Human Resource Management: Functions, Practices, and Impact on Organizational Profit and Productivity

This report explores the functions and purpose of HRM, its implementation in workforce planning and resourcing, and the strength and weakness of different approaches to selection and recruitment. It also discusses the benefits of HRM practices for employees and employers and evaluates their effectiveness in raising organizational profit and productivity. The report focuses on the perspective of Marks & Spencer, a leading organization in the retail industry.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Function and purpose of HRM and it implementation among workforce planning and
resourcing...............................................................................................................................3
Strength and weakness of different approaches related with selection and recruitment........5
TASK 2............................................................................................................................................6
HRM practice and their benefits among organisation for employee and employer...............6
Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity......................................................................................................................8
TASK 3............................................................................................................................................9
Importance of employee relation and its role to influence HRM decision-making...............9
Key elements related with employment legislation and their impact on HRM decision-making
..............................................................................................................................................11
TASK 4..........................................................................................................................................12
Application related with HRM practice...............................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
Human resource management is a department of an organisation or business which
manage and control the hiring, firing and management of workforce for performing all
operations with engaging effective employee's among organisation. HRM focus on functions of
employee's among business to implement effective work practices among all departments of a
firm. This report is written from perspective of M&S and it is leading organisation which operate
their offer different products including clothes, home, furniture and food items. Moreover, this
report highlights on purpose and function of HRM and it implement in the workforce planning of
an organisation (Cascio, 2015). Strength and weaknesses for different approaches related with
selection and recruitment will also include in this report. In the last, importance of employee's
relations and their influence on decision-making and benefits of different HRM practices for
employee's and employer is also focused in the upcoming report.
TASK 1
Function and purpose of HRM and it implementation among workforce planning and resourcing
Human or employee's are one of the most important asset of an organisation and in the
context of Marks & Spencer management is performing their work at global level. This refers
large number of individuals are engaged in company operations. Some functions and purpose
that are implemented for managing human resources at large level is mention as follow:
Mission Statement
The mission statement of Marks & Spencer is to formulate inspirational quality that is
accessible by others to formulate better results for all stakeholders.
Vision Statement
Marks & Spencer vision is to set and decide standards for all products that leads other
individuals to measure quality as per benchmarking.
Objectives of Marks & Spencer
 First objective of M&S is to formulate sustainable business to accomplish sustainable and
growth in market.
 Another objective of organisation is to improve profits by fulfilling customers needs and
wants.

 Last, objective of M&S is to act appropriately towards business situation for managing
better relation with organisation stakeholders.
 Recruitment and selection- Recruitment and selection is an important function for the
administration department of human resources. All departments include workforce or
human to perform their operations in an organised manner. So it is essential for M&S
human resource department to recruit potential candidates for performing company
operations with more productivity. Internal and external are two different sources for
completing the process of recruitment and selection in an organised manner. Moreover,
recruitment function help for managing resources by completing all task in an accurate
manner (Chukwuka, 2015).
 Planning of workforce- The term planning to manage workforce is an important part for
the business administration which include different stages of recruitment. Like, the first
strategy relates with managing workforce to recruit effective employee's. Another aspect
for business define current workforce requirements to analyse the vacant position. The
workforce planning leads organisation to set future requirements of individuals for
recruiting potential and capable workforce for organisation.
Purpose of Human resource management
 Benefits- Formulation of an effective administrative employee benefit program is defined
as a recruitment and retention tool which is leads organisation to select capable
candidates. Health insurance, retirement plan etc. are different benefits which is provided
by personnel manager of M&S (Cooke, Saini and Wang, 2014). In the context of
workforce planning effective and potential benefits programs leads management to attract
and retain capable candidates of within organisation.
 Performance appraisal- Human resource department work with other departments for
evaluating the employee's performance. Personnel manager of M&S is responsible for
formulating a complete performance appraisal process. The performance appraisal
process is engaged among M&S stores and other administration departments on weekly
basis. This results that performance appraisal process is simple and straight which leads
organisation to generate unbiased decisions in performance appraisal process.

