Importance of HRM in Workforce Planning and Resourcing

This document discusses the purpose and functions of HRM in workforce planning and resourcing an organization. It explores the strengths and weaknesses of different approaches to recruitment and selection. It also highlights the benefits of HRM practices for both employers and employees, and evaluates their effectiveness in raising organizational profit and productivity. Additionally, it analyzes the importance of employee relations in influencing HRM decision-making and identifies key elements of employment legislation and their impact on HRM decision-making.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Explain the purpose and functions of HRM, applicable to workforce planning and
resourcing an organisation..........................................................................................................1
P2. Explain the strengths and weaknesses of different approaches to recruitment and selection
.....................................................................................................................................................2
TASK 2............................................................................................................................................4
P3.Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................4
P4.Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................5
TASK 3............................................................................................................................................6
P5.Analyse the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................6
P6. Identify the key elements of employment legislation and the impact it has upon HRM
decision-making..........................................................................................................................6
TASK 4............................................................................................................................................7
P7. Illustrate the application of HRM practices in a work-related context, using specific
examples......................................................................................................................................7
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10

INTRODUCTION
Resource management consist of managing of all resources available in an organisation
(Lee and Ahn, 2020). It consist of appropriate planning so right resources must be assigned to
right and skilled person. Human resource management further consist of managing manpower of
company to take appropriate use of their effective employees. Zara is an specialized company in
fashion clothing, accessories, beauty products, perfumes and etc. This company was founded in
1974 by Amancio Ortega and Rosalia Mera. This report cover purpose and functions of HRM,
Strengths and weaknesses of different approaches to recruitment and selection, benefits of
different HRM practices within an organisation for both the employer and employee,
effectiveness of different HRM practices in terms of raising organisational profit and
productivity, employment legislation and their impact upon HRM decision-making.
TASK 1
P1.Explain the purpose and functions of HRM, applicable to workforce planning and resourcing
an organisation
Company Overview: Zara is an multinational company which deals in fashion industry like
clothing, beauty products, foot wears, bags and many others. This company was founded by
Amancio Ortega and Rosalia Mera in the year 1974.
Mission statement: “Give customers what they want, and get it to them faster than anyone else.”
This statement tells that the company work to satisfy customer needs and provide faster services.
Strategic objectives: To identify high class customers and analysis latest trend. Providing
qualitative products with higher prices to make good reputation.
Meaning of HRM: HRM is consist of those activities which handle the resources of an
organisation perfectly. Main work of HRM is to hire skilled employees, solve issues in
organisation, making appropriate strategies and many others.
Purpose: The main purpose of Zara is to lead the fashion market with price skimming strategy
and target high class customers.
Functions of HRM:
 Performance management: It is an activity which consist of analysing employees
performance, identify the gap and then take corrective measures to fulfil the gap which is
between expected performance and actual performance (Ahammad, Glaister and Gomes,
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2020). In context HRM, this is their main function to overlook whether their workforce
plaining is going in a right way or not and if the output is negative then taking corrective
measures to manage a good workforce planning is further access of HR manager.
 Rewards and recognition: Providing rewards and recognition is a way of appreciating
their workforce for their effective work. It also helps in workforce planning by analysing
who is good in which job.
 Training and development: HR manager provide training and development programs for
their employees to increase their skills for company's betterment. To plan a workforce in
an organisation, first thing is to provide them training on the basis of required skills.
After it workforce is assigned in organisation.
P2. Explain the strengths and weaknesses of different approaches to recruitment and selection
Recruitment is the activity related to attracting more candidates to apply for job position
in an company. In context of Zara, they recruit skilled workforce and their most of the workforce
is related to market analysis. It consist of 2 types-
Internal recruitment- It consist of fulfilling vacant job positions from already existing
employees within organisation(Lee and Ahn, 2020). Few examples of internal recruitment are
explained below-
Promotion- It is fulfilling vacant job by junior employees within a company because of
their hard work and efficiency. In Zara, they allow their employees to get higher positions after
recognising their good performance.
Transfers- It is fulfilling vacant job by other employee of the same company but location
is different. It refers to state to state. It consist of fulfilling same job position as well as higher
job position then before and in some cases employees are transferred for lower positions also. In
relation of Zara, they have 2259 stores across 96 countries and they transfer their employees to
other states as well as to other countries. Some strengths and weaknesses for internal recruitment
or Zara are explained below-
Strength Weakness
 Promotion motivate employees to work
harder to get high positions.
 In internal recruitment employees are
 Lack of allowing new ideas is biggest
disadvantage of internal recruitment in
Zara.
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already aware of all policies. Therefore
less wastage of time is there in this
method.
 Conflict arises within Zara because
other employees may feel jealous that
why only their collogue get promoted
and not them (Ahammad, Glaister and
Gomes, 2020).
