HRM Practices and Multinational Corporations

This assignment delves into the realm of Human Resource Management (HRM) within Multinational Corporations (MNCs). It requires a critical analysis of various HRM practices employed by MNCs across different countries, examining their impact on organizational performance. Students are expected to draw upon provided case studies and scholarly articles to understand the challenges and opportunities associated with managing human resources in a globalized context.

HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Purpose and functions of HRM .............................................................................................1
P2 Strengths and weaknesses of different approaches to recruitment and selection.................3
TASK 2............................................................................................................................................4
P3 Advantages of HRM practices for employee and employer.................................................4
P4 Effectiveness of different HRM practices to raise organisational profit and productivity....5
TASK 3............................................................................................................................................6
P5 Importance associated with employee relation and its impact of HRM decision-making.....6
P6 Key elements of employment legislation and its impact on HRM decision-making............7
TASK 4............................................................................................................................................8
P7 Application of HRM practices in work-related context.........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is basic term which describes about the system which is
prevail in organisation about the effective management of employees. There are many functions
are performed by HR manager in organisation which generally categorize into three categories
such as staffing, employee compensation and benefits and designing of works. The main of HR
department within the organisation is to coordinate the different functions which are performed
by the employees of various department to accomplish their common objectives. There are many
approaches are adopt by HR manager for maximisation of productivity of employees. ALDI is
internal organisation which operates their business activities through supermarket chains which
is having more than 10000 stores in 20 countries (Arrowsmith and Parker, 2013). The products
in which such organisation deal includes food, beverage, sanitary articles and household goods
etc.
In the present report explain about functions and purpose of HRM activities, various
recruitment and selection approach along with their advantages and disadvantages and benefits
attained by the employee and employer through HRM practices. Also, benefits which are
attained by organisation through good employee relation along with its impact of HRM decision-
making and Key elements of employment legislation and its impact on HRM.
P1 Purpose and functions of HRM
Purpose of human resource management
Human research management refers to the coordination among people to achieve
business objectives through satisfying employees and staff needs. HR manager accomplishes the
business requirement through staffing people and they are used to meet the organizational goals,
its HR responsibility to process the work in a systematic manner so that the people can be use
their efficiency for firms benefits (Baluch, Salge and Piening, 2013). The human resource
manager looked after to its employees regarding give them solutions of issues, compensation,
benefits, and make them happy through motivating them. Along with these there are some
purposes that are described below-
Creating a positive environment – Creating a positive environment is the core
responsibility of HR manager so that the employees can work with an optimistic mood. If they
worked with positivity then they would be able to produce higher outputs. If the HR manager of
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ALDI is not able to manage the environment among the people then employees would not be
able to give their high performance. The human resource manager needs to put effort in making a
healthy environment inside a company that increases the enthusiasm of the staff.
Provide job satisfaction to the staff – When the employees are working good and then
they wanted to get some kind of reward or some appreciation so that they can stay for a long
time. The employees needs some motivation to be part of the organization for a long time
otherwise they can switch the firm at any time (Caligiuri, 2014). Of course, ALDI employees
are working for earning money but they also wanted to get some sort of cantonment that makes
them glad. Their hard work should get recognization and it is completely HR responsibility to
appreciate them in terms of bonus or reward for their hard work because this will boost up their
energy to work.
Functions of the HRM
There are some specific functions of HRM that are associated with human resource
department, that are given below-
Recruitment and selections – Recruitment and selections are the two major functions of
human resource management department. Recruitment is fascinating process to hire the new
employees and that goes through various stages like screening the potential qualified candidates
which should satisfies the criteria for the particular designation. In ALDI human resource
manager recruits workforce to by advertisements, interview and then a applying the selection
criteria process for the most suitable candidates (Functions of HRM. 2017).
Managing employee relations – If a companies leaders are the foundation of that
company then it would not wrong to say that employees are the pillars of that firm. It is the
crucial functions of human resource management and it aid to foster good relationship with the
employee. The HR manager should organize the some kind of activities which can help to the
employees to know each other at personal and professional level. The management should
promote a healthy and balanced relationships between the employees and the employer (Collins,
Zhu and Warner, 2012).
