Benefits of HRM Practices for Employer and Employee

This document explains the benefits of different HRM practices within an organisation for both the employer and employee. It discusses the importance of compensation, training and development, and evaluates the effectiveness of HRM practices in terms of raising organisational profit and productivity. The document also highlights the role of risk management, performance assessment, and stress management in HRM practices. The case study of Cadbury is used to illustrate these concepts.

Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................4
P1 Explain the purpose and the functions of HRM on planning and resourcing an
organisation.................................................................................................................................4
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................5
TASK2.............................................................................................................................................7
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................7
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................8
TASK 3 .........................................................................................................................................10
P5 The importance of employee relations to influence HRM decision making.......................10
P6 The key elements of employment legislation and the impact it has upon HRM decision
making.......................................................................................................................................11
TASK 4 .........................................................................................................................................12
P7 The application of HRM practices in a work-related context..............................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Human resource management is the method of selecting and employing the suitable
people in the organisation and includes training, policies & rules, compensating and developing
strategies to guide and retain them in the organisation (Barrena-Martinez, López-Fernández and
Romero-Fernandez, 2018). HRM department is also responsible for considering all the external
factors that are effecting the operations and functions within the organisation. The human
resource within the organisation is one of the most important resource which need to by manage
and maintain by Human resource management of the organisation. For this report the
organisation choose is Cadbury. The company was established in the year 1824 by John Cadbury
in Birmingham, England.. The company was the first seller of milk chocolates in UK and
become the first preferable chocolate brand of Royal families. The report covers following
topics- purpose and functions of HRM and how it helps in workforce planning and resourcing an
organisation, strengths and weaknesses of different approaches to recruitment and selection,
benefits of HRM practices to employer and employee, effectiveness of different HRM practices
in terms of raising organisational profits and productivity, importance of employees relations in
respect to influence HRM decision making, key elements of employment legislation and its
impact on decision making and illustrate the application of HRM practices in a work-related
context.
TASK1
P1 Explain the purpose and the functions of HRM on planning and resourcing an organisation.
Planning of human resource is crucial step as every organisation has limited manpower
so its important and essential to have proper distribution of human resources in order to regulate
and monitor the operations within the organisation (Baum, 2018). Human resource management
is an ongoing process of systematic planning and building strategies to accomplish optimum use
of the valuable assets(employees) of the company.
Purpose of HRM
The purpose of HRM is to solve the issues at workplace and of the employees and
focusing on maximizing performance within the organisation by investing in the right people.
They are responsible for matching the available job roles with the required skills and work type
within the organisation.
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 Organisational behaviour and structure- The HRM department of Cadbury maintains
link between its organisational culture and its entire workforce. The company has
established its brand name at international level and it believes in work orientation
hence, have systematic and proper division of authorities and responsibilities with the
staff members in order to maintain its hierarchy system easy and understandable for its
workforce.
 Managing Diversity- The Cadbury always prefer to hire local people as employees
wherever they open up their manufacturing unit as it becomes easy for them to know the
nature of environment followed in that particular place. For the higher positions
company prefer to do internal recruitment as it is time saving and easy for the operations
of the company as time is not wasted in making new employee understand the work
culture, environment and process followed with the company.
Functions of HRM
HRM department performs n number of functions within organisation and their primary
objective is managing and solving conflicts among the employees and the legal issues taking
place within the organisation (Becker and Smidt, 2016). The HRM department is responsible to
manage and maintain the continues flow of demand and supply of human resources in the
organisation.
 Selection and recruitment- Recruitment is the method of acquiring the potential
candidates with the required set of skills, attributes and experience in order to
assist smooth functioning which lead to fulfilment of business objectives.
Selection is the method of assessing and interviewing individuals to ensure that
best person is hired with the help of effective, and fair practices (Brueller,
Carmeli, and Markman, 2018). In case of Cadbury the HRM department focus on
the basic qualities such as decision making and responsibilities within the
company with the objective of developing the sense of team work among the
employees to achieve the objectives of both individuals and of company.
 Reward Management- The company follows rewarding giving strategy in order
to motivate employees to perform better along with many other policies to
provide security and save working environment to work force.
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 Employee Involvement- Cadbury also tries to encourage its employees to
become self-driven and provide their suggestions to management in order to
develop powerful strategies for task completions and to maintain long term
relations.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection are those functions which are on continuous bases performed
by HRM department in organisation and these functions are inter-related and dependent on one
another (Moore and Jennings, 2017).
