Importance of Human Resource Management in Organizations

This report discusses the importance of Human Resource Management (HRM) in organizations, focusing on functions and purpose of HRM, recruitment and selection strategies, benefits of HRM activities, and effectiveness of HRM practices for raising productivity and profits. The report also includes a case study of NetSuite UK, a software company.

Human resource management

Table of Contents
Introduction.................................................................................................................................................2
Task 1..........................................................................................................................................................2
Purpose and functions of HRM....................................................................................................................2
Recruitment and selection strategies..........................................................................................................3
Press advertising......................................................................................................................................3
Online websites and job boards..............................................................................................................3
Recruitment agencies..............................................................................................................................4
Search consultant....................................................................................................................................5
Benefits of different HRM activities to the employees and employers.......................................................6
Effectiveness of HRM practices for raising the organizations; productivity and profits...............................7
Task 2..........................................................................................................................................................8
Importance of employee relations and decisions of employees.................................................................8
Key elements of employment legislation....................................................................................................9
Application of HRM practices......................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
1

Introduction
The report discusses the importance of Human resource in the development of the people of the
organization and in turn this benefits the entire organization only. The role of the human
resources has not just remained confined to the staffing and maintenance of the staff members
but it is much more than that and have become the main sources of the differentiation for the
organizations as they help the organization to increase their productivity and profitability. The
report has commenced by discussing the functions and the purpose of the HR department along
with the different ways of selection ad recruitment with the pros and cons of each of them. This
way the report has tried to present a comprehensive insight about HR department.
The company which is taken for discussion is a company operating in UK. The company is
named as NetSuite UK, which helps a social media fast growing company named Brandwatch to
scale internationally ("NetSuite UK - Cloud Computing - Business Software", 2018). The forte of the
company is their agile teams who have brilliant options in the providing CRM, financials, ERP
and e-commerce services to more than 40000 organizations all over the world. The report is
focused on NetSuite UK has incorporated the HRM practices in the organization.
Task 1
Purpose and functions of HRM
HRM helps in coordinating the people in the organization so that it is able to achieve the goals of
the organization. It fulfills the needs of staffing and even aids in maintaining the employee
satisfaction levels and this has been done at NetSuite also. The HRM accomplishes the above
said activities by making use of processes, people, technology so that they are able to focus on
the internal parts of the organization. They help in doing workforce planning and resourcing in
the organization. It helps in attracting the right employees towards the organization (Ekuma,
2012). They are then selected using recruitment and selection processes. They also onboard the
new hires in the organization and makes sure that the employees are provided with right training
and development in their tenure in the organization. They manage the experience of the
employees in the life cycle of the empl9yement.
The HR helps in assessing the talent by making use of the performance appraisals and then
provides them rewards accordingly. They even administer the employees with employee benefits
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and with payrolls and they are also involved in the employee terminations which includes the
performance based dismissals, resignations and the layoffs done by the companies.
So in the above organization also which is a software company the HR department would take
care of all its responsibilities and wood be held responsible for the forecasting of the future
supply and demand of the employees and they would engage in the deployment of the skills in
relation to the strategic objectives which are to be achieved by the organization. They do human
resource planning which includes the identification of the future and the current human resource
needs as per the organization and this is based on the objectives and the goals set by the top
management of the company (Wilson, 2015).
Recruitment and selection strategies
Many approaches exist for the recruitment and selection activities which are to be done by the
organizations. Some of these are through online job boards and websites, Recruitment agencies,
press advertising, search consultants and many more. The advantages and the disadvantages
linked to these individual methods would be conducted (Marie Ryan & Derous, 2016).
Press advertising
This is the method in which recruitment of people is done by placing advertisements in trade
journals, local newspaper and in many other places and people who have specialist skills also
look for vacancies in the professional journals.
