Importance of HRM Practices in Organizations

Human Resource
Management/
Recruitment Process

Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organization.............................................................................................................................................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection..............4
LO 2............................................................................................................................................................6
P3 Explain the benefits of different HRM practices within an organization for both the employer and
employee.................................................................................................................................................6
P4 Evaluate the effectiveness of different HRM practices in terms of raising organizational profit and
productivity.............................................................................................................................................7
LO 3............................................................................................................................................................8
P5 Analyze 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
LO 4..........................................................................................................................................................10
P7 Illustrate the application of HRM practices in a work-related context, using specific examples......10
CONCLUSION........................................................................................................................................13
REFERENCES........................................................................................................................................14

INTRODUCTION
Human resource management can be defined as the effective management of people
within an organization that can help it in gaining a competitive advantage. The primary purpose
of human resources is to make sure that the company is able to function effectively (Armstrong
and Taylor, 2020). Organization chosen for this report is Marks and Spencer, a multinational
British retailer of grocery and household items. The company was founded by Michael Marks
and Thomas Spencer in the year 1884 and is headquartered in London, United Kingdom. The
report explains the purpose as well as functions of human resource management. It also explains
the strengths as well as weaknesses of different approaches to recruitment and selection. An
evaluation of the different HRM practices along with importance of employee respect to
influencing the decision-making is also included in the report.
LO 1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organization
Human resource management is important because it significantly contributes to the
overall success of an organization and helps it in achieving goals and objectives. HRM can be
referred to as the effective management of employees within the organization so that all the
business processes are carried out smoothly. The primary purpose of human resource
management is to manage the various needs of the company as well as its employees. As per the
view point of Andra Picincu, the purpose of human resource management is to prevent various
issues within the organization like poor work-life balance, lack of job and career development
opportunities etc. and enhance the overall performance by recruiting the right people for the right
job (What Is the Purpose of HR Management?, 2020). HRM also helps in the process of
workforce planning as well as resourcing within the company. The different functions of human
resource management are explained below -
Planning – This is one of the major functions of human resource management as it helps
the management of the company to establish procedures so that it can achieve goals and
objectives effectively (Armstrong, 2019). The process of planning involves determining the

personnel programs as well as planning about the workforce that can contribute to its overall
goals.
Organizing – Once the goals and objectives are planned, a proper structure for the
organization is developed. This helps in carrying out the different operations. This includes
coordinating different activities to the employees, grouping different activities into functions
various functions.
Directing – The HR managers of Marks and Spencer develop plans and direct the
employees in order to help them with their jobs (Bailey and et. al., 2018). The directing function
of HRM basically involves encouraging and motivating the employees to work efficiently in
order to achieve the goals of the organization.
Controlling – This function of management human resource management is basically
concerned with measuring the overall performance. The HR managers at Marks and Spencer
measures the performance of their team members with the set standards. This helps them in
controlling the overall performance of the department.
Performance Appraisal – The human resource department of an organization works in
accordance with the other departments individually in order to evaluate the performance of the
employees. The process of performance appraisal can either be carried out quarterly or once in a
year.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection
Recruitment can be defined as the process of identifying, attracting, shortlisting and
interviewing candidates that are suitable for the rights jobs within the organization. On the other
hand, selection refers to the process of shortlisting the right candidates who possess the
necessary skills and qualifications that match with a vacant job (Berman and et. al., 2019). The
different approaches to recruitment and selection along with their strengths and weaknesses are
explained below.
Recruitment