Unit 3 Human Resource Management: Contribution to Sustainable Performance

This report discusses the contribution of Human Resource Management to sustainable performance and business success. It reviews the effects of changing nature of organizations on HRM skills and knowledge, practices of HRM for recruitment and retention of employees, and internal and external factors affecting HRM decision making.

Human Resources
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 Explain the main areas of HRM in their contribution to creating sustainable performance..1
M1 Compare areas of HRM to create sustainable organizational performance.........................2
P2 Review the effects of the changing nature of organisations on human resources skills and
knowledge...................................................................................................................................3
M2 Examining Human resource management in relation to the changing nautre of modern
business organisations :...............................................................................................................4
P3 Review practices of HRM that relate to the recruitment and retention of the employees
with the motive of achieving business objectives : ....................................................................4
Evaluate the use of human resource management practices in the process of retention and
recruitment..................................................................................................................................5
P4 Investigating the internal and external aspects affecting decision making of human
resource management to support the development of the organisation :....................................6
M4 Key internal and external factors that affects the decision making process of HRM with
suitable examples illustrating they way in which it support organisational development :........8
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................8

INTRODUCTION
Human Resources management can be stated as the practise that includes the recruitment
and the deployment process as their main functions. Other than that the HRM practices also
includes the hiring and is responsible for keeping the environment calm and easy. The
organisation taken in to consideration is Tesco. They are the biggest retail giant based in UK. In
this report the impact of the role of HRM in creating sustainable organisational performance and
contributing to business success will be understood (Zhao and Zhou, 2021). Also the effects of
the changing nature of organisations on human resources skills and knowledge will be known.
The relevant HRM practices in relation to recruitment and retention of employees for the
achievement of business objectives will also be reviewed. Investigation of the external and
internal factors that will affect the HRM decision making to support organisational development
will be the conclusion of the part 1 of the report.
MAIN BODY
P1 Explain the main areas of HRM in their contribution to creating sustainable performance.
The human resource management is something that could have a huge hand in creating a
sustainable performances in the organisation. The organisations should be implementing the right
Human resource practises to make sure that the organisation is run well and the environment
stays stable. The areas of the HRM that helps in creating sustainable performances are:
 Employee productivity
The productivity of the employees could be well improved if the management of the Human
resources done in a right way. The productivity will be improved and the and that way the
company Tesco will also be benefited (Al-Swidi, Gelaidan and Saleh, 2021).
 Employee retention
The employee retention is another one of the roles that the HRM needs to facilitate and that is
also depended on several other factors such as the organisation culture and the work environment
that is present in the organisation.
 Brand recognition
The brand recognition could be also improved by the proper HRM and that by the facilitation of
the branding strategies the company Tesco's reputation could be enhanced. The environment that
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is created by the people in the organisation also decides the ways by which the people outside
will look at the company (Santana and Lopez‐Cabrales, 2019).
 Change implementation
The proper Human resource management could be key factor in facilitating the right change
implementation in the organisation structure and the culture. The HR also keeps in relation the
fact that the employees are not in a bad phase with the management and that the change does not
demotivate the employees.
 Recruitment & Hiring
The process of recruitment could be the most important role of the HR and they are in fact the
first people to interact with the potential employees of the organisation. The right hiring of the
employees is how the company Tesco could benefit from the HRM and that way the
sustainability of the organisation could be facilitated by the Human resources.
M1 Compare areas of HRM to create sustainable organizational performance
The development and the performance of the organisation provide platforms for the
people and the organisation top successfully grow with proper enhancement. The company
Tesco could use these areas to grow with their businesses and formulate their strategies properly.
The sustainable performances do require the implementation of the right strategies in the
organisation (Soltis, Brass and Lepak, 2018). The areas of the HRM could be used to create the
proper sustainable performances in the organisation and could help in increasing the
productivity. Tesco could use their industry relations with the experience they have to
accomplish their tasks in the proper way. This could also be supported by giving the training and
development platforms for the employees and the management to improve upon and sustainable
in the industry. The HR's strategies based on the talent management could also help in the
improvement of the allocation of skills within an organization, leading to improved performance
not only of employees, but of the organization as well. This process allows employees to easily
understand how the organization is fulfilling their roles and responsibilities in a timely manner.
