This report analyzes the purpose and function of Human Resource Management in LV, including recruitment and selection, benefits of HRM practices, and evaluating effectiveness of HRM practices in terms of raising organizational productivity and profit.
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HUMAN RESOURCE
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TABLE OF CONTENT INTRODUCTION...........................................................................................................................3 P1. Purpose and function of HRM in LV....................................................................................3 P2 Strengths and weakness of recruitment and selection............................................................5 P3 Benefits of HRM practises in LVs.........................................................................................7 P4 Evaluating effectiveness of different HRM Practices in terms of raising organizational productivity and profit.................................................................................................................8 P5 Significance Of Employee Relations In Respect To Human Resources Management Decision Making........................................................................................................................10 P6 Key Elements of Employment Legislation...........................................................................11 P7 Job Specific..........................................................................................................................12 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................16
INTRODUCTION Human Resource Management is the strategic approach of managing people in an organization. The main functions of Human Resource Management include but are not limited to recruiting, selecting, inducting new employees, maintaining and motivating skilled workforce, maintaining amicable relations between organization and trade unions, addressing issues and grievances faced by current employees, creating a safe and healthy work environment as per the legal laws etc.This report analyses UK's biggest friendly society LV, a member owned company whichprovidesvariousfinancialservicesincludinginvestmentproducts,lifeinsurances, pensions etc. to over 5.8 million customers in UK.The purpose of this report is to gauge the effectiveness and scope of Human Resource Management in regard to supplyingLVwith talent and skills required to meet its business objectives, to check the efficiency of vital elements of Human Resource Management inLVand to evaluate any internal and external factors which can affect Human Resource Management's decision-making, including employment legislation in LV. P1. Purpose and function of HRM inLV Human resource managementrefers to managing relation between employees and management. It focuses on the objective and outcome of HRM functions (Hecklau and et.al., 2016.). Its main objective is to develop employees as well as organization needs. In other words itcanbesaid HRMistheprocessofrecruiting,selecting,hiringof theemployeesin organization for work. This is known as Human Resource Management. Nature and Scope of HRM: Human resource management is the key element for every organization. If there will be nomanpower,workcannotbeperformedinanorganization.HRMhelpsinachieving organizational goals and working collectively with the employees where their efforts are integrated with overall objectives. The HR managers ofLVoften try to develop a people centric approach that helps them in integrating their objectives with the employee performance and this is done continuously. The main purpose of HRM is to encourage employees to give their best to the organization. It tries to put employees in different tasks or difficult task to see good outcome (Keegan and et.al., 2018).LVincludetomaintainacoordinatedrelationbetweenemployeesitsdifferent departments and the organization. It focuses on result rather than on rule.
On the other hand, scope of HRM is more of a personal aspect. Personal aspect, i.e. it is concerned with manpower planning which are recruitment, selection,transfer, promotion, training and development etc.LVfollows all the manpower planning procedures in their organization. It also looks after the welfare aspects in which working condition, amenities, canteen, and health facilities are involved. Functions of HRM: For managing human resource, certain criteria or the activities that must be followed i.e. Recruitment,selection,trainingand development,performanceappraisal, compensation& benefits, health & Safety etc. (Sanders and Yang, 2016). These all are the major function of HRM and is being applied inLV. Here are some basic functions which are being discussed below:- Recruitment: -Recruitment is the process of choosing the candidates for the job by screening, by their curriculum vitae and by job portals etc.LVinclude various sources of recruitment which are internal and external for searching candidates for organization. Selection: -Selection is the process of choosing right candidate, at right time, at right job the candidates which are shortlisted in recruitment process are further transfer in selection process in which they have to cross from different selection processes which are interview, aptitude test, physical test etc.LVinclude various selection process techniques which are interview, physical examination, etc. Training and Development: -Training and development is process of guiding the employee to do work in organization because without training employee cannot perform work. Development on the otherhand signifiesimprovementor further enhancingtheexistingskillsof the employees.LVconduct various training & development programmes for its new employees. Workforce Planning: Workforceplanningreferstotheprocessofidentifyingneedsandwantsofthe organization and hiring or developing the existing employees accordingly.LVfollows workforce planning criteria which help them in meeting with organizational objectives.LVgive more emphasis on workforce planning because it is very essential for the organization.Objectives fulfil by HRM Practises inLVrecruiting of the candidates give organization a better and fresh workforce due to which new ideas are indulged or come forward.Selection process benefits in choosing right candidate for the right job through interview, physical examination etc. Training
