HRM Practices and Performance Correlation

The provided document is a solved assignment related to Human Resource Management (HRM). It involves a detailed analysis of HRM practices and their effect on firm performance. The assignment discusses various studies and research papers that investigate the correlation between HRM and business outcomes, including innovation, employee engagement, and hospital performance. It also explores the role of managers in employee relationships and the impact of digital media on HRM. The document provides a comprehensive overview of HRM practices and their significance for organizational success.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P.1 Purpose and scope of human resource management to achieve objectives..........................1
P.2 Strengths and weakness of recruitment and selection methods ...........................................2
P.3 Benefits of personnel practices for employer and employee................................................4
P.4 Evaluate effectiveness of different HRM practices in terms of raising productivity and
profits..........................................................................................................................................5
TASK 2............................................................................................................................................6
P.5 Importance of employee relations in influencing HRM decisions ......................................6
P.6 Key elements of employment legislation and their impact on HRM decision making........6
P7. HRM practices in work related context................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is the management are the management of human and
financial resources in the firm. They includes different functions such as planning, organizing,
directing and controlling etc (Banfield, Kay and Royles, 2018). Hence through this they can earn
more revenues and they can increase the market share. Through this they can easily expand their
business and can maintain good reputation in minds of all people and in the market. Project
describes about the HSBC bank that provides financial to their customers. It was found in 1865
in U.K. Project describes about the purpose and scope of human resource management so that
firm can easily accomplish the objectives. It further explains about the effectiveness of key
elements of human resource management in the firm. It also describes about the internal and
external factors which can affect personnel management including the employment legislation
etc. It also explains about the application of humans resource management in work related
context.
TASK 1
P.1 Purpose and scope of human resource management to achieve objectives
There is different purpose and scope of the organization. This is crucial so that firm can
easily accomplish their objectives. So hence objectives of HSBC bank is described below:
Operative functions
Recruitment: In this firm selects talented and intelligent workers in the organization.
Through this they can manage all tasks and activities in a better manner. Hence they can easily
accomplish their objectives. This leads to successful running of the organization. Through this
they can easily achieve their goals.
Training and development: Manager organize various training seminars so that all
employees can get appropriate training for staff members. Through this they can increase their
Knowledge and they can handle all activities and tasks in better and effective manner. Thus they
can easily accomplish their targets.
Performance appraisal: HR manager can check performance of staff members that they
are achieving their targets or not (Bratton and Gold, 2017). Rewards are given to employees if
they had achieved their targets and this highly motivates employees to perform better . Thus they
can give good results.
Managerial functions:
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Planning: HR manager can create different policies and strategies so that they can do
planning of various other activities and tasks. Hence all employees can be instructed to complete
their activities. Thus all task can be easily completed in time and thus all staff members can
easily finish their activities in time (Brewster, 2017).
Organizing: HR manager give various resources to all staff members sop that they can
complete their activities in minimum time. Through instruction and guidance received by
employer all employees can perform all activities in time.
Directing: It is the process through which manager motivates and give instruction to all
employees. Through this they can easily accomplish various activities and thus they can easily
their accomplish various tasks. Through their guidance they are motivated and they give best
outcomes.
Controlling: Controlling is the process through which performance of all employees are
controlled and thus they can easily accomplish their objectives. Standard performance is
compared with present performance. Manager take corrective steps so that performance of
workers can be improved.
Functions of HRM:
Reduces employee turnover: HR manager tries to increase the employees and take steps
so that employees do not eave their jobs. They solve all their issues and give rewards to all staff
members so that they can give good results.
Decrease conflicts: HR manager tries to reduce the disputes and conflicts. Hence as a
result they can perform well in firm. Thus they can give good results.
Recruitment and termination: Company can take steps to recruit educated employees
and then they can also take steps to terminate the employees. Thus these two functions are
crucial in the firm.
P.2 Strengths and weakness of recruitment and selection methods
There are advantages and disadvantages of various sources of recruitment and selection
methods (Brewster, Brookes and Gollan, 2015). So strengths and weakness of various sources in
HSBC are-
Internal recruitment:
It is the process through which employees can be selected and they can be selected from
within the company. Thus strengths and weakness are described below:
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Strengths:
Reduces costs: Manager tries to reduce the costs of selecting staff members so that they
can invest their money in profitable activities (Friedman, 2017). Through this all activities and
tasks can run profitably and successfully. This include the promotion and transfers etc.
Knowledge of person: Manager have knowledge about their experiences and the
personal information about existing employees. Through this they can easy sejhect all e
mployessin the company.
