Benefits of HRM Practices for Organizational Profit and Productivity

This document discusses the purpose and functions of HRM, strengths and weaknesses of different approaches to recruitment and selection, benefits of HRM practices for both employer and employee, and the evaluation of the effectiveness of HRM practices in terms of raising organizational profit and productivity. The subject is Human Resource Management and the document type is a report. The course code, course name, and college/university are not mentioned.

HUMAN RESOURCE
MANAGEMENT

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation.............................................................................................................................................3
P2 Strengths and weaknesses of different approaches to recruitment and selection................................4
P3 Explanation of the benefits of different HRM practices within an organization for both the employer
and employee...........................................................................................................................................6
P4 Evaluation of the effectiveness of different HRM practices in terms of raising organizational profit
and productivity.......................................................................................................................................7
P5. Analyze the importance of employee relations in respect to influencing HRM decision making......9
P6 Key components of employee legislations and influence it has upon decision-making process of
HRM.......................................................................................................................................................10
P7. Illustrate the application of HRM practices in a work related context.............................................11
CONCLUSION.........................................................................................................................................14
REFRENCES............................................................................................................................................15

INTRODUCTION
Human resource management is considered as the strategic approach or method to deal
with the people in a company so that they help them in attaining the competitive advantage at the
potential marketplace (Amruthaand Geetha, 2020). The main aim of adopting human resource
management is to enhance the performance of employees as that will help in attaining strategic
objective successfully. Organization selected for respective report is Unilever which is British
Dutch consumer good company which is operating at the multinational level. It is founded in
1929 and its head office is located at the England, United Kingdom. They offer wide range of
food and refreshment, beauty and personal care, cleaning products. Topics explained in
respective report are purpose and scope of HRM as well as it will also include effectiveness of
key elements of human resource management at respective company. Moreover, it also provide
information related to internal and external factors which impact on HRM decision making
including employment legislation and it also include HRM practices.
TASK 1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation.
Human Resource Management is considered as a management work concern about
employing, motivating, and keeping up workforce in an organization. Human
resourcemanagement help in dealing with issues identified with workers, for example, recruiting,
training, advancement, compensation, inspiration, communication, and
organization(Armstrongand Taylor, 2020). It is also determined as the process toward hiring,
selection, giving direction, granting preparing and advancement, assessing the presentation of
workers, choosing pay and giving advantages, rousing workers, keeping up legitimate relations
with representatives and their trade. Moreover there are several purpose and functions of human
resource management which help a company in planning as well as resourcing organization.
From which some main are mentioned below in respect of Unilever:-
Purpose and function of human resource management

 Staffing need – HR divisions are mainly known for their duty of recruiting workers. This
incorporates making position declarations which include determiningjob responsibilities
and deciding the skills level and requirement that are required for a position(Herreraand
de las, 2020). In respect of Unilever their HRM conduct respective functions and in this
they perform various functions such as hiring, training, administering test and so on.
 Benefits – Creating and effectively administrating a worker benefits program is an
incredible recruitment as well as retention technique that an organization use. Basic
advantages of an occupation incorporate medical insurance, dental protection or
insurance, and a retirement plan (5 Purposes of the Human Resources Department,
2020). HR staff of respective company must research as well asanalyze data to acquire
the best package for these advantages which ought to give sufficient inclusion to workers
while limiting the expenses for the business.
 Performance appraisal – Human resource divisions work related to individual office
supervisors to assess performance of employees. This department is answerable for
making the whole performance evaluation process. This procedure regularly happens
yearly for many associations. In respect of Unilever they also conduct respective function
on the regular basis because through it they able to enhance motivation level of employee
in effective manner.
 Law compliance – It is one of the main function or purpose of human resource at the
workplace because they develop rules, regulations and policies according to law of the
nation in which they are operating or going to other. It is also responsibility of respective
department to consider all legal compliance while developing decision. In respect of
Unilever their human resource manager considers all the rules and regulation of home as
well as host country because they are operating at the international level.
P2 Strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection is considered as a process in which an identify need of a job,
determine requirement of specific position, advertise about the job or vacant position, and at last
selecting the most appropriate person on the specific position. In the other word it is considered
as a process of determining right person at the right job. There are numbers of approaches which
can be used by a company for the recruitment and selection process. Below some of the main
recruitment and selection approaches are given with its strengths and weaknesses:-