Recruitment
Recruitment is the process of finding and inviting people with help of different platforms
to identify the best person for the job role within the company. The HRM department need to
follow the set budget for the process of recruitment and focuses on incurring minimum cost and
expenses while hiring new employees.
Type of Recruitment
Recruitment process involves hiring people with the help of two sources which are as
follow-
Internal recruitment- Internal recruitment is the process of filling the job positions from
among the existing employees of the company that is operating within the company and not
considering outside the company(external environment). In the context of Cadbury, the use and
promote the internal hiring as it saves time of HR department as this leads to the growth and
development of company and individuals (Morley and Heraty, 2019). This strategy also help in
motivating the employees to perform their best in order to attain promotion.
 Strength- Internal recruitment in context of Cadbury is useful as it is time and cost
effective that is save the time of HR department as they need not do long process of
approaching the individuals and time effective become less resources are used and
invested in the training of employees.
 Weakness- The method also creates problems like dispute among employees as the
vacancies are limited are deserving candidates are many which creates the competition
and effect the working environment in negative way.
External recruitment- The method is used by HR department when they approach
people outside the company for the hiring process that is depending on the external factors to
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identify the suitable candidate for the job role. In context of Cadbury, for external hiring they
depend on online job application sites and portals as company prefer to do mass hiring and also
from its own website it give information to public to apply for job roles.
 Strength- Cadbury perform external recruitment process usually when they plan to open
its new brand as they are performing at international level so, require large workforce.
More over sometimes external sources are more capable and skilled then current
employees which helps in better functioning with the company.
 Weakness- Providing training to the new employees requires more resources which lead
to increase in cost and expenses within the company and more over it is a time
consuming method which requires high patience level.
Selection
Selection is the process in which operation is perform in stages that is at every stage
elimination take place in order to hire the right personal for the job role (Nejati, Rabiei and
Jabbour, 2017).
Types of Selection
There are various ways in which selection process is perform in the company depending
upon the suitability which are as follows-
Personality Test- In personality test, Cadbury considers the communication and
presentation skills of the applicants that is main focus is on spoken fluency.
 Strength- This process provides many options to company to select the best person and
major from this process Cadbury identifies and consider 50% of the candidates for the
next stage.
 Weakness- Its not compulsory that all candidates are good in communication, some are
not but they might be quite strong at other skills but due to this test they got rejected and
company loses valuable asset.
Group Discussion and Personal Interview- Group discussion is one of the method of
selection in which level of knowledge and communication skills are considered by the company.
Those candidates who are able to clear GD round get qualified for the next round that is for
personal interview where they have face to face conversation with the interviewer.
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 Strength- Cadbury is the large scale company which is present at international level, so
basically do mass hiring for all the units. The group discussion comprises of 15-20 people
which helps in time saving and is a fast process.
 Weakness- Introvert people are not good at expressing and putting their view point in
public but have capability to perform much better than extrovert peoples and other
existing employees of the company. Hence, it becomes difficult for company hiring team
to decide whether to select those candidates or not.
TASK2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
HRM practices perform in the organisation provides benefits by maintaining healthy long
term and short term relations with the employees of the organisation (Nie, Lämsä and Pučėtaitė,
2018). The HRM practices has its positive impact on the employer and employees as they are
responsible for motivating them.
Compensation- HRM department is responsible for determining the fair activities for
compensation in order to meet the industry standards. Compensation is basically the value which
employee receives for their work.
 Benefit to the employer- It is helping and providing benefit to the Cadbury as with this
they attract the qualified candidates from its competitors like Hershey, Nestle, etc. and
also develop the trust regarding better opportunities available to them with fair and equal
compensation practices.
 Benefit to the employees- Cadbury follows the fair wages and salary policy, so that
employees don't feel discriminated. The company provide appraisal on the bases of
performance so, employees have wide range of scope for their growth.
Training and Development- Training and development is one of the most important
factor in the operations of the organisation as the new employees do not know the work culture
of the company and requires guidance and training. The major role of the HR department in the
organisation is to align the employees according to the skills and requirements of the job role.
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 Benefit to the employer- Cadbury provides both type of training to its new employees in
order to improve and develop new skills according to work requirements so that tasks get
completed within time and helps in achieving goals and objectives.
