Importance of Employee Relations in HRM Decisions

This article discusses the importance of employee relations in influencing HRM decisions. It explores how organizational culture, planning for change, and positive behavior impact employee relations. It also highlights how effective employee relations can maximize productivity and profitability.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human resource management function is concerned with management of work force within
company. It is one of the most crucial function of organization that highly contributes in growth
and success of it. Various practices are included in HRM such as training and development,
recruitment and selection, compensation, performance management etc. that helps in motivating
employees and encouraging them to work towards achieving objectives of company. This report
is based on Tesco which is one of the leading grocery retailers of UK (Armstrong and Taylor,
2014). The company was established in year 1919 and offer variety of products to people of
many countries. The report covers purpose and functions of HRM along with strengths and
weakness of recruitment and selection process. Moreover, advantages of applying human
resource management practices for employer and employee and effectiveness of these in
improving productivity and profit of firm are included. Apart from this, significance of good
employee relation and elements of employment legislation are defined. At last, implementation
of HRM practices in context of organization is included in the project.
MAIN BODY
TASK 1
P1. Justify the purpose as well as functions of HRM along with it's application for the workforce
planning and management of resources
HRM can be defined as the strategic approach to manage people within company in an
effective ways that they assist business in gaining competitive advantage. This function is
designed to increase the performance of employees so that enable to accomplish strategic
objectives of company.
Purpose of HRM:
The main purpose of human resource management is to hire skilled and knowledgeable
workforce within firm so that all the activities can be performed in effective manner and leads
firm towards high growth and success. In Tesco, the purpose of HRM is to ensure that healthy
and safe working environment is provided to employees and all are treated fairly without any
discrimination (Bratton and Gold, 2017). It also aims to increase engagement of employees
within activities of firm and motivates them to perform well.
Functions of human resource management:
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There are various functions associated with human resource management which plays vital
role in company. Some of the functions in context of Tesco are mentioned below:
 Training and development: it is one of the crucial functions of organisation in which
employees are undergoing training that helps in developing their skills and knowledge
base. Workforce with high skills and competencies assist firm in attaining improved
productivity and profits. In Tesco, human resource manager is responsible to arrange
appropriate training session for its employees so that they can get opportunity to develop
their skills and knowledge. This will help in improving motivation level of workforce and
they are encourage to work towards attainment of objectives of company.
 Recruitment and selection: the prime objective of human resource management
department is to hire skilled and knowledgeable candidates within organization who are
able to perform their duties well and achieve preset objectives. In context of Tesco, it
uses both internal and external sources of recruitment to hire candidates (Brewster and
Hegewisch eds., 2017). They first invite applications in order to attract large pool of
candidates and then select the most suitable among them who are capable to attain goals
and objectives of company in an effective and efficient manner.
 Employment relation: it is the crucial responsibility of human resource manager to
develop good relationship between management and employee. Maintenance of good
employment relations within organization supports in ensuring healthy workplace as well
as eliminates conflicts that take place within company. In Tesco, it is the imperative
responsibility of manager to maintain good relation between employer and employee so
that disputes can be resolved effectively and healthy workplace culture will be
maintained within firm.
Hard and soft HRM approaches:
In hard human resource management approach, employees are treated as resources and are
not considered as the important part of company. Their existence in company is only for
performing operations and activities. On the other side, soft HRM approach is concerned with
treating employees as the valuable assets of companying organization provide them with
development opportunities on continuous basis. In Tesco, soft HRM approach is used by
managers and the entire workforce are treated as organization’s valuable asset.
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P2. Evaluate the strengths as well as weaknesses of various approaches to recruitment and
selection
Recruitment is characterized as a process of attracting, shortlisting, choosing and hiring the
most appropriate candidate for the vacant job position within company. There are two sources of
recruitment which companies are utilized in order to recruit suitable candidate in company.
These methods in context of Tesco are mentioned below along with their strengths and
weaknesses:
 Internal source of recruitment: this is the method which organizations use to select
candidates internally who already exists within the firm. The strength of this method is
that it is cost effective as less cost is incurred in recruiting candidates internally (Briscoe,
Tarique and Schuler, 2012). It also saves time of Tesco as they are not required to select
candidates from outside the organization. However, the weakness of this approaches that
it sometimes leads to create feeling of dissatisfaction among employees who are working
at same level.
 External source of recruitment: in this method, candidates are recruited externally from
outside the company. The main advantage of using this method in Tesco is that it enables
entry of fresh talent within firm which promotes innovation and creativity at workplace.
However, the major disadvantage of using external recruitment method is that it
consumes much time and the cost incurred in hiring candidate from outside the company
is very high.
