Importance of Human Resource Management

Human Resource Management (HRM) plays a crucial role in managing human resources effectively within an organization. This assignment analyzes the purpose and function of HRM, its approaches to recruitment and selection, and the importance of following employment legislation to maintain equality among employees. It also highlights the significance of strategic HRM in service contexts, such as sport and recreation, and discusses the mediating effect of HRM outcomes on the relationship between HRM practices and organizational performance.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Explain nature and purpose of HRM in workforce planning................................................4
P2. Explain the strengths and weaknesses of different approaches of recruitment and selection.
.....................................................................................................................................................5
TASK 2............................................................................................................................................7
P3. Benefits of HRM practices within an organisation for both the employer and employee....7
P4. Evaluate effectiveness of various HRM practices for raising organisational profit and
productivity.................................................................................................................................8
TASK 3............................................................................................................................................9
P5. Analyse the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................9
P6. Identify the key elements of employment legislation and their impact upon HRM
decision- making.......................................................................................................................10
TASK 4..........................................................................................................................................11
P7. Application of HRM practices............................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Human Resource Management is a tool of recruiting, selecting, managing and developing
employees in an organisation. Their main motive is to focus on the performance of employees
within organisation and ensure effective work practices in the organisation. The HR department
plays a very important role in every organisation. In this present report, managers of Tesco use
human resource practices in their organisation which increase the effectiveness of their business.
Tesco is one of the biggest multinational retail industries in which it includes groceries and
general merchandising in all over the world and along with this its headquarters in England
(Stone, 2013). This report contains nature and purpose of HRM in workforce planning, strengths
and weaknesses of various approaches of recruitment and selection. Along with this, it also
include practices of HRM in context of employer and employee, Importance of employees
relations in decision making. And at last, this report says about the key elements of employment
legislation and their impact upon HRM decision- making.
TASK 1
P1. Explain nature and purpose of HRM in workforce planning
Human resource management is a part of general management in which they deals with
the resources in an organisation. HRM means to use the human resources in effective manner
and to manage employee or their activities in a working place. In this present report, Tesco, a
business entity which has been chosen, uses HRM practices to increase the overall performance
of their organisation.
Workforce planning: It means to analyse a current and future need of human resources
in an organisation for performing business activities effectively. Along with this, their main
objective is to select right person at right time for the job as, in order to achieving organisational
goal and objective (Bučiūnienė and Kazlauskaitė, 2012).
Purpose of HRM in workforce planning is stated as under:
 Considering people as a resource: In order to create competitive advantage Tesco
mainly focuses on internal sources of Human Resource Management. According to HR
department they considered people as a resources for business perspective. In Tesco, the
role of HR department is to enhance overall performance of an employee as well as to
maintain the relationship with others. With reference to this, Tesco work for managing
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various skills in employees such as communication, motivation and leadership for
achieving organisational goal and objectives.
 Retaining people: In Tesco their policy is to retain employees for longer time period.
Along with this, it is a two way profit approach in which include both monetary and non
monetary benefits. In context of tesco, it is a cost effective technique which helps in
managing workforce because it is easy to retain talented and experienced employees in
and organisation. Further with this, talented and highly skilled employees help in
achieving organisational goal and objectives which also improves profitability and
performance of an organisation effectively (Dörnyei, 2014).
Functions of Human resource management:
 Planning: In human resource management, planning is a basic and important function.
Planning is very important for every organisation, which helps in preparing a strategic
plan for dealing with the problems in order to accomplishment of goal. In context of
Tesco, manager use this HRM function for achieving organisation goal and objectives
and also it helps Tesco to enhance their productivity and profitability.
 Recruitment and selection: Recruitment is a process of attracting and hiring a suitable
candidate for a job. In context of Tesco, the main objective of this function is to attract
highly skilled and talented candidates towards their job and choose suitable candidates
according to their vacant position in an organisation. The both recruitment and selection
process enhance the efficiency of employees in an organisation for achieving
organisational objectives.
P2. Explain the strengths and weaknesses of different approaches of recruitment and selection.
Recruitment and selection both play important role in an organisation. Along with this,
the main purpose of recruitment and section is to manage workforce effectively in an
organisation. Recruitment is a process of screening or finding a suitable candidate for a particular
job whereas selection is a process of choosing right candidates with highly skilled and
knowledge for fulfilling a vacant position in an organisation (Parpinelli, and Lopes, 2011). In
context of this, Tesco of HR department helps in identifying a strength and weaknesses of
different approaches of recruitment and selection for managing a workforce within an
organisation. There are two types of recruitment process which are disused as below :
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a) Internal Recruitment: Internal source of recruitment means to hire employees from
inside the organisation. Along with this, it includes various methods such as promotion, transfer,
employee referrals, and so on which improve the overall performance of an employee in the
organisation. In context of Tesco, it helps in motivating an employees for achieving
organisational goal and objectives effectively. Along with this, internal sources of recruitment
help in retaining an employee for longer time period.
b) External Recruitment: External source of recruitment means to hire employees from
outside of the organisation. In external recruitment includes employment exchanges, campus
recruitment, advertisement and so on. In context of Tesco, this source of recruitment helps in
attracting a fresh and more talented candidates towards a vacant position in an organisation
(Kersley and et al., 2013). Along with this, also it helps an organisation to get new and
innovative idea for operating business activities effectively.
