Importance of Human Resource Management

This solved assignment delves into the crucial role of Human Resource Management (HRM) in contemporary businesses. It emphasizes the importance of HRM for various functions such as recruiting, hiring, training and development, workforce planning, and legal compliance. The assignment highlights how effective HRM practices contribute to increased profitability and productivity. It also discusses different recruitment approaches and their strengths and weaknesses.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of Human Resource Management.....................................................1
P2 Strength and weakness of different approaches of recruitment and selection.......................2
TASK 2............................................................................................................................................4
P3 Benefits of various HRM practices for employees and employers .......................................4
P4 Effectiveness of different HRM practices in terms of raising company's profit &
productivity.................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Significance of employee relation ........................................................................................6
P6 Identify key employment legislation and its impact..............................................................7
TASK 7............................................................................................................................................8
P7 Illustrate the application of different HRM practices............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Books and Journal.....................................................................................................................11

INTRODUCTION
Human resource management is the directing, planning, controlling and organising
different programs such as procurement, development, integration, compensation, separation and
maintenances of human resources. It is one of the main department of the company which plays
vital role in hiring and selecting qualified people who can easily accomplish long term goals and
objectives of enterprise (Anderson, 2013). They also help in to maximise profitability and
productivity of company in limited time period. This report is based on “Human resource
management”. In present report, chosen organisation is IKEA, it is a multinational group which
sell ready-made furniture and many other home appliances to the customers. Functions and
purpose of HRM and importance of workforce planning is also determined in this project. There
are different human resource management practices which are essential for the company in terms
to increase profitability and productivity, it is also described in this projects. There are different
key employment legislation which effects on employees performance and company profitability.
TASK 1
P1 Purpose and functions of Human Resource Management
Human resource management is an effective functions which is used by each and every
organisation in order to enhance the effectiveness of the workers for the attainment of the
strategic objectives and goals. Main role of HRM is to recruit and hire knowledgable candidates
and provide effective training and development to them. So that they can maximise their skills
and knowledge on business activities and functions.
Purpose of Human resource management: There are different purpose of human resource
management which are shown in this way:
Internal Customer Management: HRM has different key purpose to maximise
productivity and profitability of company and increase employees performance. In this human
resource management defines and develop an effective policies and process which is necessary
to recruit, attract and maintain a quality workforce.
Cultural Sensitivity: HRM maintains and keep culture awareness among entire
workforce. In this purpose of HRM is to plans an effective strategies in order to increase
business sales and reduce employees turnover (Armstrong and Taylor, 2014).
Metrics: It is another purpose of the IKEA to interacts with whole levels of the
organisation. A successful human resource manager perform as an active partners to maintain
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long lasting relationship with employees and employers. From the same, HR management
analysis and provides better solutions to recruit and retain workforce.
Function of human resource management: In the organisation HRM play vital role in the
success and development of business growth. There are different functions which are plays by
HRM are as below:
Recruitment and selections: It is a main function of human resource management which
is apply by all enterprise in order to recruit best candidates in large number of applicants (Bakker
and Leiter, 2010). It is a best process which is apply by all organisation to select and hire
knowledgable people systematically. It help IKEA to apply internal and external method which
is essential for the firm to increase profitability and productivity of company.
Maintaining good working conditions: Another function of human resource
management is to maintaining effective working conditions which assist in the achievement of
higher growth and success in limited time period. Friendly and healthy working environment
support the organisation to reduce employees turnover and maximise profitability.
Training and development: It is one of the main and beneficial function of human
resource management, it is the role of HR manager is to provide appropriate training and
development to the employees in a systematic manner. This functions highly assist the
employees to increase their skills and knowledge in an effective and efficient manner.
Workforce planning: It is a core function of HRM which is mainly related with
systematic analysis and identification of what an enterprise is going to required in ways of the
experience, type, skills of its employees to attain its objectives. It is essential and beneficial for
the organisation to maintain their relationship with employees and employers in a proper manner.