Training and development – After selecting an appropriate candidate the HR organises
the training and development program that increases the skills and knowledge of the new people
in the company and this training also make them more efficiency. For an instance, if ALDI hire a
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new finance manager then for a some time the HR department would organize a training that will
them more efficient.
P2 Strengths and weaknesses of different approaches to recruitment and selection.
There are two approaches of recruitment and selections such as internal recruitment and
external recruitment and they has strengths and weaknesses according to their functionality
(Conesa-Zamora and et. al., 2011).
Internal recruitment – Internal recruitment refers to filling the position from the internal staff
that means employment opportunities are first offered to the in house resources before
considering external market. Internal organization can offers the chance to change their rank for
this ALDI would first inform their staff for the current vacant positions through newsletter or
other media. If their permanent, or short – term employees are interested then they can go the
management and face the direct interview process. There are some strength and weaknesses of
to promote internal staff, that are numbered below-
Strength weaknesses
 ALDI is able to make quick decisions
as they already know about the
appearing candidate's efficiencies.
 The firm would get morale support of
their old employees.
 The internal recruitment would leave
the current positions empty.
 It will also encourage the
unemployment opportunities for the
external employee market.
After looking towards the internal resources if human resource management is not
satisfied then they will move towards the external recruitment. The first step would be taken by
the HR is to give advertisements in local magazines, newspapers, websites like social media and
professional, and it also includes some consultancy websites, etc. After publishing a job
requirement the willing candidate approach the ALDI and then they will call with resumes for
the interviews (Guest, Paauwe and Wright, 2012). The interview also contains several phases
according to the designation such as if it for a Assistant Manger then they there will be a written
exam which includes the aptitude test, decision making techniques, etc. Those who qualified they
will be call for next round and that can be a direct interview in which the HR will put many
questions regarding the applicant's qualification and then whoever candidate satisfies the human
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resource manager's criteria would get a selection according to the desired form of attributes. The
strengths and weaknesses of ALDI as follows -
Strength weaknesses
 ALDI would get a new and innovative
talent from the outside the world that
can give a wide benefits to the
organization.
 The candidates should be more
dynamic and they will work with more
passion.
 External recruitment is a long process
and that' why it consumes a lot of
energy and time.
 Due to the advertisements and
interview process external recruiting is
more costly then internal recruitment.
TASK 2
P3 Advantages of HRM practices for employee and employer
There are practices which are adopt by the HR department of ALDI on regular basis for
continuing organisational functions. The major approaches which are commonly adopt by the
HR in organisation is defined below:
Monitoring and appraisal of actual performance of employees: It is important aspect
through which organisation achieve sustainability in their performance. Employees are asset of
organisation and for their development need to provide guidance to them on regular basis. In this
regard, duty of the HR manager of ALDI is to continuously monitor the activities of employees
and provides direction whenever fell necessary (Gurkov, Zelenova and Saidov, 2012). Also, HR
of organisation has the role of appraisal of actual performance through comparison with
standards on periodic basis. It helps to determine the issues which are present in their
performance and according to that design training programmes which contributes in
improvement of their skills and knowledge.
Training and development exercises: ALDI is multinational organisation which
operates their business function in global economy. There are many changes are happen in trends
and technologies on regular basis. It is important for the organisation is to implement then to
attain sustainability in their business operations. After assessing the skills of employees, training
programmes are developed through information is provided about using of such new
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technologies in effective and efficient manner. Such programmes also helps to bring changes in
their behaviour and attitude of employee's as they always ready to take the responsibilities and
challenges.
Benefits to employee's
 Development of personality and professional career: Effective training and
development programmes helps the employees is to develop their skills and learn new
aspects in different field also. This will provides the opportunity to them is to handle the
large responsibilities in the organisation with ease. Employees with diversified skills has
more chance to get promotion in organisation also have the opportunity to get higher
payments through providing high result oriented facilities (Hauptmann and Steger,
2013).
Benefits to employer
 Timely accomplishment of objectives: It is observed that through appraisal and training
of employees their performance in built more effective through which organisation is able
to accomplish their predetermined targets.
