Importance of Employee Relations in HRM Decision Making

This report discusses the importance of employee relations in human resource management decision making. It explores how positive employee relations can reduce conflicts, decrease absenteeism and turnover rate, increase productivity, and lead to higher profits. The report also provides examples of strategies used by McDonald's to maintain positive employee relations.

Human Resource
Management

Contents
Project 1......................................................................................................................................................3
INTRODUCTION.......................................................................................................................................3
Explanation of HRM & Workforce planning...........................................................................................3
Explanation of the purpose and functions of Human Resource Management, application to workforce
planning and resource of respective company.........................................................................................4
Assessment of how function and HRM provide talent and skills applicable to fulfill the business
objectives.................................................................................................................................................5
Critical Evaluation of strength and weakness of various application to the recruitment and
selection used within the organization.................................................................................................5
Exploration of effectiveness of different Human resource management practices in the respective
organization.............................................................................................................................................6
Critical evaluation of Human resource practices and application within the organization.......................7
Conclusion...................................................................................................................................................7
Project 2......................................................................................................................................................8
Introduction of the report.............................................................................................................................8
Analysis of importance of employees relations in respect to human resource management decision
making.....................................................................................................................................................8
Key elements of employment legislation & its impact on human resource decision making...................9
Illustration of the application of two HRM practices.............................................................................10
Critical evaluation of employee relation and the application of human resource management practices
which inform & influence the decision making.....................................................................................12
Conclusion.................................................................................................................................................13
REFERENCES..........................................................................................................................................14

Project 1
INTRODUCTION
Human resource management plays vital role in every organization as it help in attaining
business objectives in an effective manner. It perform various functions such as recruitment and
selection, employee relation, training and development, maintaining positive working
environment development of policies and many more. They are responsible to perform all such
functions in an effective manner that leads to increase in efficiency of company (Analoui, 2018).
For the present report, McDonald’s is taken into consideration. The company was established in
the year 1940 and its head office is located at Chicago. McDonald’s offer wide variety of
products such as Hamburger, French fries, coffee, ice-cream, shakes and so on globally. The first
section of report involves functions, purposes and scope of human resource management. In
addition to this, there is discussion about strength and weaknesses of recruitment and selection
method used by respective organization. Furthermore, the report describes about various human
resource management practices.
Explanation of HRM & Workforce planning
Meaning of HRM
Human resource management is defined as a strategic approach to the effective
management of people prevailing in an organization. In addition to this, HR department plays an
important role in managing human resource in an effective manner as they perform various
functions such as recruitment, selection, deploying, training of employees. It is determine that
with the help of HRM, an entity is able to develop positive attitude at workplace and enhance
productivity of organization.
Workforce Planning
Workforce planning is an indispensable procedure related with Human resource
management. In easier terms, it is a continuous process that is adopt to align requirement as well
as priorities of company with those of its employees to ensure it can meet its regulatory,
legislative, production & service requirement along with organizational objectives (Armstrong
and Taylor, 2020). It is mainly take place to analyze requirements of company in terms of skills,

experience and knowledge as well. Moreover, it help in analyzing and bridging the gap which
define objectives in an effective manner.
Explanation of the purpose and functions of Human Resource Management, application to
workforce planning and resource of respective company
Purpose of HRM
Huma resource is consider as one of the most significant function of organization that
help in maximizing performance and attainment of objectives as well. The purpose of HRM is
defined below in context to chosen company:
 The duty of HR is to develop a positive and healthy working culture so that employees
take interest in working and give their full potential to meet with the targets.
 Another purpose of human resource management is to develop safety and security
policies for employees as it create a sense of protective to staff members at workplace
(Bailey, Mankin and Garavan, 2018).
 One of the main purpose of HRM is to gain insight about perception of staff members so
that they can satisfy customers and retain them for longer time period.
Functions of HRM
In relation to McDonald’s, the various functions re defined below that help company to
implement activities in a structured manner to enhance productivity which leads to achievement
of objectives within time frame.
Recruitment and selection: One of the most important function that help in attracting
talent towards company and hire effective candidate that help McDonald’s in gaining higher
growth and success in an appropriate manner. The HR manager of McDonald’s ensure that it can
fulfil vacant job position by a skilled and qualified candidate who has the ability to perform
activities in a proper manner.
Training and development: Another important function is development and arranging
of training session in order to enhance skills and capabilities of employees. In relation to
McDonald’s, its HR department provide training session to staff members as it help in providing
quality and on time service to customers that increase efficiency and profitability of company.

