Importance of HRM Practices in Organizations

The assignment discusses the importance of HRM practices in maintaining equality within an organization. It emphasizes how HRM directly affects an organization's performance, profitability, and productivity. The document also mentions various factors that affect employee efficiency, such as providing a healthy working environment to reduce disputes and complexity.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Discuss the nature and purpose of HRM in workforce planning.....................................3
P2 Strengths and weaknesses of different approaches of recruitment and selection process.4
TASK 2............................................................................................................................................6
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee. ........................................................................................................6
P4. Assess the effectiveness of HRM practices for increasing productivity as well as profit of
the organisation......................................................................................................................7
TASK 3............................................................................................................................................8
P5. Examine the importance of employee relations in respect to influencing HRM decision
making. ..................................................................................................................................8
P6. Identify the key elements of employment legislation and the impact it has upon HRM
decision making......................................................................................................................9
TASK 4..........................................................................................................................................10
P7. Application of Human Resource Management practices...............................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
HRM is a technique used by managers of the company in order to recruit, select, manage
as well as develop their employees. Main aim of HRM is to focus on the performance of the staff
and ensure effective work practices within the business organisation. The Human Resource
department of a company plays very essential role, as they help in developing the employees.
important role in every organisation (ALDamoe, Yazam and Ahmid, 2012). Tesco is chosen as
the base company in this report. It is one of the biggest multinational retail industry with the
headquarters located in England. Tesco deals in groceries and merchandising all over the world.
In this report, purpose and nature of Human Resource Management as well as strengths and
weaknesses of different approaches used by managers in recruitment and selection process have
been included. In addition to this, this report also includes various practices of HRM in context
to employee and employer. At last, this report contains impact of employment legislation on the
decision- making process of the company.
TASK 1
P1. Discuss the nature and purpose of HRM in workforce planning.
HRM is the most important tool used by managers in order to deal with the human
resource of the company. HRM refers to the process with the help of which managers of the
company use their workforce in an effective manner. In the present context of Tesco, managers
of the company use HRM in order to use their available human resources effectively. On the
other hand, workforce planning is a method used by companies in order to examine their current
as well as future requirements of human resources (Bučiūnienė and Kazlauskaitė, 2012). Main
motive behind this is to select right candidate for the job at the right time, for accomplishing
organisational goals and objectives in an effective manner.
Purpose of HRM in workforce planning:
 For maintaining high morale of employees within the organization: In context to
Tesco, management team of the company motivate their employees on a regular basis.
For this, managers provides various perks, benefits, incentives to their potential
employees, with the help of which they can retain their highly capable workers for a long
period of time.

 To arrange and maintain adequate manpower inventory: In the context of Tesco, main
purpose of HRM is to maintain right type of employees at right place when needed. In
addition to this, it is the duty of HR manager of Tesco to examine the current as well as
required employees within the company. In addition to this, with the help of effective
management HR manager can arrange right people, at right place, at right time
(Chelladurai and Kerwin, 2017).
Functions of Human resource management:
Functions of HRM are classified in two main categories which includes managerial and
operative functions. These functions are as follows: Managerial functions: It is the function of HRM where managers of Tesco plan,
organise, staff, direct and control all the operational activities of the company. In this, HR
manager of Tesco start their functions by planning everything and then organise required
resources. After arranging every required resources, manager of the company start
staffing required human resources. In addition to this, management team of the company
direct all their human resource to perform their task effectively. At the end, it is also very
important to control all unnecessary activities.
 Operative functions: In context of Tesco, the operative function of manager is to
procure, develop as well as motivate their employees in an effective manner. It is very
important for the manager to retain their potential employees and develop their other
employees by providing them training and development.
P2 Strengths and weaknesses of different approaches of recruitment and selection process.
Recruitment: Recruitment is a process where management team of the company find best
and suitable candidate for their company in order to perform a particular job (CHUANG and
Liao, 2010).
Selection: Selection is the process of deciding and choosing right candidate who is highly
skilled and educated as well as fulfilling the requirements of current job position.
In the present context of Tesco, HR manager of the company use recruitment and
selection process which will aid them in selecting best and suitable candidate for the company.
Two types of recruitment process are used by HR manager of Tesco, which are as follows:

a) Internal Recruitment: In context of Tesco, managers of the company uses this
approach of recruitment in order to fill the vacant job position. Internal recruitment source refers
to hire workforce within the organisation. It includes transfer, promotion, reference from existing
employees and many more.
b) External Recruitment: In the present context of Tesco, managers of the company
hire employees from outside the organisation. It includes advertisements, employment
exchanges, campus recruitment and many more (Daley, 2012).
Strength and weaknesses of recruitment approach:
Strength: Internal Recruitment: One of the biggest strength of this approach is that it motivates its
existing employees, which leads to create positive working environment within Tesco. In
addition to this, it will encourage other employees to perform well in the Tesco. External Recruitment: On the other hand, it aid the managers of Tesco, to select right
and best candidate from a large number of applicants. Along with this, by selecting
candidates from outside world, new and fresh talent can help in creating innovative
products.
Weakness: Internal Recruitment: It will demotivate other employees as well as create conflict
among promoted and not promoted candidates (Delmotte, De Winne and Sels, 2012).
Also, by filling job vacancies with the help of existing employees, fresh and capable
employees will be de motivates.
 External Recruitment: It is costly as well as time consuming method. Along with this,
lack of support from existing employees creates unhealthy working environment.
On the other hand, there are two main selection approaches used by management team of Tesco,
which are discussed below in detail:
Interview method: It is the process used to select best candidate among ample number
of applicants. Main aim of HR manager or interviewer is to examine whether applicant can act
accordingly to the circumstances or not (Stone, 2013). With the help of this company can
enhance their efficiency with the help of capable candidate.

Written Test: In this process, manager of Tesco use this approach in order to examine
basic knowledge of candidate regarding job profile. In addition to this, it check the ability of
candidate on the basis of their academic knowledge, logical knowledge as well as analytical
knowledge.
Strength and weaknesses of selection approach:
Strength: Interview method: It is the most important method, where HR manager of Tesco get to
know more about their candidate. It is the most traditional and trusted method of
selecting candidate (Madera, 2012). Written Test: With the help of this method, HR manager of the company get to know
about qualification as well as technical knowledge of the candidate.
Weakness: Interview method: It is the time consuming and costly method.
 Written Test: It consumes lot of time which hamper the overall cost of Tesco.
TASK 2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
In order to analyse and examine the performance of employees, management team of the
company use human resource management practices. In addition to this, HRM involves all those
practices with the help of which capabilities of workers can be enhanced. As a result, overall
productivity as well as performance of the organisation can be increased (Dipboye and Colella,
2013). In the present context of Tesco, human resource manager use HRM practices in their
organisation which will aid both the employer and employee. These practice which help the
organisation in their overall development are as follows:
Benefits of HRM practices to the employer
With the help of effective HRM practices, employers of the company get some benefits.
As a result, overall performance of organisation enhance which increase the productivity as well
as profitability. Some of these benefits are as follows:
 Decrease of absences and leaves: HRM practices help the managers in order to decrease
absenteeism in the organization. If the employees of the company feel satisfied and

motivated, it leads to reduce overall turnover as well as absenteeism ratio of the
employees. In the present context of Tesco, managers of the company use HRM practices
with the help of which they reduce employee absenteeism. Managers of the company
motivates the employees on a regular basis, as a result they leaves and absent ratio of
workers reduces in the organization (Dörnyei, 2014). Thus, it will benefits the employer
by improving overall performance of the company.
 Rise in efficiency and profit: With the help of HRM practices, managers can enhance
the efficiency of employees by motivating and encouraging them on a regular basis. In
the present context of Tesco, managers of the company provide perks, benefits and
compensation to their capable employees in order to retain their potential staff for a long
period. As a result, performance as well as profitability of the company rise which help
them in gaining competitive advantage.
HRM practices benefits for employees:
Along with the employers, employees of the company get some benefits with the help of
human resource management practices. Some of these benefits are as follows:
 Better combination of family responsibilities, work duties and free time: With the
help of HRM practices, management team of the company provides various benefits to
their employees. In the present context of Tesco, with the help of proper management by
HR manager of the company, employees of the company will be able to perform their
family responsibilities effectively (Fulton and et. al., 2011). In addition to this, if
managers of Tesco provide healthy working environment to their employees, they will be
able to perform their duties in an effective manner.
 Opportunities for Training and development: Training and development sessions can
be provided by HR managers of the company. In context of Tesco, management team of
the company, provide T&D sessions to their employees in order to enhance their
productivity. In addition to this, for increasing the knowledge, capabilities and skills of
their workforce, training sessions are provided by management team of the company. As
a result, productivity and performance of employees as well as of the company can be
increase.

