HRM Practices and Organizational Performance

This assignment delves into the crucial relationship between Human Resource Management (HRM) practices and an organization's overall performance. It requires a critical analysis of scholarly articles, providing insights into how different HRM strategies influence organizational effectiveness. The provided list of references offers a starting point for research and understanding this complex topic.

HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Strengths and weaknesses of various approaches of recruitment....................................3
P3 Advantages of HRM practice to employer and employee................................................5
P4 Effectiveness of HRM practice in enhancing profit and productivity of organisation.....6
TASK 2............................................................................................................................................7
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making....................................................................................................................................7
P6 Key elements of employee legislation and their affect on HRM decision making .........8
P7 Application of HRM practice ...........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Every organisation has various kinds of resources which help them in moving forward
towards set mission and vision. Employees are one of the most important assets of an enterprise.
They are responsible for making plans and executing them in order to achieve organisational
goals (Giauque, Anderfuhren-Biget and Varone, 2013). EasyJet is a successful company of
Airline industry that is selected for the present study. They are operating in almost 30 countries
over 820 routes. This assignment will discuss about the purpose and functions of managing
human resources. Different methods for recruiting appropriate candidates in a corporation as
well as their merits and demerits will be covered as well. HRM is a practice that is beneficial for
both; employees and employers; these benefits will be included in this file. Contribution of HRM
in increasing organisational profit and productivity will also be discussed along with application
of HR management practices in decision making.

TASK 1
P1. Purpose and functions of HRM
An organisation can achieve aggressive targets if they recruit right people at every post in
company. Human resource department is basically responsible for hiring “the best man for a
job”. Human resource management is an approach which is adopted by an organisation so that
they can manage their employees in an effective way and earn competitive advantage by using
their human resource.
Purpose of HRM Reduce employee turnover – Prime reason for the existence of HR division is to keep
talented workers in the organisation. HRM will lose its importance if they will get failed
to increase employee retention rate. Resolve conflicts – Dispute among personnel is common in big corporation like EasyJet.
Human resource management tries to solve the misunderstanding and conflicts which are
present in an organisation as it is significant for smooth running of business operations.
 Recruitment and termination – Hiring and firing employees is another important
purpose of HRM. They select the best candidates for a post and also play a crucial role in
termination of workers.
EasyJet is operating in a highly competitive industry and their HR division has to perform
different kinds of functions for attaining the set objectives. They are as follows:
Operative functions Recruitment – Selecting right set of skills is the key task which HR wing of this company
has to do. They organise whole session for finding and selecting people for vacant
position. Besides quality, they also have to focus on quantity i.e. number of new joinee.
This can be considered as one of the most important functions which is performed in any
enterprise as if a company selects those workers who can fit in their organisational
structure then they will get surprising results and achieve the set objectives would not be
very much difficult for management (Ganopoulos and et. al., 2013). Training and development – HR team of EasyJet is responsible for developing and
updating new skills among employees. They are accountable for finding the training need
of every worker and then arranging an appropriate session for removing various kinds of

flaws which are present in their personality. This is an important function because it
assists company in finding the future leaders. Performance appraisal – HR manager keeps a detailed report about the entire work
which is done by employees. They analyse the performance of workers in order to decide
amount of incentives and eligibility for promotion. Ensure fulfilment of legal formalities – There are many regulations relating to equal pay,
discrimination, maternal and paternal leaves, etc. HR division plays a crucial role in
ensuring that all the rules are effectually followed.
 Employee relation – HR division work as a bridge between employees and management
of the company. They try to bring both parties on same table so company can assure that
the different between both sides reduces and relationship between employer and
employees get improve.
 Health and safety – HR team check that all the legal obligations relating to health &
safety of employees and others, is followed in the organisation. They are responsible for
communicating the crucial information health insurance and other safety measures.
Managerial Functions Planning – Human resource department of EasyJet makes plan for recruiting new talent
in company. They also perform the function of filling vacant position by promoting
existing employees. Organising – Managing human resources includes organising different kinds of events
for the selection and training of personnel. HR manager of EasyJet gets responsibility of
making sure that all these essential things for ensuring successful events are organised
properly. Directing – Giving right directions to all the employees is another important function of
HRM. Workers may commit blunder if they do not know right path which they have to
follow.
 Controlling – Ensuring that all the things happen according to plan is important for
gaining desired results (Ehrnrooth and Björkman, 2012). Problem like overlapping of
work can be avoided by performing this function.

