Human Resource Management: Functions, Approaches, and Benefits

This article provides an overview of Human Resource Management (HRM) in organizations. It discusses the functions of HRM, such as workforce planning, recruitment and selection, performance management, and training and development. It also explores the strengths and weaknesses of different approaches to recruitment and selection. Additionally, it highlights the benefits of HRM practices for both employers and employees. Finally, it examines the effectiveness of HRM practices in improving the profitability and productivity of organizations.

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Company Background.................................................................................................................1
Purpose and Function of Human Resource Department..............................................................2
Effectiveness of HRM Function to Full Fill Business Objective of Organization......................4
Strengths and Weaknesses of Approaches to Recruitment and Selection...................................4
Benefits of Human Resource Management Practices.................................................................7
Effectiveness of HRM practices for Profitability and productivity of organization....................8
Methods Used in HRM Practices to Achieve organization Objective.........................................8
Factors that can Affect decision Making of Human Resource Management..............................8
Key Element of Legislation and Their Impact on Decision Making of HRM.............................9
Application of HRM practices in Work Related Context............................................................9
Rationale of Work Related Context...........................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human Resource Management can be explained as a strategic approach that is used by
various organization to effectively manage stakeholders that are associated with company with
different personal interests. Human Resource Management is one of most important part of an
organization and its various function. The purpose of human resource is to improve the
performance of firm by effectively manage people related to company. Brief introduction to
Tesco PLC will be provided in report. This report will be providing brief information of human
resource department of Tesco PLC. Key roles and responsibilities of Human resources
department of company will be evaluated in study (Armstrong and Taylor, 2020). Various
approach of work force planning, recruitment, selection, development & training, performance
management and reward system will be explained in study. Different methods that are used in
Human Resource practices of Tesco PLC will be evaluated in report.
Company Background
Tesco PLC is a British multinational grocery store and general merchandise retailer. It is
a public limited company which was established in year 1919 by Jack Cohan in Hackney,
London, United Kingdom. Tesco PLC is considered as one of the largest retail store in United
Kingdom. Tesco PLC is operating on 6800 location around world in different countries.
Mission Statement of Tesco PLC
The Mission Statement of organization is - “We make what matters better, together”. The
mission statement, vision and values are interconnected to each other and help to shape the
identity of company in global market.
Purpose of Business
As per the organization their their main purpose if to “create value for customer to earn
their lifetime loyalty.” a wide range of products and services related to grocery products, house
hold products, clothing and insurance are offered by organization to its customers in order to
gain their loyalty.
Main Business Objective
The main business objective of the Tesco PLC is to be a global leading retail super
market and provide good quality product and services to the customer at low cost. This is
objective of the organization to provide products and services that are good in quality and
cheaper then then the products and services of other market competitors in local and international
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market. Some other objectives of Tesco PLC are related to the requirements and demands of
customers. It is their aim to provide products and services to customers in effective and right
manner to offer better satisfaction to them. To meet this objective Tesco PLC is regularly
working on making improvement in their operations to effectively serving shoppers.
Purpose and Function of Human Resource Department
There are different functions are performed by Human Resource department to manage
work force of organization to meet business goals of organization effectively. Some of the main
functions that are performed by human resource management are work force planning,
recruitment and selection, development and training, performance management and reward
system. This are common function of Human resource department to manage work force for
Tesco PLC.
Work Force Planning
This function also can be consider as human resource planning. The main purpose of this
function is to make effective plan for work force management in order to full fill work force
related requirement of organization. This is all about finding work force related requirement of
company. The approach which is used by the Human Resource department to effectively plan
workforce of company is known as strategic approach of workforce planning. This approach is
is consists of different steps that can help Human resource department to make effective plan for
work force management (Bratton and Gold, 2017). This approach starts with analysis of skills
and competencies that are available in organization to known the current strength of company. In
next step long term and short term goals are defined by HR department in terms of requirement
of organization. The differences and gaps between organizational goal and and current work
forces capability and capability are evaluated in order to take initiative to meet work force
related requirements of Tesco PLC.
