee relations in the growth of the
company. An analysis of the HRM practices provides the idea of the employment process along
with its implication in the system of the respective business. The evaluation of different HRM
practices in regard to the strengths, weaknesses, opportunities and threats of the management
practice enables the reader to understand the aspects of the practices. The application of the
employee legislation also has a great impact on the HRM practices. Concerning the business of
Orion Electrotech Ltd, it is necessary to improve the HRM practice for the further betterment of
their business.
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