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and Development helps in getting best and suitable candidates by developing them with effort. Workforce planning helps in business in achieving needs and wants ofLV. Organisation facilitate change management it refers to any change occur in organisation certainly so HRM helps in developing leadership skill and change process which helps employees to be prepare for the upcoming change. P2 Strengths and weakness of recruitment and selection Recruitment, is the process of hiring candidates for job by screening and short listing themfromdifferentinternalandexternalsources.Theinternalandexternalsourcesof recruitment are as follows:- Sources of Recruitment Internal source: -Internal source refers to hiring or searching candidates from the organization itself. Internal sources can be done on the basis of tools that are promotion, transfer, and present employees.LVinvolve various internal sources of recruitment in it which are promotion, transfer etc. Internal sources are taken into measures when the vacancy arises suddenly. Strength of Internal recruitment:In internal source of recruitment the strength can be that individual can be hired from inside the organization itself which can save times as well as money. It can increase morale of the employees (Onik, Miraz and Kim, 2018). It reduces employer turnover which make employees motivated to work hard and give their best. Weakness of Internal recruitment:Internal source weakness can be that the hiring which is done from organizational itself can limit the number of potential candidates. Due to which fresh ideas and talent cannot be come out. There will be more chances of conflict between the employees with each other in the organization. External source: -External source refers to hiring or searching candidates from outside the organization. External sources can be done in the basis of tools which are advertisement, employment exchange, campus recruitment, casual callers and recommendation from existing employees.LVinclude various external source of recruitment which are campus recruitment, advertisement etc.LVgive more emphasis on external source rather than internal because in the search of new talent for organisation. Strength of External recruitment:External source of recruitment strength can be that its helps in getting new and fresh talent for the organization. For hiring the candidates through external
source,LVuses various tools which are advertisement, campus recruitment etc. so there will be fresh ideas and talent employees for the organization. Weakness of External recruitment:The weakness of the external sources can be that potential candidates can be replaced by artificial intelligence used by the organization. Now-a-days all the workisdonethroughartificialintelligencesothiscanbemajorweaknessforexternal recruitment.LVweakness is that only they lose potential candidates by involving artificial intelligence in the organisation. Selection: Selection process refers to choosing right candidates for right job at right time at right place. It follows a certain process known as selection process (Onik, Miraz and Kim, 2018). The selection process consists of preliminary interview, physical examination, reference checking, employment test etc.LVgive more emphasis on selection process while searching employees for the company various tool which is involved are interview, physical examination etc Interview: -Interview is the process of checking that the candidate which has applied for the post is suitable or not.LVinvolve various interview process in it which is preliminary interview, telephonic interview etc.Strength of interview:Preliminary interview strength can be that selection of the right candidates is being done. There is face to face interaction between interviewer and interviewee. Weakness of interview:As interview is a verbal communication there is no record of this is present. It is an incomplete process. Judgement cannot be done instantly and all information cannot be gathered. Physical examination:-Physical examination refers to check-up relatedhealth is done for any field work job in the organization.LVgive more emphasis on physical examination for its employees. Strength of Physical examination Physical examination strength can be that it helps in identifying which candidates are suitable for performing field work. Weakness of Physical examination Its weakness can be that false in the health of the candidate suddenly are not selected who need proper treatment and precaution.
JobAnalysis:-Jobanalysisistheprocessofcollectinginformationregardingduties, responsibilities of necessary job. Job analysis strength can be that it provides clear information related to job. It helps in training and development for a particular job. However, the major weakness of job analysis can be it is time-consuming process.LVgive more emphasis on job analysis. P3 Benefits of HRM practises inLVs HRMpractisesincludesafetyof employees,traininganddevelopment,workforce planning, organization structure etc. HRM practise thatLVs follow are as follows: The major HRM practise which is beneficial for both employer and employees is safety of employees at organization and it is the key element of the organization.LVs pay more attention on future needs of the organization, especially in terms of its people and their safety. LVusesaworkforceplanningprogrammetoestablishdemandofnewstaff (Cunningham, 2016). The main work of the HR practises of workforce planning atLVis for job description and person specification which is beneficial for both employer and employee. LVinvolves is the organizational structure. The term organizational structure refers to the systematic functioning of the departments in the organization in effective and efficient way (Rees and Smith, 2017). Organization structure is the key element for any kind of the organization. As M &S deals in various departments so it follows the organization structure. Organisation involved training and development, the term training and development refers to process of guiding the individual to perform a specific job. It play a vital role in organization without training and development no job can be performed. Organisation gives more emphasis on it. HRM practises that follow byLVare 360 degree performance management system whichisbeneficialforbothemployerandemployee.360degreeperformance management system refers to the overall evaluation of performance of the employees in the organization. Performance management is the key element of the organization and the best HRM practise.
