HRM Practices and Performance

This assignment requires students to analyze the importance of Human Resource Management (HRM) practices in an organization. It involves understanding various HRM concepts such as strategic knowledge management, innovation, and performance, as well as their impact on organizational success. Students are expected to provide detailed answers based on research papers and articles related to HRM, including studies on MNC knowledge transfer, subsidiary absorptive capacity, and HRM metrics. The assignment also touches upon employment legislation, cultural differences in HRM practices, and corporate humanistic responsibility.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions of HRM in workforce planning along with purpose in an organisation...........1
TASK 2............................................................................................................................................3
P3 Benefits of different HRM practices for employer and employee....................................3
P4 Effectiveness of HRM practices in order to raise organisational profit and productivity.4
TASK 3............................................................................................................................................5
P5 Importance of employee relations to influence HRM decision-making...........................5
P6 Key elements of employment legislation and its impact upon decision-making of HRM6
TASK 4............................................................................................................................................7
P7 Application of HRM practices..........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In an organisation human resource management (HRM) takes many responsibilities like
staffing, designing working organisation, employee compensation and benefits etc. The main
purpose of this department behind performing such duties is to maximize productivity by
optimising effectiveness of employees in a company (Bardoel and et. al., 2014). Managers
always try to acquire the best talent in workforce as well as develop and align them with
business. This unit is describing the role and purpose of HRM within a reputed organisation of
UK i.e. Imperial Chemical Industries. This firm deals its business in chemicals and manufacture
products like food ingredients, polymers, fragrances and flavourings.
TASK 1
P1 Functions of HRM in workforce planning along with purpose in an organisation
Planning the workforce means to align desired and qualified talent with businesses
objectives through which a company can meet its regulatory and production requirement. In
Imperial, workforce planning is based on financial-led procedures. Therefore, HRM is focusing
primarily on managing headcount to budget by ensuring that there are not much cost overruns.
Along with this, managers perform many activities like filling out performance appraisals form
of employees, carrying out recruitment and selection process, resolving conflicts etc.
Functions of HRM: Managers perform many functions according to company's
requirement for fulfilling its goals and objectives. Their main role in a firm is planning,
organising, directing and controlling the organisation through which they can identify policies
and procedures to reach its goals (Gheiratmand and et. al., 2015).
Recruitment and selection: In manufacturing companies, role of management is little bit
different like managers have to judge knowledge and skills of new candidates in a proper
manner. New recruiter must possess complete knowledge of chemicals so that they can work in a
desired manner.
Training and management: Working in chemical industries includes many risk factors.
Regarding with health and safety issues, HRM provide effective training programmes to workers
so that they can become able to protect themselves from such problems.
Compensation management: It requires much expense to provide compensation to
employees of a company. In order to retain high performers, managers give benefits to workers
1

like incentives, extra salaries, holiday tours and flexible working hours as per their role and
duties in organisation.
Managing employee relationship: Apart from all basic responsibilities, main duty of
HR managers is to manage relations of employees within an organisation. Good relations
between workers and employers along with all associated persons help in maintaining positivity
of organisation.
Designing the workforce: Managers are also engage in designing organisational culture
and workforce. Therefore, they align requirements of workforce in performing activities so that a
company can achieve its strategic goals and objectives.
Purpose of HRM: In Imperial Industry, functions of managers compromises with many
purposes like how to maximise productivity of workers through which they can contribute their
efforts in achievement of business objectives. With this assistance, management use hard and
soft HR skills (Guest, 2011). Through hard management, managers focuses on identifying
workforce needs of business and recruit accordingly. They treat workers as resources while using
soft management managers concentrate on requirements of workers first. They take employees
as an important source of competitive advantage, therefore, treated them on individual basis.
P2 Strengths and weaknesses of different approaches for recruitment and selection procedures
Process of recruitment and selection varies as per requirement of organisation. Therefore,
role of HR managers in this context conducts various procedure so that they can introduce the
most qualified workers in organisation. This procedure impacts directly on performance of
business, growth of revenue and profitability as compared to other functions of management.
Before conducting such process, managers are required to compare the importance of various
method of recruitment and selection.
Searching a desired candidate using internal and external source is recruitment process
which requires many documentation processes like job and personnel specification, curriculum
vitae etc. Difference between internal and external source can be described as:-
Basis Internal Source External Source
Process This source is conducted within
an organisation by transferring
existing workers on another
position through promotion and
It provide applicants from external
environment using various sources
like campus placement, job portals,
2