Weakness:
Less choices: Company have very less choices of selecting employees as they are
selecting staff members from the company. They do not use external sources and selects
employees from outside firm. Hence they have less choices.
Training new person: As manger selects employees from internal source they have to
give training so that they can learn methods and ways of performing task of new job position. It
involves costs.
External recruitment: When manager selects workers from outside firm then it is known
as external recruitment. Strengths and weakness is described below:
Strengths:
New talent: Firm selects from outside firm so hence they can select employees who
have new talent. Through this all activities are managed properly. It also helps firm to achieve
objectives.
Improves diversity: It helps in maintaining diversity in the company. As all employees
are selected from different background so hence it promotes diversity in the firm.
Weakness:
No knowledge of person: Firm do not have knowledge of person as they selects from
external source. They have some information but they do have much information. Thus as a
result firm cannot earn more revenues.
Communication gap: As employees are selected from external source then they there is
communication gap between all employees and the manager. So hence as a result they can
properly interact with each other. This can reduce productivity of firm (Harrison and Lock,
2017).
Third party recruitment: Consultancy selects employees in firm. Strengths and weakness are-
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Strength:
Good relationship: Firm creates and maintains strong relationship with all employees as
they interact with all members (Lu, Zhu and Bao, 2015)3 .
Candidate monitoring: Candidate is properly monitored so that right applicant who
have required skills can be selected. Thus as a result they can select many staff members.
Weakness:
Lack of control: Company do no participate in activities done by third party. So hence as
a result they cannot participate in the work done by consultancy.
Indirect access: Company had to keep faith that consultancy uses fair methods and
perform interview and other tests to select employees. Thus firm cannot check properly.
P.3 Benefits of personnel practices for employer and employee
Different advantages of personnel practices for both employer and employee are:
Benefits to employer:
Better use of working time: Manager can make effective use of their time. Hence as a
result all activities and task are properly managed. Manager uses better recruitment and selection
practices and they provide adequate remuneration to all employees. Through this they can utilize
time in an efficient and effective manner. Thus it helps in earning of more profits and market
share.
Reducing of absenteeism: Through providing of proper training employees get trained
and they perform better. They also receive proper compensation so that they get satisfied. So
hence they do nit take leave and they can work with their full potential and zeal. It can improve
performance of staff members and they can also give good results.
Focus moved from job to tasks: Manager gives training so that employees can easily
complete their activities in minimum time. Thus as a result they can directly move from job to
tasks . Manager motivates employees to perform better. Through this all employees directly
moves from job to specific task and particular assignments.
Benefits to employees:
Opportunities for training and development: All employees can get various
opportunities so that they can get training and can increase their skills (Arrowsmith and Parker,
2013). Through this they can enhance their knowledge and they can also perform activities in
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better manner. Thus as a result they can perform well and can give best outcomes. Through this
firm can earn more revenues (Baluch, Salge and Piening, 2013).
Opportunities for realization in new areas: All employees can work in new and
different areas. Through getting of proper training they can easily enhance their skills and
potential and thus they can give good results. Hence employees can accomplish targets and
objectives. Through this they can easily accomplish various tasks.
More freedom and use of spare time: Manager can effectively utilize the time so that
they can perform better. As employees are free they can attend various training and motivational
sessions which are organised by both manner in the company. Thus as a result they ca easily
utilize the free time. Through this they can give best results.
P.4 Evaluate effectiveness of different HRM practices in terms of raising productivity and profits
Different practices are used by manager so that they can enhance their profits and
productivity. Different personnel practices used by HSBC are:
Promotes training and development: HR manager can organize various training
programmes so that they giver good results. For example HSBC can organize different
programmes in which they deliver different programmes so that they can increase their skills.
Employees can receive training related to communication level and methods through which they
can easily explain about the plans and policies to all customers. So through it they can attract
many consumers and HCBC can earn more revenues and they can increase their productivity.
Through this HSBC can maintain good reputation in front of all people and ion market.
Better working conditions:
Employees can have better working conditions. Manager can give options and choice ton
employees so that they can choose their timings in job according to their preferences. For
example manager have said to employees that work related to calling of customers are done at
night time. So hence employees choose night time who are related to the department. Manager
has also given the priority that all employees can choose their timings according to their own
convenience and choice. Due to this all employees are motivated and thus they can give good
results. Through this they can easily enhance productivity and profits (Caligiuri, 2014).
Reward system:
HR manager can give different rewards and awards to employees who can give good
results. Through this it increase the zeal and potential of staff members. For example manager
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has et a target that they had to sell 20 policies in 2 weeks. Thus rewards and extra salary is give
so that they can be motivated and they can perform better. Through this other employee have
feeling of competition and they can give good results (Collins, Zhu and Warner, 2012).