Workforce planning & resource applicable to McDonald’s
Workforce planning aid to foothold staff member commitment and reservation levels. It
is determine that workforce planning is processed in two forms that is short-term and long-term
forecasting trends (Baldwin, 2019). The short-term trends include peak volume roles, needs of
succeeding project and many more. The long-term forecasting tends involve calculated business
growth and fulfillment of expertise. As a result, it help McDonald’s to manage its workforce and
recruit right candidate at right position and in right manner.
Assessment of how function and HRM provide talent and skills applicable to fulfill the business
objectives
It is determine that function of HRM help an organization to develop a positive and healthy
working environment due to which employees work with full potential towards implementation
of activities in an effective manner. Training and development function help an entity to enhance
level of skills and abilities of staff members which in turn aid McDonald’s to provide quality
service to customers. Acquisition of highly talented and skilled candidate help company to
reaches on higher growth that leads to increase in profitability and attainment of objectives
within stipulated time period (Fisher and Kwoh, 2019). In addition to this, performing such
functions assist organization to meet with their targets and enhance performance level in an
appropriate manner.
Critical Evaluation of strength and weakness of various application to the recruitment and
selection used within the organization
It is determine that every company adopt various methods for recruitment and selection
in order to hire best candidate for the company. In relation to McDonald’s, it make use of
promotion and face-to-face interview that help in flailing vacant position in an appropriate
manner. By the assistance of promotion, the company is able to attract talent for company that is
consider as strength of this approach (Boella and Goss-Turner, 2019). This process consume
time in order to choose large number of people for selection process and is consider as weakness
of approach. If it is taking interview selection process, it help managers to gain an in-depth
knowledge about skills and knowledge level of candidate in an effective manner. The weakness
of this approach is managers sometimes not analyse the creativity level of candidate in a proper
manner.

Exploration of effectiveness of different Human resource management practices in the respective
organization
There are different forms of HRM practices that help company to attain its objectives and
enhance productivity in an effective manner. The human resource practices are reward system,
360 degree performance appraisal, training and development and many more (Riccucci,Naff and
Hamidullah, 2019). It is important for companies to determine the effectiveness of HRM
practices. In order to gain better understanding, a comparison is made among two companies that
is going to consider HRM practices. For this, competitor of McDonald’s that is KFC is chosen:
Rewards system: Herein, companies provide rewards in terms of monetary and non-monetary to
staff members in order to encourage them and enhance their productivity level in an appropriate
manner. It is determine that employees work with full potential if they the output as per the input
they put at workplace. One of the strength of such practice is it help in implementing all
functions in a proper manner and also aid in achieving business objective within give time
period. On contrary, this practice has weakness also as it develop a sense of insecurity and make
other employee jealous due to which conflict is arise at workplace. It leads to creation of
negative working environment and decline in performance level of organization.
McDonald’s KFC
This HRM practice help McDonald’s to
motivate and encourage its employees that
help in better implementation of activities. In
addition to this, it help company to provide
quality service by employees and enhance
their profitability level in an effective manner.
It is determine that company has its own
system for giving rewards to staff members
that help in motivating and encouraging
employees to put their efforts in achievement
of organisational objectives and goals as well.
Training & development session: It is consider as one of the most important HRM
practices that help in enhancing skills and capabilities of employees in an appropriate manner.
By providing training, company is able to provide update to employees and increase their
knowledge level, which help in dealing with customers in an effective manner. The strength of
this human resource practice is it enable employees to perform activities and operations in more