P2. Strengths and weaknesses of various approaches of recruitment
Normally, a company has two sources for selecting appropriate candidates. One is
internal and other is external. The best options have their own merits and demerits and they are
mentioned as below:
Internal – When a vacant post in the enterprise is filled by finding a candidate from within the
organisation then this means that corporation has adopted internal sources for recruitment.
Promoting junior manager at senior's post is its perfect example. Referrals/recommendations are
also used by HR manager at the time of availing this option.
Strengths
 When existing employees get promotion then it motivates other workers to perform
better. Motivating staff members is not an easy task but internal source of recruitment
like promoting personnel can assure motivation to employees (Durão and et. al., 2012). This method does not involve much cost and time also. Recruiting people through
referrals do not require any extra expenditure. Candidates who fill an empty post by
considering referral or promotion do not leave the organisation in short period of time
because they are aware about their work and culture of enterprise. This method of
recruitment is popular by the name of ''recommendations''. They ask present employees to
recommend their friends or relatives for a post so company can hire reliable person and
do not spend much money in finding appropriate candidates.
Weaknesses
 This source of recruitment stops the HR team from finding talent from fresh pool. It
restricts them from identifying exact set of skills which is required for a post.
 Few employees may raise voice against promotion of their co-workers. They may feel
bad that their co-workers are now working at higher post and this may increase number
of conflicts in company (Heikkilä and Smale, 2011).
External – When new workers come from outside of the organisation by adopting methods like
campus placements, walk in etc. then it shows that firm has decided to use external sources for
filling empty seats.
Strengths
 The probability of finding best person for a job is only possible is high when HR division
hire people from outside of the organisation (Cousins and et. al., 2012). This source

provide them more options which ultimately assist company in identifying appropriate
candidates. When new talents come in the enterprise then they bring positive energy and play crucial
role in generation innovative ideas. External sources can support company in hiring more
number of candidates at low cost.
Weaknesses
 Options like campus placement are time consuming. These methods cannot be adopted if
candidates are needed to be employed in short time period.
 This approach is expensive because arranging interviews of thousands of applicants is not
a cheap process (Internal and external sources of recruitment, 2011).
Third Party - Sometime companies do not use both, internal and externals sources for selection.
They sign a deal with recruitment agency or consultation firm and delegate the task of
recruitment.
Strengths
 When experts do the work of recruitment then enterprises like Easy jet get better human
resource. Delegation of this job assist company on focusing on productive and revenue generating
work.
Weaknesses
 Consultation firm charge huge amount of money for their services. Small firms cannot
afford their facilities.
 Recruitment agencies are generally unaware of organisational culture so they may hire
few employees who would not fit in the company.
P3 Advantages of HRM practice to employer and employee
Workers can be considered as a significant assets of a corporation (Chang, Chiang and
Han, 2012). HRM practice involves various activities like resolving conflicts among employees,
provide training to workers etc. Following are some of the advantages of HRM practice to
company and their personnel:
Benefits to employees
Skill development – An important part of HRM practice is removing the shortcomings of
workers by providing them appropriate training. If employees will get the chance of working on

