Benefits of HRM Practices in Workplace for Employer and Employees

This document discusses the purpose and functions of human resource management (HRM) in an organization, with a focus on Tesco. It explores the positive and negative aspects of different approaches to recruitment and selection. The benefits of various HRM practices, such as training and development, rewards and compensation, and flexible working practices, are discussed in terms of their impact on organizational profit and productivity. The effectiveness of these practices in the context of Tesco is evaluated. The document also examines the importance of employee relations and the key elements of employment legislation in influencing HRM decision-making. Overall, it provides insights into the role of HRM in organizational success.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1) Discuss the purpose and functions of human resource management...................................1
Functions of HRM:.....................................................................................................................1
P2) Illustrate the positive and negative of distinguish approaches to recruitment and selection.
.....................................................................................................................................................2
LO 2.................................................................................................................................................5
P3) Discuss the benefits of different HRM practices adopted in Tesco for both employer and
employees....................................................................................................................................5
P4. Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity. Tesco....................................................................................................1
LO 3.................................................................................................................................................2
P5) Examine the importance of employee relation in influencing HRM decision making
process. .......................................................................................................................................2
P6) Identify the key elements of employment legislation and impact .......................................2
LO 4.................................................................................................................................................2
P7) Highlight the application of HRM practices in a work-realted context..............................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Human Resource management is the practice of recruiting, deploying, managing and
hiring staff members in an organization (Amarakoon and Verreynne, 2018). It plays a vital role
in a company because it deals with issues associated with performance management, safety,
employee motivation, compensation, training and many more. . For the completion of the project
TESCO is undertaken. In the year 1919, this multinational retailer came into existence. The
various products offered by Tesco includes credit cards, loans, insurance of car etc. It is located
in Welywyn garden City, United Kingdom. The founder of this leading firm is Jack Cohen. The
objective of the report is to identify the importance of HRM within an organization. This
assignment covers purpose and functions of HRM. The positive and negative side of various
approaches to recruitment and selection are explained deeply. Benefits of HRM practices are
measured in an organization in context of both employer and employees. HRM practices
effectiveness is determined to raise productivity and profitability. Additionally, numerous
employment legislation act are studied to understand the impact of HRM on decision making
process.
LO1
P1) Discuss the purpose and functions of human resource management
HRM activities like, deploying, recruiting, managing and hiring staff members in an
organization are conducted so that business activities can be conducted smoothly (Armstrong and
Taylor, 2020). This is the core task performed in Tesco so that competitive advantage can be
gained against rivalry. Due to which day to day business activities are not hampered and
employees are guided to work effectively so that goals can be attained in the specified time
duration. Workforce planning is explained as process of understanding an firm's up-coming
needs in context of skills, training and recruitment. Resourcing is explained as using the
resources in the best possible way to develop the recruited employees so that the purpose of firm
for hiring candidate can be full-filled effectively.
Functions of HRM:
1

Recruitment and selection: Tesco has set structured process for recruitment and
selection. The HR department of the Tesco is held accountable for hiring right candidate for the
vacant position in both food and non-food parts of the business. It leads in attainment of set goals
and objectives in the set deadline. Management is able to set other bench mark when the initial
one is accomplished properly.
Performance appraisal: Skilled and capable employees can be retained back in Tesco
by appraising their performance. This boost them to perform more better as compare to past
performance. By this other staff members can be motivated to perform better so that they can be
in the next list of performance appraisal. (Banfield and Royles, 2018).
Training and development: It is another function of HRM which is performed in Tesco
in their working premises. By providing effective training to the existing employees their skills
can be nourished which will be benefiting both employer and employees. The set goals and
objective of the firm can be accomplished in the specified time duration.
The purpose of HRM:
Maximize Productivity: HRM main purpose is to maximize the productivity of Tesco
by optimizing the effectiveness of it's staff members
Benefits: Tesco HR department provide compensation and other benefits to that desire
candidate. By this employees can be motivated to perform better so that they can enjoy the
benefits given by Tesco. It directly leads in accomplished to set targets in the set time duration.
This purpose of HRM is applicable to workforce planning and resourcing because by providing
benefits capable and potential employees can be retained in the firm for longer time duration.
P2) Illustrate the positive and negative of distinguish approaches to recruitment and selection.
Recruitment is illustrated as short-listing the suitable nominee according to the job profile
by evaluating their skills and experience. Tesco hire staff member for both food and non-food
parts of the business through internal and external recruitment. The distinguish approaches of
recruitment in Tesco are as follows:
Internal recruitment: Tesco adopts internal Talent plan to fill the vacant post in the
premises. First priority is given to the existing employees if there is no suitable candidate in this
Talent Plan then they advertise the post on its intranet for two weeks. So that right employee can
be placed in the position. The various approaches of internal recruitment are, promotion, internal
advertisements and so on.
2