P2 Strength and weakness of different approaches of recruitment and selection
Recruitment refers to the process of searching and hiring the best and most talented
candidate for a given job opening in cost-effective and timely manner. It is a positive process of
finding for prospective employee and stimulate them to apply for vacant job in the organisation
(Beardwell and Thompson, 2014). It is mainly concerned with attracting, reaching-out and
ensuring continuous supply of qualified candidates and making out selection of requisite
manpower in both qualitative and quantitative aspect.
On the other hand, Selection deals with choosing suitable most candidate from pool of
applicant. Candidate is selected on the basis of their existing skills, knowledge and competency.
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Both recruitment and selection process plays key role towards selecting right personnel for the
organisation and putting it on right place and at right time. Generally there are two sources of
recruitment and selection process; one is Internal and other is External.
Internal Method: Best candidate can be found within the company only. When a job vacancy
arises in the business entity the first priority must be given to employees who are already on pay-
roll. It includes transfer and promotion (Berman and et. al., 2012).
Advantages and Disadvantages of Internal Sources:
Advantages Disadvantages
Improves Morale: Internal recruitment
methods promote motivation among
employees. When high work opportunities is
given to existing employees, it will increase
the morale of all employees.
No error in selection: When employee is
selected within the company only, it leads to
minimise the possibility of error related with
selection process.
Self-development: This method promote self-
development among workers as they look
forward to hold or occupy higher posts.
Limited Choice: This method puts limits in
terms of selecting and hiring fresh and talented
candidate.
No Opportunity: No opportunity is given to
fresh talent. This also leads to generate a
tendency among workers to take promotion
without putting any extra effort.
Favourism: This method promote favourism
which means company is over-staffed with less
talented crowd.
External Sources: Under this recruitment method, company hires employees from outside the
business organisation. This method is recommended when existing employees are not suitable
for given vacant job position. It include direct recruitment, casual callers, campus placement etc.
Advantages Disadvantages
Increased Chances: Under this method,
company receive large number of applicant
who owns ability and knowledge to handle this
job.
Fresh input and skill: This method promote
Higher risk: There might be chances that new
selected candidate is not worthy for the job
position offered to him/her.
Time Consuming: It is a time-consuming
process as entities need to post advertisement
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better possibility of searching and identifying a
fresh employee who is capable enough to
deliver new skill and inputs.
Better competition: Chances of facing strong
and better competition increases when
candidate is selected from outside sources.
before the recruitment and selection process.
Issue of Maladjustment: There might be
possibility that new selected candidate may not
adjust themselves in the work environment.
TASK 2
P3 Benefits of various HRM practices for employees and employers
Human resource management is applied by both employers and employees of IKEA in
order to monitor whole activities of business and enhance its performance level. Mainly activities
are considered in human resource management of companies are training, hiring, employee
benefits management, paying and firing (Bloom and Van Reenen, 2011). There are some HRM
practices and its benefits for both employer and employees are as below:
Retaining qualified workers: Company renders flexibility or easy access in benefits of
employee's. So their managers can have talented and qualified workforce for the enterprise. By
this they handle the uncertainty and easily reducing work overload.
Inspiriting positive behaviour: IKEA gives positive and effective working atmospheres
for their workers through the human resources management practices. With the help of this
practices they easily motivate and inspire their entire workforce in order to attain long term
benefits for the organisation.
Enhancing performance management systems: HRM of company assist in order to
motivate and encourage the workforce with aim to maximise performance and productivity. It
also support in keep the relationship between employee and employers. This system assist the to
identify and payment the best workers.
Creating good relations: HRM practices also help in order to developing better and
effective connection between managers and its workforce. It assist to increase performance and
productivity level of workforce in a proper manner.
Motivating employees: In order to motivate employees so that they work with
appropriately. Further they are motivated and have to increase sales and profit of company in
allotted time period. Managers of the company must tries to increase employees performance and
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decrease turnover of workers (Bratton and Gold, 2012). So the company try to hire or encourage
administrator who can handle employees in a efficient and effective manner.
Providing training and development: It is another part of the human resource
management practices which is beneficial and important for the company to balance between
employers and employees. So that it is the responsibility of manager to provide effective training
to their workers, thus they work with full dedications. So it is beneficial for the IKEA to
maximise their profitability and productivity.