P4. Assess the effectiveness of HRM practices for increasing productivity as well as profit of the
organisation.
It has been analysed that there are various HRM practices in order to provide benefits to
both the employer as well as employee. In addition to this, HR department of Tesco, helps the
company in increasing their profitability as well as performance of employees. Some of the
HRM practices which is used by Tesco in order to increase the productivity are as follows:
Training and development session: In the present context of Tesco, HR manager of the
company provide training and development sessions to their existing employees in order to
enhance their performance (Kersley and et al., 2013). In addition to this, induction session is also
provided by HR managers of the company to their new employees. These factors highly
influence the decision making of organisation. If the skills and capabilities of employees
enhance, it will improve their way of thinking in the critical situation. As a result profitability of
company increases as managers of Tesco provide training and development sessions to their
employees in every 3 months. As a result, productivity as well as performance of employees will
be enhanced.
Recruitment and selection: Recruitment is a process which includes selecting and
screening potential and capable employees candidates for a specific job. On the other hand, in
selection process, managers of the company select best suitable candidates from number of
applicants (Krishnan and Singh, 2011). In reference to Tesco, recruitment and selection process
is based on the requirement of human resources in the organisation. In addition to this, managers
of the company follows structured process as it will aid them in selecting right candidates for the
job at right time. With the help of potential and capable employees, profitability of the company
will enhance.
In order to increase the productivity along with profitability of Tesco, managers of the
company use these elements in their organisation.
TASK 3
P5. Examine the importance of employee relations in respect to influencing HRM decision
making.
With the help of smooth and healthy relationship among management team and
employees of the company, they can enhance their productivity and performance. Each and

every staff members have their own relationship with their colleagues. Managers of Tesco, use
the employee relation program which will aid the company in order to achieve their individual as
well as organisational goals in an effective manner (Madera, 2012). There are some issues faced
by employees of the company which directly influence the decision making of managers. These
issues are promotions, sickness leave, overtime payment and many more.
Importance of employees relations in decision making:
Promotion: It is the duty of management team of the company, to promote their highly
capable employees. As a result, it will maintain healthy relationship between employees and
employer as well as employees of the company will be highly motivated. In context to Tesco,
managers of the company examine the performance of employees on a regular basis. With the
help of this, managers can analyse their potential candidates. As a result, they will be promoted
by management team which helps in developing effective employee relation within the company.
In addition to this, if the right person is promoted to top position of the company, they will be
able to take creative decisions in order to achieve their organisational goals.
Sickness Leave: In context to Tesco, managers of the company provide sickness leaves
to their employees. If employees of the company get paid sickness leave this will aid the
company by creating healthy relationship between employees and management team (Parpinelli
and Lopes, 2011). In addition to this, if employees of the company get paid leave, it will affect
the productivity of company. By keeping all these factors in mind, managers of Tesco should
take decisions accordingly.
P6. Identify the key elements of employment legislation and the impact it has upon HRM
decision making.
It is very essential for every company to follow rules, regulations, laws and legislations in
order to protect their employees interest. In context to Tesco, HR department of the company
follow all legislations related to employees health and safety, anti discrimination and many more
for maintaining the effectiveness of an organisation. As a result, it will aid the management team
of company in taking right and suitable decisions for the benefits of employees. Their are
different laws and legislations which are applied by managers of company, are as follows:
(a) Anti discrimination act: Under this act, it has been said that management team of
Tesco should treat their workers equally. Managers of the company currently using this act
where each and employees have free working environment (Stone, 2013). No one has the right to