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Company follow reward system of HRM practises which is beneficial for both employer and employees.LVgives provide reward on the loyalty, hard work. P4 Evaluating effectiveness of different HRM Practices in terms of raising organizational productivity and profit LEARNING, DEVELOPMENT AND TRAINING: A key function of Human Resource Management is the training and development of its workforce. It is a very important function as updating knowledge and skills of the employees in response to changing trends, equipment or business direction is necessary for employee's optimum performance. Training is the process of instructing an employee in technical knowledge or equipment operations related to their job to increase their efficiency and productivity (Larsen, 2017). While development is an employees overall growth in relation to their adaptability, attitude, leadership and human relations. To check whether an employee needs to be trained, the HRMperformsatrainingneedsanalysis.Differenttrainingisprovidedwithrespectto employee's operations, but can be generally classified as on job programmes and off job programmes and can range from technical training, internships, job rotation to lectures, group discussions etc. This approach increases employee's productivity but is time and resource consuming. JOB AND WORKPLACE DESIGN: Job design is the process of allocating, organizing and reorganizing tasks amongst employees in order to increase employee productivity, by offering bonus rewards such as praise, challenging work, promotion, raise etc. Rewards can be divided into 2 categories, intrinsic rewards include showing increased employee’s recognition, freedom and trust, while extrinsic rewards include bonuses, salary raise, promotion (Oldham and Fried, 2016). Appropriate rewards to employees thus helping keep them motivated. Most important techniques for job design are 1) Work Simplification in which jobs are broken down into small repetitive parts and assigned to workers to increase his productivity. But due to this being a repetitive job, boredom increases. 2) Job Rotation is when tasks allotted to worker are rotated to decrease to train the workforce in more than one task, decrease boredom and motivate them. 3) Job Enlargement involves adding additional tasks to the job in an attempt to alleviate monotony, boredom and increase employees interest and efficiency. If implemented correctly this approach can overcome job dissatisfaction
arising from repetitive and boring tasks amongst employees and increase their efficiency and satisfaction. THE FLEXIBLE ORGANISATION: A flexible organization is one that can adapt and respond to external changes to gain ground against its competitors. Three types of flexibility in an organization are: 1) Functional flexibility enables management to switch workers around tasks as they require. It trades job security with employee versatility. 2) Numerical flexibility enables management to alter the number of workers to meet variations in demand through the use of methods such as outsourcing, short-term contracts, and temporary employees. 3) Financial flexibility is the management's effectiveness to alter pay of workers depending on demand and supply of labour within company (Procter,2016).Thus,financialflexibilityisdirectlylinkedtonumericalandfunctional flexibility. When implemented efficiently, employees enjoy many advantages under flexible organization such as enhanced competitiveness, better team building, improved efficiency etc. PERFORMANCE AND REWARDS: Function of rewards is extremely important in order to optimize performance as the prospect of additional bonuses pushes employees to maximize their performance and efficiency to get these rewards. Performance management is the dynamic process of managing, analysing and improving an employee's productivity performance by associating it with the organization's objectivesandgoals(MoneandLondon,2018).Somewaysofmonitoringemployee's performance are performance appraisals methods, quality checks, client surveys, office and personalhabits,absenteeismetc.Therearevariousearningmodelsthroughwhichan organization can choose to pay its employees such as pay per hour, per week, per month, per performance, per targets, per use, pro-bono etc. Performance management is an important function as it keeps employees motivated and engaged which can provide a significant edge over competitors and keeps employees from slacking off as they know their performance will be monitored. P5 Significance Of Employee Relations In Respect To Human Resources Management Decision Making HRMdescribesformalsystemmeantformanagementofemployee'swithinan organization in which company's solid foundation lies. Employee's in company are source of