Flexible working hours: It is another type of HRM practices which is useful for the
organisation to decrease employees turnover and maximise workers performance in few time
period (Huselid and Becker, 2011). IKEA is a multinational group which sells and design
furnitures, home accessories and home appliances. They employing large number of employers
and employees and needs flexible options of working. So that company provide some working
options such as staggered hours, self hours systems, job sharing, part time work and so on.
P4 Effectiveness of different HRM practices in terms of raising company's profit & productivity
HRM practices has been effective and essential for IKEA in terms of increasing
productivity and profitability of company. There are different benefits of human resources
management practices which are determined as below:
High performing and innovative workers: HRM practices assist in encouraging new
atmospheres and motivates workers for good facilities. So it help the organisation to maximise
their profitability and productivity in limited time duration.
Effective direction executions and setting: In this both managers and leaders of the
organisation play vital role and duty in setting the accurate direction, priorities, purpose, goals
and workforce responsibility. Human resource management assist company to hire the right
administrator for the accurate place. They have various roles and responsibility to lead the
enterprise to the top one place with productivity and profitability.
Individual as well as team goals with proper communications: HRM of the company
assist to set and achieve both team as well as individual goals in order to maintain long term
relationship with them. Proper communication also help in order to maximise profitability and
productivity ration in limited time period (Jackson, Schuler and Werner, 2011).
Collaboration and sharing: Both are important and essential part of the human resource
management practices which assist in order to maximise profitability and productivity of
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enterprise. In this business manager is responsible to provide entire information about changes in
technology, customers taste and so on. It support the firm to create formal approach to maximise
the innovative way of collaboration.
Non- financial factors to enhance workers: Team workers, leaders and managers of
IKEA renders non-financial factors that maximise employees loyalty, excitement, motivation and
energy. These sources covers praise, challenge, learning opportunities, feedback, exposure and
recognition (Lengnick-Hall, Beck and Lengnick-Hall, 2011). It is the business human resources
that ensures administrator to understand how to apply this non-financial factors effectively.
Modifying employee' skills and knowledges to maintain productivity and profitability:
In dynamic marketplace, IKEA has different competitors that are highly effects on business
performance and productivity. In this business tries to provide proper training and development
to their workforce. So that they can attend this secession and increase their knowledge base
which turn in the betterment and development.
Effective rewards drive perforating: It is another important and essential part of the
human resource management practices which is apply by IKEA in order to rewards their
employees and employers as per its performance or work. So that they can work with full
dedication and efforts and tires to accomplish predetermined objectives and goals of organisation
in limited time period.
TASK 3
P5 Significance of employee relation
IKEA'S employees shares particular relationship with each other. This help them in
building high trust and share good rapport with its other co-workers. An interactive workplace
can inspire worker to perform more effectively and efficiently. It is important for every business
concern that their employees should feel comfortable with each other and work together as a
single unit towards accomplishing a common goal. Following are the importance of employee
relation:
1. Discouraging chances of conflicts among workers: If good relation is shared by worker
with each other than it automatically eliminates the chances conflict among them.
Moreover they trust each other and shares good rapport among others. They consider
other co-worker as their colleague not seeing them as their competitors (Marchington and
et. al., 2016).
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2. Loyalty of employee: Open and interactive work environment in IKEA help to create
more loyal employees and retain them for longer period with the organisation. IKEA
involve worker in their decision-making process which makes them valued and important
and also encourage them to perform more effectively.
3. Working is easy if it is shared among all employees equally: In IKEA, each task is
carried out by equal efforts of team members which increases the chances of
accomplishing work in cost-effective and timely manner. Work load reduces when it has
been carried out by all members (Thomson, 2014). Also IKEA assign work according to
employee skills and capabilities so that it become much easier for them to execute it in an
appropriate manner.
4. Ensuring equality by communicating effectively: Effective communication system in
IKEA ensures that there is no discrimination exist in the company. Equal and fair
opportunities is given to each and every employee. Moreover they are force to give their
suggestion and opinion which makes them feel value or important.