Selection is characterized as the process of selecting appropriate candidate for a particular
job position. In context of Tesco, some selection approaches are use by manager which are
mentioned below:
 Interview: it is a method of selection in which an interview session is conducted by
manager of Tesco. In this, some questions are asked by interviewer to interviewee in
order to get information about their knowledge and competencies (Budhwar and Debrah,
2013). This helps interviewer in determining the ability of candidates and knowing their
potential that whether they are suitable for the job position or not. The weakness of this
approach is that sometimes it may not be possible for interviewer to examine right skills
of candidate by interview only.
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 Psychometric test: it is the approach of selection which is used by company for selecting
candidates for the job position. This helps manager of Tesco in assessing analytical
capability of candidates. However, the weakness of these approaches is that it is a time
consuming method as it takes much time to conduct a test and a lot of cost is incurred in
it.
M1. Evaluate that how functions of HRM can improve the talent and skills in order to fulfil
organizational objectives
Human resource Management is concerned with recruitment, selection, performance
appraisal, training, development, compensation etc. Of employees which helps in improving the
motivation level that ultimately helps in attaining objectives of company. Recruitment and
selection procedure helps company in recruiting highly skilled and talented employees within
firm who have the potential to lead Tesco towards high growth and success. Training and
development function also plays a crucial role in providing talented and skilled candidates to
company (Buller and McEvoy, 2012). Conduct an appropriate training session for employees
helps in developing their competencies and knowledge base which enables them to fulfill
objectives of business.
M2. Critically analyse the strengths and weaknesses of different approaches in context of
recruitment & selection
Recruitment and selection are the processes which are using by firm for hiring skilled
candidates. There are some strengths and weaknesses of approaches to recruitment and selection.
The strength of internal recruitment method is that it is cost and time effective method. Its
weakness is that it sometime leads employees towards dissatisfaction who are working at the
same level (Chelladurai and Kerwin, 2017). The external recruitment method helps company in
bringing fresh blood within organization that helps in developing innovative and creative culture
at workplace. However, it can cause high cost and more time in hire a candidate from outside.
Interview method helps company in knowing more information about the candidate but, its
weaknesses is that sometimes managers may not be able to determine all the skills and
knowledge of candidate.
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TASK 2
P3. Evaluate the benefits of HRM practices in context of employer as well as employee
There are numerous practices of human resource management data implementing within
company premises including training, development, orientation, induction etc. These practices
are also applying in Tesco as workforce planning is the prime concern of entity. There are some
HRM practices that provide benefits to both employer and employee which are mentioned
below:
 Recruitment and selection: it is the responsibility of HR department of Tesco to recruit
and hire the most suitable candidate within company who has potential to attain its goals
and objectives in an efficient way. a particular recruitment policy is followed by company
for recruiting employees. In order to attract large pool of candidates, Tesco uses external
recruitment method (Foster, 2014). The benefit of recruitment and selection practice for
employer is that it helps them to hire most suitable candidate within firm who are highly
committed towards attainment of goals and objective of company. The benefit in context
of employees includes it provides opportunity to employees to prove their potential and
attain good position when company. Recruiting skilled candidates helps in improving
productivity and profits of company.
 Training and development: the most crucial role is played by training and development
function of human resource Management. It helps in motivating employees and
encourages them to work effectively towards attaining organizational goals. Tesco
provides appropriate training program to its workforce who helps in developing their
skills and knowledge and enables them to attain objectives of firm. The benefit of this
practice for employer is that skilled employees help in improving productivity of
company which ultimately improve their profit ratios. In context of employees, they are
getting benefit of improving knowledge and skills which helps in their future career
growth.
M3. Explore the various methods of HRM practices along with suitable examples in context of
organisational
In human resource Management practices, business methods are used such as training and
development, recruitment and selection, induction and orientation etc. All these method supports
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organisation in attaining objectives of company (Kehoe and Wright, 2013). For instance: in order
to provide training and development to employees, managers of Tesco first identify the training
needs at workplace and then determine the skills and knowledge of each employee so that they
can be provided with appropriate training program that helps in improving their potential and
more better manner. In context of recruitment and selection method, company uses the most
suitable method for hiring and selecting candidate.
P4. Analyse the effectiveness of HRM practices which helps in maximising the productivity as
well as profitability
HRM practices used in order to plan internal activities or provide management of human
resources in the organization. In context of TESCO, HR manager use various HRM practices
which enhance the efficiency of individual as well as entire organizations. Some of them
mentioned below:
Recruitment and selection process: It is the hiring process where HR manager find the
right person for the right job. So initially they analyse the job requirement, application of
candidature and the select the appropriate one. Managers of Tesco adopt Giri approach to recruit
employees. Skilled people helps in increasing efficiency of company which further beneficial in
maximising productivity as well as profitability.
