Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in influencing HRM decision making and its impact on organizational profitability and productivity. It covers topics such as employee engagement, creating a friendly atmosphere at the workplace, proper communication, and the key elements of employment legislation and their impact on decision making. The case study of Microsoft is used to illustrate these concepts.

Human Resource
Management

INTRODUCTION
Human Resource Management is considered to be functions that has been managing
process of recruitment. In this process Human Resource Management holds functions that is
being concerned for achieving individual, organizational and social objective. HRM consists of
various things like acquisition, motivation, training, maintenance, compensation etc. Practices
related to HR includes all those practices that has been contributing over Competences, Culture
and Commitments they makes review of process on daily basis which makes smoothness in
process. In the following report organizations that has been taken into consideration is
“Chocolate Presence” and “Microsoft”. Chocolate Presence is an UK based organization that has
been offering tailor made Chocolate based greeting cards. Microsoft is world's largest software
organization and is famous for making offer over wide range of products and services that is
related to computing. The purpose of this report is to understand the purpose and functions of
human resource management along with different approaches of recruitment and selection and
their strengths and weaknesses. The key elements of employment legislations implemented by
the UK parliament and their impact on HRM decision making has been discussed. Also, the
HRM practises used by Microsoft to achieve organisational productivity and profits has been
enlightened in this report.
TASK 1
P1. Purpose and Functions of HRM applicable to Workforce Planning
Human Resource Management which is considered to be part of management which
deals with efficiency with utilization of manpower. HRM holds purpose for improvising of
productivity of persons in an organization. Planning requires identification of expenses which
makes skill requirement with connecting right number of persons in right time at right place
within an organization. Effectiveness of making plan regarding resource with workforce in
Chocolate Presence, the HRM functions and their purposes are discussed below:
 Training and Development : Training process has been helping in making development
of individual's skills and competencies. HR department holds responsibility for providing
job and uplifting capacities. Chocolate Presence this departments provides training
related to job that has been making an organization's new and existing employees

understand process that is related to business. Aim of training development is to enhance
skills and knowledge.
 Benefits and Compensation : Compensation referring over monetary rewards that has
been befitting employee's earning that is gross. Chocolate Presence requires to come up
with different ways that has been providing flexibility with working hours, leaves and
insurances. This makes goals to be accomplished.
 Recruitment and Selection : This is considered to be one of the most important function
within HR department. Under such process potential candidates are being selected as per
specification of job. Chocolate Presence is required to put attention over selecting only
that candidates which has potential. The purpose of this function is to hire the best people
for right job at right time which increases the productivity of an organisation.
 Ensuring Legal Compliance : Protection of organization, legal complicities is having
very important role to play. HR department has to be aware over policies and laws that
has been formed by them. This is going to provide legal competencies within an
organization or in market place.
 Motivation : Employees working within an organization has been making satisfaction
over needs of an organization. Various cases has been making contribution over goals for
which motivation is required. Chocolate Presence is required to give rewards and design
ways to give rewards fro keeping employees motivated.
P2. Strengths and Weaknesses of Different Approaches to Recruitment and Selection
Staffing is there for providing recruitment and selection of human resources in an
organization. This can be done through various mediums like digital media of social media.
Under it aptitude test is included, group discussion and interview. Approaches related to this has
been explained as follows:
1. Internal Sources : Internal sources of recruitment is transfer, promotion and past
employees. Various businesses is been using such approaches for motivating of skilled
employees that makes reduction possible in cost.
Strengths
 Loyalty that has been existing employees through Chocolate Presence that has been
increasing chance over higher level of work.
 Makes reduction in cost through induction program.