knowledge and new ideas. Efficient communicating between employee and HRM increases productivity of and decreases outsourcing resulting in a successful organization(Guest, 2017). An employee's happiness is directly proportional to its productivity and the happiness largely depends on how the management addresses and interacts with worker. When good relations maintained, it helps in reducing workforce conflicts, raises staff morale. Clearly writing down the policies and explaining it to the employee at the time of program start helps to maintain a clear information about all the legal policies avoiding future conflicts. This also ensure that company policies are followed fairly and consistently. Better communication enhances relationship and also encourages a strong sense of teamwork among workers. Increased productivity has a drastic effect on employee's loyalty to the organization. This improves employee retention(Li, Rees and Branine, 2019). Better employee relations results in decline in employment turnover which cuts cost of recruitment, hiring and training. When employment turnover is low the employer has a trained and skilled set of employee's. Good relations result in less conflict, people avoid searching for faults in each other and start adjusting and therefore employee's concentrate on the work and aim to work harder. The increased level of compromise is a result of improved relationship. There is decline in the rate of absenteeism, individuals become more serious towards their work which decreases chances of taking frequent leaves. There are many decisions one cannot take alone and need advise from the management for the same so that no important points are missed and no impressive ideas are missed which can help to achieve the target at a faster rate. Better relations leads to better communication which help workers to evaluate all the pros and cons on an open platform. If relations are not maintained in a better manner it could abstain people from HRM to come and help employees. An easy connection means easy assignment of task. This also allows the employer to accept and understand their strength and weakness. HR is also aware enough what quality prevails in an individual and what sort of work assigned will be better performed. Sensitivity levels and stress management of each other can be known of each other which aids in managing pleasant relationship which increases overall efficiency of the company(Mazzei, Butera and Quaratino, 2019). A bonding lets one know about t approaching someone in the way they need to be approached so that the best could be brought in employee's.
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Employee relations is just like the icing on the cake for the human resource management, thisopens many doors to make thebrand grand success with completeinvolvementof employee's in an organization as an intact team and serving with the highest out rates. Good relationship helps individual to deal with terms and conditions of the company in a more peaceful way. P6 Key Elements of Employment Legislation Employment legislation are acts which have been made for the employees so that they can have a healthy environment to work in so that there is a better functioning of the organization and productivity can increase. These measures are for protection, benefits, quality, etc. for employees. Employees are working in businesses not for having an ill-treatment for themselves or inequality when they work. It is very important that the employees get what they want because that will affect productivity of organization. For example, employment right acts in 1996 was explaining as to how important it is for the employees to have their right in the work they are doing so that they gave a satisfactory life. Age, beliefs, culture, religion, sex, etc. does not matter till the work is being completed in the business. HRM must make sure that they are being followed so that the staff is comfortable and balance is being maintained in the environment where employees are working. HRM must make sure that the employees ofLVknow their right in the company so that if they are having any trouble then they can complain and trust the HR department with it and measures will be taken accordingly. HRM makes sure that they are being able to maintain standards for themselves which will make the company have a positive impact on the employees and the customers. For example, health and safety law 1974 was promoted in business so that the employees can have a better environment and they got surety in the company and there is better and effective workforce in the company(Boon, Den Hartog and Lepak, 2019). This law is not just for the employees but also the safety and security of the customers which are coming in the company so that the revenue generation of the company is better. Right of customers which company must provide to customers so that they have loyal customers in the company. For example, data Protection act 2018 is being followed byLVs very well because they have to make their customers feel safe as well because that is a very important
for them to do so. HRM has to take measures so that the unique identity of the company does not leave the company and they are having to protect their data and the customer's data that the loyal customers are not taken away by other companies in market. Act is very important that companies provide to employees so that they can trust employees of company and they will be able to have a better understanding for themselves. For example, employment contracts act 1996 is another way to make the employees stay with the company for a long term and this is a tie which creates relationship between the employees and the company(Lai, Saridakis and Johnstone, 2017). HRM has to update the contract according to the policy changes which are taking place in country so that the company can make most from that law and employees feel comfortable as well with the business.LVhas an easy contract which the employees and the company can understand and accept them so that they can have a better workforce for themselves. P7 Job Specific Personal Specification BasisEssential SkillsDesired Skills QualificationEducationtilldegreelevelis compulsory.Mustbe knowledgeable so that the processes andoperationsofLVcanbe maintained and the organization can do a good job for the future and get a competitive advantage. Freshers arewelcome.Experienceof0-3 years There must be a degree for being the perfect assistant in the company sothatLVisgoingtohavea perfectproductivityin organization.Candidatesalready having experience as an assistant in a large organisation will be given preference. SkillsExcellentcommunicationskills, problemsolvingskills,highly motivatedtooutperform,flexible thinking, impressive command on language.Punctual,mustbea Must be knowledgable about the industry and the functioning of the organization so that they can start with the work immediately. They must be amicable and know how to