demotion. online applications etc.
Advantage It boosts the morale of workers
and motivate them to work hard.
This process is easy to conduct.
It provides many applicants to
managers, so that they can choose
the best one according to
requirement of position.
Disadvantage This source fails to provide new
talent in workforce.
It is a lengthy process and requires
much verification to introduce a
candidate in organisation.
Since Imperial is dealing with chemicals to manufacture the products so, it requires that
all workers should have knowledge and experience accordingly. Therefore, it uses online process
for the fulfilment of vacant process (Hobfoll, 2011). Managers can use this process anytime as it
allows them to access 24x7 hours. They can take interviews of selected candidates through social
networking sites. But it consumes a lot of time and cost also.
TASK 2
P3 Benefits of different HRM practices for employer and employee
HRM practices prove beneficial both for employees and employers as it control all
operational activities and improve performance of business also. Managers perform activities
like hiring the staff, designing workforce and structure, employee benefits etc. They make
effective policies to maximise workers productivity so that company gains its objectives and
goals in a profitable manner (López-Nicolás and Meroño-Cerdán, 2011). These practices are
helpful in increasing growth of a firm also. In Imperial Industry, coordination and cooperation of
all associated members is much needed to bring sustainability and innovation. It proves
beneficial in following way-
Encouraging positive behaviour: Management of Imperial always try to maintain
positivity in environment. Through HR practices a firm can creates a healthy working
environment. It aid to keep employees happy and increase their productivity by providing
benefits to them.
Motivating workers: In order to maximise performance of employee and employer, HR
appreciate managers by promoting them on higher positions. Employees tend to feel more
motivated by working under successful managers who manage them effectively. It result to
3

increase growth and profitability of a company automatically. Imperial Industry provide HRM
practices to boost morale of workers by feeling them equal. They involve opinion of employees
in decision-making process also.
Retaining and developing employees: Since this industry always seeks to introduce new
technologies and innovation so, its workers needs essential training. It helps in developing their
skills and knowledge so that they can feel comfortable to work on new techniques. These
programmes develop future needs also that assist workers to retain in a company for long time
purpose.
Improving performance management: For improving performance of employees,
company provide performance appraisal system. Managers used to track progress of all workers
and appreciate them accordingly. They provide extra wages, holiday tour packages, incentives
and other financial and non-financial appraisals.
Managing good relationship: Employees having different background sometime may
not be able to cooperate with each other. Therefore, HR practices help in maintaining their
relationship by engage them to work in team (Messersmith and et. al., 2011). It assist them to
share views and opinions on same task. Developing good relations between employees and
employers aid to perform well and management can track their progress also. Employee
engagement or working in a team contributes to higher success of organisation.
Building a flexible workforce: HRM practices also reflect shifting demographics in
workplace of an organisation. Organisational culture of Imperial Industry is filled with
diversities. It employs workers of older and younger age, employees with physical disabilities
also. Therefore, diverse culture demands working hours flexibility much. It helps in reducing
stress level and workload pressure. Working in such companies, help workers to create a balance
life.
P4 Effectiveness of HRM practices in order to raise organisational profit and productivity
Providing HRM practices to workers and employees has proved much beneficial in
accomplishing goals of a company. These practices will prove much effective if organisation get
success to achieve desired outcomes in a certain period of time (Minbaeva and et. al., 2014).
Management of Imperial Industry try to build strategies and policies in order to provide
satisfaction of employees from their job so that company can get their retention for long time.
Such practices of management includes a system to pull, motivate, retain and develop workers in
4

order to raise productivity. For such manner, Imperial Industry desires to manufacture
innovative product and services having best qualities. It assist in enhancing market share and
profitability in a desired way. Apart from this, management must try to establish strong healthy
relationship between employees. Effectiveness of HRM practices in an industry can be
elaborated as:-
Effective in setting direction and execution:Effectiveness of manager's role also seems
in setting the directions, goals and objectives of a company. For this purpose, managers recruit
right persons as per demand of job who contribute in leading a firm to the superior place.
Team and individual goals with effective communications: Conservation plays an
important role in increasing productivity of employees. Management and employers require to
talk with workers, ask their needs and opinions etc.
Sharing and Collaboration: Engaging the employees in team helps in sharing the ideas
through which a company can attains its outcomes in a specific period of time. Collaboration
with outsiders also enhance productivity of a firm (Purser and et. al., 2015).
Update employee's skills to maintain productivity: In order to compete with rivals,
Imperial Industry has implemented innovative projects. It reflects that current skills of
employees and employers must be updated. With this assistance, managers examine performance
of workers to evaluate their weaknesses and provide them training to remove the same. This
practices helps in raising productivity and profitability of a company and its workers also.
TASK 3
P5 Importance of employee relations to influence HRM decision-making
Every person in an industry has own idea and perspectives of doing a task. People share a
particular relationship with followers while working in a same company. Having good relations
of employees in a firm impact directly on decision-making process of HRM. It assist in
developing skills and knowledges, abilities in performing a complex task and reducing
weaknesses also (Tochaee, Hosseini and Reihani, 2016). Imperial Chemical Industry introduces
many HRM practices and policies in order to manage healthy relations among workers. It aids in
reducing work load pressure of employees by engaging them in team which in turn increases the
productivity level of company also. Since an individual cannot accomplish a task successfully,
5