their mistakes and developing new talent in them then they will never become an obsolete assets
for company.
Rapid career growth – Fine relationship with employer and continuous improvement can
play significant role in attaining swift career growth. If they learn new things and do not have
any problems with management then they will get more promotions in less time.
Proper knowledge about incentive scheme – Their are few workers who do not have
complete knowledge about how incentive schemes (Kaufman and Miller, 2011). HRM practice
make sure that every employees increase their efficiency in order to earn more revenue.
Benefits to employer
Low employee turnover – Retaining talented employees is a challenge for Easy Jet.
Every organisation want to increase the rate of employee retention because they understand that
if a recruiting new worker would involve more cost and new joinee may fail to fit in the
organisational structure. Attaining set targets is easy when employee turnover is low.
Reduction in conflict – Thousand of people are working Easy Jet, chances of happening
dispute is normal in this organisation. HRM practice make sure that they conflicts get resolve at
the point of their generation. HR managers do not only resolve dispute among employees, they
also bring worker and employers on same page. Conflicts stop company from attaining set target.
Increment in profit – HR practice also involve ascertaining the personal and professional
development need in the employees so they can get appropriate training (Cascio, 2018). If
worker will get proper training then their productivity will increase and this will ultimately make
a positive impact on revenue of this enterprise.
P4 Effectiveness of HRM practice in enhancing profit and productivity of organisation
All the department of an enterprise basically focus on single area i.e. increase profit of
company. HR division may not directly connected with revenue earned by a company but they
are responsible for managing human resources which can be considered as most important part
the organisation. Easy Jet are known for affordable pricing and quality service. They want to
enhance their profit and gain more market share. People may argue that HRM practice cannot
make any major influence on productivity and profit of company but they below are some of the
point which may prove them wrong: Promote training and development – Aviation industry is going through major changes
and employees of Easy Jet require continuous training so they can work on new

technology. HRM practice always focus on developing new skills in the work so their
productivity can increase and they accomplish their work in less period of time (Kim and
Bae, 2017). Quality workforce results in more profit to the company. Training play an
important role assuring that leadership skills and technical knowledge about work of
employees is increased in regular period of time so company can get better people in top
and middle level management. Better working conditions – HRM practice always concentrate on resolving problems of
employees so they can focus on allotted work. The concept of flexible working hour is
appropriate example of this point. Their are few employees who cannot work for lengthy
hours, in early morning or late night etc. Human resource team of Easy Jet give options
to workers regarding completing their working hour according to their preference
(Bondarouk and Ruël, 2013). If an employees feel that his productivity is low in night
then he can ask manager to change his shift.
 Reward system – The idea of giving more monetary and non-monetary benefits is a part
of HRM practice. When a worker will get reward for giving exceptional performance
then he/she will try to continue it. This will also motivate other to expand their limits.
Rewards system increase productivity workers and make a positive impact on profit of
company.
TASK 2
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employee relation is a concept which earned lot of popularity because it concentrate on
reducing the gap between employer and employees. Many people often argue that importance of
trade unions went down when this concept get popular in market. Employees relation are
various efforts which company made from keeping good relationship between employees and
employer. HR division has to make various kind of decisions like what kind of talent should be
recruited in the company etc. Employee relation play significant role in HRM decision making. It
is as follows:
Conflict resolution – As mentioned earlier, HR manager of EasyJet are responsible for
stopping and resolving any kind of conflict. Employee relation assure strong connection between

employees and employer. This work can be done by making a proper system of communciation.
When a company do not face much conflict in their organisation then the work on HR managers
get easy. They do not have to take much decisions regarding who was right or who is wrong,
what call should be made in present scenario (Lamba and Choudhary, 2013).
Training and development – HR team of EasyJet understand that they have to provide
training to the employees. They have to make decisions regarding what kind of training should
be provided to which worker. Employee relation focuses on involving workers at the time of
taking decision relating to training and development. When views of employees are taken then
assuring effective training events and desired outcome is possible. Workload of HR division
reduces when personnel take interest in getting training.
Teamwork – Synchronisation of all the tasks is important for achieving overall aim of the
company. When tuning between employer and employee is fine then all the workers try to give
their best and assist other in accomplishing a task in best way possible (Arrowsmith and Parker,
2013). Employee relation reduces communication among workers and promote team spirit.
Better productivity – If employees of EasyJet do not support any idea of management
then it means that they are failing to understand the policy of top level management. Employee
relation give proper chance to workers for representing their thoughts. This ultimately reduces all
the problems relation to communication between both parties and motivate workers by showing
them that they are important for the company.
The importance of employee relation can also be studied through these terms:
 Trade union – It is basically an association which is being formed by workers so as to
protect the interests of employees who are working in the company. Therefore, it helps
the company in reducing the no. of conflicts which might happen in future. Through this,
the connection between the management improves and thus their relationship with them
also gets enhanced.
 Employee Union – It is a kind of association which is prepared by the employees of the
companies itself so as to protect the rights and interests of their colleagues and make sure
that a good working environment is working in the company. It is having direct
connection with maintaining the employee relation because if the employee union will
work in a proper manner then they will be able to know that there is no discrimination in

