Impact of Employment Legislations on HRM Decision Making

This assignment discusses the impact of employment legislations on HRM decision making, highlighting the benefits and drawbacks of implementing such laws. It covers topics like terms and conditions of employment, data protection act, working time regulation, and holiday entitlement and pay. The analysis provides insights into how these legislations can affect employee motivation, productivity, and morale, as well as the potential challenges employers face in complying with these laws.

Human resource management is that function within an
organisation that focusses on hiring, selecting, providing
training, appraising the performance of employees,
deciding compensation, assures safety, etc. This is a
continuous process and handles all aspects of
employees. Organisation undertaken in this report is
Aldi which was founded in 1946 and deals in retail
sector. This report will explain the employee relation in
detail with relevant examples. It will also examine the
various employment legislations and their impact on
decision making by evaluating the pros and cons of each
of the legislation.
Importance of employee relations in decision making
Employee relation is important in the organisation because
every individual shares certain types of relation with their
colleagues at workplace as they need someone to share,
discuss, exchange their thoughts and ideas. It is useful in
delivering the following points which are discussed below:
Improves productivity: Strong employee relation creates a
good and pleasant atmosphere in working which maximises
the motivation level of employees and they work with full
zeal and confidence. This improves productivity in the
company.
Minimises conflict: When the work environment is efficient
and friendly than this eliminates the chances of conflict in
the company. And less conflict will lead to increase in the
concentration of employees while working.
Maximises employee loyalty: When the working
atmosphere is pleasant and friendly, this will have a forceful
impact on employee’s loyalty towards business. This will
eliminate or lowers the employee turnover rate,
absenteeism, etc. Thus, encourages them to be a part of the
company.
Motivates employees: When there is a strong employee
relation in the organisation then it will provide continuous
motivation to the people working over there. Every
individual wants peaceful environment of working, so that
they can contribute to their best.
The success and failure is dependent directly on the
organisation by analysing the relationship shared
among people. The employee must share smooth and
friendly relations in organisation which is very
important to minimise the chances of conflict. The
employees who feel happy in the Aldi are regarded as
productive employees who contributes effectively in
accomplishing organisational goals and objectives.
It is the company’s initiative to manage relationships
between employers and employees. An organisation with
a good and efficient relationship among employees
renders a fair and consistent treatment to all the
employees which will make them committed and loyal
towards their job. Employer needs to maintain healthy
relationship in the work place because so that business
works smoothly, avoids problems and assures that
employees are performing to their best potential.
An effective employer relation requires written policies
which will contain the company’s philosophy, rules and
procedures for addressing employee related matters and
resolves problems at the work place. The programs set
does not guarantee that it will fit in every situation.
Strategies for good employee relation will take many
forms and differs in various factors like industry,
location, size, etc.
Human Resource Management
INTRODUCTION
Employee Relations