Strengths:
 Internal recruitment is less expensive because the vacant position is advertise on their
intranet for two weeks.
 By hiring employees within Tesco less legal formalities is done because mostly all the
legal documents are present with the management as well as they are aware about
organizational working environment and culture. In short time duration they come up
with productive outcomes.
Weaknesses:
 Internal recruitment raises the feeling of discrimination among the present co-worker
When un-expected candidate is placed in much better place. Due to which employees
turn out ratio is raising day by day. It is directly impacting the productivity level of Tesco
to a large extent.
 If the vacant position is filled with the existing staff then it restrict the entry of more
skilled and capable employee in the premises. Due to which work become more
monotonous in performing. Additionally, workforce efficiency of workers are decreasing
gradually which is influencing the set targets of Tesco in negative way.
External recruitment: Tesco advertise the vacant position on their official website or
through vacancy boards by which best candidate can be hired (Boon and Lepak, 2019). This type
of hiring is incur huge cost because they need to advertise their vacancy on their personal
website or through vacancy boards in stores (About company, 2017). It impact the functioning of
the business to some extent because to fill the vacant position it consume lot of time.
Strengths:
 Positive working environment is build for employees in Tesco because fresh candidate
come up with more creative working style. As well as more innovative idea are brought
in the premises of Tesco which assist firm to compete with competitors prevailing in the
global market.
Weaknesses:
 External recruitment is expensive because lot of finance is required by Tesco to advertise
the vacant position on their official websites or on vacancy boards. Due to which profit
margin reduces.
3

 Business activity are hampered because lot of time is consumed to place the most suitable
candidate in the vacant position. This negatively impact the set standards of Tesco
because they are not achieved in the set time duration (Brewster and Farndale, 2018).
Selection is explained as picking up the most appropriate candidate from the pool of
applicant who applied for the vacant position. It is done by examining the skills and abilities
which are mandatory for the job position in Tesco so that right candidate is placed in the vacant
post. It is the most essential task which is performed by an organization. Selection of nominee is
done by using various methods which are showcased as under:
Interview: Tesco selection criteria to select candidate is through interview. By this
interviewer is able to understand the nominee interest level in the position (Stewart and Brown,
2019). As well as personal interview helps interviewer to better understand the applicant skills
and knowledge (About company, 2017). By which decision of selecting the candidate can be
done easily.
Strengths:
 The questions asked to the selected candidate are more relevant and job related. Due to
which urge for the job position can be determined and the most deserving candidate is
placed in the position.
 Through personal interview potential level of the applicant can be judged easily Which
help them to decide which nominee should be placed and which should be.
Weaknesses:
 Consumes lot of time to fill the vacant position due to which business functions of Tesco
gradually slow down
 Some time biasness take place because candidate are hired based on the references
(Brueller and Markman, 2018).
Screening: HR department scan all the CV of the applicant carefully. Later on they
assemble candidate's education and job history to date. Tesco HR department assess the
candidate CV weather it is matching the person specification or not . Job Type Match tool is also
provided on its web page . Here, candidate can see before applying for the post where they might
fit.
Strengths:
4

 Right candidate is placed in the vacant position as proper screening of the CV has been
done.
 The tool which is provided by Tesco like Job Type Match helps interested nominee top
understand where they ft before applying for the vacant position.
Weaknesses:
 It consumes lot of time to can the CV as large number of applicants are applying for the
vacant position in Tesco.
 Through Job Type Match tool sometime wrong candidate is hire due to which
productivity reduces.
LO 2
P3) Discuss the benefits of different HRM practices adopted in the workplace for both employer
and employees.
The benefits of different HRM practices adopted in the workplace for both employer and
employees are explained as under:
Training and developing: It is providing to the employees to enhance their skills so that
they can perform their job role more appropriately.
This is the HRM practice which is adopted to carry on the business functions benefits are
gathered by employer and employees. Effective training upgrades employees skills which help
them in their carrier growth over the years (Chams and García-Blandón, 2019).
Benefits to employer Benefits to employees
 Tesco's goodwill is raised in the market
because employees are performing
better as they are provided training for
their work.
 Through training and development
skills of employees are enhanced which
helps them to raise their career graph
over the years.
Rewards and compensation: Tesco's employees can be motivated to perform better by
providing them rewards and compensation for their hard work. This HRM practices helps to
retain back potential employees in the firm which is a positive mark for the business in the global
market.
5