Strength and weakness of different approaches related with selection and recruitment
There are three approaches is implemented by departments of M&S which includes direct
method, third party method and indirect method. Along with this all departments are necessary
and important for managing human resources in an organised manner. Strength and weakness of
all three approaches with their explanation are mention as below:
Direct method- As per approach of direct method M&S administration department
directly interact with individuals. Telephone is one of the most effective medium which is used
by human resource department of M&S to approach candidates on direct basis.
 Strength- Trustworthiness is one of the major strength related with direct approach of
recruitment because the probability of fraud is too low as compare to other method of
selection and recruitment (Hornstein, 2015). Moreover, direct approach is a fast process
for selection of individual due to direct interaction with capable candidates.
 Weakness- Direct approach method is a complex process to reach towards large number
of candidates and it is a limited process. Example- Human resource manager of M&S
also manage issue of large existing workforce. So hiring in bulk is a complex process
with use of direct approach method.
Interviews-Assessment- One of the most common term that is related with assessment
interview is similar with the regular job interview. But the main focus of interview assessment is
to focus directly on personality. HR staff member of Marks & Spencer is responsible to conduct
interview.
 Strength- Interview assessment aids the individuals to enhance and improve the
knowledge of individuals towards a specific skill. Marks & Spencer HR screen applicant
skills with implement of interview-assessment.
 Weakness- Some interviewer implement critical aspects that generate complexity for
applicant to analyse and understand traits of individuals.
Indirect method- Number of channels is engaged for recruiting the candidates so it is
easy to monitor the resume of various candidates. Moreover, by use of different channel
organisation also reach and attract large number of workforce.
 Strength- It is a fast process to fill the vacant seat in huge numbers so the recruitment
process is completed in less time (Klingebiel and Rammer, 2014). Moreover, candidates
are hired by completing process with engaging professional persons in recruiting.

 Weakness- Biased and fraud decisions to select candidate is a major weakness of the
indirect approach or method of recruitment. Costing of indirect method is also high that
reduce profits for business.
In-tray test- An In-tray exercise is defined as a simulation that is used to assess and
understand the aptitude of potential employee's as a part of employment selection process.
Candidates will present information according to business-related scenario as it is related with
business task including telephone, mails and calls etc.
 Strength- With the aspect of In-tray test M&S Human resource manager understand and
work according to business related aspect that make induction of new individual with all
persons.
 Weakness- Applicant face difficulty to work and consider interview according to the
business perspective. This create complexity to complete work in with a systematic
process.
Third party method- Third party method is included among organisation process that
make contract on the behalf of administration. The risk related with recruitment process of third
party is high so human resource department of M&S monitor recruitment process on constant
basis.
 Strength- Third party recruitment process is beneficial for managing effective
relationship with candidates. Strength of third party involvement is used to evaluate all
individuals at time of recruiting.
 Weakness- Probability of fraud related with third party method is high because the
involvement of human resource department of M&S is too less.
TASK 2
HRM practice and their benefits among organisation for employee and employer
HR practice set and implement work goals related with the performance of workforce. It
helps organisation to improve performance of employee's by monitoring their performance on
regular basis (Kramar, 2014). The main use of HR practice helps manager to work with more
efficiency in organisation. Some different practices or approaches which is used by human
resource manager of M&S are mention as follow:

Employee training and development- Training provide proper learning related with
technology that is engaged by department of M&S. Moreover, motivation of trained employee's
are high. So the practice of training and development leads individuals to perform their role with
more productivity (Longoni, Luzzini and Guerci, 2018). Similarly, Training engage interaction
between employee's and employer which is useful for generating good relationship among
between both of them. Further, proper training support manager to increase their profitability by
guiding employee's for managing task in an efficient manner.
Employee training and development- Training provide proper learning related with
technology that is engaged by department of M&S. Moreover, motivation of trained employee's
are high. So the practice of training and development leads individuals to perform their role with
more productivity (Longoni, Luzzini and Guerci, 2018). Further, Training engage interaction
between employee's and employer which is useful for generating good relationship among
between both of them. Further, proper training support manager to increase their profitability by
guiding employee's for managing task in an efficient manner.
Employee motivation- Enhancing the workforce motivation is an effective key that is
used to retain employee's into the administration department. Team spirit is an effective approach
that support M&S employee's to perform their work with high motivation. With increase in
employee's motivation the retention rate for employee's is increased. This also result that the cost
for recruitment process is low which helps in increasing profits for M&S.
Workplace flexibility- The convenience related with working place is more augmented
and this also help employee's to spend more time for their personal work such as family meet etc.
Moreover, it is also easy for workforce to manage work-life balance that improves motivation of
workforce to work with more efficiency. Flexibility within the workplace leads administration
department to perform action that add more value for the happiness of individuals. Further,
happy workforce perform work on constant basis by reducing the number of absenteeism from
workplace.

Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity.
Different number of human resource management practice is beneficial for improving the
profitability and productivity of employee's. Some effective HRM practices which boost the
profits for organisation are mention as below:
Strategic management- Marks & Spencer is performing their work at global level and it
is one of the oldest UK based organisation. The practice of employment training and
development leads management to work with advanced strategy as it is useful for managing
human resource management of organisation (Mone and London, 2018). Recruitment and
selection process is an important function of human resource department. Moreover, training and
development aspect require an appropriate strategy formulation which helps in improving
productivity and profitability with a systematic manner. It also leads organisation to improve
their work performance by completing their task in stipulated time period.
Policy formulation- The term policy formulation relates with selection of employee's
and training that is used for improving profits. Moreover, policy is identified by management to
complete all work according to practice of goals and objectives. Employee's motivation is an
important aspects that is used for managing work in an appropriate manner that is used in
managing the work practice for enhancing productivity of organisation in order to complete all
work with more efficiency. Similarly, with the implement right and appropriate policy it is easy
to work with several techniques that helps individuals to understand current aspects of business.
In the context of M&S, human resource management is focused to perform all work as per
decided strategy.
Workplace environment- With the analysis of human resource management it is
identified that positive workplace environment generates enhance motivation of employee's
which leads personnel for complete the process of organisation. This is also used to manage
human resource as per expertise or professionalism. Moreover, it also refers that workplace
environment is boost the motivation of employee's by generating positive work environment for
organisation (Moutinho and Vargas-Sanchez, 2018). In the context of M&S workplace
environment is managed with the purpose of training that is used in improving profitability of
business. With analysis of current environment conditions human resource manager of M&S
implement effective practice to overcome from organisational challenges. It also improve

company productivity through performing work and managing practices with existing market
conditions. Workplace flexibility is an important practice for improving the organisational
productivity and profitability by completing all work as per current conditions.
Training and development- There are different benefits exists that are related with the
training aspects and it handle the work performance of M&S by improving the moral of
individuals that improve skills of individuals to boost company profits. M&S also recognise and
implement training strategy that improve employee's skills. This enhance business performance
as potential workforce complete work with more productivity.
Reward- The term reward practice refer to improve business performance by offering
rewards to individuals for their performance. This refers reward increase in the individual skill
through boosting the value to individuals which is assigned to persons according to work goals.
M&S implement reward approach to generate strong commitments among individuals for
accomplishing company goals in minimum time period.
Career management- The business perspective of Marks & Spencer is product as well
as service oriented so it is an effective approach that encourage individuals to solve their
problems. Decision-making plays an important role for a person as it help applicant for making
better decisions that allow HR staff to work as per personal and career development. This results
both individual and organisation complete task by collaborating with each other.
TASK 3
Importance of employee relation and its role to influence HRM decision-making
Good relationship work as the base for employee's and it is highly required among all
departments of organisation. Employee's relation is also beneficial for meeting with the
performance of business as per different methods. Human resource management focus on
reducing the challenges related with engaged workforce in a business. This is because bad
relationship between M&S employee's results in minimising the coordination among all
departments (Nyberg and et. al., 2014). Apart from this, good relationship between employee's
offer several advantages related with administrative process. Some important aspects related with
employee's relationship are mention as follow:
Role of trade union- The main objective of trade union is to sustain and enhance
conditions and terms related with work that is used by team members for improving company

