Functions and Purpose of Human Resource Management

This article discusses the functions and purpose of Human Resource Management (HRM) in an organization. It covers topics such as recruitment and selection, training and development, and managing employee relations. It also explores the benefits and laws related to HRM.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 – Purpose and scope of HRM and Recruitment and Selection Practices .........................1
ACTIVITY 1....................................................................................................................................1
Functions and Purpose of Human Resource Management.....................................................1
ACTIVITY 2....................................................................................................................................4
Prepare person specification document..................................................................................4
Selecting candidates for interview..........................................................................................6
Interview questions.................................................................................................................6
PART 2 - Employee development, performance and reward & Factors that impact decision
making process of HR......................................................................................................................7
ACTIVITY 3....................................................................................................................................7
Learning and development opportunities for employees and organisation............................7
Reward and benefits given by LV= to its workers ................................................................8
Importance of Employee relation...........................................................................................9
Importance of employee relation .........................................................................................10
Role of leadership in keeping effective employee relation..................................................11
UK employment legislation..................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human Resource Management (HRM) is a function of management that is concerned
with recruiting, selecting motivating and maintaining employees within an organisation. In
addition, it is the planning, developing, leading and controlling of the procurement, integration,
compensation, maintenance and separation of human resource (HR) to the end that
organisational, social and individual objectives are accomplished (Al-Refaie, 2015). For this
report, LV is the given largest friendly society that is owned and operated by its members in the
open market place. This successful organization came into existence in the year 1843. It provides
numerous financial services to its customers such as, life insurance, insurance, investment
products and pensions. There are 14 offices across United Kingdom who are working day and
night to meet the emerging needs of the customer. This assignment cover, purpose and function
of HRM which are applicable to workforce planning and resourcing an organization.
Recruitment and selection positive and negative aspects are studied to make improvements in the
loop holes. Benefits related to HRM are reviewed in context of both employer and employee.
Importance of employee relation is examined to understand how they impact the decision
making process of HRM. Various laws are determined to measure their influence on decision
making process.
PART 1 – Purpose and scope of HRM and Recruitment and Selection
Practices
ACTIVITY 1
Functions and Purpose of Human Resource Management
HRM is the procedure that manages all activities related to staff member. To attain the set
goals and objectives is the main aim of human resource management. The distinguish purpose
and functions of HRM which LV adopts are illustrated as under:
Functions:
Recruitment and selection: HRM first function is to conduct recruitment and selection
in a company. Screening of CV is considered in recruitment while, selecting right candidate for
the vacant position is the core task of selection (Bratton and Gold, 2017). This HR function is
associated with workforce planning and resourcing because it helps in forecasting, analysing,
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assessing gaps and examine potential talent interventions in order to ensure that firm has right
people is placed in the vacant position. It is important to LV because by this productivity and
profitability ratio raises tremendously in the market.
Training and development: This function is conducted by company in order to uplift
the skills of present employees, performance and many more. In order to gain competitive
advantages against rivalry it is very essential to train and develop their staff members. It is
related with workforce planning and resourcing because it enables top level management to plan
for the capabilities they require in the up-comping years. This is important in LV because
training and development helps the the firm to achieve their set goals and objectives in the
specified time duration.
Managing employee relations: The crucial role played by HRM is to build healthy
relation among employer and employee. Good relation helps the employees to work hard so that
set goals and objectives can be achieved easily. It is another HR function with is directly related
with resourcing and workforce planning because when right candidate is placed in the post
vacant they helps in creating healthy relations with the co-workers. As well as motivate others to
perform better. In LV it is important because by this management is able to compete with the
rivalry prevailing in the market.
Purpose:
Staffing needs: The main purpose of HRM is to hire talented candidate in the working
premises. Here, duties are assigned to the staff members according to their capabilities, abilities
and qualification. By this productive results can be attained in the open market place which is a
positive mark for the business. Additionally, organization's human resource keep eye on the issue
of termination of workers as well as assure that no laws are violated while conducting this
activity.