systematic and proper manner due to which performance of an entity is increased. It is a time
consuming process and occur cost to company that is consider as weakness of Training and
development practice.
McDonald’s KFC
The top level management of McDonald’s
give training to all the employees on a
continuous basis as it help in providing
quality and on-time service to customers. In
addition to this, it also help in attaining
competitive advantage at marketplace
(Stewart and Brown, 2019).
In relation to KFC, its higher authorities
provide training and development session to
its existing employees in order increase their
knowledge and understanding of providing
products and service to customers. It help in
satisfying customers and develop brand image
at marketplace.
Critical evaluation of Human resource practices and application within the organization
It is determine that HR manager of McDonald’s make use of various techniques that act as
an effective human resource management practice help in achieving objectives and desired goals
timely. The positive impact of such practice is it help in maximizing effectiveness and
performance of company and ensure higher growth and success as well. On contrary, it has
negative impact also as to use such practice, it require lot knowledge as well as understanding of
HRM practices in a proper manner.
Conclusion
From the above study, it has been analyzed that HRM plays vital role in the overall growth
as well as development of company. There are different approaches of recruitment and selection
and it is important to consider such approaches after determining advantages and disadvantages
associated with it. It help company to retain talented and skilled candidate that directly leads to
raise in efficiency and performance level of organization. Moreover, human resource practices
help an entity to conduct activities in an effective manner and attain objectives within given time
period.

Project 2
Introduction of the report
Human resource management is defined as an essential component that help an
organisation to gain higher growth and success as well. The human resource department is
responsible for hiring best candidate for company, which help in meeting with targets on time
(Longoni, Luzzini and Guerci, 2018). It is important for an organization to effectively implement
human resource practices that leads to achievement of common goals effectively. For the second
part, McDonald’s is chosen as a base company. The report will discuss about importance of
employee relations and its influence on decision-making process. In addition to this, various
employees legislation is going to describe properly. Later, application of human resource
management practice is discuss by using particular examples.
Analysis of importance of employees relations in respect to human resource management
decision making
In order to provide positive and healthy working environment, it is important for higher
authorities and human resource manager to ensure that a good relationship is maintain between
employees. Employee relation play vital role and it is determine that it help company to achieve
its business objectives. In context to McDonald’s, its higher authorities make use of various
policies and strategies with an objective to develop a strong relation between staff members. It
help them in making improvements that directly has influence on decision making of company.
The importance of employee relation for company is given below:
Decline in level of conflicts: It is determine that a positive employee relation helps an
entity to reduce the level of issues arise at workplace. In relation to McDonald’s, its HR manager
ensure that an effective relation is maintained among employees so that n conflicts arise that
directly leads to implementation of activities in a systematic and proper manner.
Reduces Absenteeism and turnover rate: One of the importance of employee relations
is it aid an organization to lower down the absence of staff members. In addition to this, if an
employee have good relation at workplace, it will never think to leave the company. In context to
McDonald’s, it help in saving cost of hiring new candidate and providing training to them.

Moreover, it is determine that it has positive impact on decision-making as they are not require
to develop new strategies, if the employee retain with the association.
Increase in productivity: By focusing on maintaining employee relation, an entity is
able to provide positive working environment to all the staff members prevailing at workplace.
With reference to McDonald’s, it is determine that providing a good environment motivate and
encourage staff members to work with full zeal and implement in an effective manner (Lee,
2019). It will lead to increase in productivity as well as profitability of company efficiently and
effectively as well.
Great profits: It is determine that having good relation with employees help company to
easily develop teams and complete the project or task timely and properly. In case of
McDonald’s, employee relations allow them to create teams and assign them task in a clear and
effective manner. This aid company to improve its performance level and gain higher profits and
revenue in an appropriate manner.
From the above discussion, it is determine that it is essential for an organization and
human resource manager to focus on developing good relations in employees as it assist in
raising productivity and profitability as well. For marinating this, McDonalds make use of
various strategies and policies such as organizing informal sessions, collective agreement,
grievance handling and so on. In addition to this, employee relation has direct impact on
decision-making of HR and company as they take decisions and policies by analyzing the
conditions and performance of organization in an effective manner.
Key elements of employment legislation & its impact on human resource decision making
In order to operate business properly, it is important for company to adopt employment
legislations associated with the benefits, security as well as health of staff members. One of the
main reason to accept such legislation is to give right to employees and make them feel secure at
workplace (Kaufman, 2019). It is determine that it help an organization to develop a positive
image in mind set of staff members that increase efficiency as well as performance of company.
In addition to this, it is analyzed that by adoption of all the employee legislation, the higher can
easily maintain a positive working culture which in turn help in maintaining quality in products
as well as service offered by company. Following such legislation also help in declining turnover
rate as if employee get all the right then they don’t think to leave the organization which aid an