Recruitment approach
 Networking event – HR event, work fairs, open houses, workshops, and meetings offer
an ideal recruitment stage. HR experts with significant and continued connections can
without much of a stretch gain up-and-comers and understudies from various controls at
these occasions (Armstrong and Taylor, 2020). In respect of Unilever in order to adopt
this method they can organize an event in which huge numbers of audience come for
specific job role and from that management can hire on. The strength of respective
approach of recruitment is through it respective company gets numbers of options of
candidates. On the other hand its limitation is that it is time taking as well as it required
huge funds for organizing an event.
 Video interview - Video meeting is a moderately new enlistment technique that makes it
a lot simpler for scouts to screen applicants while guaranteeing a helpful and positive
competitor experience. With video interviews, enrollment specialists can pose boundless
inquiries and view the reactions at an advantageous time(Yongand et. al., 2020). This
reduces the quantity of on location meets and quickens the underlying screening process.
In respect of this manager of respective company can take interview of candidate through
video call. The advantage of this is candidate at different location can also appear in
interview which helps company in getting best candidate. Limitation of respective
approach is it time consuming method for the recruitment.
Selection approach
For selecting effective candidate a company may conduct analysis of a person as that will
help in determining their skills, abilities and knowledge related to specific job role. In respect of
Unilever they can organize assessment test of candidate related to vacant job role as that will
help them in determine effectiveness of candidate in effective manner. The advantage of this
approach is it helps in accessing abilities of candidate in effective but its limitation is that it is a
time taking method. There are different approaches to selection like interviews, in-tray tests,
presentations and assessment centers etc. The HR department of Unilever conducts interviews in
order to select the right candidates who match with the vacant position within the workplace.
Interviews help in identifying the skills and knowledge that is possessed by an individual. For

example, this is one of the strengths of the company as it helps it in selecting the most qualified
and experienced individuals.
P3 Explanation of the benefits of different HRM practices within an organization for both
the employer and employee
The benefits of different HRM practices to both employer and employee within Unilever
is presented below:
HRM practices Benefits to employer Benefits to employee
Recruitment and selection This help employer to build
effective team along with
attainment competitive
workforce. This also provide
the employer to improve the
level of productivity and earn
more amount of profits.
To gain experience of
working with different
professionals along with
improvement in career
(Chelladurai and Kerwin,
2018).
Training and development This help the employer to
improve the skills of
employee for the purpose of
improving productivity and
quality of offering.
This help in personal and
professional development of
employee. Here, employee
has the opportunity to gain
knowledge and improve their
career where they can easily
get some better professional
opportunities.
Compensation and benefits This help the employer in
higher retention of employees
along with their engagement
in work. This further aid
motivation where employees
always work in benefit of an
organization (Berman and et.
al., 2019).
This help the employee to
earn more against to their
extra efforts within an
organization. This earning
also helps the employee to
motivate for working and
hard getting promotions for
controlling of higher

authorities.
Achieving work life balance This help the employer to
motivate the employees to
work for an organization their
tough times too.
This help the employee to
provide equal to their
personal important aspects
along with the professional
life.
The major advantages of training and develop is that the employees are satisfied and gain
new skills that contribute to their overall productivity. The overall morale and confidence levels
of the employees also increase. For the employers, they can lead their teams effectively because
the team members are trained effectively. The overall employee turnover in the workplace is also
reduced. On the other hand, effective recruitment and selection processes ensure that right
candidates having the right qualifications are hired. For employers, they get to work with people
who possess the required skills and knowledge to complete tasks on time.
P4 Evaluation of the effectiveness of different HRM practices in terms of raising
organizational profit and productivity
There are many types of HRM practices which are performing within an organization for
the purpose of regulating organizational functionalities. Effective deployment of these within an
organization is upon the HR manager. This will not only help to operate the functionalities but
also provide the opportunity regarding attainment of sustainability within business (Nankervis
and et. al., 2019). All the different HRM practices have their own role and benefits towards an
organization. The benefits that can be gathered through the effective application of these
practices include effective team building, positive workplace environment, high employee
engagement, high level of motivation and good employee relation. There are many other benefits
that can be ascertained at overall organizational level includes high productivity, profitability and
formulation of qualitative products. All the organizations irrespective to their nature and size has
to adopt the effective HRM practices. This help in development of business in market along with
creation of trust among employees that organization is working for their development too. The
different HRM practices along with their contribution in improvement of productivity and
profitability is defined below:

Recruitment and Selection:The subsequent HR best practice is specific employing. This
empowers an association to acquire workers who include esteem. Organizations do their most
extreme best to employ remarkable individuals since they increase the value of the business.
Research shows that the distinction in execution between a normal entertainer and a superior
worker can be as high as 400%. This remains constant for various businesses and occupation
types, including scientists, performers, and competitors (Stewart and Brown, 2019). Getting the
ideal individuals is, in this manner, a vital aspect for building an upper hand. In the present
advanced world, there are a variety of enlistment apparatuses we can use to make the correct
determination. An ever increasing number of organizations overwhelmingly monitor their
enlistment measurements to perceive how well they are getting along in such manner. Ordinarily
utilized choice instruments are organized and unstructured meetings, IQ tests, character
appraisals, work tests, peer evaluations, and reference checks. These (pre-work) appraisals are
utilized to reveal three key applicant qualities, for example, capacity, trainability and duty. Right
selection must help at international level to improve productivity and profitability.
Training and Development:Training and development are HR management functions
that incorporate new-representative direction, work aptitudes preparing, administration preparing
and proficient turn of events (Boella and Goss-Turner, 2019). These exercises improve
representatives' activity abilities in their present positions and furnish them with aptitudes and
skill for cross-practical work that can expand their incentive to the association. Proficient
improvement underpins an association's progression arranging procedure by getting ready future
pioneers for more elevated level employments and greater duty. HR management training and
development activities reflect advancement from-inside practices and bolster representatives'
work objectives. This must have huge contribution towards the improvement of productivity of
Unilever employees in all diversified conditions.
Achieving working life balance:Executing adaptable work routines, furnishing
representatives with working from home alternatives and preparing directors to spot suggestions
of work environment stress provides the authoritative culture to workers in accomplishing work-
life balance. Overseeing planning coordination’s, adjusting innovation for remote access and
directing instructional courses are basically value-based capacities. Nonetheless, these capacities
at last make an outcomes arranged workplace since they empower more noteworthy productivity

and, in this manner, increment the time representatives need to dedicate to family commitments
and individual undertakings. This help in improvement of productivity through gaining more
involvement in organizational activities.
Compensation and benefits:Pay and advantages frequently are seen together, introducing a
complete perspective on how employers reward their representatives. In any case, a look at
compensation without anyone else offers a clearer image of HR management practices in light of
the fact that absolute representative wages, including compensation, benefits and related
expenses, can involve up to 70 percent of a business' expense to work business, as indicated by a
2019 report (Morgeson, Brannick and Levine, 2019). Advantages alone can represent 30% of
complete work costs, and are ascending at a fast rate, to a great extent because of increments in
human services benefits. This help in motivation along with improving productivity at all
different levels of an organization.
P5. Analyze the importance of employee relations in respect to influencing HRM decision
making
Employee relations refer to a company’s efforts to administrate and maintain
relationships between employees and employer. An organization which have effective workforce
relationship can offer fair and consistent treatment to its workers so that they will be performed
their job roles and responsibilities in effective manner and retain with the firm till long term
(Brewster, Mayrhofer and Farndale, 2018). In Unilever, the administration of the business
venture offer training and learning programs so that they can assist them in making development
in their skills and knowledge. This enable in their professional and personal growth. The
administration of respective firm also adopts or implements better plans and policies that are
efficient for employees. For example, the human resource department of the company
appropriately follows equality and by implementation of this law, the firm provides equal
treatment to its all employees in term of offering equal growth option. It is beneficial for the
flexibility of enterprise as if the legislation and policies in favor of employees then it create
favorable influence over workforce because they easily adopt them do or perform their work in
ethical manner. For instant, in Unilever, if the organization will not offer flexible working option
to its employees then it will affect the decision making of firm as well as unfavorably influence
the development if venture. Because some individual can take negative benefits in form o
accomplishing their flexible manner which increases the cost and minimize productivity. In