Benefits: At the time of recruiting and selecting employee benefit scheme is used in
order to place the appropriate applicant for the vacant position. Before making employee benefit
programmes scanning of external environment is done so that maximum benefits can be given to
them. By this employee turn out ratio can be reduced (Brewster and Hegewisch, 2017).
Law compliance: Distinguish laws designed by the governing bodies are acknowledged
by human resource department and make company aware about it. Several laws are prepared by
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the government in order to safeguard the rights of the staff members in the working premises. As
company is ware about the laws any kind of illegal work is not conducted and employees are
assured that they are exploited in any way.
The purpose and functions which are discussed above are essential for LV while planning
and resourcing workforce so that business can be operated easily in the global market. Through
recruitment and selection talented candidate can be hired which will directly or indirectly
upgrade performance of the firm. By training their existing workers best outcomes can be
attained by which they can easily compete with the rivalry present in the global market.
Recruitment:
It is explained as the procedure of placing right candidate in the vacant position. It is cost
effective method as it covers, screening of CV, analysing job requirements, stimulating people to
join the post and many more.
Advantages Disadvantage
 The recruitment process is cost
effective because by this hiring process
become easy.
 Through modern tools and techniques
capable employee can be placed in the
vacant position in short time duration.
 This limit their entry of new idea in the
working premises. Moreover, it make
the work monotonous due to which
more unproductive outcomes are
attained.
 Many time extremely talented
candidate are neglected because they
are less friendly with the computer
Selection :
It is the process of selecting right candidate by examining applicant skills and abilities.
By this suitable candidate is placed in the vacant position (Cascio, 2015). It is very simple
process to conduct.
Advantages Disadvantage
 Shortlist the deserving applicant for the
specified job profile with mandatory
 As huge number of applicant apply for
the post due to which it consume lot f
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skills.
 This motivate the existing workers and
enhances their skills.
time to screen their CV individually.
 Huge finance is required for training
sessions.
LV= select candidates by their own recruitment process. There are four different stages
of LV and shortlisted applicants need to pass this stages in order to be part of the organization.
The strengths and weaknesses of LV recruitment process are illustrated as under:
First step is to research applicant for the vacant position: HR of the firm advertise the
vacant position ads on various social media platforms as well as on their personal websites.
Along with this additional information regarding the vacant position is mentioned. By this
candidates can evaluate themselves weather they are suitable for the vacant position or not.
Second step is to apply online: If the interested candidate has decided that they are
capable enough to work with LV= they apply for the vacant position online. Before submitting
the CV online there re certain set online questions which need to be answered as yes. Then only
candidate can Share their CV and further processing will be done.
Third step is selection process: From the shared CV by applicants candidates are
shortlisted either for telephonic or face to face interview. The HR team ask numerous personal
and profession related questions in order to examine weather they are suitable for the vacant
position or not.
Fourth stage is outcome: In this case, HR team of LV inform the selected candidate that
they are selected or not. All the details are discussed with the chosen nominee and stimulate
them for joining the vacant position as soon as possible.
Strength:
 Eliminate unnecessary candidate by screening their CV. LV HR match the applicants
skills, education and work experience with the job profile.
 By cross checking the CV of the people helps LV to better understand how they can
benefit the firm.
 Suggest employer best idea regarding talent and capabilities of candidates
Weakness:
 Wrong candidate is hired some time because of error in branding or content writing on
websites.
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 Face to face interview is time consuming and lengthy.
ACTIVITY 2
Prepare person specification document
Person Specification is a blue print of experience, attributes, qualifications, skills and
many more which a applicant should possess to perform the job role. It is important to formulate
in an organization because through this management can communicate the traits which was
considered desirable by them in an individual like, earlier work experience, academic and
additional traits required for the job role (Collings and Szamosi, 2018). LV is benefited by
Person Specification in order to ensure all applicant that they are judged on the similar criteria.
On the other hand it render a framework for recruitment and selection process that directly or
indirectly assist in short-listing participant for face to face interview round and for next
selection round. By this employees can be bind for longer time duration in the working premises.