Weaknesses
 Reduction of scope makes identification with skilled workforce for Chocolate Presence
through external environment.
 Employee has to go down for making promotion done.
2. External Sources : Chocolate Presence is to be used by external sources which makes
recruitment of position existing and makes advertisement recommendations, recruitment
at factory gate etc.
Strengths
 External sources helps in generating of innovative ideas for Chocolate Presence that
keeps competitive position maintained.
 Chocolate Presence has been getting chance with best suited candidates according to
needs.
Weaknesses
 Also involving risk and high cost of Chocolate Presence comparison is done with internal
resources.
 Conflict can take place within employees existing,
Selection process has been helping in selecting right candidate over job with right time. Various
methods has been making selection of Chocolate Presence in order to make hiring suitable with
candidates. Things involve under this is as follows:
1. Assessment Test : Chocolate Presence has been utilizing over making assessment in
order to make sure that mental ability of candidate is being determined through it.
Strengths
 No biasses can be there regarding test results by Chocolate Presence.
 Tests is being used with objective of assessing only potential candidate.
Weaknesses
 Skills and ability cannot be judge through tests.
 Time consumed is more as manual administration is there.
2. Interviews : Chocolate Presence informal that makes unstructured and structured
interviews to be conducted. In this 15 mints is there for each round decided. It makes
only capable candidates selection possible.

Strength
 Informal chats are more easier to observe the candidates real personality and for
examining whether candidate will be able to fit in the culture of organisation or not.
Weaknesses
 There is no specific procedure to conduct informal interviews.
 Interviewers can be biased.
Potential Improvements to enhance Selection Process
 Chocolate Presence is being improving selection process that makes conducting of
structure through interview. This is done with a set pattern and relevant questions is
required to be asked that makes reduction of biasses.
 Being flexible is key for Chocolate Presence which makes improvement in selection
process. An relevant example is that Organization can use effective patterns for hiring
candidates like short listing that is based on overall performance.
TASK 2
P3 Different benefits of HRM practices for both employer and employee
The main role of HR is to set organisational goals and monitor the performance of
employees so that employees improve their performance. There are different practises that help
to improve the efficiency and effectiveness of the organisation. Managing the human resources
in the IT sector has been a big challenge for the company having operations in UK, US and
India. Microsoft uses different HR practices which are beneficial for both employees and
employers for bringing effectiveness in the organisation.
Some of them include-
Training Schemes and Internships: Microsoft focuses on training than formal instruction
wherein their main motive is to provide the right learning in the right manner. They conduct a
training program for its employees to impart personal and technical skills to carry out their job.
Benefits To Employees Benefits To Employers
 Training helps the employees of
Microsoft to perform the tasks easily.
 Training reduces the employee
turnover.

 Employees quality leads to better
customer satisfaction.
 Cost and time of supervision of the
employees can be reduced.
Flexible Working arrangements: Organisations are trying to inbuilt a culture of trust wherein
they would offer the flexibility in the workplace to their employees. Microsoft follows a practice
of providing flexible work timing for its employees. This policy enables the employees to work
according to their convenience.
Benefits To Employees Benefits To Employers
 Flexible working arrangements help the
employees to fulfil the work life
balance responsibility.
 Flexibility makes the employees
motivated and happy which encourages
them to be more creative and
innovative.
 Flexible working hours can increase the
productivity and job commitment.
 Helps to recruit and retain the talented
staff for Microsoft which increases the
efficiency of organisation.
3. Work Life Balance: Balancing through personal and professional life has been making
challenges for employee to struggle. Microsoft tries and creates balance over the
employees by giving them work from home facility and doing employment assistance
program. In this discount is provided and employees on Microsoft product and software.
Further benefits is explained as follows:
Benefits To Employees Benefits To Employers
 Balance in work life helps in
motivating employees by increasing
focus on goals.
 Flexible working helps in reduction of
stress for an employee.
 This has been ensuring for maintaining
balance in Microsoft for retaining
performance.
 Life is balancing improvement with
productivity of employees.
How Microsoft motivates its workers