Benefits to employer Benefits to employees
 Business will be able to cope with
rivalry prevailing in the global market
because by providing rewards and
compensation skilled workers can be
hold back. Due to which productivity of
Tesco raises rapidly.
 Employees goodwill is raised in the
eyes of other co-workers when they are
rewarded and compensated for their
best position in Tesco. Due to which
worker will push themselves to work
more better which will raise their
career graph in positive way
(Chelladurai and Kerwin, 2018).
P4. Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity. Tesco
There are various HRM practices which are to be followed in any organisation:-
 Training and development:
Training and development is the major function of human resource management in this
employees are trained about they working of organisation and skilfulness methodology regarding
job roles and responsibilities, whereas development refers to the overall progress of an employee
through out their job tenure.
Training is suggested in every organisation to enhance productivity and profit, the
triumph of an entity is calculated by the productivity of its workforce. If the workforce is
unaware and puzzled about working they will sense an environment of astray and
mismanagement, this will lead them of not knowing that what they are required to do on being
on this post. In the context of Tesco, training and development can generate more profits and
increase productivity of the company. So by providing training and development to workforce of
an organisation it will lead them to work more efficiently in order to add more value in products
and this will directly impact productivity and profit earning of a company.
 Rewards and compensation:-
Reward works as the foremost motivation for the employee working for an organisation. Every
entity is recommended to use effective system of reward and compensation, this can boost up
6

motivation of employee and satisfaction level (Huemann and Turner, 2018). Compensation can
be provided to an employee if they are doing extra work than the daily requirement and reward
are given for extraordinary performance. In the surroundings of Tesco, they can introduce some
effective rewards and compensation policies so that no employee in the organisation may stay
unhappy and face unfair judgements. Reward and compensation will lead the employees to
remain in the organisation for longer period so it will increase employee retention ratio and trust
towards the organisation. When retention ratio is increased, the labour turnover will start
diminishing and this can steer the profit and productivity of Tesco because company is providing
better products regularly with assistance of skilled employees.
 Flexible working practices:-
 This practice means creating flexible policies of working in an organisation so
that an employee can even work when they are not in the condition to work (Muhammad,
2018). The flexibility in work enhances the elasticity of working practices and build a
balance between work and personal life. Flexible working practices includes allowing
work from home, concise work weeks etc. In the background of Tesco by application of
flexible working condition practices in business they can uplift in their sustaining ability
of employees, this will lead to better performance of workforce and hence will contribute
higher productivity and profitability. If employees are happy with the working conditions
they will bestow their knowledge to the organisation and will help the entity to earn most
profit and by working with fuller knowledge they can impact on increasing productivity
of the company.
LO 3
P5) Examine the importance of employee relation in influencing HRM decision making process.
The importance of employee relation in influencing HRM decision making process are
stated as under:
Productivity raises: Healthy relation between employer and employees of Tesco impact
HRM decision making process positively (Macke and Genari, 2019). It impact the decision
making process of HRM because they need to focus on employees performance. So that policies
can be framed to motive them accordingly.
7

Competitive advantages: Tesco is able to compete with rivalry prevailing in the global
market because team members has healthy and transparent relation with each other. The decision
making process of the HRM is affected because they need to focus more on their internal
improvements in business. They need to scan firm within so that loop holes can be improved.
Customer satisfied: Tesco is in the leading position because the relationship between
their employees is strong and fair. The HRM decision making process they need to frame
policies and norms accordingly so that they can be provided with high quality products.
P6) Identify the key elements of employment legislation and impact
The various employment legislation adopted by Tesco are stated as follows:
Data protection act, 1988: Teco should adopt data protection act in their working
premises so that employees can be assured that their personally information are not leaked out in
the market nor they are used illegal by anyone. (Meyer and Xin, 2018). It affect the decision
making process because it limit their work they need to safe guard their personal data so that it is
nor used in illegal work.
The National Minimum Wage Act, 1998: This legislation is adopted by Tesco so that
workers are not exploited in terms of wages. According to the wage act employees working in an
organization are paid so that their basic needs can be full-filled. It impact their decision of HRM
because they need to categorise salary on their performance or not their skills.
Equality Act, 2010: This is implemented in Tesco working premises so that business can
be expanded in the global market. Equal opportunity is provided to both male and female so that
deserving candidate can be appointed in the vacant position. By this workers can be motived to
raise their overall workforce efficiency so that set standards of the business can be achieved in
the specified time duration. It influence the decision making process in positive way because
they need to change their decision according to the employee. Each candidate are different in
their own way due to which they to assure that all them are given equal opportunity for the
vacant position.
8