LV is formulating a person Specification document for the job role of Personal Assistant in
order to design a sequence for systematic analysis and review of candidates applied for the
vacant post.
The various benefits of person specification are as follows:
 It helps LV HR team to identify the type of candidates they are looking ahead for the
vacant post.
 Person specification helps the marketing team of LV to frame accurate job
advertisements.
 The another benefits of person specification is that LV HR team is able to evaluate each
and every applicants fairly without discrimintaion.
The person specification for the job role of personal assistant is illustrated as under:
Person specification
Job Title : Personal assistant
Service area: Chief Retirement advices and commercial finance directorate
Grade: A
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Criteria Essential Desirable
Essen tail skills Communication skill
Time management skill
Problem solving skill
Technical skills
Team management skills
Academic Candidate should hold
diploma in management field.
MBA
Knowledge  Capable in handling
emails and incoming
call of the clients.
 Scheduling meting
regularly
 Handling all
arrangements related
to tourism like,
booking tickets, hotels,
rooms and so on.
 Holding good
knowledge of English
and mathematics.
Maintaining good relations
with other staff
Relevant experience From 1.5 - 4 years -
Other attributes Disciplined
Calm nature
-
LV received three applications for the post of personal assistant. Out of three two are
shortlisted for interview which are Job Application 2 and 3
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Selecting candidates for interview
From the pool of applicant only two job applicant are selected which are Job Application
2 and 3. This two applicant has full-filled the job requirements which are required. This two
applicant holds required work experience in two varied firm and has worked in the post of
marketing officer, insurance person, directors and as receptionist also. Moreover, both the
applicant 2 and 3 has worked in the finance department, higher level management as well in
marketing department that has raised their professional skills. Moreover, they are aware about
managing telephonic conversation, e-mails and messages of the client. As they have worked on
higher post they are able to handle power point, Excel and MS word etc. in order to record and
frame daily meeting and future schedules for interview (DeCenzo and Verhulst, 2016).
The reason for not selecting applicant 1 is because of its irrelevant work experience and it
did not match with the requirement of LV. Applicant 1 holds a job fitness trainer that is
completely different from personal assistant job profile. On the other hand the education
qualification was in appropriate. The HR of LV was unable to understand weather the applicant
is illegible for the post or not while examining the academic. Along with this the necessary skills
mandatory for performing the job role was lacking which created a question mark that weather
the selected in LV will be abler to give productive outcome after providing training sessions.
Interview questions
Below are some of the questions which are asked from the selected candidate for the post
of Personal Assistant. The interview questions are stated as under:
Q1) Tell me something about yourself?
Q2) What is qualification?
Q3) Are you aware about the communication jargon used in the business? Tell us few of
them?
Q4) Why did you leave your previous company?
Q5) Tell us some of the computer tools in which are good?
Q6) Why do you think you are suitable for the post of Personal Assistant in LV?
Q7) How much salary you are expecting?
Above mentioned are some of the questions which are asked from interviewer (Hecklau,
and et. al., 2016). This type of questions are put forward to the applicant in order to understand
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the desire and urge to be in this post. However, job related questions are asked understand
weather the nominee is suitable for the vacant position and what he or she expect out of it.
PART 2 - Employee development, performance and reward & Factors that
impact decision making process of HR
ACTIVITY 3
Learning and development opportunities for employees and organisation
HRM within an organisation plays an important role in developing and managing
workforce easily. There are different HR practices that used by company to give proper learning
and development chances to workers so that they can work towards achievement of
organisational goals and objectives. LV= is a largest friendly society that provide different
financial services to the customers including life insurance, pension and investment products etc.
Main purpose of company is to provide learning and development opportunities to its staffs so
that they can develop most competitive workforce (Jabbour and de Sousa Jabbour, 2016). There
are some HR practices related to the learning and development are explained as below:
Training program: This is one of the best practice of HR that is used by company to
train their employees. As it will help workers in improvement of its performance level and also
increase their confidence to deal with any kind of challenge easily. Job Shadowing is a best part
of training schemes which is used by LV= to provide appropriate guidelines to their workforce as
it help them in retention of workers for long time.