Training & Development: Tesco’s managers provide required training to the selected
candidates in order to make them aware regarding organizational objectives or achieve desired
results (Kim, 2012). Also develop some required skills for the completion of operational
activities.
Compensation and reward system: It includes the performance evaluation which helps in
appraising and providing rewards according to the individual performance of employees. It will
be done by the managers of TESCO.
M3. Evaluate the different methods which used in HRM practices along with specific example
In context of TESCO, HR manager follow the various HRM practices which helps in
improving efficiency as well as effectiveness. For example: At the time of hiring new people in
the organization, managers have to provide conduction program and further provide the training
which required performing the task of the company. These skills further enhance the productivity
of an individual which is beneficial for the company to achieve organizational goals &
objectives.
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TASK 3
P5. Importance of employee relations which influence the HRM decisions
There are various practices which are used by the organisations in order to improve the
employee relations as well as employee engagement in effective manner. Those HRM practices
will influence the employees’ attitude, performance and behaviour regarding business policies,
systems and practices. In context of TESCO, each department is responsible to build effective
strategies and policies which help in improving employee’s relations and employee engagement
in positive manner and some of them mentioned below:
Organisational culture: Managers of TESCO is to improve the organisational culture
which further influence the HRM decisions. It is beneficial for them, because it helps in
improving individual performance or achieves their target without facing any trouble.
Organizational culture impacts the employee relations and engaged in collaborative manner for
appropriate execution of this law. Positive employee relations are beneficial for the business
which maximise productivity as well as profitability.
Planning for change: Managers of TESCO, need to build plan and ensure that all the
activities will be executed in an effective manner. Change in the organizational activities will
impact the decision making process which further affect the employee relation (Nickson, 2013).
In addition, manager of the company assigns duty as per the skills and capability which helps in
attaining long term as well as short term goals of the company.
Positive behaviour: It is very important that every individual have positive behaviour
regarding their work because positive attitude build positive relationship with employees.
Effective relations will helps in building soft bond among employer and employee which further
enhance the employee satisfaction level. HR manager of TESCO follow the sociological
approach which allow them to work comfortably. It further impacts the decision making process
of the company.
Above mention importance will helps in making employee relation strong and impact the
HRM decision which improve the individual efficiency as well as effectiveness.
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P6. Impact of employment legislations on HRM decisions
Employment legislation is the framework which is used to protect the rights of employees at
workplace. It is developed in order to maintain the relationship between employees and the
organisation. Some of these laws are described below:-
Anti-discrimination act: In helps in stopping favouritism at workplace which encourage
the equality that every employee should be treated as equally and provide faire opportunity to
grow. Managers of TESCO implement this act and hire candidate as per their ability and
compensate on the basis of their performance. If any managers fail to follow this act then it will
lead to penalties which are taken by government.
Minimum wage act: Under this act government decided the minimum wage and set the
laws regarding payment of employees and other staff members. TESCO’s managers ensure that
individual get paid according to the government standards which reduce the discrimination on
the basis of pay (Pieper, 2012). It TESCO does not follow this act then they have to be banalities
by the government.
Equality act: Under this act, organisation should treat every employee equal or reward them
fairly. HR managers of TESCO provide equal opportunity to every employee in order to grow.
They make sure that, employees fairly as well as equally treated which help the organization to
retrain their staff for longer period.
M4. Evaluate the key aspects of employee relation management and legislation that affect HRM
decision-making
It is possible that, if any employer or employee has good relation so they can favour each
other which are not right according to the act of equality. Every employee should have treated
equally or provide equal opportunity growth. It will further impact the decision making process
of the company. Manager of TESCO have to ensure that company follow the legislation
otherwise it impact the performance of organization.
TASK 4
P7. Application of HRM practices in TESCO
Job description is the statement which includes the specific role & responsibility which
they have to follow if they hire for the same role. With the help of this candidate able to evaluate
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that, they are capable or not. In context of TESCO, HR manager of the organisations need to hire
candidate for the post of Customer Service:
Job description
Company: TESCO Plc.
Post: Customer Service
Section: Sales department
Pay: Not Mentioned
Job type: Full Time
Location: England, United Kingdom
Job description:
 Manage the whole team as well as encourage them to achieve high level of output along
with team spirit.
 Need to build customer service strategies in order to resolve the issues of customers
which can further impact the operations.
 Quickly address or respond the customer grievances.
Responsibilities:
 Required to solve customer queries and complaints as soon as possible they can.
 Maintain customer records in order to analyse their needs interact with them by using
transactions information.
 Develop positive, sympathetic and professional conduct towards the customers.