performance. It it also done by M&S through collective bargaining with employers. This refers
by recognition of trade union company make results through engagement of all individuals in
decision-making.
Collective agreements- The term collective agreement is defined as a written agreement
which undertake and cover individual groups by deciding term and conditions of employment.
An employer formulate collective agreement with workforce that makes better decisions by
completing all task according to employee's decisions. So by involvement of all persons in
decision-making employees relations is improved.
Discipline- Individuals who are engage in company process perform their work with the
discipline aspects. In the context of M&S it is analysed that discipline improve company process
as it helps to make company decisions. With engagement of individual decisions person
formulate aspects for accomplish of task and objective in systematic manner. This also results
HR make decisions according to fair based decisions.
Increase in communication- Communication among the workforce of organisation is
improved that demonstrate the effectiveness of decision-making is also improved. According to
the present aspects of employee's management improve their work performance as it leads in
circulating the process more effective. The influence of improve in communication area for
business leads organisation to enhance their decision-making. This define process for performing
business operations become smooth by generating effective interaction among all employee's.
Less conflict- The organisation improve the conflicts that is used to meet and discuss for
the position of business as good relations between employee's reduce the probability of
formulating conflicts among organisation. In the context of M&S, good communication is the
key for improving the knowledge level regarding operations and functions of business. Further,
the major benefit that is related with less conflicts aspects is to enhance organisational
productivity (Schalk, Timmerman and Van den Heuvel, 2013). Further, decision-making of
organisation is influenced because individuals from all level and departments are engaged in
M&S project.
Low efforts of individuals- Co-ordination between company workforce or employee's
generates better and effective relationship which is used for completing the organisational
process in a systematic manner. Marks & Spencer employee's are more motivated to manage
work in an organised manner because better results are obtained with the minimum use of

resources and individual efforts. The employee's of organisation is impacted because newly
recruited individuals are not serious about work if management offer them flexible conditions to
work.
Improved organisation structure- With minimising the issue of employee's human
resource management of respective organisation improve employee productivity. Moreover,
organisation structure perform an important role in business so it also influence decision-making
of business (Waddock and Bodwell, 2017). Example- with improving the organisation structure
of business it is easy to boost company performance that enhance profitability of business. The
impact of decision-making define aspects which is used in implementing right and accurate
decisions for business.
Key elements related with employment legislation and their impact on HRM decision-making
Their are various legislation relates with human resource management of Marks &
Spencer and it is used for analysing the effectiveness of internal process. This defines that the
employment legislation of Marks & Spencer business explain some essential aspects that are
mention as follow:
 Data protection act, 2018- With the implement of data protection legislation
organisation ensure and maintain that privacy of confidential information and data related
with employee's is private among workplace. From the perspective of M&S large number
of individuals are engaged in company operations so maintaining the privacy is a key
objective of data protection law. Moreover, it is also useful for administration because
data protection law improve brand image of organisation. This also relates with process
of information as it is used to make provision as per application of data. Further, M&S
decisions are impacted because employee's complete work as per their provision.
 Equality act, 2010- The equality act is implemented among the human resource
management to minimise the discrimination between all employee's. Moreover, this is
also beneficial for formulating equality among workforce as various individuals are
engaged in company operations who belong to different backgrounds. Along with this
equality act, 2010 also enable individuals to behave equally with all persons (Wilton,
2016). This also dictate that human resource manager of M&S engage all persons to
behave equally. It also impact on decision-making of persons because employee's are
more motivated with unbiased decisions.

 Employee's relation act, 2000- The provision of organisation is implemented among
administrative process as it is used for maintaining the relationship with workforce.
Moreover, with the misbehaviour and abuse aspects culture of organisation is managed as
per administration department of M&S. Along with this decision-making process is
impacted due to employee relationship as better workforce relation leads to enhance
company productivity in an organised manner by improving coordination among all
employee's.
TASK 4
Application related with HRM practice
The term person specification relates with the outline and it is used for managing the
educational qualification. Training, experience and personal aspect refer to the candidates and
this also posses about various position that match with offer of organisation.
From past few years, M&S is performing their role with more efficiency and effectiveness and it
helps management to complete all task in an organised manner. In the context of HRM practice
this is identified that organisation require Financial Analyst to generate more profits. From the
perspective of company this is identified an experience employee's perform work with more
efficiency. One of the major gap in skills which is related with applicants is the low skills and
capabilities that generate issue for interviewer to identify right candidate.
Question related with job role of financial analyst
Q1) What are the current financial market conditions of Europe market?
Q2) What is your perspective regarding the cash flow of organisation it is appropriate for Marks
& Spencer?
Q3) Did financial market also improve the goodwill of company through managing financial
conditions of business?
Q4) Which software tool is best for managing and recording financial data of an organisation?
Advertisement for the role analyst
ANALYST OF FINANCE JOB ROLE
Personal financial analyst typically with a bachelor's degree as well as master degree to manage
and control data or information related with accounts and financial planner of organisation.