Purpose of Work Force Planning – Main purpose of work force planning gaps in current work
force are analysed to take further actions for work force management. The requirements that are
found through this process are full filled by HR department by performing recruitment and
selection, training and development, performance management and Reward system.
Recruitment and selection
In this function the role of HR department is to attract people in order to work for
organization and selecting the best candidates for company. The process of recruitment and
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selection can be explained as positive method that includes searching operation for prospactive
source where potential employees can selected. There are different approaches of recruitment
and selection are used by HR department to perform selection and recruitment for Tesco PLC.
Purpose of Recruitment and Selection - The main purpose of this function is to appoint candidate
who is best for open position with in the organization.
Performance Management
In the performance management process this is function of the HR department to ensure
to keep work force of company productive and engaged in company operations. In this process
main function of HR is to provide effective leadership, clear goal setting and take open feed back
to maintain performance of organization (Chelladurai and Kerwin, 2018). There are different
tools and techniques are used in organization that can help HR department to effectively manage
the performance of organization.
Purpose of Performance management -The approaches that are used by HR for performance
management are- annual performance review and 360 feedback tool. These tools are used by the
organization to meet future requirement of organization that are related to work force.
Training and Development
This is important for the HR department to prepare work forces that is efficient to meet
the future objectives and targets of organization. In this function various training development
sessions are designed by the HR department. In this process several investment are made by
Human Resource Department to meet performance standards in employees.
Purpose of Training and development – Purpose of the training and development is to improve
their behaviour skills and knowledge in order to achieve performance targets of company.
Reward System
Employee motivation is one of main function of HR department in Tesco PLC. To
motivate and encourage employees frequently there are some policies are adopted by Human
Resource department that allows them to reward employees in fair work, high efficiency and
consistency. Rewards like praise, avenue for growth and development are provided to the
employees.
Purpose of Reward Management – The main purpose of reward management process is to
maintain high motivation and satisfaction in employees by providing them reward on effective
performance and encourage other employees to work efficiently Organization.
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Effectiveness of HRM Function to Full Fill Business Objective of Organization
There are various functions are performed by Human Resource department to Manage
required skills in work force of company. The functions like work force planning, performance
management and reward management help the organization to meet business objective by
improving the motivation level of work force. The other approaches like recruitment and
selection, training and development help HR department to improve the talent in organization by
recruiting skilled candidates and train current employees with appropriate skills. This how
functions that are performed by HR department are effective to meet business objective of
company.
Strengths and Weaknesses of Approaches to Recruitment and Selection
There are two type of approaches are used by the Human resource department which are
internal and external recruitment. Both approaches are effective to full fill workforce related
requirement of Tesco PLC.
Internal Recruitment
In this approach Human resource department looks to full fill current opening in
organization by existing workforce of company. There are different processes are used by the
HR department to fill vacancy in organization which are- Transfer, Promotion and Present
employee.
Transfer- In this process the current employee of organization is shifted to other location with
same job profile to full fill job opening in company (Brewster and Hegewisch, 2017). In this
process employees are transferred between different company locations to full fill vacant place.
Advantages-
1. No training is required for employees in this approach.
2. High cost effective approach.
Disadvantage-
1. This is temporary solution for particular job opening.
2. It can reduce the employee motivation.
Promotion- This is one fo the best approach that can be used by GR department of Tesco PLC to
full fill open place in work force of company. In this approach suitable employee from current
work force is promoted to higher rank to full fill job opening in particular location.
Advantages-
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1. it can motivate other employees to perform better to achieve growth in company.
2. Cost Effective process.
Disadvantage
1. In this process number of employees remain same in company.
2. It can lead to conflict between employees.
Present Employee
In this approach the existing employees of organization is provided with the
responsibility of the vacant position to full fill the requirement from the particular job opening.
Advantages-
1. Cost effective process.
2. Time efficient.
Disadvantage
1. It can increase work load on current work force.
2. It can reduce the performance of employees.
External Approach of Recruitment Selection
Some of main external sources of recruitment and selection that are used by Tesco PLC
are- advertisements, employment exchange, Pool campus recruitment and Recommendation of
current employee.