 Use cost effective services through analysing each activity and monitor it, in well
manner.
Fascinated nominee can send their CVs at [e-mail] or you can contact on below
mention mobile number 01852350411.
Thanks and Regards
Mr. ABC
HR Manager (TESCO)
England, United Kingdom
+01852350411
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Curriculum Vitae:
It is the person specification which includes the overview of educational and professional
aspect of the candidates ( Pattanayak, 2018). Along with this, it includes the additional
information which required knowing by the HR manager of the company. Candidate applies their
CV for the role of Customer Service within TESCO is given as follows:
Curriculum Vitae
Name: Mr. QBAY
Mobile Number: 044125410246
Email Id: [e-mail]
Address: Old Green lay Street, England, United Kingdom
Position: Customer Service
I have excellent interpersonal or leadership skills which make me developing and build strong
relations with customers which help in carry out the project successfully.
Key skills:
 Excellent communication skills
 Creative thinking and good at problem solving
 Patient and polite by nature Analytical skills
Professional Experience:
Company Name: Aldi Limited
Duration: 2 years
Position: Customer Service Assistant
Educational Qualification:
Post-Graduation: Masters (Human Resource Management)
University of London, United kingdom
Year: 2016
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Offer latter used to give invitation to the potential candidate who can become an
employee of the company. It includes all the required details regarding employment which
include some terms & conditions. In addition, it includes the information regarding salary, job
responsibilities, benefits and reporting manager's name as well as designation.
Job Offer Letter
TESCO Plc,
1211, Apex Mall Drive
England, United Kingdom
May 15, 2019
Mr. QBAY
Human resource representative
Old Gloucester Street, England, United Kingdom
I am happy to inform you that you are selected for the post of Customer Service at TESCO
Multinational. It is the full time job where 6 days are working a week and initial salary will be
$25,000. You are full time employee of this organization so you will be entitled to company's
benefit.
If you accept this offer then send me the necessary documents of your qualification as soon as
possible you can. If you find any confusion or questions regarding employment policies and
procedures, please do not hesitate or feel fee to contact me on my mobile number
+01852350411.
Sincerely,
Mr ABC
Human Resource Manage
TESCO Multinational
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HR manager of Tesco have to measure HRM practices which help in implanting HRM
practices in the organization in order to maximise the productivity as well as profitability.
Recruitment and selection: Before start the process of recruitment or selection they have to
identify the mission and culture of the organisation. In context of Tesco, manager needs to
realise the requirement of job role and then build hob description for the recruitment process.
Work life Balance: HR managers need to ensure that they provide flexible working hours
along with teleworking and training in order to maintain work life balance. Tesco have to
schedule their logistics, modify technology and conduct regular training sessions in order to
enhance as well as evaluate their skills.
Training and development: This HR practice used to improve their individual skills &
competencies, it will further enhance the overall performance of employees. Aim is to develop
professional skills through providing various skills which required to perform their task in order
to achieve organizational goals & objectives. In context of Tesco, manager adopts various
practise which helps in improving skill set of employees in the current job profile.
Compensation and performance appraisal: Compensation and other benefits help the
employees to motivate or perform well to achieve organizational goals & objectives.
Performance appraisal is the periodic process which is used to evaluate the overall performance
of the individual (Purce, 2014). These HRM practices help the TESCO impact the working
culture, employees relation etc. Company follow these practices which help in providing various
opportunities and rewards. It helps the organization to compensation and appraises their
employees in a number of ways such as promotions, awards, incentives etc.
M5. Application of HRM practices in the organizational context
There are various practices which help the organization to maximise their employee
efficiency as well as effectiveness that used to improve production as well profitability. HR
manager of TESCO recruit the people in well manner through analysing all the factors. After
selecting candidates they provide the required training in order to enhance their skills and
competencies which maximise the productivity as well as profitability. After this, performance
will be evaluated and provide rewards to motivate them for the future work.
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CONCLUSION
As per the above mentioned report, it has been concluded that human resource
management plays very crucial role in growth and success of company. Different
Practices of HRM helps in improving motivation level of employees which ultimately results in
improving productivity and profitability of company. Different approaches of recruitment and
selection and used by company in order to hire the most suitable candidate within firm and each
approach have its own strength and weakness. Application of different HRM practices provides
various benefits to both employer and employee in terms of improve motivation level, maximize
productivity, increase performance etc. this practices helps in improving productivity and
profitability of company. Having good employee relations in company supports in maintaining
healthy and conflict free culture at workplace. There is some employment legislation that needs
to be considered by human resource manager of organization as this helps in eliminating
discrimination from workplace and improve motivation level of employees.
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REFERENCES
Books & Journals
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