TASK 2
P.5 Importance of employee relations in influencing HRM decisions
Employee relations are very crucial so that HR can take crucial decisions (Role of
Managers in Employee Relationship, 2018). Importance of employee relations in HSBC are:
Solve issues: Manager solves different problems and issues of workers. Hence all
employees are motivated and thus they can handle all activities and tasks in a better manner.
Through this all employees can give best outcomes and they can easily accomplish objectives.
Through this firm can take decision related to recruitment an selection and compensation.
Reduces stress: Through good relationship between employer and employees it reduces
stress level of all employees. Thus they can easily accomplish their targets. Hence as a result HR
can take decisions related to recruitment and selection They can also take decisions related to
providing of salary to various employees.
Team work: If there is good relationship between employer and employee then there is
good team. So hence employees can interact with each other in a team. Thus as a result HR can
take decisions related to recruitment and selection. Manager can also take steps to improve
performance and to recruit and select staff members. They can also take steps to provide salary
to all employees.
P.6 Key elements of employment legislation and their impact on HRM decision making
Every organisation require to adhere with all legal rules and regulation in order to
running the whole business smoothly and effectively. Further company has to compile with all
the legal legislation enforced by particular government where they plan to expand their business
and it will help company to accomplish their objectives and goals in better manner. HSBC is UK
based multinational bank that engaged in providing banking and financial services and comprises
of capable and professional staff members who give such services to customers that help in
satisfying their needs and requirements (Conesa-Zamora, and et. al., 2011). Therefore in order to
maintain healthy relation among superior and subordinate there is need for keep the effective
communication between them so they perform their daily target in adequate manner. Further HR
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manager at the time of framing policies and strategies they need to concern regarding all the
legal laws that must be compile at the time of carrying out various HRM practices so that all the
activities are managed in appropriate manner (Guest, Paauwe and Wright, 2012). Different laws
and regulation that must be compulsorily implemented in HSBC bank are describe below:- Anti discrimination act:- This act states that every employees in organisation is not
discriminated on the basis of caste, creed, culture and religion and if any individual feel
they are not equally treated in company then he or she has right to sue against company
and demand for compensation regarding all the losses incurred to company. This law is
applicable in all institution where more than 15 employees are currently working. Minimum wages act:- This law states that HR manager at the time of formulating various
rules and policies related to wages then in such case manager must concern that minimum
salary and wages is given to employees so that they are able to fulfil l their basic needs. If
any manager not getting minimum wages then he or she has right to file complaint
against it and it is applicable compulsory for all those association who employed more
than 15 employees. Age discrimination:- This act state that superior cannot fire any employee who have been
reached to the age of 40 years or more and it is applicable to all those institution where 20
or more than employees indulge in business operations.
 Data protection act:- This act state it is utmost responsibility of IT manager to maintain
all the data and personal information of clients in adequate manner and proper security
measures must be installed for the protection of data so that no external party misuse
information for their own gain.
Therefore, it is essential for HSBC bank to consider all the above legal rules and regulation in
order to conduct all the operations of business smoothly because non compliance of banking
laws leads to heavy penalty on banks which also dilute the brand image of company.
P7. HRM practices in work related context
In every organisation various HRM practices has been applied at the time of
accomplishing all the goals and objectives of business (Gurkov, Zelenova and Saidov, 2012).
Application under which two main HRM practices has been applied on HSBC bank are describe
below:-
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Job specification:- This is consider as legal official document in which all the details
related to all the task and activities which has been performed by person in that particular
business profile has been describe (Hauptmann and Steger, 2013). Apart from it, various set of
competencies which must be present in individual which enable him to perform all the daily
targets in effective manner without problems and errors.
JOB SPECIFICATION
Organisation: HSBC
Job Title – Assistant financial manager
Qualification – MBA or PGDM (Finance)
Essential Criteria:
 Adequate knowledge of financial tools and instruments.
 Capable to holding long term relation with clients.
 Maintaining coordination between the functions of financial management.
 Capability to deal with all the financial pressure at the time of unfavourable economic
conditions.
Desirable criteria:
 4+ years experience
 Effective communication skills required
 Good personality
 Knowledge about recent banking financial data
Job Description:- It is consider as such official document that give the details regarding all the
general task and other related duties and responsibilities which must be assigned to different
individuals according to the skills responsibilities which has been required in individual at the
time of performing job.
