Importance of Employee's Relation in Decision-Making of HRM

This presentation discusses the importance of employee's relation in decision-making of HRM and its impact on the organization. It also explores the key elements of employment legislation and their impact on decision-making. The presentation provides insights into the role of HRM in managing human resources effectively.

Human Resource
Management

Table of
content
Introduction
Importance of employee's relation
Key elements of employee
legislation
Conclusion
References

INTRODUC
TION
Human asset are the most profitable and novel resource of
an association. The success of management of an
association's human asset is an energizing, dynamic and
testing task, particularly when the world has turned into a
worldwide town and economies are in a condition of
transition. The shortage of skilled asset and the developing
desire for the cutting edge labourer have additionally
expanded the unpredictability of the human resource
function.

Definition of Human Resources
Management
HRM can be defined as process or practice that supports in hiring people from correct sources
and placing them on right job. It ensures managing them well so that overall goal of business
unit can be accomplished.
HRM is the tool that helps in effective utilisation of human resources and building strong
relationship between employees and employer

Internal and External Factors
Human Resource
Management
Internal factor:
oOrganisation structure
oOrganisation culture
External factor
oEconomic factor
oLegal factor

P5. Importance of employee's relation in decision-
making of HRM.
employee's relation
◦ It can be defined as efforts of business to maintain relationship
between employees and employer. It is the bonding between both
these person. Healthy relations improve communication at workplace
which supports in performing task significantly.
The business which is operating at global or small level, the most difficult
part within the organization is decision-making. The managers have the
ability to make the powerful decisions and employees relation can
improve their decision-making process and many other things.

Improves morale — Employee's relation can improve the
morale within the staff and every employee can will feel
positive to work for the company and also share the
ideas openly with the higher authority and help in
decision-making process of the management.
More inputs — The better the relationship are between
the staff and managers; the more will be the input by the
workforce and more new ideas will be in the
organization for the development and growth of the
company. The employees will feel comfortable as there is
no discrimination based on age, religion, gender etc. and
free to express their views with each other and
management.

Teamwork — If the relationship between the employees are good then
they will work together without any communication gap with the
organization and try to solve the problem which is occurring in
accomplishing their task as a team (Sparrow and Makram, 2015). The good
teamwork can influence the decision-making of HRM as they will be more
serious about their work and always have a excellent vision for growth of
the company.
Healthy employee relations — The healthy business environment reduce
the absenteeism within the organization and also works sincerely and feel
comfortable to come office on daily basis. It motivates them top work hard
and improve their performance with time to time.
The manager within the organization cannot take the decision alone, it will
require the opinions and views of others to analyse the correct decision
which can sustain their business in future and raise their revenue with full
potential. Therefore, employees relation plays a major part in influencing
decision-making process of human resource management.

P6. Determine the key elements of the
employment legislation and its impact
on decision-making.
There are various types of employment
legislation within the business environment
which can impact the decision-making of
the HRM. The general laws which affect the
HRM decision- making includes labor laws,
discrimination and equity within the
organization in providing equal
opportunities to every employee.
The Fair Labor Standards Act (FLSA) — This
law helps to determine the minimum
wages and the overtime done by the
employees who are working more than 40
hours in a week. This law is directly related
to the business management and HRM and
it is formed in 1938.

Occupational Health and Safety Act — This act was
developed in 1970 and its main concern is for the
employees who are working under the severe work
environment and this can impact the HRM decisions as
they have keep the track of every hazardous materials
are being used and all the report related to deaths and
injuries occur during the workplace (Nieves and Segarra-
Ciprés, 2015). SFIL is a steel producer and engineering
company which deals with the various types of business
such as oil and gas exploration, marine, construction,
defence, nuclear etc. This act is very beneficial for the
employees as it provides life insurance to the employees
who are risking their lives for the dangerous work.

The Civil Rights Act — It was formed in 1973 which deals
with the social discrimination with the business like religion,
race, sex etc. which creates the conflicts within the business
environment and impact on the decision-making of HRM.
The Equal pay Act — This act was developed in 1963, it
shows that every employee must be treated equally and
wisely and do not pay wages based on their age or gender
for the same position and the level of responsibilities. This
law can influence the decision-making process of the
managers at human resource as it will require good
leadership and managerial strategies that will keep the
equity between the employees in providing equal
opportunities in order to grow themselves and business.

Human Resource Management –
work related context
Reward management is considered as most essential HRM practice. SFIL gives incentives to its
workers to motivate them. This type of motivation fulfil their monetary needs and all individuals
work in the firm for longer duration.
Apart from this, entity give them appraisal every year for their efforts and good work. This motivate
them and make them loyal towards the brand. SFIL ensures giving recognition to staff members so
that they put more efforts to get praise from higher authorities in front of all employees. All these
things are helpful in improving retention rate and minimising issue of staff turn over.

CONCLUSI
ON
From the above report it had been summarized that HRM
practices are very useful for the effectiveness and efficiency
of the business as it helps the organization to acquire
qualified candidates which can increase the business growth
and revenue for the future. This report also highlighted the
purpose and scope of HRM in fulfilling the needs of business
and SFIL can improve their management within the
organization by following systematic HR practices which will
resolve the issues and make them grow their business all
around the world. They can have various benefits by applying
this HR practice and for that they would require a good
manager in human resource which will recruit the skilled
employees from worldwide which will make their
organization diverse and enhance their productivity and
profitability with proper training and development
programmes.

REFERENCE
S
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