entity to save down their cost of hiring new employee in an effective manner. In context to
McDonald’s, its HR manager adopt some acts and policies and execute them by considering
attitude of employees. Adoption of such laws help in easily gain interest of employees towards
business targets and objectives as well. The employment legislation is defined below in relation
to respective company:
Health and Safety act: This act states that it is essential for managers of every company to
provide safety, healthy and secure atmosphere to the staff members s it make them feel obliged
to be part of organization and give their best towards implementation of activities. In case of
McDonald’s, it is determine that company ensure security and health of its staff members as they
are working with those products that is highly equipped and did not harm any of the employee.
In addition to this, following all the rules of this act help company in securing the requirements
of employees that has positive impact on its performance and efficiency level.
Equality Act 2010: As per this act, it is stated that every employee or worker has the
right to take stand if any wrong thing is happen with them at workplace. In addition to this, it
also sates that no biasness and inequality occur at workplace because of ex, religion, color,
discrimination and so on. With reference to McDonald’s, its human resource manager ensure that
every employee get equal chance at the time of performing activities in an effective manner. It
help company to encourage its staff members that has positive impact on productivity as well as
profitability of McDonald’s.
Sex Discrimination act 1975: According to this act, no person is discriminated by its
gender or sex. It is determine that most of the organization did not give opportunity to women as
they think women’s cannot perform task properly (Järlström, Saru, and Vanhala, 2018). For this,
Government is making compulsory to fulfil some percent of quota by women’s. If it is talking
about McDonald’s, it is determine that company give same opportunity to male and female
candidate. In addition to this, its HR manger ensure that no discrimination take place in the
organization as it help in making all the employees feel secure and positive towards company. In
addition to this, it aid company to develop a positive brand-image at marketplace that has direct
influence on performance of organization.
Illustration of the application of two HRM practices
(A) Job specification

Title: Human resource Assistant
Address: McDonald’s, UK
Overview of the job role:
 The role is to develop positive working environment by providing equal chance to
employees.
 To maintain an effective employee relations by developing effective strategies and
policies.
 To recruit and select best candidate that has capability to perform all task properly that
can take place by using approaches of recruitment and selection.
Qualification:
 Post- graduation in Human resource sector
 Certification Of HR courses
 Degree in business administration
Experience & knowledge:
 Knowledge about different approaches of recruitment and selection
 Understanding about payroll
 Having experience of training and development sessions.
 Minimum 1 year of experience in HR field.
Skills:
 Effective communication skills
 Conflict management
 Time management
 Coordination and cooperation
 Problem-solving
(B) Curriculum vitae:
Michael David
Address: XYZ street, United Kingdom
Mobile number: 08536-42579
Objectives: To work in a reputed organization where I can apply my skills and knowledge

properly and reaches company towards growth and success and to give my best in order to
attain objectives and goals in a timely and effective manner.
Work experience:
 18 month of experience in human resource field ( payroll and recruitment)
 Internship in HR sector
 Working in seminars and workshops related with human resource management.
Qualification:
 Masters in Human resource sector
 Degree of Business Administration
Critical evaluation of employee relation and the application of human resource management
practices which inform & influence the decision making
Employee relations and employment legislation us two essential aspects that help in
providing healthy as well as positive working culture to employees and enhance performance
level in an effective manner. It is determine both the aspects have ability to impact on overall
decision of HRM. It is analyzed that identification of requirements of staff members, checking of
their performance, instructing then, communicating with them aid an organization to make
employees feel comfortable at workplace and retain them for longer time period (Macke and
Genari, 2019). If it is talking about employment legislations, adoption of various laws associated
with employees aid in maximizing efficiency and performance of staff members. Along with
this, it help in making employees feel important part of company and develop positive mind set
towards objectives and goals as well. With reference to McDonald’s, it is determine that its HR
manger focuses on building employee relations by using various human resource management
practices. In context to employment legislation, it adopts all the laws such as healthy and safety
law, sex discrimination law, equality act and so on. It is determine that it has both positive as
well as negative influence on the performance as well as decision making of company.
Conclusion
From the above discussion, it has been analyzed that employee relation plays an
important role in achieving objectives and goals as well. It help an organization in declining level

of issues, providing positive working environment, increase productivity, enhancement in profits
and many more. In addition to this, adoption of employment legislation help company to develop
positive mind set of employees and make them feel valued and important to be part of company.
Moreover, also aid in developing brand image at marketplace in an effective manner. It is
essential for an entity to analyze the effectiveness of employee relation so that they can develop
effective strategies and increase their performance level appropriately.

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