respect to it, decision making of the enterprise will be impact in negative manner and venture
will conduct determination devising activity again. Effective employee relations can contribute
to the overall effectiveness of the company and its performance. This further leads to effective
decisions being made internally. The major role of trade unions is to ensure the overall welfare
of its members which can include safeguarding their interests. On the other hand, discipline
ensures that all the tasks and activities within the company are carried out smoothly.
P6 Key components of employee legislations and influence it has upon
decision-making process of HRM.
Employee legislations is considered as best effective approach for every firm in order to
protect them, every time that influence them in a positive manner (Amrutha and Geetha, 2020).
With the help of this employees can have their own rights and able to sustain in firm for long
time and increase productivity of firm as well. Herein, Unilever follows different types of key
legislations in order to make their employees satisfied, that are:
Equal and diversity act, 2010:This act was imposed by UK government in order to
protect employees within every industry so that they are needed to face such kind of issues like
pay, gender, competition, race and many more. Additionally, this law helps employees to
overcome discrimination types of problems in firm that increase their confidence towards better
work. For example: Unilever is one of the best British firms that deal with several kinds of goods
and services at marketplace to get customer’s attention. Therefore, it is essential for them to
follow this rule or law for its entire workforce so that they can overcome factor of diversity and
inequality at workplace. It helps employees to boost their working energy and achieve targeted
business goals.Along with it is considered as most helpful HRM approach that helps every
employee of firm to take better decision in a perfect way so that they can achieve organizational
goals frequently(Wright, 2018).
Fair Labor Standards Act, 1938:According to this act minimum wages and salary paid
to every employee in a equal manner. With the help of this they can make their firm attractive
and work in a better way. Herein, Unilever follow this legislation in order to treat their
employees at fair price with effective mode thus, they can make better decision and achieve

targeted goals. Therefore, this act is helps firm to take better HRM decision towards betterment
of future.
Minimum Wages Act, 1998:It refers to the minimum wages amount which needs to paid
for workforce within the business organization. In this employees are able to get minimum salary
or work accordingly. In regards with Unilever, they are following this law in order to give equal
pay to its employees on the basis of their working performance and achieve targeted goals in a
frequent manner (Herrera and de las Heras-Rosas, 2020). Using such kind act for employees they
can get benefited and helps make better HRM decision appropriately.
Occupational Health and Safety Act, 2004:According to this act, all employees of any
kind of business organizations able to get different kinds of safety tools and methods that
satisfies them and increase their confidence at high level. In relation with Unilever, this
organization always use this governmental law so that they can easily determine their
workforce’s needs and wants in regards with their health issues. Further it helps them to protect
their every employee with best safety tools so that they contribute their 100% and achieve
desired goals. Providing health and safety act to employees always build good relations between
firm and workforce so that they can easily make their decision in a positive manner along with
achieve targeted objectives(Noe, and et.al. 2017).
P7. Illustrate the application of HRM practices in a work related context
Human resource management practices offer a platform to employees of the company for
the development and success of the venture in specific industry within the business operate. For
recruiting skilled and talented employees conduct activity of requirement and selection. In
Unilever, the management executes diverse HRM activities like training & development,
performance appraisal, recruitment and many more. To hire people the administration provides
information about the vacant positions by using different approaches some of them are as under:
Advert for the role
Job Advertisement
Comoany: Unilever Plc
Job role: Human Resource Manager
Location: Hertfordshire, London

