Human Resource Management and Performance

This assignment is a comprehensive review of human resource management (HRM) theories, concepts, and practices. It covers various topics such as strategic HRM, high-performance work systems, employee productivity, workforce planning, and green HRM. The analysis includes discussions on the role of HR in organizations, the impact of HR practices on organizational outcomes, and the importance of HR in creating sustainable competitive advantage.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Strengths and weakness of different approaches of recruitment and selection................2
TASK 2............................................................................................................................................4
P3. Benefits of HRM practices for employer and employee..................................................4
P4. Effectiveness of different HRM practices........................................................................5
TASK 3............................................................................................................................................6
P5. Importance of employee relations with HRM..................................................................6
P6. Key elements of employment legislation and the impact it has upon HRM decision-
making....................................................................................................................................7
TASK 4............................................................................................................................................8
P7 Illustrate the application of HRM practices in a work related context..............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Managing resources is an art because there are lots of complication a business has to face
in their operations. Almost every firm has human resource department who is given the duty of
managing the resources available to them. They make sure that these resources are aligned in a
way where they yields better results. HRM has function of recruiting, selecting, training and
motivating the employees for the company (Armstrong and Taylor, 2014). They have to make
sure that all is going well in the organization and no conflict is arising between the employees
and management. This all report will be dealing with different aspects of HRM and their
importance in an organization. All these things will be briefed by taking scenario of Aldi
company which is an furniture company.
TASK 1
P1. Purpose and functions of HRM
Human resource management work as a foundation for every business organisation.
HRM have various roles and responsibilities like planning, developing, management and making
various strategies. Human resource department plays these roles to achieve organisational goals
and objectives in a short period. Success and failure of a company depends upon its HR section
because it determines that how will organisation and employees will achieve desired results.
Firm can increase its efficiency and effectiveness if it have appropriate HR structure. The main
purpose of establishing human resource team is that it determines requirement of employees and
also keep maintain employee retention (Berman and et. al., 2012). The various function of HRM
in a company are as follows:
Recruitment and selection: Recruitment and selection is a process of hiring a new and
right candidate for the right place in organisation. Recruitment is that getting applicants in hub
and choosing among them and short-listing for interview. Selection is a process of choosing the
correct candidate after having interview and with other test as well. It is important aspect in
company to have work.
Training and development: In firm employees has to perform in proper manner so that
entity can attain their goal and objective. If employees are not be able to cope up with new
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environment or may not be able to work in correct manner. For such scenario, training and
development program is being scheduled for employees so that everyone can learn skills,
knowledge and ability to work in right prospect which will help in attaining task.
Performance appraisal: Therefore, company has to make a appraisal scenario so that
employees can get motivated and influenced to work in great manner and somewhere this help in
increase performance as well which directly make firm to receive their target and aims.
Performance appraisal is done with help of incentive, bonus, rewards and promotions.
Compensation: It is being paid to employees in form of cash and non cash for the
Working they are doing in business. It has to be paid to employees as because this help in
increasing performance of worker. It can be paid in form of (Health insurance, remuneration,
incentive etc.)
Workforce planning has to be done in organisation as this criteria include various thing in
working of employees. Planning include policy and procedure for them which has to be followed
by them. As this help firm to be very effective and efficient with employees and their team
members as well which directly make company to earn higher profits. This workforce planning
is that which comes under strategy and operational.
Apart from all such the function help in purpose of HRM in organisation is as follows:
Planning: This is first and foremost function of human resource department. In this HR
mangers makes various strategies and plans to strengthen the performance of company. Business
managers makes strategies but to consider various factors of micro and macro environment. In
resent time, environment factors are continuously changing which can effect functioning of
every organisation so it responsibility of HR department to evaluate different internal and
external forces while making important decisions.
Organising: This is known as second managerial function of human resource
department. In this, HR mangers organise all strategies within organisation. Basically in this
function leaders decentralise some responsibilities to their employees so that they get motivate
and think there self as a important part of company. If workers are highly motivates then they
will contribute lot of efforts in achieving organisational goals.
Directing: After planning and organising third function is directing which is done by
human resource management. In this business manger guides their subordinates to work in a
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systematic way. Only determining organisational goals and objectives is not enough, business
persons have to direct those goals within work place (Bratton and Gold, 2012). In this step,
leader motivates his workers to perform their assigned job in appropriate way.