Review of performance: It is another practice of HR and in this human resource
department of LV=, review the employees performance on regular basis to track their initiatives
and assist them in improving their current performance level. In this HR manager plays an
effective role in providing appropriate guidance to workforce over its weaknesses. As it will
support workers by improving their performance and productivity level at workplace.
Employee benefits: This is also consider effective practice of human resource that is
applied by LV=, in order to maintain strong relationship with employees. Expectancy theory of
motivation is used by LV=, for motivating their workers to work happily and freely. This theory
states that employee's motivation is a better outcome of how much a person wants to reward. It
will help entire workforce in attainment of better results for an organisation (John and Taylor,
2016).
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Therefore, above mentioned all are effective practices of HR that help an organisation to
provide of learning and development opportunities to their employees. There are some benefits
of these practices to employees as well as organisation which can be determine as below:
HR Practices Advantages to workforce Advantage of LV=
Training
program
By getting training via job shadowing
HR practice, workers would be more
capable to increasing their learning
about the organisational practices in
effective manner. As it will help them
in improvement of their performance as
well as productivity level.
Job shadowing is a best practice that
help LV= by saving its time and cost
and also improving knowledge of their
workers about the business. As it
support an organisation in achievement
of long term goals and objectives
easily.
Review of
performance
This practice of HR is more beneficial
for employees because it will help them
in providing information about their
weaknesses or mistake. By getting
information about their mistakes, they
become able to improve their
weaknesses by getting feedback from
their seniors.
360 degree performance review
method used by LV=, for reviewing
employees performance. As it will help
an organisation in identification of
capable and knowledgable employees
easily. Knowledgable workers help an
organisation towards achievement of
set goals and objectives within
predetermined time period (Kim and
et. al. 2019).
Employee
benefits
Expectancy theory of motivation is
used by company for motivating its
workers. Motivation is important and
beneficial for employees because it
support them in completion of work
and activity within given time period.
Motivated employees are consider key
part of the business success and
growth. Motivated workers help LV=
by increasing their sales and brand
image in marketplace.
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Reward and benefits given by LV= to its workers
Reward and benefits are consider main practices of human resource which will be
beneficial for LV=, in order to keep their employees more motivated. Different factors were used
by company for motivating their employees such as appreciation, recognition, reward and
benefit. These are effective factors that will be help an organisation in retention of employees for
longer time period. There are some benefits and rewards that are provided by LV=, to their
workers. These are determined as below:
Benefits: The LV= provides different benefits to its employees as it will help an
organisation to motivate their workers and retain them for longer time period. Expectancy theory
of motivation is used by company for providing benefits to their workers. This theory is based on
self interest of an employee who want to attain maximum satisfaction. This theory will help
company to motivate their worker easily and maintain them with long lasting relationship.
Company give benefit of medical insurance to their all employees. They also give benefit for
personal accident insurance that involves a serious permanent injury. Therefore, different
benefits related to the insurance have been provided by company to motivate their workers and
achieve better results within given time period (Noe and et. al., 2017).
Rewards: It is another effective way that help an enterprise to motivate their workers
towards their job role. There are number of rewards that are provided by LV=, to their workers
which turn to assist them in keeping workers more motivated as well as enthusiastic towards
their job role. As a reward, company provide a loan facility to their all workers where each
member of an organisation can apply for a loan about bike and any kind of accessories. They
also give Gym membership to their employees as a part of reward. As it is given at the
discounted corporate rate from a various gyms, leisure centre and health clubs.
Therefore rewards and benefits provided to the employees will be beneficial for an
organisation as well as workers. As it support an organisation to retain workers for longer time
and maintain them with long lasting relationship. It will further assist LV=, to accomplish their
long term goals and objectives within predetermined time duration. Thus, reward and benefits
are main parts for the growth and success of an organisation.