With the help of effective training, proper conversations between management and the
employees or between employees and consumers is easily maintained over time. By maintaining
appropriate working relationships with stakeholders, detailed information about the company's
services and products can be easily obtained to provide a better experience (Anlesinya and
Susomrith, 2020). Good relations between employers and employees are maintained so that
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subordinate employees can share problems with top management over the long term without
hesitation.
P2 Review the effects of the changing nature of organisations on human resources skills and
knowledge.
The human resources can have great impacts on the changing behaviours that undergoes
in an organisation. This can also be the way the human resources skill and knowledge can be
tested in an organisation and by that they can evaluate the proper ways of the effect on their
performances . The organisations have been changing in the behaviour patterns forever now and
that gives the assurance that the people should be ready for the changes and their impact on
them. Hence, it is required for the companies to be working on the positive impacts of the
changes that will take place in the organisation. The human resource management allows the
organisation to properly function and find the right ways to implement the changes which could
prove to be very beneficial for the company and the employees (Al-Romeedy, 2019). The
company Tesco the HRM could be used for their benefit as explained below:
Human resource management could be used to properly enhance the participation of the people
and perfectly implement the changes that should take place in the organisation. For the company
Tesco, the feedbacks from the employees would be a huge factor in the improvement of the
strategies of the company. These could be used well as the feedbacks are the ones that makes the
best evaluation of the strategies and the platforms that the HR provides. The strategies in turn
could be of huge benefit to the organisation as that way they could run the HR plans effectively.
Prompt delivery of high or standard quality goods and services to all types of customers is
critical. This is done in order to get the product to the customer quickly. Good employee-
consumer relationships are easy to maintain over the long term. Human resources management
was one of the key departments within the organization and played a key role in facilitating
various types of equipment and other resources. Effective use of various resources enables
employees to do their jobs smarter and increase the company's revenue faster in a short period of
time. This facilitates long-term customer trust and loyalty to Tesco's services and products.
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M2 Examining Human resource management in relation to the changing nautre of modern
business organisations :
HRM function was not considered as an important function in the previous business
entities. The evolving business has given information about the need of human resource
management in the business and its importance. It was not even a business functions before a
few decades. There was a monopoly in the market and the consideration was given on analysing
product / services that can be hit in the market and does not have any competition. But with the
increasing competition in the market in every business industry focused was given on rendering
highest amount of satisfaction to the customer of market (Gunawan, Aungsuroch and Fisher
2019). It was found that HRM is a vey important business function and can highly effect on the
results. Now this can be found generally in most of the medium or large scale business entities.
This function is about considering the importance of the effective maintenance of the employees
that work for the business organisation. Human resource helps in efficiently analysing
individuals from the market that are best according to the work of the business and then
maintaining the work force of the business in such a way that their performance gets maximised.
The department also work in assuring that all the employees are happy with their working and
for this they try to make the working environment healthy and solve all the problems that
employees are facing in their day to day operations.
P3 Review practices of HRM that relate to the recruitment and retention of the employees with
the motive of achieving business objectives :
 Legislation aspects :
◦ While recruitment of new individuals – A business entity needs to consider the
legalities while practising its business operations. At the time of need of new
employees, a company advertise for job vacancy in the market and give basic
information about the expectation and the work. While advertising a company needs
to consider that it follows the right of equality, that equality act 2010 and does not use
specification in its advertisement that can harm the sentiments of people. For example
– It can not advertise for hiring or need of only good looking people (Hoon Hack and
Kellermanns, 2019).
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◦ At the time of hiring – The employment right act 1996 states that when a new
employee is hired in a job, the employer or other responsible identity should provide
the new bee with all the basic information such as – salary to be given, hour of work,
job position and location of work.