Controlling: This is called as last function of HRM, in this business mangers monitor
and review all activities and practices of organisation on regular basis. This is the stage where
leaders evaluate actual results with standard results to identify which goals have been achieved
and how many are remaining to be achieve.
Hence, these are some very essential roles and functions of human resource department
which are important for company's current and future growth. These functions also influence
appropriate working of employees within work place.
P2. Strengths and weakness of different approaches of recruitment and selection.
Recruitment and selection is most important concept of human resource management.
Whereas recruitment means hiring new individuals for vacant position within company, in this
various applicants are get attracted by recruiters. Selection means choosing best candidate out of
various applicants according to requirement of job (Boxall and Purcell, 2011). Without the help
of recruitment and selection company can not get required manpower to execute its different
activities and practices. There are various approaches through which Aldi can recruit and select
best employees which are following under:
Internal sourcing: It is the most popular method of recruitment and selection in this
company search for its existing employees to fill vacant position. For this, firm have to discover
that person who is more capable to understand responsibilities of vacant position, also who can
work according to dynamic nature of business.
Strengths: There are various strong pints of hiring people within organisation. Because it
takes less cost to recruit employee from internal sourcing and it is also takes less time to discover
qualifies staff person. Individuals who recruited by internal sourcing are more likely to be
familiar with organisational structure.
Weaknesses: The weak points of this approach is that, mostly companies do not have
much qualified persons, who can be suitable for all kind of jobs. If firm will continuously recruit
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existing employees for vacant job than it will not get new and innovative ideas of different
people.
External sourcing: When human resource department recruit individuals form outside
the company then it is known as external sourcing. Generally HR department hire people through
public announcements, using job portals and by giving advertisements in newspapers (Budhwar
and Debrah, 2013). When firm wants new and innovative ideas of people then it can go for
external sourcing.
 Strengths: Strong points of this approach is that it carry out new and fresh ideas and also
provide opportunity to HR members to select best out of various applicants.
 Weaknesses: This approach also have some disadvantages like, it takes too much time to
find appropriate candidate and also it is expensive process because in this company have
to conduct various round of interview.
Third party sourcing: When company choose this approach then it have to involve third
party such as placement agencies to hire qualifies candidate. In this, company do not have to
make extra efforts because in this affiliated company takes responsibility to find required
candidate.
 Strengths: The main strength of this method is that in this company do not have to make
extra hard work to find required candidate.
 Weaknesses: This approach huge disadvantage because in this method company can not
make direct connection with candidates.
TASK 2
P3. Benefits of HRM practices for employer and employee
Human resource management plays an important role in the smooth functioning of
business activities and practices. Through this, Aldi can get various advantages because it helps
in making appropriate strategies for achieving desired goals. HRM is most important aspect of
every business organisation because it provides various guidelines to accomplish organisational
goals and objectives (Daley, 2012). Proper human resource management delivers different
advantages to employers and employees as well. Benefits of HRM practices for mangers are
following as under:
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Meeting customer needs: By making appropriate strategies business mangers can easily
identify different needs and requirements of their customers. HRM practices give whole
description about organisation and market place, by which leaders can understand actual need of
consumers. After analysing actual needs of clients company mangers can deliver appropriate
products and services to their potential customers.
Retaining people: With the help of Human resource activities mangers can easily retain
their employees. HRM practices provides various reward system to employees which force them
to stay in company.
Workforce planning: The main function of human resource management is to make
effective plans to achieve organisational goals. Through HRM practices business mangers can
form systematic programs to enhance company's performance.
Human resource management provides various benefits to employees as well. Mainly it
ensure workers that company will provide them various facilities to enhance living standard their
personal life and also for their professional life (Guest, 2011). Some of the benefits are discussed
below:
Compensation: Good HR practices firstly think about welfare of employees. To consider
that human resource management provides appropriate compensation to their workers so that
they keep gratified.
Worker safety: The most important Role of HR department is that protecting workers
form various hazardous equipments and processes. Company should inform employees about
dangerous processes.
Employee satisfaction: A company can not get higher success without the cooperation
of its workers. To get higher contribution from employees firm should provide them great
satisfaction (Hendry, 2012). Gratification of labour is compulsory to enhance future growth and
development of business enterprise.
Furthermore, practices of human resource management plays an important role in the
functioning of business organisation, also it provides various advantages to employer and to
employees as well.
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P4. Effectiveness of different HRM practices.