Particular Internal Recruitment External Recruitment
Strength  It help to motivate an
existing employees to
perform well for
getting a higher
position within an
organisation
 It create healthy and
positive competition
environment in an
organisation (Krishnan
and Singh, 2011).
 It helps an organisation
to select right candidate
from a larger pool of
applicants.
 In an organisation they
generate innovation
from hiring a fresh and
talented candidates.
Weakness  It create conflict
between promoted and
not promoted
employees.
 It also demotivate
outsiders who are more
 It is time consuming
and costly method.
 Mostly higher position
employees not
cooperate with new
employees as they
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suitable for this job. think freshers are hire
from outside the
organisation and they
are not suitable for that
position.
Selection
There are various approaches of selection process which are discussed as below:
a) Application forms and CVs: It is a very older concept in which organisation select
right candidate for the vacant position in their organisation. In context of Tesco, they follow this
approach of selection process in which they firstly analysed CVs of applied applicants and then
they choose right candidate according to the procedure.
b) Interviews: This is a last step of selecting a suitable candidate for fulfilling the vacant
position. In context of this, Tesco used this approach as it helps an interviewer to know about the
candidate personality.
Particular Application forms and CVs Interviews
Strength It is easiest method to choose
or match candidate according
to their job criteria.
It helps in selecting a right
candidate for their job.
Weakness Sometimes organisation does
not have enough time to check
all the application forms or
documents of an applicant. So
it is a time consuming process.
At the time of personal
interview, some applicants
lose their confidence and that
time it is difficult for
organisation to choose right
applicant.
TASK 2
P3. Benefits of HRM practices within an organisation for both the employer and employee
While analysing a companies performance human resource management practices or
HRM practices are mainly used by the management team. As a result, HRM includes those
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practices which helps in raising the ability of employees which will increase the overall
performance of an organisation (Delmotte, Winne and Sels, 2012). In reference to Tesco HRM
practices help both employee as well as employer which is explained below:
HRM practices benefits for employees:
With the help of human resource management practices employees gets benefits in
various ways which are as follows:
 Conflict Resolution: HRM practices aid the management team or manager of a
company in resolving conflicts. In context to Tesco, these practices help in dissolving
disputes and conflicts within the company. Manager of an organisation communicate the
rules, regulations and policies to its staff members. Making necessary information easily
accessible to those employees who need it, can reduce the chances of conflicts and
disputes.
 Training and development: Training and development can be provided by managers to
the employees of Tesco with the help of HRM practices. In order to increase the
knowledge and skills of employees, training sessions are conducted by the managers
(Dipboye and Colella, 2013). As a result company can also increase its performance and
productivity.
Benefits of HRM practices to the employer
Along with employees, employers of a company also get some benefits with the help of
human resource management practices. These benefits are as follows:
 Motivating workers: In order to increase the performance and productivity of a
company, employees should be motivated or encouraged. With the help of HRM
practices employer of Tesco motivate their staff members in order to produce effective
outcomes. It will lead to successfully accomplish organisational along with individual's
goals.
 Developing employees: In order to satisfy employees needs and motivate them to
equally contribute towards the common goal of an organisation, HRM practices help the
employer of the company. Employers of Tesco helps in developing the skills and
knowledge of their employees, which helps them in achieving personal as well group
goals in an effective manner (Madera, 2012). Tesco provides training and development
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sessions to their employees along with giving them freedom to share and contribute their
views and opinions.
P4. Evaluate effectiveness of various HRM practices for raising organisational profit and
productivity
HRM is considered as the broad context provides numerous of benefits to employees and
employer both. The specific department helps company in maximising performance of
employees which ultimately enhances their profitability in effective manner. In this effectiveness
of various HRM practices which helps TESCO in improving its profits and productivity are
defined as below:
Training and development: Training and development provides induction sessions to the
new employees of the company, give them training in order to improve their job skills and many
more. Both these factors majorly influence the decision making process by increasing skills,
knowledge and efficiency of employees. When skills of employees are enhances, it also
improves their way of thinking and reacting to critical situations. Profitability of Tesco will be
increased by improving efficiency of employees. In every 3 month managers of Tesco organises
a training and development session to enhance the productivity and performance of employees as
along with the growth of company (ALDamoe, Yazam and Ahmid, 2012).