Microsoft has been motivating employees that has been providing various monetary and
non-monetary incentives like health clubs membership and discounts coupons valid at
supermarkets. Corporation has been offering benefit through autism therapy. Also shares is
offered to its employees to an extent. These incentives help in making employees retention to
increase.
P4 Effectiveness of different HRM practices in term of raising organizational profit and
productivity
For all organizations, HRM practices are important which improve overall results by
implementing effective HRM guidelines and rules. HRM practice’s primary aim is to improve
organization’s efficiency and profitability. For example, Microsoft focuses on learning, growth,
and training practices that are most essential to the organization as it offers support to managers
that allow achieving the goal in a given period. Microsoft workers will take on the obstacles and
accomplish corporate objectives with the aid of the recruitment process (Di Fabio, and Peiró,
2018).
. The importance of the practice of learning, growth, and training is provided as:
• Training and development activities allow workers to take on new tasks and boost organisation-
wide results.
• This activity enhances work capabilities and efficiency improvements which contribute to the
improvement of business performance.
• It supports to make preparation efficient in order to successfully fulfill job roles.
• Strengthens contact between employers and workers, and aims people know each other's
desires.
• It offers employees a greater level of confidence that individual benefits company goals.
• It helps to provide consumers with better goods and services, as workers learn new experience
and knowledge.
TASK 3
P5 Importance of employee relations in respect to influence HRM decision making
Staff members are an important part of the society which connects to all international
business activities. Institution recruit qualified and professional workers by using a strategy to
finding and hiring that attempts to develop relationships between employers and employees.

Every company follows HRM practises which are essential to making decisions (Hislop, Bosua
and Helms, 2018).
Employee engagement: This means the company should involve the workers in business
operations contribute to accomplish strategic goals. In other terms, this is a basic principle that
helps to sustain an organizational-employee partnership. If an organisation has a strong
relationship including its workers, so it can address problems that occur within a company that
can increase its profitability and competitiveness. There are various factors which influence job
performance, such as financial and non-monetary rewards, promotions, promotion etc., that help
boost performance. Microsoft's manager concentrate on certain things that influenced create
organizational-employee ties.
Microsoft uses various techniques or methods to strengthen the relationship between its workers,
like:
Develop a friend atmosphere at workplace: Microsoft management builds an atmosphere
within enterprise that is environmentally sustainable through recognizing job expectations.
Management requires and successfully meets expectations for workers.
Proper communication: All companies should follow this technique, as it allows discussing the
list and making the best business decisions. In Microsoft, employers and workers should
recognize the fact to ensure correct coordination which helps to make the appropriate
management decisions and support people in the functions of the enterprise (Ju, 2019)
The importance of employees relation which influences HRM decision making is defined as
• It is necessary to make the better business decisions by keeping proper employer-employee
relationships which are advantageous to Microsoft.
• Allows to work together to accomplish shared goals and optimise production. It affects HRM
decisions by following traditional employer-employee ties.
• Microsoft employees can maximise market productivity by exchanging knowledge with
colleagues to help meet HRM goals.
• It helps workers accept emerging technologies and problems, as workers work hard to meet
mutual objectives (Kandampully, Zhang and Jaakkola 2018).