Job Description
Organisation: HSBC
Division: Finance department
Job Title: Assistant financial manager
Job Location: London
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Job Summary
Company is looking for eligible person who easily fulfil all the requirement of Assistant
financial manager in the company. The applicant must carry financial knowledge and ability to
manage resource measured in financial terms efficiently.
Role
1. Ensuring laws and policies are adhered.
2. Maintaining Harmony and peace in the environment
3. Preparing financial budget in order to compare the performance of organisation with
previous year.
4. Organising training and development programs.
HSBC bank require to carry out whole recruitment process which allow them to reach to
maximum numbers of employees and on the basis of both positive and negative feature HR
manager recruit the best employees which is capable of fulfilling all the criteria at that business
profile. Further, at the time of selecting employees CV of individual is observe in order to know
all the data related that show eligibility criteria of person. Format of CV is stated below:-
CURICULAM VITAE
Curriculum Vitae
Name: Brad Pitt
Address :29 Street, Howard palace, London
Phone No. - 656879413
Profile summary:
An MBA in finance having an experiences of 4 years and wishes to become a part of HSBC
organisation that provides me opportunities for growth. Effective communicator with deep
knowledge of financial instrument and various asset.
Specialisation:
 Management of financial resources
 Conflict management Ability to prepare proper Balance sheet
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Educational qualification: -
 Bachelor in Commerce. (B.com) Masters in Business administration (MBA) (Finance)
Declaration:
I hereby declare that all the information provided is true and is best of my knowledge.
Date:
Place:
CONCLUSION
It has been concluded from above assignment that HRM plays an vital role in overall
operations of business. Further, HR manager require to formulate various policies and strategies
through which purpose and function of business has been implemented in proper manner and in
order to enhance the growth development of employees training development programmes must
be organised time to time in order to accomplish all the goals and objectives.
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REFERENCES
Books and Journals
Banfield, P., Kay, R. and Royles, D., 2018.Introduction to human resource management. Oxford
University Press.
Bratton, J. and Gold, J., 2017.Human resource management: theory and practice. Palgrave.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
InPolicy and practice in European human resource management(pp. 22-35). Routledge.
Brewster, C., Brookes, M. and Gollan, P. J., 2015. The institutional antecedents of the
assignment of HRM responsibilities to line managers.Human Resource
Management.54(4).pp.577-597.
Friedman, S. D., 2017. Succession systems in large corporations: Characteristics and correlates
of performance. In Leadership succession(pp. 15-38). Routledge.
Harrison, F. and Lock, D., 2017.Advanced project management: a structured approach.
Routledge.
Lu, K., Zhu, J. and Bao, H., 2015. High-performance human resource management and firm
performance: The mediating role of innovation in China.Industrial Management & Data
Systems.115(2). pp.353-382.
Arrowsmith, J. and Parker, J., 2013. The meaning of ‘employee engagement’for the values and
roles of the HRM function. The International Journal of Human Resource Management.
24(14). pp. 2692-2712.
Baluch, A. M., Salge, T. O. and Piening, E. P., 2013. Untangling the relationship between HRM
and hospital performance: The mediating role of attitudinal and behavioural HR
outcomes. The International Journal of Human Resource Management. 24(16). pp.
3038-3061.
Caligiuri, P., 2014. Many moving parts: Factors influencing the effectiveness of HRM practices
designed to improve knowledge transfer within MNCs. Journal of International
Business Studies. 45(1). pp. 63-72.
Collins, N., Zhu, Y. and Warner, M., 2012. HRM and Asian socialist economies in transition:
China, Vietnam and North Korea (pp. 598-619). Edward Elgar Publishing.
Conesa-Zamora, P., and et. al., 2011. Comparison of allelic discrimination by dHPLC, HRM,
and TaqMan in the detection of BRAF mutation V600E. The Journal of Molecular
Diagnostics. 13(5). pp. 467-473.
Guest, D. E., Paauwe, J. and Wright, P. eds., 2012. HRM and performance: Achievements and
challenges. John Wiley & Sons.
Gurkov, I., Zelenova, O. and Saidov, Z., 2012. Mutation of HRM practices in Russia: an
application of CRANET methodology. The International Journal of Human Resource
Management. 23(7). pp. 1289-1302.
Hauptmann, S. and Steger, T., 2013. “A brave new (digital) world”? Effects of In-house Social
Media on HRM. German Journal of Human Resource Management. 27(1). pp. 26-46.
Online
Role of Managers in Employee Relationship. 2018. [Online]. Available
<https://www.managementstudyguide.com/role-of-hr-in-employee-relationship.htm>
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