 Better decision-making: Development of the performance and timely accomplishment
of objectives provide the time to top management of organisation is to deploy their
functions on other important matters which improves their decision making through
which they able earn large number of profits
P4 Effectiveness of different HRM practices to raise organisational profit and productivity
There are many HRM practices are adopted by HR manager in organisation in
accomplishment of their objectives. The different kind of programmes which are initiated by HR
includes training and development, performance appraisal, fulfilment of employment legislations
etc. which has direct impact upon their profitability and productivity of organisation. For ex.,
training programmes helps in development of skills which improves task performing ability and
fulfilment of employment legislation helps to grab the support of employees in their diversifies
offering along with making of high brand image (Horwitz, 2011). So, the effectiveness of
different HRM practices in respect of development of profit and productivity of organisation is
understood from the points which are defined below:
Less supervision: Application of different HRM practices helps to bring competency in
different activities which are necessary to perform in organisation on regular basis otherwise it
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has negative impact upon their position's in market. Due to happening of all such functions with
effectiveness provides the opportunity to top management of organisation is provide attention on
other important matters related to expansion of business which contributes in development of
their profits.
Reduction in amount of errors: ALDI is working in retail industry where large number
of changes are occur in technology and consumer behaviour which negatively effects the
success of organisation. Application of HRM practices helps to build internal structure of
organisation more strong through which provides flexibility to the organisation is to adopt
changes effectively and reduce the amount of mistakes and errors to improve their productivity
and profitability.
High brand image: Fulfilment of Employment legislation provides the opportunity to
improve their brand image in market as responsible global organisation. It enhance the brand
image of organisation which helps in attraction of customers of rival also (Karmiloff-Smith and
et. al., 2015).
TASK 3
P5 Importance associated with employee relation and its impact of HRM decision-making
Employee relation: It is important concept which refers as the good relation between the
employee's and management of organisation. There is huge importance of this concept in
organisation to carry on their activities with expertise to attain desired results. This will also
includes the concept of building the relation between employees also through which positive
environment is build in organisation.
Importance of employee relation
Decision-making: Good relation between the employees and management of LADI
improves the decision making. There are many work related matter where need to gather the
views of employees to take better decision through which desired results are attained.
Remove conflicts: Better relation between the employees of organisation depicts that no
conflicts are present in the organisation. So, it is understood from this that all the organisation
activities are going in effective manner.
Impact of employee relation of HRM decision-making
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 Effective relation with employees provides opportunity cater the different needs which
are important for organisation success in market.
 Good relation between employees means familiar behaviour is persist at workplace so, it
helps to fulfil all health related legislations effectively (Kim and Bae, 2017).
P6 Key elements of employment legislation and its impact on HRM decision-making
Employment is important concept where need to bring transparency by organisation to
create the belief of candidate's in their recruitment and selection process. The government of
UKK feel he importance about providing separate legislation related to employment. This brings
an obligation upon all the organisation irrespective of their nature and size required to fulfil all
the provisions of which are included under such legislation. There are many advantages are
associated with legislations which are gathered by the organisation like high support of
employees, reduction in staff turnover, higher involvement of employees etc. The different types
of legislations which are provided in this regard includes Anti-discrimination Act, Diversity Act,
Data protection Act, Equality Act and Health and safety Act. All the acts covers different
perspectives of organisation through internal structure of organisation builds more profound. The
HR manager of ALDI has the duty is to follow the all these legislations at workplace where
employees perform their functions. Thy role of such different legislation is defined below:
Anti-discrimination Act: This act is provided by the government for the purpose of
removal of discrimination among the employees on the basis of their religion, cast, culture, sex,
colour etc. It promotes the equality in organisation from the point of view of top management
while distributing work and benefits among employees of organisation. If discrimination is
present in organisation then this will results in conflicts which lowers down the overall
performance and image of organisation in market (Park and et. al., 2014). Also, they have to bear
large number of penalties which are imposed by the government because of failure of the
conditions which are present in this given Act.