Advantages
Communicates the message of the recruitment to the person properly
Helps in building brand awareness and reinforces the corporate messages
Sends across a positive message about the good fortunes of the company in the market
Targets candidates with right experience and skills
Encourage people who are already working at some else place
Fixed cost involved in this and to this many publications offer many online packages
Disadvantages
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No automated process to measure the success rate of the advertisement placed
High cost involved in scrutinizing applications and is resource heavy
No control where advertisements are placed so it’s very cluttered in nature
Limited to those who have access to such newspaper
Online websites and job boards
The general job boards are good for those who are without an employer brand and are not able to
attract the right candidates
Pros
Cost effective medium
Streamline administration and speed up the recruitment cycle
Vacancies can be managed easily and easy coordination
Global reach
Cons
Receives many inappropriate applications is advertisements are not drafted in a proper manner
Technical difficulties involved may damage the brand
In case people are not computer literate so they can ‘t reach them
Can lead to the discrimination allegations
Recruitment agencies
Many private sector companies exist which provide many premontane temporary placements
Pros
Provides specialist expert knowledge
Response speed is fast from the dedicated staff
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Leads to high quality recruitments
Many employees prefer dealing with these
Less administration involved as most of the work is done by them
Cons
The database of the company’s oil be limited to those only
Some candidates like to deal with the employers directly
is a costly process as they separately charge fees?
Less reputable concerns may start sending candidates for jobs which may not be suitable
Search consultant
These are the people who are employed specially when the vacancy post is for senior positions
Pros
Specialist knowledge of the market of recruitment
Discretion
Proper interaction of candidates
Builds the personal relationships detailed knowledge of organizations with them
Pros
Costly
Shortlisted people are not available
Less pool of the candidates
Then these are methods which are used for the recruitment and for the selection processes also
there exist many methods and each of these have their own advantages and disadvantages. Some
of these are:
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Based on work experience: at times the workers or employees are selected based on the work
experience which are possessed by them (Nordhaug, 2004). This has its advantage as the
company gets the services of experienced people but at the same time the inexperienced people
may face a steeping learning curve and there may be chances that the employee who may have
better potential may get rejected is he has less experience to do the work.
Profiling: Many times the companies’ profile the candidates for the job based on the sex, age or
race so that they can have an image in the mind as to which type of employee they want. This
may have its cons as any worthy candidate may get eliminated if the criteria s is not met by him.
Interviewing: This selection technique helps the employer in assessing about the employee how
they behave in certain situations and also get to know about their strengths and weaknesses but
some people may have potential but stilt they are not able to perform good at the interviews.
Instincts: the employers also rely in their instincts or on their gut feelings. These are useful as
they provide a chance to respond to the cues of the situation which even can’t be seen by the five
senses and sometimes the same instinct provides deceptive information about a person which
fails the purpose the selection purpose in all.
Benefits of different HRM activities to the employees and
employers at NetSuite
The benefits which are provided by the HR department cants be seen differently for the
employees and the employers. It would be studied together as the goals of the organization and
that of the employees are also linked to each other (Werner, 2014).
Hiring and training of the workforce: They help in doing manpower planning and keeps coming
out with new strategies using which they hire people at the jobs and this is done by them by
preparing the job descriptions which is suitable to the company. Then after hiring the employees
they are also responsible for inducing the employees to the organization.
Performance management system: They make sure that the people working on the jobs remain
motivated at all the times and they provide the employees with timely feedback so that they are
able to keep improving their skills and they help in proper alignment of the personal goals of the
employees with the objectives of the organization (Christine & Prinsloo, 2015). So a PMS helps
in the rewarding and the recognition of the performance of the people.
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Building values and culture in the organization: The performance of a person on any
organization is depend upon the culture of the concern, So HR helps in creation of conductive
work environment and such type of clean and safe work cultures help in bringing the best work
form the employees.
Management of conflicts: In many cases there are chances when there is a disagreement between
the employer and the employee and the role of the HR department in such cases is that of acting
as a mediator and a counselor in which they try to solve the issues in the most effective way
possible. They always take timely actions to make sure that the things don’t go out of control at
any time.
Developing good relations: They are also responsible for the establishment of the cordial
relations of the HR department with all the people. They are also responsible for the holding of
seminars, meetings and many other official gatherings on the behalf of the management. Besides
this they also help in lending a helping hand for the drafting of the marketing and business plans
for nay company.