P6 Key element of employment legislation and its impacts on decision making
Employee legislation refers to regulations and laws for employee benefits that are
established by parliament. It is essential for all organizations to follow employment laws which
enable to successfully carry out business activities. It is also advantageous for company as if
company respects employment laws and provides workers with overall pleasure than maintaining
them for the lengthy period. There are various forms of work laws, such as, equality act,
minimum wage act, anti-discrimination legislation, data privacy act, health and safety act etc.
These laws are similar to the environment that Microsoft practices in order to maximize
efficiency by determining the correct management decisions (Nguyen, Young and Cooke, 2017).
Various statutory frameworks are as understood:
Data Protection Act, 1998: This act is applicable to all government-developed entities for the
security of worker private information. Under this law, companies are forbidden from
exchanging any staff member data source with everyone. Also since there are many Microsoft
workers from various countries serving in various positions. Such organization’s director
respects this law and does not exchange any confidential info with anyone that helps strengthen
confidence inside the company and minimize turnover rates.
Health and safety 1974: This act applies to the responsibilities of the manager and obligation
for workplace safety and health. It notes that companies must provide their employees with good
health and safety, while they operate inside the company. The Microsoft's director offers
excellent health and safety programs to workers and their families. It influences HR strategic
decisions such as maintaining track of all hazardous materials used by HR department and
providing staff with adequate training (Nielsen and et. al., 2017).
Anti discrimination: This legislation applies to the laws intended to prohibit people from
discrimination and classes of persons. This form of legislation is intended to eliminate racism in
the fields of work, education, housing, as well as other family activities. This law specifies that
discrimination does not exist on the ground of gender, age, nationality, race, impairment, sexual
orientation, gender, religion, etc. All workers should be handled fairly inside the company so
they feel secure and operate correctly. Microsoft is following these regulations and treating all
workers fairly to help them manage better and improve efficiency. The HR respects all citizens
fairly and pays equal salaries to workers at the same roles which positively impact management
decisions.

TASK 4
P7 Application of HRM practices in a work related context
HRM activities identify various procedures, strategies and structures that affect the
behavior, disposition and efficiency of the organization that affect organisation. It is created by
management of any company that manages all business operations, and efficiently achieves
business goals. HR department in Microsoft maintains clear communication and solves all
problems which help to successfully improve the business. Microsoft is implementing various
HRM activities for employee retention purposes and enabling them to connect to the
technological profits of the firm. Employee participation and expertise enhance comparative
advantages within the enterprise, which help boost both sales and efficiency. Institution also
adopts HRM activities to increase quality performance (Park and Lee, 2018).
Job description:
Entity Microsoft
Job title Human Resource Executive
Job location London
Roles and responsibilities  Coordinating all company's operations according to
the organisational goals, such as human capital,
accounting and customer support.
 Create both projections and strategic plans.
 Control appropriations.
 To determine business conditions and to find
shareholder value.
 Sharing information and solving problems of staff
members.
Requirements  Experience of issues related to human resources
 Strong understated workers.
 Seeking answers to every issue.
Person Specification:

Position: HR Executive
Functional Unit: HR manager
Attributes Essential Desirable
Skills Speaking skills
Writing
Time management
Listening
Understanding employees
Managing team
Good coordination
Supportive
Knowledge Knowledge about HR skills.
Solving problems
Problem solution skills
Apply different HR approach
Offer letter
Offer Letter-
Dear XYZ,
At Microsoft, we are happy to advise you that you were selected for HR Executive position in
the business. We are certain you must have made a good impact on the customers of all those
who examined you to be deemed qualified for this role.
We trust that you will excellent in your role and that you will be able to function in the right way
to ensure that the company will attain its targets and priorities in the potential.
The following is a brief overview of your role-
Title- HR Assistant
Location- London, United Kingdom
Work Hours- 8 hours per day
Total Emoluments- 80,000 pounds per month + Incentives as per the performance
We believe you can perform in the role to the best of its ability and excel in demanding
conditions and a challenging market.
If you want to approve this letter, then consider signing and to provide the HR department with a
copy of the same.
With Regards,
HR Manager

Microsoft
CONCLUSION
It can be inferred from the above study that human resource management is an essential
part of any business entities that plays a crucial role. It establishes various HR policies and
regulations for wellness programs and also organisation. Institution will efficiently improve
performance and effectiveness by adopting various regulations that positively influences HR
decisions. HRM's primary aim is to reach corporate goals by allowing employees' performance.
For businesses, the employee is critical as they recognize the organization’s objectives to
contribute to reaching results. HRM activities are also essential to companies that recognize the
needs of workers and meet them by satisfying their wants and requirements.

REFERENCES
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