between them on any basis. This will make the working environment more effective and
relations will also get increased.
P6 Key elements of employee legislation and their affect on HRM decision making
Employers has to follow different regulations in order to run the business in smooth way.
If they follow these rules then they can save themselves from various unnecessary conflicts and
legal troubles. Below are some legislation and the impact which they make on HRM decision
making:
Equal pay act 1953 – This regulation states that every company has to provide equal pay
for a job. Discrimination on the basis of gender, religion etc. are considered as a crime according
to this act. HR manager of EasyJet should read all the provisions of this law so and decide
payroll of every employees. They should check company's policy in order to find that whether
they are breaking any law or not. At the time of making new policy relating to salary they should
also keep this law in their mind.
Disability rights – EasyJet has to provide some special facilities to the disable employees.
HR team of this company have to check that whether they can provide special amenities to the
employees or not. Every person has right to work so human resource manager cannot reject a
person on the basis of his/her disability (Almond, 2011).
Minimum wages act 1998 – Employer have to provide a minimum amount for the work
done by an employees. This law provide the details about all the details about all minimum
salary which Easy Jet has to pay to their workers. Company should make sure that they offer a
minimum amount to those candidates who are applying for new job.
Civil right act 1954 – Their are various kind of discrimination which can happen in an
organisation at the time of giving promotions. HR manager of EasyJet should make a system
where they can provide equal opportunities to the workers. They cannot provide different salary
to two employees just because one from other cultural background or religion. This law needed
to be taken in account at the time of making decision relating to promotion, deciding salary etc.
Sex Discrimination Act – It is a kind of an act which was designed by Parliament of UK
through which they aim to protect men and women being discriminated on the basis of their sex
or marital status. If any employee is facing such issue in their organisation then they can file a
complain against their company under this act.

Data protection Act - This act guarantees processing of relevant data in a legal and
ethical way. Workers who are working in organization are responsible to keep the relevant facts
and figures confidential.
Employment Tribunal – It is a kind of public body which is being prepared so as to hear
various kinds of disputes that are going on between employer and employee of any organisation.
There are several kinds of issues which are included in this such as dismissal, redundancy
payments etc.
P7 Application of HRM practice
EasyJet want to expand their business in untouched market like India because they
understand that this developing country has huge potential of growth in upcoming market and
enormous business opportunities are present in this nation (ALDamoe, Yazam and Ahmid,
2012). Below is application of HRM practice:
Recruitment – HR department of this company has to find appropriate candidates for
various position like CEO, marketing officer, HR manager for different region etc. The job of
human resource team is very important in this case because if they will not select right people
then company will fail to get desired result and expansion programme may fail.
Training and development – Organisational culture of EasyJet differs from most of the
companies. HR division if this firm has to arrange a training event for all the employees so they
can work according to the expectation of top level management and increase efficiency of
workers. Training will remove shortcoming of workers and assist them in improving their
performance.
Work life balance – In this era, most of the companies fail to retain employees because
workers always feel that they do not get essential time to spend with their family and friends
(Albrecht and et. al., 2015). Effective HR practice can will assist in managing the workload
which new employees will face at the time of working in India. Human resource department has
to give proper number of holidays to their employees so they can enjoy their life and do not feel
an unnecessary pressure at workplace.

CONCLUSION
It can be concluded from the above report that human resource management for every
company. Through this firm can select and recruit educated and trained employees. In this
assignment there are different purposes and function of human resource management through
which firm can easily manages the human resources. Apart from this strengths and weakness of
various approaches of recruitment and selection are mentioned. Different benefits of human
resource practices to increase the productivity and profits. Evaluating importance of employee
relations which can impact decisions of human resource management and key elements of
employment legislations which can influence decisions of personnel management.

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Online
Internal and external sources of recruitment. 2011. [Online]. Availaible Through:
<http://kalyan-city.blogspot.in/2011/07/internal-and-external-sources-of.html>.