So overall it can be seen that a HR department helps in managing and building an organization
and the companies must try to lay more emphasis on the setting of the effective and strong
human resource departments. In the existing concern also the HR department performs the above
stated fancies and makes sure that the work is done for the best interest of the people and that of
the organizations as a whole (Ekuma, 2012).
Effectiveness of HRM practices for raising the
organizations; productivity and profits
Many HR practices exit which influences the profitability of the companies. The HR practiced
don’t directly produce any revenues for the companies as it doesn’t go out and tries to find new
business of the company or open to any new markets for it. They do increase the profits by
increasing the effectiveness of the organization which overall allows the company to find new
business. They are adopting many practices which in turn is helping them to earn profits for the
company. The cost cutting is the first tactic which is used by the HR department in which they
are priding the employee self-service and this has enablable the employees to pursue the earning,
get to answers to the compensation and stock questions, change their benefit plans and even
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change or manage their performance without taking any of the assistance for the HR
professionals are without the need of providing them HR handbooks. This has helps the company
to save many dollars which were wasted in the printing costs and the savings which are done by
the company are invested by them in the business.
Then they have enabled the organization to use the technology as thinking that this would help in
increasing the efficacy of the concerns in the administrative works and also this world eventually
results in reducing a lots of costs. The HR department is helping the company is selecting and
retaining the right employees on the job and also taking out bets work form them. This is the
source of real profits as if the retention rates of the employees would be low then the
organization may need to spend huge amount of resources to find the prospective employees. So
HR department in the organization has increased the productivity and profits to a great extent.
Then they have also reduced the threat of litigation in the company’s which may also involve
tremendous costs to a company. Reducing the turnover rates may be extremely important as
there is costly nature of the replacement of the employees.
Task 2
Importance of employee relations and decisions of
employees
The employees are the main sources of any of the organization. The involvement practices for
the employees are started by the management and they are designed so as to increase the
commitment of the employees towards the organization. Employees have increasingly
transformed to become the stakeholders of the company as they have gained more voice for
making decisions in the organizations. The employees have even many powers to influence the
decision making in many ways and one of the way is unionization. Many participation forums
and systems exist in which employees are able to influence the managerial decision making if the
people. The HR has incorporated the grievance systems so that the employees can raise their
grievances if they feel something wrong is done in the organizations. The organization has also
started with many feedback programs like direct interaction sessions or with the employee
surveys between the employees and the management so that they are able to get the feedback for
the employees on certain policies. The HR department in the company is also engaged in the
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discussion with the quality teams at the organization so that the employee suggestions are taken
and the concerns of the organization can be providing with better solutions.
The entire structure which is placed on the employees working in the organization has witnessed
a sea change and the HRM decision making has to be adjusted as per its needs. The decisions
making is not done only by taking the advice of the top management but the representatives of
the employees are also consulted by making polices. The employees are able to bargain their
position in the organizations and their services to the organization have become unique so the
HR department has taken care of their increased importance and made changes accordingly.
Key elements of employment legislation
Many elements of the employment legislation exist in UK and the list in wide and they are
applicable to all the workplaces of UK. Some of these are:
The quality and the HR rights commission was formed in 2007 and this was set exclusively for
the promotion of the equal rights in UK and as a result of this equality Act was formed in 2010
and this helps in prevention of the any kind of discrimination present at the workplace.
The standards are fixed for employment of people. The occupational health and Safety Act
demonstrated that which rules and regulations have to be followed at the workplace and all the
employers have to meet with the minimum laid down standards in relation to the safety of
employees and many more ("Contracts of employment and working hours - GOV.UK", 2018). Then
many other laws exist which are related to the Fixed term employment, human rights
commission, checking of criminal records of employees. The employees working in UK are also
entitled to receive timely leave and this is done as per the Family and Medical Leave Act in UK.
The employment Law is UK regulates all the relationships between the employees and
employers and this tells about everything as to what employers can expect from employees and
also about the rights of employees ("Employment Law | CIPD", 2018).