Data protection Act: The main aim behind the providence of this Act is to protect the
personal data of employees which is held by organisations. The regulations of this Act bring an
obligation upon the management of ALDI is not use the personal information of their employees
without their permission and also not disseminate to third person. So, they have the duty about
keeping of their data in legal and ethical way. It also brings an obligation upon the employees
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that not disclose the important information of organisation to third person and keep it
confidential after completion of their service with organisation.
Equality Act: This Act provides that common policies are adopted by the organisation
regarding remuneration and appraisal of the performance of organisation (Vo and Stanton, 2011).
It restricts the top management of organisation that not adopting the bias behaviour while
performing their functions and not provide favour to any employee over others. Also,
development of the such values and norms where all employees are treat same irrespective of
their religion, cast, country, gender etc.
Health and safety Act: It is important Act which govern the activities related to the
safety of employees at workplace (Pereira and Anderson, 2012). So, this will creates the
responsibility of the management of ALDI is to adopt all sufficient measures which helps to
provide optimum safety to the employees while performing their actions. This will includes
about the providence of gloves, helmets and other necessary precautionary items to the
employees who are working in hazardous situation. Through fulfilment of these conditions many
advantages are gathered by organisation like large support of employees building of healthy and
positive working environment etc.
TASK 4
P7 Application of HRM practices in work-related context
Job specification
Job title Human Resource manager
Qualification  Required graduation from UK
University
 MBA in HR from any UK University
Experience  Having the experience of working of 5
years at the post HR
Area of expertise  Having expertise in effective
management of regular functions
 Proper information about compensation
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guidelines prevail in UK
 Having knowledge of different training
models
Job description
Name of firm ALDI
Job designation HR manager
Location U.K.
Reporting Top management
Working hours 10:00 a.m. To 6:00 p.m.
Role and functions  Recruitment and selection of employees
as per requirement
 Determination of remuneration as per
requirement
 Development of training programmes
for improvement of the skills of
employees
 Timely fulfilment of all employment
related legislation
Salary £1500
Working facilities Spacious office is provided to employees
Curriculum Vitae
Name
Address
Contact no
Career objective- Want to develop the career as HR manager to work in well renowned
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organisation
Qualification
 Graduation
 MBA in HR from Well renowned industry
 Having the diploma of working as HR through UK University
Personal skills
 Good communication skills
 Effective leadership skills
 Easily handle the stress situations through effective management
CONCLUSION
It has been concluded from the above report that HR department is most important in
organisation to perform daily functions of organisations without any hindrances. The main
functions which are performed by HR manager of ALDI is related to recruitment and selection to
fulfil workforce requirement, determination of remuneration for motivation, designing of training
programmes for improvement of skills etc. The two approaches are used regarding recruiting
new employees in organisation such as internal and external. The main advantage which
gathered by the ALDI through use of internal method is save time and motivate existing
employees. There are many legislations are provided by government related to employment
required to adhere in true sense to prevent themselves from penalties.
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REFERENCES
Books and journals
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.
Horwitz, F. M., 2011. Future HRM challenges for multinational firms in Eastern and Central
Europe. Human Resource Management Journal. 21(4). pp. 432-443.
Karmiloff-Smith, A., and et. al., 2015. Definitions versus categorization: assessing the
development of lexico-semantic knowledge in Williams syndrome. International
Journal of Language & Communication Disorders, pp.1-13.
Kim, D. O. and Bae, J., 2017. Employment relations and HRM in South Korea. Taylor & Francis.
Park, H. J., and et. al., 2014. MNC knowledge transfer, subsidiary absorptive capacity and HRM.
Journal of International Business Studies. 45(1). pp. 38-51.
Pereira, V. and Anderson, V., 2012. A longitudinal examination of HRM in a human resources
offshoring (HRO) organization operating from India. Journal of World Business. 47(2).
pp. 223-231.
Vo, A. and Stanton, P., 2011. The transfer of HRM policies and practices to a transitional
business system: The case of performance management practices in the US and
Japanese MNEs operating in Vietnam. The International Journal of Human Resource
Management. 22(17). pp. 3513-3527.
Online
Functions of HRM. 2017. [Online]. Available through: <https://www.keka.com/5-major-
functions-human-resource-management/>.
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