LO 4
P7) Highlight the application of HRM practices in a work-realted context.
The person specification involves description of skills, knowledge, experience, attributes
and qualification which a applicant should have so that they can apply apply for the vacant
position. In Tesco vacancy is there for the position of non-food manager (Morgeson, F. P.,
Brannick and Levine, 2019). To apply for this post candidate prepare person specification and
job description which are as follows:
Job Description
Name of the company: Tesco
Division: Administration division
post: Non-food manager
Location: England, UK
Job summary
Applicant should be capable enough to lead a team of non-food so that they can provide
effective customer relation. Moreover, they must able to coach the non- food team so that they
can meet the expectation level of customers by selling other products rather than food such as,
entertainment, home ware goods, electricals, cosmetic and so on.
Role:
 To resolve the issues of the customers on telephone
 Addressing the feedbacks of the client on immediate basis
 Handling stock management
 Providing training to the non-food team members to that best results can be attained in
the set time frame.
Job Specification
9

Vacant post: Non-food manager
Functional unit: Administration department
Reporting to: Store Manager
Attributes Essential Desirable
Education and experience Nominee should be
graduate in administration
from recognized university
with an aggregate 60%.
At-least 1 year work
experience should be there
with the candidate who is
applying for the vacant
post.
Candidate are welcomed who
are post graduate in
management industry.
Additionally, fluent
communication is most desired.
Skills and knowledge Self motivation and
motivation skill should be
there in the applicant to that
they can perform the job
profile of non-food manger
properly.
Applicant having leadership
skill in them is given extra
weight as well as they should
be capable enough to tackle
multi work so that best services
can be offered to the client who
is visiting the firm.
Preparatory notes for interview:
Step 1 & 2: Includes preparation and staring
Third step: Asking questions
The HR of Tesco can easily attract large number of candidate with the help of above
advertisement. The vacant position in Tesco can be placed either on their official websites or on
vacancy boards. After this face to face interview round will be taken in which set questionnaire
will be needed by manger for selecting the most appropriate candidate.
 Tell me something about yourself?
10

 What are the responsibilities of a Non-food manager ?
 How will you coordinate employee and their activities in proper manner?
 Which unique skills do you have that makes you a better deserving candidate?
Step 4 & 5: Closing and assessment on the basis of above analysis
Job Offer Letter
Mr./Ms, Last name
Permanent address
City, State Zip code
Dear Mr./Ms. Last name,
HR of Tesco is happy to to offer you the post of Non-Food Manager. The experience and skills
that you hold will be positive mark for Tesco.
From the discussion it is clear that your date of joining is April 1 20XX and the salary is
$35000 annually. It will be paid on weekly basis as well as direct deposit is also available.
From Tesco employee benefit plan complete medical care for family is given which will be
applicable from April 15. management also offer flexible paid time-off plan in which covers
sick leaves, vacation and personal leaves. Time off accrues at the rate of one day per month
only for first year later on raises upgrade based on the tenure. After three months from the date
of joining the retirement plan begins.
If you are agree for the job post , please send the second copy of this letter on the same mail id
as soon as possible.
Whenever acknowledgement is received from your side HR will send you employee benefit
enrolment forms and employee handbook in which all the detail information regarding the
retirement plan and benefit plan is mentioned. Team of Tesco is looking forward to join you at
the earliest.
Please let me know if you have any query so that I can provide you additional information.
Yours sincerely
First-name, Last name
Human Resource Department
Tesco
____________
11

I hereby accept the HR consultant, HR department position
Signature _____________________________
Date ----------------------------
CONCLUSION
From the above discussion it can be concluded that purpose and function of human
resource management is studied so that business activities can be conducted more smoothly and
effectively. According to the dynamic environment modifications should be done in the function
of HRM so that better results can be attained. Distinguish approaches to recruitment and
selection is determined in order to place the most suitable candidate in the vacant position. Along
with this strengths and weaknesses of this are studied in order to work on the loop holes for
better outcomes. HRM benefits is determined in an organization in context of both employer and
employees. The evaluation regarding importance of employee relation in terms of raising
productivity and profitability is done so that policies can be made accordingly. Several employee
legislation is studied in order to select the best one for it's implementation at the work place.
12

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About company . 2017. [Online]. Available through:
<https://businesscasestudies.co.uk/edition-13-recruitment-and-selection/