 Job security :
◦ It si the assurance of the job that is given to the employees. It says that the employees
of the company can not be fired or retented by the company without any specific
reasons such as – employee practices any big mistake. It is a very important aspect
that highly influences the behaviour and loyalty of the employees with the business
organisation. The job security gives a secure feel to the employees as he / she is
assure that nobody can fire him / her from the company unless any misconduct
happens or through their poor performance. It is not easy to find job in market that
gives good amount of salary and have all the factors that are desired by the individual,
so the job security plays a strong role.
 Workplace flexibility :
◦ This factor is about providing flexible environment to the employees of a company. It
renders the ability of making changes in the processes / activities and the format in
which they are being practised. A flexible work place helps a business entity in
attracting new ideas and making changes that can prove to be beneficial for it. New
technologies and effectives ideas can be implemented and used in the operations of
the company that can make it effective and efficient (Wilton, 2022). A flexible
workplace also helps employees in avoiding them to be rigid and promote growth.
Business is a dynamic process and flexibility in the organisation helps it to cope up
with the changing market.
Evaluate the use of human resource management practices in the process of retention and
recruitment
The recruitment is basically defined as the procedure which is utilized by the department
of HR within organization. In this procedure the main function of HR is to hire the talented
candidates within firm for running their activities smoothly. But in aspect of retention it is
defines as the procedure of sustaining the productivity and performance of previous employees
within company. For retaining the employees within firm the top level management utilized
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various strategies or tactics. For example identifying the real problems which is faced by them
quickly and also providing all types of resources to their workers for accomplishing their task in
time. There are various models which are used by the management in the procedure of
recruitment and selection. The names of those models are RPO, retained search and exclusive
recruitment. With help of these models firm is able to sustain their overall performance and
growth in market at higher rate for long duration.
The RPO is basically one type of outsourcing procedure where organization outsourced
the procedure of its recruitment. In context of recruitment it is occurred only when the agreement
is made with customer that she or he only be hired by specific organization for particular period
of time. That means talented employees are highly essential for run the activities of organization
in systematic manner. Due to the effective use of highly skilled and talented employees firm is
able to utilize their resources in optimized manner for long time. In aspect of retaining the
employees the selected company is facilitating effective rewards, incentives and salary to their
employees. By providing all these facilities to their employees they are able to do their work
with full passion, interest and energy. Due to this the positive relationship between employees
and employer for long duration.
With help of maintaining positive relations strong communication between employee and
employer are effectively sustained for long duration. The stages which are comes under the
procedure of recruitment and selection are job opening, screening of applicants, conducting
interviews and others. There is lot of cultural diversity in the procedure of recruitment where
different peoples from different areas are applied for similar post (Song Yu and Xu, 2020). By
using above mentioned stages company is able identify the suitable candidates quickly for their
vacant post. After the identification of suitable candidate the next step is providing training. With
help of providing advanced training employees within firm is able to accomplish their task in
attractive manner. Training also assist them to improve their skills and ability at higher rate. Due
to they are get ready to handle any kind of complicated task easily. HR may also be responsible
for professional reference checks and background checks to verify that candidates are eligible to
work for the company.
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P4 Investigating the internal and external aspects affecting decision making of human resource
management to support the development of the organisation :
Human resource management is a complicated business function that have a lot of
responsibilities that are needed to be followed. It has the power of making different important
decisions of a company. There are various types of factors that affect the decision making
process of the company and are needed to be considered by the HRM while practising the
process of decision making. These factors are divided into two types that are – external and
internal factors. Variety of external and internal factors that affect the decision making process of
HRM are mentioned in the following :
External factors : Use of technology – Technology is a very important factor that affect the outcomes and
operations of a business entity. The use of technological innovative and the extend to
which they should be used is a very complicated part of the decision making process as it
is over use of technology can cause high cost to the company where as low use of
technology can affect the potential to achieve higher amount of efficiency and more
customers satisfaction value. Cultural and social – This external factor is about the behaviour of the employees and
other related people of the organisation that is being practised inside the premises of a
company or in its relation (Koirala and Acharya 2020). The HRM department needs to
consider the way in which the culture is being practised in the company. The culture
adopted by a company effets the working environment, performance of the employees
and also the goodwill of the company in market.