Advertisements
In this external approach of recruitment and selection, HR department of Tesco PLC try
to attract different suitable candidate by using news papers and articles to publish job
advertisement. This can help them to attract large number of candidate for particular job opening
in organization.
Advantage-
1. High range of selection are available to select suitable candidate.
Disadvantage
1. It is a time consuming process.
2. It need high capital to organise selection process.
Employment Exchange
Employment exchange is also one of process that can be used by the HR department of
Company. In this approach Human Resource department of organization can hire other external
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organization as source of recruitment, this is process also can be considered as third party
recruitment process (Sparrow, Brewster and Chung, 2016). In this process other companies
provide suitable employees to full fill particular job opening in Tesco PLC.
Advantages
1. This approach is time efficient.
2. Help to hire skilled and well educated employees.
Disadvantage
1. Lack of control Human Resource department on recruitment process.
2. Communication issues between candidates and organization.
Pool Campus Recruitment
In this approach Human Resource department of Tesco PLC launch college placement
drive in order to find fresh talent to fill current opening in company. This is most common
practice that is used by the business organization to meet work force related requirement.
Advantages-
1. Provide high range of selection to Human resource Department of organization.
2. It can save time for company.
Disadvantage-
1. After this process recruits need to be trained with in organization.
2. Recruited employees do not have experience of the corporate environment that can
reduce their effectiveness in organization
Recommendation of current Employee
There are different employees works in organization who can recommend suitable
candidate for particular job opening in organization (Guest, 2017). In this process Human
Resource of organization ask to the their current employees to assist them in the recruitment
process.
Advantages-
1. Reduce the cost of recruitment.
2. Help the HR department to select right candidate for particular job opening.
Disadvantage
1. It can make the process of recruitment biased.
2. It can affect the morals of employees.
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Benefits of Human Resource Management Practices
There are different practices are performed by the Human Resource department that can
help employees and organization to get different benefits. These practices of Human Resource
can provide different benefits to employers and employees
Benefits for Employer
Some of main benefits of Human Resource practices for Employer are-
1. This practices can help employer to develop better work culture with in work place of
organization.
2. It can help Human Resource department to manage conflicts with in work place.
3. The practices like training and development are effective to improve the over all
performance of organization.
4. These operations and practices of Human Resource department improves the relationship
between employer and employees of organization.
5. Human resource management practices can help to generate high marginal profit by
improve the performance of employees with in organization.
This is are some common benefits of Human Resource Management practices for Employer
organization.
Benefits for Employees
Human Resource Management practices can provide various benefits to employees in
different manner. For example-
1. Human Resource Management can help the employees to resolve their conflicts with
other employees and senior employees with in the work place.
2. Training and development process can help them to learn and develop new skills that can
help them to grow professionally.
3. This practices that are performed by Human Resource can help the employees to develop
better relationship with other employees with in organization.
These are some benefits of Human Resource management practice for employees of organization
(Banfield, Kay and Royles, 2018). This practices also can help the organization to keep
employees satisfied with their role in work place.
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Effectiveness of HRM practices for Profitability and productivity of organization
There are different practices are performed by the Human Resource department of Tesco
PLC to improve the profitability of company in the target market. The main operation of the
Human Resource department is to manage the work force of the organization effectively to
improve the productivity and profitability of company in the target market (Wilton, 2016). The
most common practices that are performed by Human resource Department are related to
enhance the performance of the employees of company to gain high productivity in internal
performance of the organization are- Work force planning, training and development,
performance management and Reward system.
Methods Used in HRM Practices to Achieve organization Objective
For example the HR department of Tesco PLC performs work force planning on frequent
basis in order to meet the future skill that are required to meet specific requirement of the
organization. For the process of recruitment and selection HR of Tesco Developed specific job
description to make process of selection and recruitment easier and effective. This practice can
help Tesco PLC to improve the work force efficiency to gain higher profit (Brewster, 2017).