External recruitment- It consist of recruiting employees from outside the company. Fresh
employees are recruited in this type. Zara, recruit fresh new employees for lower positions most
of the time. Few examples of external recruitment are explained below-
Walk in- In this method employees directly walk in company and ask for any vacant job
and in case of vacant jobs are available, candidates are interviewed on that time only. In context
to Zara this method is used in production department where workers have to produce their
products.
Employment agencies- These are those agencies those have list of people who search for
job. Company contacted this agencies and ask for required skilled people then this agencies
contacted to the people who is listed in their contacts. In context of Zara they did not use this
type basically.
Some strength and weaknesses of external recruitment are determined below-
Strength Weakness
 Fresh and new idea are taken in
considerations in external recruitment
by allowing outsiders to apply for the
job(Strohmeier, 2020).
 Less chance of occurrence of conflict
within an Zara.
 It consume lot of time and money when
outsiders are recruited to test their skills
and knowledge for a particular job
position.
 It cause reducing in the level of
motivation among existing workforce.
Selection is the process of choosing best best candidate among many alternatives. Whose skills
and knowledge are best those participants are selected first then others. Some selection types are
determined below-
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Online test- Online tests are held to select only those participants whose offered job
profile is specific for a field. Most of the time online test is held to test identify mental health and
knowledge of particular area by an individual.
Interview- Face to face direct contact of employee and employer is consist under
interview (Trullen, Bos‐Nehles and Valverde, 2020). Zara focuses on interview most of the time
for their recruited candidates.
Some strength and weakness of selection are determined below-
Strength Weakness
 Interview helps to know the employers
verbal ability and personality.
 Only skilled candidates are selected in
online test when they cross passing
marks.
 In online test company did not able to
find communication skill and
personality of candidate.
 Lot of time is consumes in interviews.
TASK 2
P3.Explain the benefits of different HRM practices within an organisation for both the employer
and employee
HRM practices are beneficial for both employer and employee. This practices are
concern to make disciplined environment within an organisation for smooth functioning.
Some HRM practices which is beneficial for both employer and employees are mentioned
below-
Recruitment and Selection- This is the process under which company hire new
employees for their vacant job by performing different types of recruitment and selection process
(Cooke, Schuler and Varma, 2020). In context of Zara, they recruit and select only skilled
workforce for their company so that they hire only talented workforce and less time will be
spend on their training. This HRM practice is beneficial for employer and employee both in Zara
by following ways-
Beneficial for employer- Recruitment and selection is beneficial for employer of Zara because
their efficiency increases as they find actual talented candidate for company.
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Beneficial for employees-On the other hand this HRM practice is also beneficial for employees
of Zara as they got the opportunity to have secured job and to earn and increase their life
standards. This HRM practice also fulfil employees personal goal.
Managing rewards- it is the way of appreciating good working employees within an
organisation(Armstrong and Taylor, 2020). In context of Zara they provide many rewarding
systems like- the provide Zara gift cards and vouchers to their employees by which they buy any
product of Zara on little low prices, a good amount of salaries are offered to their workers,
employees got appreciated for their achievement in front of whole staff. This HRM practice is
beneficial for both employees and employer in context of Zara-
Beneficial for employer- By providing rewards is one of the way by which employer gain good
reputation and a good trust of employees. After gaining trust and good relationship with
employees, employer reduces the burden of their work by providing a section of work to their
workforce.
Beneficial for employees- Reward management is beneficial for employees of Zara because this
rewards fulfil their personal needs and also its pride for them when manger appreciate them in
front of staff and because of this only they got motivated.
P4.Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
Every organisation works to achieve its main objective. HRM practices are made in terms
of raising organisational profit and the overall productivity (Olafsen and Deci, 2020). Few HRM
practices which increases the productivity and profit or Zara are explained below-
Recruitment and selection- This is the process of attracting more candidates for applying an
vacant job and select best talented candidates among all. In context of Zara, recruitment and
selection is one of the main reason behind their success. This company is more focused on
marketing department and R&D department. They select only talented employees who analyse
external environment about latest trends and fashion and those employees who engage more on
productive activities and reject time wastage on unproductive activities because of this reason
their overall productivity increases and when productivity increases then profitability of
company already increase.
Managing rewards- It consist of providing monetary benefit as well as non- monetary benefit
which help in boosting workers efficiency (Nikolaou 2021). In context of Zara, they provide
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monetary benefit like extra wages in case of extra work, Bonus, gift cards and many others
which helps to motivate employees to work more and get more rewards. Because of rewards
gaining motive they work more efficiently and the productivity increases and profit earning ratio
also goes high.