 Benefit to employees- The company provide good working conditions to its employees
with latest equipments and technology which make their work easy. More over training
has helped them in developing new skills.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
Human Resource Department covers various activities for the welfare of employees. The
main functions includes designing the system of appraisal, incentives in the remuneration, team
engagement activities, distribution of division of rights between teams, job analysis, training and
development, etc. (Baum, 2015)
HRM practices of Cadbury in raising profits and productivity
 Maximizing Potentials- This practice includes developing strategic potential of the
employees. It focuses of improving decision making of employees, equipping employees
with better skill set and giving them training and development. Cadbury developed
strategies and programs for optimizing skills of the employees. For example, In 2005
Cadbury conducted Building Commercial Capabilities Program to develop its people
strategy. It focuses on optimizing skills of its human resource. Sales managers
participated and this program was to build their commercial decision making skills. Many
sales employees participated in it and when taken feedback, it was proved to be a
successful strategy.
 Risk Management- There are standard policies that employees should follow in order to
maintain businesses in line with various rules and regulations of the company. They help
the company in not just minimizing risk but also in helping out to make decisions firmly
(Gallardo-Gallardo and et.al, 2015). The companies also use methods which are free from
biasness and discrimination. Cadbury manages the risk and have measures to control
them. For example, To maintain the well being of employees, they conduct education
programs to to guide them about the health management for them as well as for their
families.
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 Performance Assessment- Monitoring productivity of employees and assessing their
performance is important to measure the growth of people in an organisation. In line with
performance of of individuals, HR of organisations should evaluate productivity of the
team. Cadbury uses a two part process of performance evaluation, where they use
performance and behavioural factors as the criteria.
 Stress Management- Employees need to have a mind focused towards the work. HRM
practices of organisations helps in dealing with the factors which creates stress for the
employees. Cadbury manages the employees and their stress by conducting various
activities that helps in boosting the productivity of employees. They conduct fun
activities along with job related exercises. The managers conduct team activities which
motivates the individuals to perform.
 Coaching and mentoring- It focuses on providing the training to experienced employees
which are working in the company from long. It is the best way for managers to delegate
their skills and make employees capable to take better decisions (Conway and et.al,
2016). Cadbury has a good hierarchy where the work flows in a better way which keeps
the mentees always informed and they also have open policy where they are guided by
their mentors to mae them understand.
TASK 3
P5 The importance of employee relations to influence HRM decision making.
Human Resource is the greatest and most important source of an organisation. A
company can have a all the resources in line with competition but to win over them, they need to
make their employees competing. Employee Relations are important in any organisation as they
are the most valuable asset and if they are not taken care of, the company cannot sustain.
Participation in decision-making is the common way of maintaining relations with its employees.
 Appreciation & Recognition- Who does not want to be recognized infront of employees
and colleagues. If the company appreciates an individual infront of the team, it motivates
the employees and drives them to perform better. These should be taken into account by
the HR department and should make it effective as the employees should feel stand out
when they perform better than others so that he should give the productivity like that
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(Mao and et.al, 2016). The reward system should be followed be it in cash or kind so that
he should feel proud and cared.
 Communication- The company's mission and vision should be communicated well to
employees as to sustain them for the long term it is important that emplo0yees should
know what is the goal they should aim at. The communication with employees should be
honest as if they feel that company is hiding something from them, it will not have a good
impact on their work. Communication is both verbal and written so the HR should treat
the employees well and should disclose everything that will affect decisions of the
employees.
 Problem solving- Solving the problems of employees should not just be HRM practices
but also the managerial function. Employees Relationship Management focuses on
conducting programs where they could get the feedback of employees and understands
the problems faced by them from their teams or the organisation (Beer, Boselie and
Brewster, 2015). Companies have mentor-mentee sessions where they are allowed to
share their opinion about work and internal environment of the organisation. The process
of problem solving should be informal because employees do not feel comfortable in
sharing in that environment.
 Employees Empowerment- Employees in an organisation should get the certain level of
decision-making power. It motivates the employees and gives them autonomy to manage
their work. There are decisions which are taken by them and if they will wait for their
managers them it will cause the delay so they should be assigned the power to make
decisions which can be taken by them and do not require expertise. It makes them feel
that their managers trust their decisions and thinks that they are capable of managing
things. Trust is an important factor in maintaining the relationship with employees so
HRM of an organisation should make the environment comfortable for employees to
make there decisions.
P6 The key elements of employment legislation and the impact it has upon HRM decision
making
Employment legislation defines behaviour of employees in an organisation. They are the
set guidelines which elaborates the employees rights at work. There are various acts that are
formed to protect employees and give them their rights at the workplace. These laws in an
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organisation gives liberty to the employees and provides them healthy and safe environment
(Scholz, 2016).