professionalandmaintainoffice decorum. maintainrelationshipsbetween variousclientsandpersonnels within the office. KnowledgeThere knowledge should be up to date,mustknowhowtouse computer and use basic Microsoft officeandpresentationskills. Should be knowledgable and able to understandtheHRissuesand processes for the future(Moore and Jennings,2017).Shouldbe knowledgableaboutthedifferent typesoffinancialservicesand insurancesLVprovidestoits customers and clients. Must know the right measures and procedures which are supposed to be taken in the company so that they do not need knowledge but have their own skills to get the workdone.Shouldbeableto identify any type of problem in the workplace and report to concerned authorities.Shouldbeableto handle client's questions about the businessandrespondeffectively using good communication skills in order to satisfy clients. ExperienceHR advisor is the least experience which can be expected out of the candidate. Experience in managing and handling an office environment isveryimportantforthe organization because there is a need forapersonalassistinthe company. The candidate is required to have experienceof2-5yearsasan assistant,PersonalAssistantor Secretaryinalargebusiness, companyororganization. Candidateshavingexperiencein regular data entry or related tasks will be given preference. Interview Questions for Manager Have you ever worked with any company and why did you leave and come here? How did you deal when your time line was missed and if the employees are still not being able meet the objective?
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There did you start your journey from and where do you see yourself in the next 10 years? What are the methods which will be used by you to keep in touch with the employees?How do you deal with the difficulties which rise in front of you? Selection Criteria The person selected for the job of Personal Assistant is Christina James of London. She has been shortlisted and selected from amongst a talented batch of skilled and qualified applicants on the basis of her educational qualifications, skills, behaviour and professionalism. Her core skills ticked all check marks on our requirements list for Personal Assistants. During the interview process her demeanour was judged to be very friendly and amicable assuring the management of her talent as an assistant, relieving concerns about her ability to manage the workplace. Her communication skills were also judged to be great, satisfying management's concerns about her ability to create and maintain relationships between the manager and various clients and personnels within the office. The professionalism Christina shows towards her work and the level of discretion and confidentiality maintained by her with respect to the the privy detailsofbusinessproceduresandpaperworkofteninvolvedinbusinesses,pleasedthe interviewers as LV has had data and information leaks in the past which have resulted in decreased efficiency and productivity. Christina's BA (Hons) Business Studies qualification was instrumental in her selection for the Personal Assistant job, while her experience and proficiency in using Microsoft Word was an added bonus eliminating the need for administration to train the new assistant in use of computers and Microsoft Office. These previous requirements were also mostly fulfilled by other prospects who had applied for the position of Personal Assistant, but what set Christina apart from her competitors and guaranteed her this job was her ability to accurately record, evaluate and update data and records, including client's and employee's files. Her proficiency in performing these tasks were backed up by the experience she gained as secretary, working for 3 years, where she had to perform similar tasks daily. The administration believes Christina to become an essential, hard working and productive employee of the office, helping improve LV's efficiency and productivity, while improving herself and offers her the position of Personal Assistant at LV with the same hopes.
CONCLUSION From the report it can be concluded that the work of human resource is very important because HR getting employees in the company. Businesses are completely dependent on the human resource department therefore it is very important for the human resource to be very active and have the right knowledge and skills for hiring the people in the company. There is a lot of companies in market therefore having the right workforce is important so that they can have the productivity of the company in control. There are methods which are followed by human resource so that they can have a direction and know the candidates well before they can recruit them. The standards are maintained of the company by the human resource department so that they can get a competitive advantage in market.
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