TASK 3
P5.Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employees relations refers to determining the relationship between employees and
employers in an organisation. Good relationship must be conducted between both of them for
smooth functioning in company (Yong and et. al., 2020). In context of Zara, maintaining a good
relationship between employees and employer is very important to regulate appropriate
communication and a formal way of completing task. Few reasons are explain below that how
employee relations is important to Zara-
Elimination of conflicts: A good relationship among colleagues of offices help in creating
respect for each other which further eliminates the reason of conflicts in Zara. This company set
meeting on timely basis to find out any issues or queries in working for company. In case they
found any issue faced by any worker they focuses to resolve those problem and in return
employees fully focused on their work and provide good output of work. This is the reason
behind good relationship among workers of Zara.
Enhanced motivation: Good relationship between employees of Zara creates a high level of
motivation among them. Better relationship creates more opportunities for working together with
good coordination and when employees work together they enhance their motivation which is
again benefit for Zara. Motivated workforce always work very efficiently and increase total
outcome of company.
P6. Identify the key elements of employment legislation and the impact it has upon HRM
decision-making
Employment legislation covers all laws related to employment(Mukhammadsidiqov,
2020). Few laws and their impact on Zara's HRM decision making are explained below
Health and safety Work Act 1974: Under this law it is mentioned that each worker has right to
work under full safety which is provided by that company for which that worker is working. This
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law also mentioned compensation amount for injured worker and punishments for those
companies who avoid this law. In context of Zara, they follow this law and take all safety
measures for their workers which is necessary at their workplace. This law impacted upon HRM
decision making of Zara as every decision of manufacturing a new product required a updated
version of machines and working with machines are dangerous. Hence, each and every decision
by HRM consist full safety for their workers.
Equal pay act 1970: This law states that there should be equal pay system to men and women
workers (Abbasi and et. al., 2020). There should be no differentiation among payments based on
gender wise. Payments must be paid for workers efficiency and according to their positions. This
law is also followed by Zara. They pay equal amount to their employees whether they are men or
women. This company don't have much female workers but they are not underpaid according to
their work and their position in company. Decision making of HRM impacted by this law as an
function of HR is to distribute salaries and wages. So, every decision of increasing or reducing
salaries is must be taken in context of female working ratio of company.
TASK 4
P7. Illustrate the application of HRM practices in a work-related context, using specific
examples
Job specification: It is related to general task and responsibilities of vacant job offered by an
organisation. It consist all information of vacant job. Example of an job specification is given
below-
Job Title- Marketing Manager
Reported To- HR Manager
Job Summary- To analyse marketing conditions and to suggest what all measures
should be taken for growth of business.
Responsibilities-
 Marketing manager are responsible for handling marketing department
efficiently
 To take decisions related to awareness of customers for specific product.
 Report to HR manager in case of any requirement related to working
under the representative position.
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 To analysis demand and supply.
Qualification and other requirements-
 Diploma in marketing course with minimum 60% marks with true
university.
 Minimum 5 year of experience in reputed and popular company.
CV : It is basically the short summary of an candidate who is applying for vacant job in
company. It covers general details like skills, experience, qualification and personal details of
candidates. An example of CV is given below-
Name- XYZ
Mail id- [e-mail]
Phone no.- ******4675
Qualifications-
 degree in BBA from ATSSC University with 78% marks.
 Diploma in International Business from ATSSC University with 70%
marks.
Experience-
 5.5 years of experience at Marbles incorporation Ltd. as Assistant
Marketing Manager.
 7 year work experience at Vertiv Co. Ltd. as Marketing Manager.
Skills-
 Good communication skills
 Quick learner
 Good management skills.
 Good time management
 Time punctual
 Good leadership skills
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 Good to analyse market.
Personal Details-
 DOB- 21 June 1971
 Address- 134/P Carbill street **********
 Fathers name- Sturt ***
 Mob. No- ******1334
 Marital status- Married
Interview notes: Interview is a selection type in which employer ask few questions from
candidate and analyse whether that participant is eligible for a vacant job or not. Eligible
participants are selected and ineligible participants are rejected. Few basic questions which is
asked in an interview are mentioned below-
 Introduce yourself.
 What is the job responsibilities of your previous job?
 What you do to analyse external environment of company? Why you want this job?
Evaluation of how this selection process will inform and assist the decision-making in this
organisation.
This selection process is important to choose best candidate whose CV is matched to job
specification and also who have best skills and talents related to vacant job. Selecting skilled
employees is beneficial in smooth working in organisation and smooth functioning in every
decision made within an company.
CONCLUSION
From the above information it concluded that there are different functions and purposes
of HRM within an organisation which help them to survive and grow. Recruitment and Selection
have their own advantages and disadvantage in any company. HRM practices are beneficial for
both employee and employer. HRM also impacts upon productivity and profitability. It is also
concluded that maintaining good relationship between employees and employer is results in
reducing conflicts. Legal Law plays an important role in HRM decision making.
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References:
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