Importance of Employee Relations in Influencing HRM Decision-Making

Human Resource
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explanation of purpose, scope & functions of HRM, applicable to workforce planning as
well as resourcing a business entity............................................................................................3
P2 Explain strength and weaknesses of different approaches to recruitment & selection........5
TASK 2............................................................................................................................................6
P3 Benefits of different HRM practices in context to both employee and employer.................6
P4 Evaluation of different human resource management practices in relation of increasing
productivity and profitability......................................................................................................7
TASK 3............................................................................................................................................8
P5 Significance of employee relations in context to influencing Human resource management
decision-making..........................................................................................................................8
P6 Key elements of employee legislation along with its influence on HRM decision-making..8
TASK 4............................................................................................................................................9
P7 Application of human resource management practices.........................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management is defined as an strategic approach that help in effective
management of people working in an organisation which in turn assist business to attain
competitive advantage. In addition to this, it is an effective process of recruiting, deploying,
managing and retaining staff members in an appropriate manner that impact positively on
performance of an organisation (Armstrong and Taylor, 2020). For the present report, Audi is
taken into consideration. It is a German automobile manufacturer which designs, produces,
engineers, markets & distribute luxury vehicles. The company was founded in year 1909 and its
head office is lo acted in Ingolstadt, Germany. Audi has presence in more than 13 countries and
has more than 90,00 employees. The report will cover scope, purpose as well as functions of
HRM. In addition to this, recruitment and selection approach is discuss along with their strength
& weaknesses. Further, human-resource-management practices were elaborated and importance
of employee relation is also described. In the last, employee legislations and application of HRM
in a work associated context is discussed properly.
TASK 1
P1. Explanation of purpose, scope & functions of HRM, applicable to workforce planning as
well as resourcing a business entity
HRM plays an important role as they contribute in enhancing performance and
profitability of an organisation by performing different roles that is training and development,
recruitment and selection, employee relations and so on. Performing of all this roles in a proper
manner help Audi to attain objectives within given time frame. The purpose and scope along
with functions of HRM is discuss below in context to Audi:
Purpose of HRM: The main objective of human resource management is to maintain
positive working environment and to develop an effective relationship with them so that they can
retain in the company for longer time period and enhance their productivity level. In addition to
this, there purpose is to motivating employees by rewarding and providing benefits in an
appropriate manner (Chelladurai and Kerwin, 2018). If it is talking about Audi, it introduces a
recruitment service in the year 2003 in order to help Audi centres to hire quality and talented
staff members which in turn assist in declining employee turnover rate.

Scope of HRM: It is determined that the scope of human resource management is broad
in nature and involve factors such as remuneration, manpower planning, transfer, lay-offs,
incentives and many more. In addition to this, it also involve benefits that is medical assistance,
health & safety, rest rooms, recreation service and so on. It is analysed that all such activities
help company to improve their performance as well as productivity level which has positive
impact influence on profitability and revenue of respective organisation.
Functions of HRM:
Performance management: It is undertaken as one of the important function of human-
resource-management wherein HR manager evaluate and analyse the performance of staff
members with the set standards and expectations. This assist Audi to make improvements in the
efficiency and performance of company that leads to implementation of activities in a proper
manner which in turn assist in achieving objectives timely and effectively.
Recruitment and selection: It is stated that performance and productivity of an
organisation is enhance when there is talented and effective employees exist in a company. For
this, HR department plays an important role as they make use of best recruitment and selection
approaches that help in attracting talent and hiring candidate who has the potential to perform
activities properly (Stewart and Brown, 2019). With reference to Audi, it focuses on hiring best
employee for the company and for this it make use of different recruitment and selection
methods that is recruitment advertising, aptitude test, interview guidelines, aptitude test and so
on.
Compensation and benefits: One of the important function that help in motivating and
retaining staff members for longer time period. In addition to this, it develop a zeal in employees
to implement activities properly that has impact on performance of company. In relation to Audi,
it provide both monetary and non-monetary benefits to employees that is holiday packages,
family insurance, bonus and so on. All this will help company to enhance its productivity as well
as profitability level in an effective manner.
Apart from this, there are other functions also which is performed by Human resource
management that is manpower planning, training and development, employee relation and so on.
It is stated that performing of all such functions assist in achieving objectives of company within
stipulated time frame.