Recruitment and selection: Recruitment is an essential process which involves screening
and selecting capable or potential candidates for a particular job. Recruitment and selection of
Tesco is based on the mission of the company. Structured process is followed by managers of
Tesco as it helps in selecting right people in right place at right time. This method mainly
influences the decision making process of Tesco as staff members are the most important asset
for a company. Profitability and growth of an organisation is depend upon the skills and
capabilities of employees of the company.
Compensation and other benefits: Compensation is the amount paid to the staff
members in return for their work. In context to Tesco, high rate of compensation works as a
motivating factor for their employees. If employees of company rewarded on a regular basis
according to their performance, it aid in creating a sense of loyalty and trust. This will lead to
increase the attachment of employees with their organisation, as a result managers can easily
take decisions which enhance the growth and development of Tesco (Chelladurai and Kerwin,
2017). As a result this feature increase the profitability ratio of the company. 10% -20%
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increment is given by manager of Tesco to their employees during peak season for overtime.
Compensation and other benefits will be given to the employees of Tesco according their
performance. overtime.
For increasing the productivity and profitability of an organisation, all these elements
plays very important role. With the help of HRM practices managers of Tesco can easily analyse
and evaluate the overall growth and effectiveness of organisation.
TASK 3
P5. Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employee relations refers to a process which deals in maintaining healthy relationship
between various employees working in an organisation. Every employee shares a definite
relationship in an organisation with their colleagues. Employee relation is a program generally
used by Tesco in order to achieve organisational goals and objective effectively. These are the
strategies mainly focuses on the issue which directly affect employees of the company. These
issues can be payment benefits, safe working conditions and so on.
Importance of employees relations in decision making:
Increased level of productivity of employees: If a business entity involve their employees
in decision making process, productivity of employees as well as of company will automatically
increases (CHUANG and Liao, 2010). In Tesco, managers involve its staff members while
taking any decisions, so that they can share its views and opinions. Individuals generate feeling
of loyalty and trust towards their company as a result they don't waste their time in unproductive
tasks. As a result manager innovate new ideas and increase the overall productivity of company.
Tesco provides right to express their ideas and views, which increases the level of productivity of
employees along with growth and development of company.
Improving morale: If a company involve its employees in the process of decision
making, it will develop the morale of employees. Active participation of staff members in
decision making process aid in improving overall morale and motivate them to work effectively.
Most of the business organisation have different segmentation between the workers and
management where Tesco actively involve employees to improve their morale. Freedom of
speech is giving to the employees, in order to motivate them. This will increase the trust and
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satisfaction of employees. If the workers of Tesco remain satisfied with their job responsibility,
they avoid conflicts and help in developing the growth of company. As a result they can easily
increase the productivity and profitability of the company.
Internal Resources: Company mainly involves their employees in decision making
process. Organisation uses its internal resources rather than outsourcing employees for decision
making. Sometimes Tesco involves employees in decision making process, for saving their costs
and time (Daley, 2012). It is technique which is cost effective along with long term reliability.
On the other hand, this factor will maintain the relationship of employees and employers.
From the above mention points, it has been analysed that healthy employee relation is
essential for the overall growth and success of the company. All these factors plays very
important role in an organisation.
P6. Identify the key elements of employment legislation and their impact upon HRM decision-
making
In every organisation laws and regulations plays a very important role for protecting their
employees. Along with this, especially HR department follow all the rules of employment
legislation as to retaining their employees for longer period of time. In context of Tesco, they
opt all the employment legislation for maintaining efficiency in an organisation which helps in
taking a right decisions towards organisational and employee benefits. These laws and regulation
helps an organisation for overall development of their employees. Their are various employment
laws and regulations which are discussed as below:
(a) Employment equity: According to this act, it has been formulated by government
that company should follow this act for treating all the employees equally in an organisation. In
context of Tesco, this act helps in creating a positive and healthy working environment with in
the organisation. Along with this, it is important for HR department of Tesco follow this act for
treating their employees equally. The manager of Tesco, make some policies to take effective
decision for their employees as it help in removing the discrimination in their organisation.
(Fulton and et. al., 2011). Also it helps managers to take their decision effectively by engaging
all employee in the decision-making process.
(b) Minimum wage act: According to this act, it is compulsory for every organisation to
set minimum wage rate for their all skilled and unskilled employees. Along with this, HR
department of Tesco set minimum wage rate and take decision regarding pay scale of their
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employees as their main motive is to bring uniformity in their decision-making process. Also it
is necessary to set minimum pas scale for their every employees in Tesco as it build positive and
long term relation between their employees.
(c) Anti discrimination act: According to this act, it has been analysed that company
should treat their employees equally rather than judging them on the basis of age, sex, colour and
so on. In context of Tesco, its manager is using this act in order to create a bias free environment
at work place. This act helps HR Department for decision making process as, they are providing
reward to employees according to the outcome of their assigned task.