Quick facts
Pay- $30 for per hour
Education- Master's Degree
Work experience- One year
On the job training- For three months
Time to join- Immediate joining
Opportunities- To work with multi-national organisation
JOB OFFER LETTER
Name of applicant
Organisation name- Marks & Spencer
Congrats, Our organisation is ready to work with you and we are just few formalities away for
getting our work done. Take the time for review our formal letter or offer it undertakes essential
details about the compensation, benefits and conditions related with workforce. Marks &
Spencer is offering full time employment for the position of analyst. For the job role
organisation offer you to get salary on weekly basis. Please indicate the agreement with terms
and accept it before expiration date of job offer.
Sincerely
HR manager
Marks & Spencer
Job specification for the requirement of Analyst in M&S.
Person Specification
 Post- Analyst
 Department- Financial
 Key- It demonstrate what aspect are required for the job role.
a) Form b) Interview c) Role
Attribute Essential Desirable
Experience and Qualification  High school degree in  Financial course

finance department.
 Certificate of financial
knowledge.
knowledge with
graduation degree.
 One year experience in
any financial company.
Skills and Knowledge  Desirable knowledge
related with financial
aspect of business.
 Ability to work with
deadlines.
 Knowledge related
with financial
software.
 Minimum 80% marks
in financial test.
Advantages and dis-advantages related with method of advertising jobs
Marks and Spencer recruit individuals with both sources that includes internal as external
source of recruitment. The process related with the job role of financial analyst is filled by the
involvement of personnel manager as it is used to recruit capable and potential candidate for
vacant job role of business.
Internal source of recruitment- Recruitment process is completed with engagement of
internal employee's. Advantage- Employee's referral reduce cost of recruiting which is useful for improving
company profits. Another opportunity define internal workforce is motivated because of
engagement in company functions. Dis-advantage- Due to the diversity aspect among business it is complex to perform
work with internal aspects of employee's. Further, internal recruitment generate biased
decisions as it is related with personal reference of employee's.
External source of recruitment- The term external source for recruitment is utilised by
M&S to recruit applicant from external source.
 Advantage- To recruit individual who has knowledge related with current financial
aspects and software. Another advantage of external recruitment leads to reach at a
broad level with minimum cost.
 Dis-advantage- Morale of internal employee's is reduced if they are not promoted for
vacant seat. Due to large number of applicant screening personnel manager implement
more time.

CONCLUSION
As per the analyse of above report it is concluded that human resources are one of the
most important asset for organisation. Large organisation improve their productivity with the
support of human resource management as it leads to recruit capable and selective candidates for
business. The main focus of HR is to generate effective cooperation and coordination among
workforce in order to bound individuals for improving company productivity. Good
remuneration, performance appraisal, training and development etc. are some of the main aspects
related with role of human resources workforce. In the last, an effective HR department improve
overall productivity and profitability with the implement of effective HR practices in
organisation.

REFERENCES
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Cooke, F. L., Saini, D. S. and Wang, J., 2014. Talent management in China and India: A
comparison of management perceptions and human resource practices. Journal of World
Business. 49(2). pp.225-235.
Hornstein, H. A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management. 33(2).
pp.291-298.
Klingebiel, R. and Rammer, C., 2014. Resource allocation strategy for innovation portfolio
management. Strategic Management Journal, 35(2), pp.246-268.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management, 25(8), pp.1069-1089.
Longoni, A., Luzzini, D. and Guerci, M., 2018. Deploying environmental management across
functions: the relationship between green human resource management and green
supply chain management. Journal of Business Ethics. 151(4). pp.1081-1095.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Nyberg, A. J. and et. al., 2014. Resource-based perspectives on unit-level human capital: A
review and integration. Journal of Management. 40(1). pp.316-346.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations
influence decision making on e-HRM applications. Human Resource Management
Review. 23(1). pp.84-92.
Waddock, S. and Bodwell, C., 2017. Total responsibility management: The manual. Routledge.
Wilton, N., 2016. An introduction to human resource management. Sage.
Online
Effective HR Practices drive profit. 2012. [Online] Available Through<https://www.shrm.org/hr-
today/news/hr-magazine/pages/1112focus.aspx>.
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