Human resource management is used to effectively and efficiently make use of the
employees for an organisation. Its function starts from recruitment of and employees and goes on
to the resignation or removal of the employee. It is very important for HRM to segregate the
duties between the employees according to their interests so that they can do work at their best
potential.
Following are the practices to be followed by HRM to increase the profitability and productivity
of an organisation:
Recruitment: It is very important for HRM to forecast the need of employees it the organisation
and than attract the people who wants to join the organisation for their work (Jiang and et.
al., 2012).
Selection: After inviting people to join as an employee in the organisation it is the responsibility
of the human resource management to make sure the selection of the best people for the
organisation. If the best selection is made from so many alternatives then it will surely help
to increase the productivity of the organisation and after that the profits of the organisation .
Orientation: The HRM holds orientation programmes for new employees to be comfortable
with the organisation and their duties are segregated to them according to their talent and
their interests. It will surely increase the interest of new employees to their work and they
will do it more efficiently. It will increase the profitability and the productivity of an
organisation automatically.
Training programmes: This is one of the most important practices used by human resource
management. In this practice the new employees are given training that how they have to
perform their work (Kehoe and Wright, 2013). It helps to increase their efficiency and to let
them work effectively. More over it if there are any changes in technologies in the working
environment then all of the employees are given training to understand the new technologies
and practices.
Maintain good working environment: This is the duty of human resource management to
make sure that the working environment is good for the employees and there is no
threatening situations for the employees at work place. The employees will do their work at
their best potential in good working environment.
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Communication : HRM establishes a good communication system in the organization. It means
the new employees can easily access the senior management if any problem arises. And
seniors can give orders and commands to the lower management effectively.
TASK 3
P5. Importance of employee relations with HRM.
Maintaining a strong relationship with HRM(human resource management) is a key of
successful organisation. the powerful kinship with HRM will leads to more productive ,
effective as well as efficient and it will go through less conflict relation and healthy bonding. It
will also helps to build up motivation and extreme working environment for employee
(McWilliams and Siegel, 2011). He should be monetary in efficient way that satisfy workers.
Benefits of good relation with HRM are as follows:-
Employee loyalty:- to offer a good working environment is totally groovy giving to a
employees it encourages a allegiance motivation to employer . This also improves quality and
employee memory ,work ability , efficiency and accuracy and dedication will be high .
Conflict reduction:- when working environment is friendly then conflicts, fights,
grudges between employees will be reduce it will give them a good motivation and that kind of
objectives which satisfy their company Aldi and as well as their personal goals too.
Set goals:- A good employee bonding also serves a high ambitions. Although this is
totally focus on image and reputation to do something good and achieving various goals after
getting a extreme environment (Mellahi and Collings, 2010). They made a some kind of target
which is achievable if they do little bit more hard work . By setting goals it is easy them to to
achieve and set standards.
Communication effectively:- communication is key of any relation due to this they can
open up with each other and this can also help them to alert before any wrong happening. And
this also make a good scenario of Aldi working industry. Through communication they get
know what top management is expect from then and how they are working basically
communication is a bridge between all of departments. It reduces loopholes too.
Embracing equality:- most of worker consider that they are not equal and they believe
concept of favouritism to rid of this they need to be fair and make them feel equal as well there
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should not be any biasness .so it will give a great environment to do work and it will also
motivate them to be more productive.
Motivating your employees:- motivation and encouragement is a key to be more
successful .time to time boost is must for employees so they are on track by solving their
problems and troubles (Meredith Belbin, 2011). Aldi can do their many exercises for motivation
building .
P6. Key elements of employment legislation and the impact it has upon HRM decision- making.
In United Kingdom, government has made various types of rules and legislations related
to employment which have main objective to protect the rights of employees as well as of
employer. These laws have to follow by every company if it does not then it has to pay penalty
as per regulation. Some laws are as follows which have to comply by ALDI company-
Equality Act 2010- This act states that employees should not be discriminated by the employer
at work place and everyone should be treated as per standards. Favouritism should not be
done on the basis of colour, caste, sex etc (Renwick, Redman and Maguire, 2013). if
manager does so then he will be liable for penalty.
Health and Safety Act 1974- It is an act which states that employer should provide all necessary
equipments to its employees so that they can protect themselves while performing their job.
It also tells that employer need to taken every steps that are required for protecting the man
power from any hazardous situation. If management will not do so then concerned authority
takes corrective action for penalizing the company.