The HR decisions are certainly to a great extent affected by such prevailing laws as they are
responsible for making sure that the laws which are prevailing in the country are being followed
throughout the company. Like in relation to the equal opportunities the HR department has to
make sure that the job offerings are done equally to all the people in the organization and no
discrimination is done to any one working in the organization (Mou, 2018). Regarding the
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occupational health and safety Act they have to make sure that they keep the documentation of
all the hazardous material sat the company and provide training to the workforce if the work may
involve any dangerous jobs. They have to keep themselves updated in the very changing
employment laws at all the times and they have to try to minimize the liabilities o fetch
organization in relation to the organization as a whole.
Application of HRM practices
Some of the applications of the HR practices which can be discussed in NetSuite are:
Interviewing via video: The company follows a method in which the interviews are taken with
the aid of video conferencing techniques. This is useful when the employees resizing at different
places have to be interview. This way the interview has potential to be a perfect way of cutting
the cost and also a sophisticated usage of technology in the business ("Laws Affecting Human
Resource Management", 2018). This way this helps the candidates in saving a lot of time and
money which is spend by them in the interviews works.
Mandating time offs: the employees working in the company are provided with mandatory time
offs as or company thinks that it is important to give time to the employees to recharge
themselves and this would eventually increase their productivity levels and focus. The company
has adopted a policy in which the employees are required to take offs at fixed intervals and this
in way results in re-engaged and refreshed employees. Investment made in the health of the
employees: then the organization has also invested in the health of the employees. the company
provide the employees with gym memberships and even has an activity game rooms which every
employee is supposed to use for a minimum time for 30 minutes in each day. This the HR
mangers have found out ways that the company must make investment in the physical and the
mental health of the employees and this would be beneficial for the improving of the
productivity level of the employees.
Given time offs for volunteering: the employee is also given an option in which they can
volunteer to work for a social cause two days in a month. This way the organization is able to do
a bit if its CSR activities and even this would provide the company with many benefits as they
would multiple when the employee should work on the projects as a group.
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No more usage of job titles: The company is working aggressively n lessening the job titles so
that business may get rid of their transitional hierarchy feel in its business. The main intention
relation to this is that the usage of titles actually goes on to stifling with creativity and this often
produces many unproductive hierarchies. The removal of such titles often helps in fostering
cohesive and united team of employees.
Conclusion
As the times has metamorphosed and in the same way the responsibilities which are performed
by the HR department have also undergone sea changes The organizations are increasingly
getting befitted form the HR teams functions and contributions. The report has discussed the
various ways in which the functions for HR are being influenced by the employment legislations,
changed relations of employees and due to many other factors in detail.
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References
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resistance?. Journal Of Marketing And Consumer Behaviour In Emerging Markets, 2015(2),
15-32. doi: 10.7172/2449-6634.jmcbem.2015.2.2
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Ways of Maximizing Them: An Assessment of Three Selection Methods. International
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Ekuma, K. (2012). The Importance of Predictive and Face Validity in Employee Selection and
Ways of Maximizing Them: An Assessment of Three Selection Methods. International
Journal Of Business And Management, 7(22). doi: 10.5539/ijbm.v7n22p115
Laws Affecting Human Resource Management. (2018). Retrieved from
http://smallbusiness.chron.com/laws-affecting-human-resource-management-36304.html
Marie Ryan, A., & Derous, E. (2016). Highlighting Tensions in Recruitment and Selection
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doi: 10.1111/ijsa.12129
Nordhaug, O. (2004). Contributions to an economic theory of human resource
management. Human Resource Management Review, 14(4), 383-393. doi:
10.1016/j.hrmr.2004.10.002
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https://www.fairwork.gov.au/about-us/legislation
Werner, J. (2014). Human Resource Development ≠ Human Resource Management: So What Is
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Wilson, J. (2015). The Routledge Companion to Human Resource Development. Human
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Contracts of employment and working hours - GOV.UK. (2018). Retrieved from
https://www.gov.uk/browse/employing-people/contracts
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Employment Law | CIPD. (2018). Retrieved from
https://www.cipd.co.uk/knowledge/fundamentals/emp-law
NetSuite UK - Cloud Computing - Business Software. (2018). Retrieved from
http://netsuite.co.uk/portal/uk/home.shtml
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