Delegate: Delegation of work is important in every
organisation. Employer must divide or assign work to
the employees according to their skills, knowledge,
potential and capabilities so that they do not feel
burden. It will also give understanding of their strength
and weakness by assigning them a challenging task.
All the above discussed points will have a strong
influence on decision making. For accomplishing the
effective employee relation, the management of the
organisation will take decisions which are
advantageous for the company. For instance, while
improving productivity, organisation will decide the
capital intensive techniques which will minimise the
workload manually and enhances the productivity while
minimising the cost of production.
Conflict can be reduced by devising on taking
corrective actions and decisions which will not hurt the
sentiment of any of the party. For maximising loyalty,
they will decide on taking various safety measure
regarding their job security, medical insurances,
allowances, accommodation facilities, etc. which will
minimise the labour turnover and absenteeism rate. For
improving motivation through employee relation, the
organisation will provide financial and non-financial
rewards which includes respect, recognition,
promotion, bonuses, incentives, etc. They will also
provide adequate and required training to the people in
a friendly way, such that employees will know what
work is to be performed and how it is to be done
effectively and efficiently.
Various employment legislations
Employment legislation is a list of all the measures
which will protect the rights and interest of the people.
It refers to the law which governs employment within
the workplace with everyone who works. It is important
for the Aldi to use employment laws in their business as
this will also motivate the employees to work
effectively and efficiently in the company, as it protects
them on legal grounds. There are various laws which
are to be followed by Aldi and they are discussed
below:
Terms and conditions of the employment: It is the
written agreement between employer and employee
which is usually in form of writing that contains the
terms and conditions of employment like wages,
benefits, termination procedure, etc. The legislation
involved in governing this are inclusion of type of
Data protection act 2018: This act aims about safeguarding
crucial information and make sure that it is used properly and
legally. This makes every individual aware of their duties
under the law and those who break the law will be entitled to
pay fine or penalties.
Working time regulation 1998: Working hours in UK are
governed and regulated by working time regulation 1998
which sets the limit of a working hour to an average of 48
hours in a week and average of 8 hours in a day and workers
are legally entitled not to work above the specified hours. This
laws also gives paid holidays to the people, rest breaks, etc.
Holiday entitlement and pay: In UK, the minimum enactment
requirement for paid holiday each year for a full time employee
is 28 days or 5.6 weeks’ inclusion of public holidays. It also
includes regular overtime and commission payments.
Bullying and harassment at work: Employer of the company
are accountable for protecting employees from bullying and
harassment at workplace. The equality act 2010 contains the
information regarding the actions required to be taken when an
unwanted conduct or behaviour of an individual which has the
purpose of affecting or violating the dignity of people.

Impact of legislations on HRM decision making
Employment legislations works for the protection of employees
rights and interest. This will have a huge impact on decision
making. The HR department of the Aldi will use such laws in
their operation because this not only protects the rights of the
people working but also assures them safety and security which
makes them feel, safe, secure, comfortable and motivated to
work towards the attainment of organisational goals and
objectives effectively and efficiently. Following are the pros and
cons of the above discussed legislation:
Employment
legislation
Pros Cons
Terms and
condition of
employment
They foster
positive
relationship
between employer
and employee.
And this also
helps in retaining
the valuable
employees.
This is less effective
when environment is
changing because it
restricts people to
accept the changes. It
also faces
administrative pressure
and increasing cost.
Data
protection act
It preserves and
protects the every
record that takes
place in the
company and
offers data
recovery in a
seconds.
It is indiscriminate in
nature which applies to
every organisation in
the same way, no
matter big, small or
corporate.
Employment
legislation
Pros Cons
Working
time
regulation
This increase
the
productivity
of the
employees,
maximises
motivation
and their
morale,
protects
workers who
work in
monopolies or
trade unions,
etc.
If some worker
wants work
overtime for the
sake of earning
more money,
then this law
restricts them to
earn. It can also
be burden and
lack of
flexibility in the
company.
Holiday
entitlement
and pay
It provides
flexibility to
the employees
as they can
take leave as
per their
choice and
gives them the
power to
make
decisions
about their
personal
needs.
Employers can
discourage this
practice with
absenteeism
management
practice and also
employer might
give less paid
holidays to
employees.
Employment
legislation
Pros Cons
Bullying and
harassment at
work
It is useful in
managing legal
risk by providing
worker with
relevant
information
concerned with
work and safety.
Some times when
employee dignity
is disrespected
then it can affect
the individual
mentally which
can lead to
depression, etc.
From the above report it has been concluded that human
resource management is the most important function of
management as majority of the activities are controlled
and managed by this department only. It places great
importance on developing employee relations because it
is very important for effective and efficient functioning
of the organisation. It also places importance of having
employment legislations at workplace because it
protects the rights and interest of individual and
safeguards them from unfair or illegal practices. As this
is very crucial to maintain harmony and peace at work
place.
Conclusion
References
Berman, E. M. and et. al., 2019. Human resource management
in public service: Paradoxes, processes, and problems. CQ
Press.
Lee, H. W. and et. al., 2019. Effects of human resource
management systems on employee proactivity and group
innovation. Journal of Management. 45(2). pp.819-846.