 Equality Act 2010- The employees should be treated well in the place they are working.
They should be treated equally and should be given equal opportunities. There were
discriminations on the bases of age, sex, colour, caste and religion. The employees should
be given an environment where they are evaluated on the bases of their performance. The
biased decisions impact not just existing employees but its spreads wrong word of mouth
for the organisation. Cadbury is an employee-centric organisation where they focus on
making employees feel that they are important to the organisation and companies are
worried about their well being. It promotes diversity in its internal business environment
and provides the employees equal opportunities to share their opinion.
 Sexual Harassment Act 2013- It is implemented to protect the employees from people
misbehaving. There were certain sexual offense going on in the organisations such as
touching inappropriately, using bad words, bulling about their sexual preferences, etc.
The employees were not able to complain about it as they might feel that it will affect
their job. Cadbury has strict rules for this as they take care of their employees and if
somebody is found doing such things, actions are taken against them. The employees get
the environment where they could feel safe.
 Fix Working Hours Act 1998- It is important for organisations to set the fix timing of
people as they cannot work according to the requirement of the company (Smith, 2016).
The targets should be set according to working hours of the employees. Cadbury has
fixed working hours and have a proper formulation of remuneration based on the working
hours.
 Wages and Salaries Act 1996- The employees should get salaries in line with the
industry average. The minimum wages should be given to every employees because they
are giving companies work and should be getting equal pay. Employers use to take the
advantage of the employees and were not giving them equal salary. Cadbury gives fixed
remuneration to their employees. They have a good salary structure and employees
always gets motivated.
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TASK 4
P7 The application of HRM practices in a work-related context
The practice of HRM involves recruiting the right candidate which fits in job role. This is
a function which will have a direct impact on the productivity of the company as employees
plays a great role in the success of an organisation (Cleaver, 2017). The HR manager of Cadbury
is planning to conduct the recruitment process of Digital Marketing Manager in UK.
Advert for the role
Job advertisement gives the information to employees about the openings.
CADBURY
JOB OPENINGS
Cadbury is looking for the technical skills along with creative mindset who can take decisions
for the position of:
Digital Marketing Manager
JOB DESCRIPTION
Digital Marketing Manager should have minimum experience of 1.5 years. The candidates
should have the leadership skills and should be able to manage a team.
REQUIRED SKILLS
 SEO
 SMM
 Google Analytics
 CPA
 Decision maker
APPLY NOW
Send your resume to [e-mail] or visit the website- www.cadbury.com.
Job Description
It defines the work to be done and the details regarding that. It is important for employees
to get the job description.
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Job Description
Company Name: Cadbury
Job Profile: Digital Marketing Manager
Department: Marketing
Responsible to: Marketing Head
Purpose of the Job:
 To form the strategies for success of the company online.
 To make decisions for achieving business goals.
 To generate sales and increase the productivity of Cadbury products
Responsibilities:
 Managing the products which can give maximum profits.
 Managing a team which will handle different functions like SEO, Google Analytics, etc.
 To work on the promotional activities.
Offer Letter
It is a document given to the selected candidates which contains details about the profile
and rules of the company (Kanki, Anca and Chidester, 2019).
Offer Letter
Cadbury
A-35, B-block
Upper East Side,
London, 77112
Date: 19/09/2020
Dear Ms. Riya Bansal,
We are pleased to offer you a position of Digital Marketing Manager at Cadbury. We know that
your creativity and skills will prove to be valuable for the company.
As discussed, your joining date will be 25/09/2020 and the reporting will be at 7:00 a.m.
You are required to bring the following documents:
 Marksheet
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 Id proof and address proof
If you will accept the offer letter, please sign it and share it with us by 23/09/2020.
Thank You,
Harina Sem
(HR Manager, Cadbury UK)
CONCLUSION
Human resource management plays important role in organisation as it is responsible for
managing the work force and handling the issues of employees and fulfilling their work
requirements so that they don't face any difficulties in the operations. They are also responsible
for motivating employees within the organisation in order to improve their work performance
and ensure timely completion of task. HR department perform the function of managing the
people of different culture and make them understand the organisational structure and culture.
They are one who provides roles and responsibilities to the workforce according to their skills
and capabilities in order to accomplish the goals and objectives of organisation.
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REFERENCES
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