Importance of Employee Relations in HRM Decision Making

Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Purpose and function of HRM on planning and resourcing an organisation.........................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................5
TASK 2 ...........................................................................................................................................6
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................6
P4 Explain the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................7
TASK 3............................................................................................................................................8
P5 Evaluate the importance of employee relations in respect to influencing HRM decision
marking.......................................................................................................................................8
P6 Evaluate the key elements of employment legislation and its impact on the HRM decision
making.......................................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Illustrate the application of HRM practices in a work related context, using specific
example.....................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
INTRODUCTION
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Human resource management is the process of selecting, recruiting, training, motivating
the employees of an organisation (Noe and et.al., 2018). It focuses on proper management of
available workforce and making the most out of them as manpower is the greatest resource for
any organisation. In order to ensure the effectiveness of work, it is important that the companies
should have a strong Human Resource Department. For this report the chosen organisation is
H&M. It is a Swedish multi-national company founded in 1947 and have its stores in 73 markets.
It is into fast-fashion for men, women and children. H&M has a wider market in Europe. The
report includes purpose and function of HRM, strength and weakness, impact on HRM upon
decision-making and application of HRM on workplace and benefits of HRM on employees and
employers.
TASK 1
P1 Purpose and function of HRM on planning and resourcing an organisation.
Planning of human resource is important to any organisation as the manpower is limited
and their proper distribution is required in order to manage the activities in an organisation. It is
also required to have flexibility and adaptability in the organisation.
Purpose of HRM
In order to manage people in organisations where the success of it is dependent upon the
type of people working(Rao and Teegen, 2009). Matching the required job roles with the skills
available, it is important to do manpower planning and motivating the employees in the
organisation.
 Organisational behaviour and structure- The HRM department of H&M tries to link
the organisational culture with its local workforce. It is a work-oriented company so it is
important to explain the hierarchy so that authority and responsibility is clear to its
employees. It is moving in the fast fashion which requires flexibility in structure.
 Managing Diversity- H&M recruits local employees whenever they are opening a new
store or they do internal recruitment which makes people from different cultures part of a
team. So in order to have effectiveness in work, it is important for HR to maintain
diversity.
Functions of HRM
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There are set roles defined by organisations which are performed by each department.
HRM department is important to handled the most important resource of any organisation, i.e.,
its people. It includes managing the demand and supply of workforce.
 Selection and recruitment- There are certain traits which are followed by each
organisation. For H&M the basic qualities they look is decision-making, responsibility
and love for fashion(Human Resource Management About H&M’s. 2020). They want
people to have a sense of team work and can work together to achieve both individual
and group goal.
 Reward Management- H&M has an attractive incentive policy where they provide
offers and discounts to its employees. Also, they have an open door policy where the
employees are motivated and rewarded for their strategies.
 Employee Involvement- H&M has an informal environment where they encourage
innovation and makes the employees self-driven so that they can take the decisions. The
employees are motivated so that they can handle the tasks and have a long term relations.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection are basic functions of HRM and both of these functions are
dependent on each other. Recruitment starts with finding the people from various platforms and
inviting them whereas selection is choosing the candidates matching the job role.
Recruitment
Recruitment is the process of inviting people to the organisation by using platforms to
identify the best fit for the role(DeCenzo, Robbins. and Verhulst, 2016). It involves costs in
hiring new employees or recruiting through internal process so the companies need to analyse the
employee's capabilities and link them with the organisational culture.
Types of Recruitment
Companies hire people from two sources which help them identify the best fit and also
makes the process of hiring attractive.
Internal recruitment- In this process of recruitment, the positions are filled by the
employees of the organisation. They do not hire work force from outside. In the context of
H&M, company promotes internal hiring and rotation as they help them to grow. They have a
development policy where they motivate the employees and give them opportunities to take
strategic roles.
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