ACTIVITY 4
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Importance of Employee relation
Employee engagement is widely known as employee relation across the globe. It is a
approach used for establishing better relationship among employer and employees. Normally,
healthy and transparent relation is build between employees and form. Both are emotionally
attached with each other culture, position, tradition, norms, supervision and so on (Shen, J. and
Benson, 2016). Healthy and transparent relation among employer and employee raises dedication
and loyalty level for their work. By this LV is able to attain their set goals and objectives in the
specified time duration which is a positive mark for the business in the competitive market place.
Employee relation directly or indirectly raises the overall workforce efficiency of the employees
due to which management is able to cope up with the rivalry prevailing in the open market place.
Organization is able to grow and develop in the international market rapidly when there
is healthy and balanced employee relation because this build deep connection and coordination
with staff members working in a company. By this it can be determined the level of workers
loyalty, accountability, zeal for work, capability and passion towards attainment of their set
standards. It is very essential to build employee engagement because it enhances the productivity
and profitability ratio of the business among its competitors which are prevailing in the global
market. LV is providing financial services to their potential customers in the intense competitive
world so form them creating employee engagement is the core task. By building good relations
with the human assets business can be expanded smoothly. On the other hand it reduces conflict
and misunderstanding due to which staff members can be hold back in the premises for longer
time duration which is a positive mark for the LV in the cut throat competitive world.
Additionally, other advantages received by LV because of creating good employee relation are
illustrated as under.
Importance of employee relation
The importance of employee relation or engagement are elaborated as under:
Retain loyal employees: By building healthy relation with staff members LV is able to
hold back their skilled and potential workers over the years. Organization faces huge loss when
they are unable to retain their value asset back in the premises. The productivity and workforce
efficiency decreases tremendously in the global market. Due to which organization is unable to
compete with its competitors prevailing in the international market. So, it is very essential to
create good relation so as to survive in the open market place. Additionally, in the competitive
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market place employee engagement is cost saving of training, recruiting, hiring and retaining
back its potential workers for future growth and development of LV. It influence HR decision
making process like, recruitment, reward, training and development in an organization because
by this effective policies are designed to retain capable employees for longer time duration in the
working premises.
Fewer workplace conflicts: Employee engagement directly or indirectly build positive
working environment due to which chances of mistake and error is reduced to a large extent (De
Lange and Van der Heijden, 2015). Whereas, organization is benefited because of healthy
relation among employer and employees as they are able to accomplish their desire goals and
objectives. LV is able to meet the emerging need of the customer because by building transparent
relation with each other their overall performance is raised. This also affect the decision making
process of HR in positive way because by this employees are provided with smooth working
environment which aid them to raise their overall performance.
Increased productivity: Organization is able to raise goodwill in the eyes of the
customer when they are provided with positive working environment. They feel more motivated
due to which productive outcomes is given by them. The staff members working in LV are
satisfied because the HR is maintaining healthy relation successfully. By this worker put their
extra efforts in order to complete the assign task in the set deadline. By this organization is able
to create tough benchmark for others in the global market.
Hence, it can be said that by maintaining good employee engagement LV is able to cut
down ratio of conflict and chaos in the premises. Moreover, they are able to retain potential
workers for longer time duration. By this best financial services can be offered to the customers
in the specified time frame. The HR decision making process such as, reward, training,
recruitment and development are impacted by increased productivity because manager design
future plan accordingly in order to create tough bench mark for competitors prevailing in the
open market place.
Role of leadership in keeping effective employee relation
In an organization leadership plays a vital role in establishing effective employee
engagement. This is because it directly influence the motivational level of workers working in
LV. Democratic leadership style is adopted in LV in which employees are invited to share their
views and opinions so that best decision can be taken for the betterment of both employer and
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employees. By doing staff members are assured that they are the valuable assets of the firm and
are encouraged to work effectively and efficiently (Stone and Deadrick, 2015). By providing
incentives and benefits to the workers for their best performance employee turnout ratio can be
reduced to a large extent. Appreciation, incentives, benefits and reward is another way to build
good relation between employer and employees. In order to survive in the intense competitive
world LV is focusing more on diversity policy because it assure that they have varied skill base,
professionals background, qualifications and experience so that they can treat all staff members
equally and fairly. This step indirectly raise the felling of equality and harmony in the mind of
the workers which results in productive outcomes as compare to competitors. However, LV
leaders are able to build healthy atmosphere so that set standards can be attained easily.