judge them on the basis of age, colour, sex and so on and if anyone do so, they will be punished
according to the act. In addition to this, it will aid the HR Department in order to make decisions,
as they provide rewards and benefits to their employees according to their performance.
(b) Health and safety at work act: This act was developed in the year 1974, which
provides a legal structure to promote or motivate safe and healthy working environment for the
employees. In context to Tesco, it is the responsibility of employer to provide safe equipments as
well as safe system of work to their workers. In addition to this, it is the duty of manager or
supervisor of the company to provide training sessions in order to use heavy machinery for
production process. If the management team of the company, provides healthy and safe working
environment to their employees, it will lead to take decision in an effective manner.
(c) The Equal Pay Act, 1970: According to this act, each and every employee should get
equal and fair remuneration. Along with this, it is required to avoid any kind of discrimination
between men and women and should treated equally. There should be equal position of male and
female within the organisation. In the present context Tesco, managers adopted this law and
implement within the company so that it will enhance the performance and productivity of both
employees and company.
TASK 4
P7. Application of Human Resource Management practices
In order to successfully accomplishing the goals and objectives of an organisation,
Human Resource Management (HRM) practices plays very essential role. In context to the
present organisation which is Tesco, HRM team of the company apply these practices in an
effective manner. All these practices of HRM are as follows:
Job specification: It is a written document which includes all tasks, duties and
responsibilities which will be performed by an individual for a particular job. It is a kind of
presentation prepared by HR manager of the company. After proper examination, HR manager
of the company prepare job specification for marketing manager.
Job Specification
Company: TESCO
Job Position: Marketing Manager
Qualification: MBA (Marketing)

Requirements for the job position:
 Candidate will be capable in maintaining coordination among various functions of the
company.
 Competent in managing resources in adverse situations.
 Proper knowledge about various tools and techniques of marketing.
Required criteria:
 4 months experience.
 Effective Communication and Presentation skills.
Job description: It is a written document which have a detailed information about a job
profile. In this document roles and responsibilities of the job profile is also included, which
should be followed by selected candidate for the job.
Job Description
Company Name TESCO
Title of the Job Senior Marketing Manager
Location of the Job Europe
Reporting person Head of the Department (Principal)
Roles, duties and responsibilities  Research of market trends and analyses various
opportunities for developing the product.
 After properly examining the market place,
decisions has to be taken in an effective manner
for launching the new product at marketplace.
Working Hours 9.30 am to 6:00 pm
Salary 7000 Pound per month

Working Facilities for employees Healthy and Safe working environment for the
employees, also incentives and benefits should be given
according to their performance.
In context to Tesco, managers of the company examine ample number of candidates in
order to select suitable candidate, who will be able to increase productivity of the company. For
this, HR manager of the company should select best candidate, who will perform all the assigned
duties and task in an effective manner. For the post of Marketing Manager, resume of a job
applicant are as follows:
Person Specification
Formal Details:
Name- John Williams
Address- 140, High Street
Contact no.- 8383838116
Email id- john116@gmail. com
Career objective- To get a place in the organisation where I can use my capabilities, skills and
knowledge for the growth and development of the company. In addition to this, I want to
contribute my knowledge for achieving organisational goals and objectives.
Experience level- 2 years
Qualification
Educational Qualification University Percentages
MBA (Marketing) University of England 69.70%
BBA University of England 75.50%
Roles and Responsibilities-
 evaluation of employees performance on regular basis.

 Managing the overall marketing related work.
 Creating marketing strategies.
 According to the skills and qualification of employees, task should be assigned by the
marketing team.
Computer proficiency-
 MS PowerPoint
 SAP
 MS office
Personal Information
Date of Birth- 18 th August 1989
Languages Known- English, French, German.
Interests- Reading, music, sports and other activities.

CONCLUSION
From the above mention report, it has been concluded that HRM practices plays very
important role in the overall development of the organisation. It will aid the company in order to
manage their human resources in an effective manner. In addition to this, it has been analysed
that purpose and function of Human Resource Management aid the company in achieving goals
and objectives of the company. On the hand hand it has also been examined that various
approaches of selection and recruitment help the organisation in selecting best and suitable
candidate for their organisation. As a result, profitability and performance of company will be
enhanced. Furthermore, it is required by the company to follow laws and legislations related to
employees which will help in maintaining equality within the organisation. HRM practices
directly affect the organisations performance, profitability and productivity. For selecting
appropriate candidates, different organisation use methods according to their requirements. In an
organisation there are various factors which highly affects the efficiency of employees.
Therefore, in order to reduce the disputes and complexity, managers need to provide healthy
working environment.

REFERENCES
Books and Journal
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Daley, D.M., 2012. Strategic human resources management. Public Personnel Management.
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Krishnan, S. K. and Singh, M., 2011. Strategic human resource management: A three-stage
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Madera, J. M., 2012. Using social networking websites as a selection tool: The role of selection
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Parpinelli, R. S. and Lopes, H. S., 2011. New inspirations in swarm intelligence: a survey.
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Stone, R. J., 2013. Managing human resources. John Wiley & Sons Australia.

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