therefore, management divide works among employees according to role and abilities of them. It
helps in completing a difficult project easy.
Good relationship among employers and employees reduce the chance of conflicts also. It
builds trust and confidence level between people of company and assist them to accomplish
desired goals. Members consider each other as colleagues not as competitors which helps in
maintaining positive environment of industries in an appropriate manner. Discouraging conflicts
and increasing trust level of employees consequently increases productivity and help HRM to
take better decision accordingly.
Pleasant, interactive and positive workability helps in creating loyal employees. They feel
more energetic and motivated to work hard and perform the task assigned to them in a proper
way. This would lead a company to gain high return on investment and moreover decreasing
employee turnover also (Vaiman and Brewster, 2015). With this assistance, management should
try to manage good relationship among employees using proper communication system. They
should inform workers about changes in techniques and discuss with them what they need to
work on that. HR managers require to take their feedbacks also which proves helpful in reducing
their resistance.
P6 Key elements of employment legislation and its impact upon decision-making of HRM
Laws and legislations of a country have a great impact on decision-making process of
HRM. It helps in running an organisation smoothly as well as maintaining the working
environment of employer and employee also. Regarding with employee's beneficial, government
has established many laws which helps in eliminating discrimination from workplace and
provide them safety also. Therefore, Imperial Chemical Industry compliance its working
organisation with all legal formalities (Purser and et. al., 2015). At the time of recruitment
process, HR needs to define positions, roles and responsibilities of new recruiters. Due to
employment legislation it is compulsory for companies to provide compensation to employees.
They have to make proper agreements including working hours, payment scale etc. with workers
also. Apart from this, management also make sure that working environment is covered with
equality also. Some essential laws and regulations made by regulatory bodies to resolve
problems related to equal opportunity, wages, health and safety are:-
Equality Act, 2010: This act has established to provide equality equality among workers
on the basis of gender, race, religion and sexual orientation. This law greatly impacts on
6

decision-making process of HRM as if they have observed some people are not working
according to requirement then to reject or fired them from positions needs much documentation
process. To terminate a person, company has to provide termination letter one month before with
specific reason otherwise such persons can take legal actions.
Working Time Regulation, 1998: It provides right to employees to take holidays and
demand for flexible working hours. It prohibits the companies to force people to work more and
stay long after working hours (Arnaud and Wasieleski, 2014). Also, this law makes essentials to
organisations to provide break to workers so that they can reduce their stress level and workload
pressure.
Health and Safety Act, 1974: According to this law, it is amendable for organisations to
provide safe and healthy working environment to workers. Like in Imperial, all work done are
related to chemicals so it provides various safety equipments like fire extinguisher and gas
detector. It helps to overcome from a serious hazardous issues. With this assistance, this
company provide essential training to employers and employees also so that they can face such
challenges.
Discrimination act, 1995: This law has made to eliminate discrimination from
companies on the basis of sex, caste, nationality, physical appearance and disabilities etc. If
employees of a firm can face any type of discrimination then they can made complaints and
demand for compensation from firm in order to feel equality.
TASK 4
P7 Application of HRM practices
Management of Imperial Industry follow complex recruitment and selection which
includes many stages like to identify vacant positions and evaluate needs accordingly. After then,
they create job description process to invite interested candidates (Warner, 2014). They select
some desired candidates from list of applicants and carry further process for selection. Therefore,
after identification, HR managers observes that this time company needs to replace some
workers of project department who helps in implementing innovations in food and fragrance
productions. With this assistance, management with a team of 5 members carry out following
process:-
JOB SPECIFICATION:
7