UK employment legislation
Equality Act, 2010: Government has formulated this act in order to safeguard employees
from any kind of discrimination in the working premises. Equality Act is implemented in the
working premises of LV in order to build positive working environment so that workers can be
focus on their work properly. By this employee's will come up with productive results.
Moreover, this act provide equal chance to all employees so that they can share their viewpoints
to the management and better decision can be taken. By this workers can be retained back
because it eliminate the biasness and similar opportunity is given the co-workers despite of any
religion, caste, background, gender and so on.
Employment Right Act, 1996: LV adopts this act because it covers all terms and
conditions related to job. The condition stated in the act are mutually adopted by both employer
and employees so that business can be operated smoothly in open market place. Organization is
executing this provision of employment Act at the workplace because by this adequate salary and
remuneration is is given to the employees (Cavanagh and et. al., 2017) . By this employees are
made satisfied and can be pushed to work better as compare to earlier. It affect the decision
making process so management consider all the necessary legislations before making the
decision.
The differences between legislation, standards and regulations are as follows:
Particulars Legislation Standards Regulations
Definition Set of laws suggested Set of morale rule It is explained as
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by a governing bodies
and made official by a
parliament.
designed which should
be obeyed in every
condition.
directives which is
enforced by law in a
nation.
Importance Its importance is to
safeguard the people
living in the nation.
This provide people
and firm with a basis
for mutual
understanding.
Additionally, it is
adopted as tools and
techniques so as to
facilities
communication,
manufacturing,
measurement and
commerce.
By adopting regulation
sin the premises it
directly aid workers to
better understand what
is demanded from
them and will happen
when they are violated
.
Company law, 2006, is explained as body of law which is formulated to protect the
relations, conduct and rights of person, businesses and companies. Example: LV decision
making process is impacted by contract law because it helps in creating distinguish legal entity.
All the long term plan need to be modified according to the company law in order to operate the
business smoothly in the marketplace. If it is violated it directly impact the goodwill of the
company and proper recruitment is not done for the vacant position.
Employment Right law, 1996 is well known as labour law. It builds relationship among
workers, trade unions, government and employing entities. Example: LV decision making
process is influenced by this law because impact every single department of the workplace.
Management need to arrange meetings and need to discuss need to make sure that they are
following government regulations wisely. Also, it assures fair and safe working atmosphere for
its employees. It helps to retain skilled and capable employees for longer time duration.
Contract law, 1994 is illustrated as agreement among private parties that is creating
mutual obligations and is enforceable by law. Example: The decision making process of LV is
affected by this law because firm has to frame policies which will be beneficial for both
employer and employees. By this future conflicts can be eliminated.
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CONCLUSION
From the above report it can be ended that human resource management plays a
significant role in an organization. It deals with the grievances related to salary, safety, benefits,
employee training, motivation, development and many more of the employees so that they can be
retained back in the working premises over the years. The purpose and functions of HRM is
studied in context of workforce planning and resourcing so that employees can be motivated to
perform better as compare to previous performance. The strengths and weaknesses of
recruitment and selection procedure is determined in order to make improvements in the loop
holes. However person specification is prepared so that right candidate is placed in the vacant
position. Types of interview questions asked from the applicant are evaluated properly in order
to make changes in the patter if necessary. By this suitable candidate is can be hired for the post
which will directly assist in raising the productivity of the business. Effectiveness of HRM
practices are studied so that productivity and profitability ratio can be raised. By this competitive
advantages can be gained against rivalry. Various legislation are acknowledged by the firm in
order to assure the employees that they are not exploited in any way.
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