Specific training and development processes are used by the organization to improve skills of
their employees to reduce the chances of failure in the organizational operations.
Factors that can Affect decision Making of Human Resource Management
In different ways employee relation can affect the decision making process of HR
department. The factors can affect the decision making process human resource department are-
employee motivation, factors that can affect the decision making of Human resource
management are- Communication, Organization culture, reward and recognition, vision and
values. These are common factor that can affect decision making of organization in different
manner. For example, poor performance of employees can affect their performance in
organization in target market. This reduced performance of organization will force the Human
resource department to make suitable change in their decisions regarding training and
development to meet performance standard to achieve targets and business goals of company.
Conflicts between employees also can affect decision making process of HRM. This can force
HRM to implement different communicative sessions in order to reduce number of conflicts
between employees. This is how concerns related to employee relation can affect the decision
making process of Human resource management.
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Key Element of Legislation and Their Impact on Decision Making of HRM
Some of the key element of the legislation are- equal employment opportunity,
affirmative actions, sexual harassment, working time regulations, working conditions and
welfare, safety and health of employees. These are some element of legislation that are part of
employment contract (Brewster, Mayrhofer and Farndale, 2018). This factors can affect the
decision making of HRM. For example sexual Harassment can force the decision making related
to the anti-discrimination policy of Human Resource Management. It can force them make
effective decision to avoid issues like sexual harassment, affirmative actions. All the elements
that are mentioned above are part of employment agreement and this is duty of HRM to not to
violate employment contract. This is how organization HRM have to consider these elements in
the process of decision making.
Application of HRM practices in Work Related Context
Job Specification
Tesco PLC
Job Title Operation Management
Salary 250000 Euros per year
Location London, United Kingdom
Department Operation Department
Reporting to Senior Store Manager
Responsible for Operations of particular Tesco store.
Interview Questions
1. Which thing you like most about job of operation manager?
2. What is your experience with logistic management in previous job.
3. According to you which information system is best suitable for operation management?
4. How you will deal with issues and challenges with in operation management.
5. Why you want join
Score Sheet
0 1 2 3 4 5
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Question 1
Question 2
Question 3
Question 4
Question 5
Selection Criteria
Score Result
0-5 Reject
5-10 Reject
10-15 Review
15-20 Round two Interview
20-25 Selected
Offer Letter
Date- __/__/____
Name of Candidate- _________
London, United Kingdom.
Zip Code- XXXXX
Dear Candidate,
On behalf of Tesco PLC , I would like to offer you employment with our company
starting on __/__/____ with following term and conditions.
You will serve as Operation manager reporting to Senior store manager at London.
Your basic salary will be 250000 Euros per year paid on monthly basis. You will receive initial
hiring bonus of 1000 Euros.
Please send a signed copy of this offer letter not later than __/__/____ expressing your
acceptance of the job offer and term and conditions of the employment.
For additional information, do not hesitate to give a call or E-mail provided contact of
company.
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Sincerely Yours
Human Resource Manager
Tesco PLC,
London, United Kingdom.
I hereby accept and approve all the term and condition of organization.
(Signature)
Date- __/__/____
Rationale of Work Related Context
There are different practices re performed by Human Resource department related to the
recruitment and selection process. The practices like preparation of job description, interview
question, interview score card and job offer letter are important for the Human Resource
department to full fill all the requirement of the recruitment process. This practices can help the
HR department to effectively manage their various functions with in Tesco PLC.
CONCLUSION
This report is concluding importance of Human resource department and their range of
functions with in Tesco PLC. Various purposes and functions of HRM that are applicable to
work force management will be explained in the report. Strength of recruitment process also ha
been studied in report that is used by Tesco PLC on regular basis. Different benefits of HR
practices has been evaluated in research for both Employees and employers. Effectiveness of
various HRM practices also has been analysed in the study. Key elements of legislation and their
impact on decision making of HRM also has been analysed in study. The practices of HRM
related to work contest has been presented with various exampls.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35). Routledge.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal. 27(1). pp.22-38.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Wilton, N., 2016. An introduction to human resource management. Sage.
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