TASK 4
P7. Application of HRM practices
For the successful accomplishment of organisational goals and objectives application of
human resources practices plays very important role (Daley, 2012). In reference to TESCO,
HRM team is applying practices in effective way. These practices are as below:
Job specification: All kind of tasks and duties which are performed by a candidate for a
particular job position, are mentioned in this written document. After doing proper evaluation,
marketing manager's job specification of TESCO are as follows:
Job Specification
Organisation: TESCO
Job Designation – Marketing Manager
Educational Qualification – MBA in Marketing
Job requirements:
 Capable of dealing with various situations at market place.
 Complete knowledge of all tools and techniques of marketing.
 Ability to maintain coordination between different functions.
Desired criteria:
 Experience of 3 months.
 Effective communication skills.
 Effective presentation skills.
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Job description: It is written document which includes detailed information about a
particular job profile. Along with this, set of roles and responsibilities, which is expected by the
selected candidate.
Job Description
Name of the company TESCO
Job Title Senior Marketing Manager
Job Location Ireland, Europe
Reporting To Department Head (Principal)
Duties and Responsibilities  Market research and analyses of opportunities
for product development.
 After evaluating market place, effective
decisions should be taken in order to launch a
new product.
Hours of Working 10.00 am to 6:30 pm
Salary 6000 Pound per month
Working Facilities Safe and healthy working environment, incentives
should be given as per the performance.
In order to select best and capable candidate, Tesco need to reach maximum number of
applicants. As a result company will select best candidate, who will perform in an effective
manner according to the job position. Resume of a Job applicant for Marketing manager post is
described as below:
Person Specification
General Details
Name- David John
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Address- 40, Dublin Street
Contact no.- 838385820223
Email id- david191@gmail. com
Career objective- To acquire a position where I can utilise my skills and knowledge in order
to increase the overall growth and productivity of the country. Also I want to contribute my
proportion for attaining targeted goals and objectives.
Experience level- 5 years
Qualification
Educational Qualification University Grades
MBA (Marketing) University of England 6.9
BBA University of England 7.5
Duties and Responsibilities-
 Perform regular evaluation of performance.
 Formulation of effective marketing strategy.
 According to their skills task should be distributed in marketing team.
 Conducting some marketing campaigns.
Computer proficiency- MS office
 SAP
 MS PowerPoint
Personal Details
Date of Birth- 9th July 1988
Languages Known- English, French.
Interests- Music, reading, travelling and sports activities.
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CONCLUSION
From the above report, it has been analysed that human resource management helps an
organisation to manage human resources effectively in their business entity. The purpose and
function of HRM helps in achieving an organisational goal and objectives in an effective
manner. Along with this, the approaches of recruitment and selection aid an organisation to
enhance their productivity and profitability. Furthermore, it is necessary for an organisation to
follow all the employment legislation for maintaining concept of equality among their
employees.
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REFERENCES
Books and Journal
ALDamoe, F. M. A., Yazam, M. and Ahmid, K. B., 2012. The mediating effect of HRM
outcomes (employee retention) on the relationship between HRM practices and
organizational performance. International Journal of Human Resource Studies. 2(1). p.
75.
Bučiūnienė, I. and Kazlauskaitė, R., 2012. The linkage between HRM, CSR and performance
outcomes. Baltic Journal of Management. 7(1). pp. 5-24.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Delmotte, J., De Winne, S. and Sels, L., 2012. Toward an assessment of perceived HRM system
strength: scale development and validation. The International Journal of Human
Resource Management. 23(7). pp. 1481-1506.
Dipboye, R. L. and Colella, A. eds., 2013. Discrimination at work: The psychological and
organizational bases. Psychology Press.
Dörnyei, Z., 2014. The psychology of the language learner: Individual differences in second
language acquisition. Routledge.
Fulton, E.A. And et. al., 2011. Human behaviour: the key source of uncertainty in fisheries
management. Fish and Fisheries.12(1). pp.2-17.
Kersley, B. and et al., 2013. Inside the workplace: findings from the 2004 Workplace
Employment Relations Survey. Routledge.
Krishnan, S. K. and Singh, M., 2011. Strategic human resource management: A three-stage
process model and its influencing factors. South Asian Journal of Management. 18(1). p.
60.
Madera, J. M., 2012. Using social networking websites as a selection tool: The role of selection
process fairness and job pursuit intentions. International Journal of Hospitality
Management. 31(4). pp. 1276-1282.
Parpinelli, R. S. and Lopes, H. S., 2011. New inspirations in swarm intelligence: a survey.
International Journal of Bio-Inspired Computation. 3(1). pp. 1-16.
Stone, R. J., 2013. Managing human resources. John Wiley & Sons Australia.
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