Internal factors : Corporate objectives – The goals / objectives of the company is an internal factors that
affect the results and growth of the company highly. Tesco needs to analyse its current
situation and make small objectives that can help it to achieve growth and increase the
revenue generation. Operational strategies – The strategy that the company uses in its organisation and
includes in its planing plays a very important role and influence the outcomes of the
company. Currently Tesco is focusing on its cost leadership strategy that provides it to
get a competitive advantage.
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M4 Key internal and external factors that affects the decision making process of HRM with
suitable examples illustrating they way in which it support organisational development :
The decision making process of HRM is influenced by a variety of factors. Human
resource management should take into account all of the influencing factors make decisions that
are beneficial for the organization (Chaudhary, 2018). The corresponding section must select the
appropriate technological use for the firm to ensure completion of tasks, external factors like
technology play a significant role in decision making of HRM. An important internal factor, like
the company's objective, is thought to be crucial to the company's goals. HRM should choose the
most relevant goals for the organization's success in that market if there is a lot of competition or
a similar product on the market.
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CONCLUSION
From the above report it has been concluded that HRM is a business function that plays a
vital role in the outcomes of the company. There are different areas of the function and internal
and external factors like – technology and objectives that affect the decision making process of
the company. Main responsibilities of the related function is to hire individuals and maintain
their performance.
References:
Books and Journals
Zhao, H. and Zhou, Q., 2021. Socially responsible human resource management and hotel
employee organizational citizenship behavior for the environment: A social cognitive
perspective. International Journal of Hospitality Management. 95. p.102749.
Al-Swidi, A.K., Gelaidan, H.M. and Saleh, R.M., 2021. The joint impact of green human
resource management, leadership and organizational culture on employees’ green
behaviour and organisational environmental performance. Journal of Cleaner
Production. 316. p.128112.
Santana, M. and Lopez‐Cabrales, A., 2019. Sustainable development and human resource
management: A science mapping approach. Corporate Social Responsibility and
Environmental Management. 26(6). pp.1171-1183.
Soltis, S.M., Brass, D.J. and Lepak, D.P., 2018. Social resource management: Integrating social
network theory and human resource management. Academy of Management
Annals. 12(2). pp.537-573.
Anlesinya, A. and Susomrith, P., 2020. Sustainable human resource management: a systematic
review of a developing field. Journal of Global Responsibility.
Al-Romeedy, B.S., 2019. Green human resource management in Egyptian travel agencies:
constraints of implementation and requirements for success. Journal of Human
Resources in Hospitality & Tourism. 18(4). pp.529-548.
Wilton, N., 2022. An introduction to human resource management. An Introduction to Human
Resource Management, pp.1-100.
Gunawan, J., Aungsuroch, Y. and Fisher, M.L., 2019, January. Competence‐based human
resource management in nursing: A literature review. In Nursing forum (Vol. 54, No. 1,
pp. 91-101).
Hoon, C., Hack, A. and Kellermanns, F.W., 2019. Advancing knowledge on human resource
management in family firms: An introduction and integrative framework. German
Journal of Human Resource Management.. 33(3). pp.147-166.
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Chaudhary, R., 2018, August. Can green human resource management attract young talent? An
empirical analysis. In Evidence-based HRM: A global forum for empirical scholarship.
Emerald Publishing Limited.
Koirala, J. and Acharya, S., 2020. Dimensions of human resource management evolved with the
outbreak of COVID-19. Available at SSRN 3584092.
Song, W., Yu, H. and Xu, H., 2020. Effects of green human resource management and
managerial environmental concern on green innovation. European journal of innovation
management.
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