JOB SPECIFICATION
Job Details
Post: Innovation Project Coordinator
Department: Project Department
Job Purpose
 Identify new technologies so that company gets an opportunity to gain competitive
advantages
 Coordinate and support the execution of innovation project
Roles and responsibilities Communicate with group members if any type of delay occur in project management Analyse business process for projects Lead a team of external contractors
CV:
Curriculum Vitae
Name: xyz
Email: [e-mail]
Contact: 08790078799
Objective: Creative and innovative project manager having a positive attitude. Abilities to
motivate team-members by sharing thoughts, ideas and plans. Hunting a challenging
opportunity where skills could be utilised in a perfect manner.
Academic Qualification:
 Chemical engineering from Swansea University of UK
Experience:
7 years of experience as a project manager in food and chemical industry
Skills:
 Working at all levels within an organisation
 Ability to lead a team of contractors
 Have much experience of contract and budget management
8

 Effective interpersonal skills
Creation of Structured Interview: After getting list of applicants, managers select some
candidates who possess desired qualification and experience. In order to judge their skills and
knowledge, management creates a structured interview process. They make some questionnaire
related to that position.
Offerings of Offer letter: Subsequently, company will get the most required person for
specific positions of company. Managers provide offer letter to selected candidates in which their
job roles and responsibilities are mentioned, date of joining, along with terms and conditions of
working environment, salary procedures, etc. (Vaiman and Brewster, 2015).
Evaluation: When candidates join company then its duty of management to make them
familiar with new working environment by providing induction training. It helps in defining
roles and responsibilities of new persons like in what manner they have to perform assigned
tasks.
CONCLUSION
This report has evaluated various aspect of human resource management such that how it
helps in raising productivity and profitability of a company. Organisations use many HRM
practices in order to increase qualified members in workforce and retain them. In addition to
provide beneficial to employees, managers compliance industries with legislation powers. This
assignment also highlights importance of employees relationship and their impact on decision-
making process of HRM. Discussion about effectiveness of practices for employees and
employers also included in this unit.
9

REFERENCES
Books and Journals
Bardoel, E.A., and et. al., 2014. Employee resilience: an emerging challenge for HRM. Asia
Pacific Journal of Human Resources. 52(3). pp.279-297.
Gheiratmand, T., and et. al., 2015. The effect of mechanical milling on the soft magnetic
properties of amorphous FINEMET alloy. Journal of Magnetism and Magnetic
Materials. 381. pp.322-327.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Hobfoll, S. E., 2011. Conservation of resource caravans and engaged settings. Journal of
occupational and organizational psychology. 84(1). pp.116-122.
López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6).
pp.502-509.
Messersmith, J. G. and et. al., 2011. Unlocking the black box: exploring the link between high-
performance work systems and performance. Journal of Applied Psychology. 96(6).
pp.1105.
Minbaeva, D. B., and et. al., 2014. A retrospective on: MNC knowledge transfer, subsidiary
absorptive capacity, and HRM. Journal of International Business Studies. 45(1). pp.52-
62.
Purser, H. R., and et. al., 2015. Definitions versus categorization: assessing the development of
lexico-semantic knowledge in Williams syndrome. International journal of language &
communication disorders, pp.1-13.
Tochaee, E. B., Hosseini, H. M. and Reihani, S. S., 2016. On the fracture toughness behavior of
in-situ Al-Ti composites produced via mechanical alloying and hot extrusion. Journal of
Alloys and Compounds. 681, pp.12-21.
Vaiman, V. and Brewster, C., 2015. How far do cultural differences explain the differences
between nations? Implications for HRM. The International Journal of Human Resource
Management. 26(2). pp.151-164.
Warner, M. ed., 2014. Confucian HRM in greater China: Theory and practice. Routledge.
Xiao, Y., and et. al., 2014. Lack of correlation between HRM metrics and symptoms during the
manometric protocol. The American journal of gastroenterology. 109(4). p.521.
Arnaud, S. and Wasieleski, D .M., 2014. Corporate humanistic responsibility: Social
performance through managerial discretion of the HRM. Journal of Business Ethics.
120(3). pp.313-334.
Collins, N., Zhu, Y. and Warner, M., 2012. HRM and Asian socialist economies in transition:
China, Vietnam and North Korea (pp. 598-619). Edward Elgar Publishing.
Online:
Importance of HRM practices in an organisation, 2018. [Online] Available through:
<https://www.managementstudyguide.com/importance-of-hrm.htm>.
Key element of employment legislation, 2017. [Online] Available through:
<https://businesscasestudies.co.uk/business-theory/people/employment-
legislation.html>.
10