P6 Identify key employment legislation and its impact
It covers all type of employment protection measures that every company is obliged to
follow. These are the set of regulation that puts limit to employers in context of hiring and firing
employees in a company. It must be required for every successful organisations that to identify
the key elements for employment legislations. In the IKEA firm, they also consider this for the
purpose of maintaining the employment legislations during the process of recruitment and
selections of new employees within the firm. It has major impacts on the human resource
management decisions making for an organisation. Here are some important elements of
employment legislations such as;
1. Equality: IKEA needs to provide equal and fair opportunities to all its employees
irrespective of discriminating on the basis of sex, caste or religion. They hire employee
on the basis of their skill and education. Moreover they are paying fair wages to its
employees which keeps them motivated and inspired.
2. Data Protection Act: Employees of IKEA are not allowed to share any confidential data
with outsiders. If in case they found they doing this they have to undergo some harsh
consequences. It is the prime responsibility of each employee to not to share business
confidential data with any other third person (Frank and Lee, 2011).
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3. Defining positions: This is the first phase which consider in the recruitment process as
company has responsibility to define the positions of employees at the work place. In this
also defined about their roles or responsibilities in the company in order to making HRM
decisions in an effective manner.
4. Proper compensations: The company has to required about defining their compensations
for workers while conducting recruitment process. In this included aboiut minimum
wages and length of their working hours (Brokyln, 2014).
5. Ensuring equality: It is another important elements that IKEA firm need to ensure about
equality in every perspective while hiring new employees. In this included wages, sex,
working hour and health facilities.
TASK 7
P7 Illustrate the application of different HRM practices
Job Description
Job Title: Team Leader
Job Purpose: Manage and lead a team of workers in IKEA. Effectively
communicating organizational goals, policies, practices and
objectives to team and its members. Motivating and encouraging
employee in order to improve their overall performance and
efficiency. Assist the HR Department of company in hiring and
selecting talented employees. Conduct training program for team
members. Establish good relationship between team members and
management.
Job Duties:  Maintain detail record of management tasks
 Supply quality customer services
 Arrange training program for team members in order to
improve their performance and efficiency.
 Provide guidance and instruction to fellowmen
 Builds strong communication channel among team
member and management.
 Identify effective strategies to promote team members for
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accomplishing goals.
Skills and Qualification:  Prior experience on team leadership
 Strong communication skill
 Great motivational skill
 Must be aware about company's policy and legislation
 Self-motivating
CURRICULUM VITAE
Curriculum Vitae
Name:- Frank Lee
Address:- 28rd street, West-side lane, England
Phone No:- 535436859
Profile summary:-
Require a PGDM or MBA degree mainly specialise in Human Resource and having an
experience of minimum 3 years in order to become crucial part of organisation.
Knowledge of:
 An insight to work within the group
 An understanding regarding company's policies and HRM practices
Experience:
 2 year of experience in hiring and training candidate
 Experience on managing company's HR Policies
Declaration:
I hereby declare that all above information mentioned above is true and best in my knowledge.
Date:
Place:
CONCLUSION
From the above mentioned report, it can be concluded that HRM is more essential and
important for the all business. Without this support company is incapable in terms of recruiting,
hiring, providing training and development and many other. Workforce planning is essential for
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the enterprise to develop coordination and relation among entire workforce. Functions and
purpose of human resource is to hire knowledgable and educated candidates who can accomplish
predetermined goals easily. There are mainly two types of recruitment and selection approaches
which is use by all enterprise such as internal and external. Both factors has some strengths and
weakness in relation to recruit best people. Different kinds of human resource management
practices help company to maximise their profitability and productivity ratio. Different kind of
key employment legislation also applied by the company which effects on decision-making
process and on the business performance. Application of HRM assist the business to identify
basic skills and qualification of candidates.
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REFERENCES
Books and Journal
Anderson, V., 2013. Research methods in human resource management: investigating a business
issue. Kogan Page Publishers.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bakker, A. B. and Leiter, M. P. Eds., 2010. Work engagement: A handbook of essential theory
and research. Psychology press.
Beardwell, J. and Thompson, A., 2014. Human resource management: a contemporary
approach. Pearson Education.
Berman, E.M. and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jackson, S., Schuler, R. and Werner, S., 2011. Managing human resources. Cengage Learning.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
Marchington, M. and et. al., 2016. Human resource management at work. Kogan Page
Publishers.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest. 19(3).
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