Equal pay Act 1970- This law explains that every worker should be paid at least minimum
amount that is fixed by the government. This minimum amount is set which is required for
the survival and development of a person (Sparrow, Brewster and Chung, 2016). It also
focused on the gap that exist between women and men salary and wages. This minimum
salary amount has to be paid by employer, he can not deny for paying it. According to it,
employer should pay equal amount to everyone if they are working same work at same
position.
RIDDOR 1995- According to it, all manager has responsibility to report on all disease and
disability that may take place at workplace. Employer has to give information about all
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incidents that are occurred in the organisation to the concerned authority so that they can
assist in controlling situation.
Equal Opportunity Act- According to this concept, all employees should be treated equally and
should get equal opportunity or chance for doing anything. In short it can be say that there
should be no discrimination on the basis of race, colour, cast and so on. If there will be no
favouritism then workers will be motivated and will work effectively and efficiently.
Organisation should execute performance related pay strategy that will help in controlling
employee compensation costs.
TASK 4
P7 Illustrate the application of HRM practices in a work related context
ALDI has various types of human resource practises which are helpful in maintaining the
man power for long period of time. These activities are related to performance appraisal, training
and development, compensation, motivation etc. ALDI is increasing their resources so that it can
capture large market share and also gain huge amount of profit (Storey, 2014). For attaining this,
company needs to hire more skilled employees so that it can attain its desired result.
Before starting recruitment process, it should prepare a strategy which will help in getting
the best desired result. Firstly, Recruiter should prepare job analysis and evaluation because it
will assist in getting important information. After knowing about the vacant position, company
should float this information through its own website, newspaper and any other job portal so that
it can gain attention from the people. After publishing this news, HR manager will receive
applications from various people and then recruiter will take interview of applicants and after
that he will select the best qualified person who will be fit for the post (Wang and Noe, 2010).
Whenever, there is any requirement of workforce within company then manager will
provide this information to the HR manager so that they can take corrective action for filling this
post. HR manager of ALDI has to perform various types of responsibilities within an
organisation which are as follows-
 He has to provide training and development to new as well as existing employees so that
they can be trained for facing future uncertainties and will produce desired result or
outcome. Training is very helpful for new employees because with the help of this,
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workers become familiar with the culture of working environment and they become
proficient for performing their job (Wright and McMahan, 2011).
 To motivate the man power so that their efficiency and effectiveness can be increased and
then they will contribute in the success of the company. HR manager can motivate its
workforce by providing incentives, bonus etc.
These activities is very helpful for ALDI because it aids in achieving competitive
advantages over its rivals and also assists in reaching to its decided destination in an effective
and efficient manner.
CONCLUSION
From the above mentioned report it has been concluded that without proper functioning
of HRM no organisation can work smoothly. It helps Aldi in gaining competitive advantage and
can increase their profit margins. In the first task, purpose and scope of HRM are described and
in next tasks the importance of employee relation is briefed.
REFERENCES
Books and Journals
Armstrong, M and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Berman, E.M and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Boxall, P and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Budhwar, P.S and Debrah, Y.A. eds., 2013. Human resource management in developing
countries. Routledge.
Daley, D.M., 2012. Strategic human resource management. Public Personnel Management.
pp.120-125.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Hendry, C., 2012. Human resource management. Routledge.
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Jiang, K and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kehoe, R.R and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviours. Journal of management. 39(2). pp.366-391.
McWilliams, A and Siegel, D.S., 2011. Creating and capturing value: Strategic corporate social
responsibility, resource-based theory, and sustainable competitive advantage. Journal of
Management. 37(5). pp.1480-1495.
Mellahi, K and Collings, D.G., 2010. The barriers to effective global talent management: The
example of corporate elites in MNEs. Journal of World Business. 45(2). pp.143-149.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest. 19(3).
Renwick, D.W., Redman, T and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1). pp.1-
14.
Sparrow, P., Brewster, C and Chung, C., 2016. Globalizing human resource management.
Routledge.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Wang, S and Noe, R.A., 2010. Knowledge sharing: A review and directions for future research.
Human Resource Management Review. 20(2). pp.115-131.
Wright, P.M and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human resource management journal. 21(2).
pp.93-104.
Online
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<http://businesscasestudies.co.uk/british-gas/workforce-planning-at-british-gas/the-role-
of-human-resource-management.html>. [Accessed on 26th June 2017]
employee productivity. 2017. [Online]. Available through:
<http://whatis.techtarget.com/definition/employee-productivity>. [Accessed on 26th
June 2017]
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