Salary: $30000 per month.
Job description: The person is responsible to hire and select skilled, talented and
knowledgeable candidates for filling the vacant positions of different department of the
company. The individual is also accountable regarding this job role to organize meeting and
framing effective policies for the effective running of the venture. Good communication and
management skills will also be required to perform the responsibility of this job position. The
person will also responsible to solving issue of employees and organize training and learning
sessions to them.
Key requirements:
 Master’s in business administration with the specialization of organizational behavior.
 Leadership and problem solving skills will also require.
 2 years experience as a HR manager in a reputed company.
Job description
We are looking for a HR manager to direct our HR team. The will take the ownership of all
HR matters across the firm from recruitment to performance reviews, wage reviews,
disciplinary action and learning and development. To execute well in this role the individual
should have experience as a HR manager to other senior roles in the HR team and knowledge
around all lawful needs in this role.
HR manager responsibilities:
 Continually hiring an excellent staff.
 Training, counseling and coaching to employees.
 Developing clear polices and assuring policy awareness.
 Maintaining ad reporting on workplace health and safety compliance
 Maintaining employees and working environment privacy.
HR manager requirements:
 Bachelor’s of business administration in Human resource management.
 Master’s of business administration with the specialization of Human resource
management.
 Experience in conflict resolution and workplace investigation.

 Competency in Microsoft applications consisting Word, Excel and Outlook etc.
Job Offer letter for Human Resource Manager
Mr. M. K. Stanley
Unilever Plc
Date: 28/05/2020
To
Mr. P. W. Hagerman
We are happy to inform that you have been selected for the position of Human Resource
Manager in Unilever Plc. If you are interested for this job role then kindly fill the form that is
accessible on organization’s website (www.unileverplc.com) within working days.
Roles and responsibilities:
 Manage and coordinate HR activities and practices like meetings and survey.
 To support HR executive in management of HRM activities and procedures.
 Organize recruitment and selection activities to skilled and knowledgeable person for
filling the vacant positions.
 To design and frame laws for employees for performing duties in systematic manner.
 Organize training and development session to provide training employees to offer
information about new things and technologies.
Joining date: 1 June 2020
Working hours: 09:00 AM to 06:00 PM
Salary: $25000 per month.
Vacations: 2 Days vacations in a weak.
Compensation benefits: Heath insurance, sick leaves, bonus, incentives and disability
insurance.
Job Advertisement
Unilever

The company is looking for a qualified and experienced professional for the job role of HR
Manager. Attractive package will be offered. Required qualifications include a master’s degree
in Human Resource and an experience of 5 years in the same field. Strong interpersonal skills,
communication skills and team management skills are a must. The candidate should be
competent and ready to work in rotational shifts.
CONCLUSION
This has been summarized from the above information that human resource management
is a process of managing employees and business activities o operations By using effective
methods and approaches of requirement and selection, the HRM function of company can hire
skilled and knowledgeable candidates for the company. Different HRM practices like training &
development, performance appraisal, reward system and many more play an effective role in
growth and development of employees. Employment legislation plays an important role in the
company when they frame human resource policies to make working environment free from
discrimination.

REFRENCES
Books and Journals
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management: Implications for social sustainability. Journal of Cleaner
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Herrera, J. and de las Heras-Rosas, C., 2020. Corporate social responsibility and human resource
management: Towards sustainable business organizations. Sustainability. 12(3). p.841.
Yong, J. Y. and et. al., 2020. Pathways towards sustainability in manufacturing organizations:
Empirical evidence on the role of green human resource management. Business
Strategy and the Environment. 29(1).pp.212-228.
Noe, R. A., et.al. 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Wright, P., 2018. Fundamentals of human resource management.Management. 5. p. 27.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Berman, E.M. and et. al., 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
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Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Morgeson, F.P., Brannick, M.T. and Levine, E.L., 2019. Job and work analysis: Methods,
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Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Online

5 Purposes of the Human Resources Department. 2020. [Online]. Available through:<
https://www.humanresourcesmba.net/lists/5-purposes-of-the-human-resources-
department/ >.