Importance of Employee Relations in HRM Decision-Making

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Purpose and functions of HRM, applicable to workforce planning and resourcing an
organisation............................................................................................................................3
P2 Different approaches to recruitment and selection with its strengths and weaknesses.....4
LO2..................................................................................................................................................6
P3 Benefits of different HRM practices within an organisation for both employer and
employee.................................................................................................................................6
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.............................................................................................................................7
LO3..................................................................................................................................................8
P5 Importance of employee relations in respect to influencing HRM decision-making.......8
P6 Key elements of employment legislation and the impact it has upon HRM decision-making
..............................................................................................................................................10
LO4................................................................................................................................................10
P7 Application of HRM practices in a work-related context using examples.....................10
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................14

INTRODUCTION
Human Resource Management refers to the managing of all the decisions with respect to
their employees in an organisation. It is used to enhance the employee performance in order to
achieve the organisational objectives. HRM is the process starts from recruiting,selecting to
hiring as an employee and motivating them to work for the organisation by giving rewards,
compensation, performance appraisal and so on. They also ensures about the employee safety
and welfare and creating and maintaining levels of all employees by implementing local, state
and federal laws. In this report, H&M is taken as the base company. It is Swedish fast fashion
retail company, founded by Erling Persson in 1947. Erling open his first shop in Vasteras,
Sweden as Hennes which sells women clothing and later in he acquired Mauritz Widforss and
form the company as Hennes & Mauritz. They deals with men, women, teenager, children and
babies clothing wears. And also offers a variety of sportswear, beauty products, accessories and
shoes. With context to the company, this report will discuss about the purpose and scope of
human resource management. This also discusses the advantages and disadvantages of various
methods to recruitment process. In addition, the advantages of HRM activities in the workplace
for both employers and workers, as well as increasing profit and efficiency, are addressed.
Moreover, the responsible for employee relations in affecting HRM judgement, as well as
aspects of company policies and HRM training implementation are mentioned.
LO1
P1 Intent and duties of HRM, applicable to workers planning as well as resourcing a company.
Human Resource Management plays a vital role in an organisation in maintaining the
performance of the organisation. They are able to execute the performance of the company by
doing various roles such as recruitment and selection, training and development and so on. In
reference to H&M, the purpose, scope and functions performed by human resource management
are mentioned:
Purpose of human resource management: The purpose of human resource
management is to onboarding the right candidate for right position in order to achieve the
organisation goal (Ahmed et. al., 2017). Also, they try to maintain a healthy relationship between
all the employees of the organisation. Furthermore, they make sure that all the staff members are
working and motivated in order to increase the productivity and profitability of the organisation

(Akpey-Mensah, 2020). In context to the selected firm, HRM make sure that relationship is
maintained between their employees and also enhance the staff performance.
Scope of human resource management: Scope of human resource management is wide
as it consists of manpower planning, recruitment, promotion and many more. Various benefits
are offered to their employees such as health and safety, medical assistance etc. Providing all
these facilities to the staff member encourages and motivate them to work in order to increase the
productivity and profitability of the organisation in an effective manner.
Functions of Human Resource Management:
 Recruitment and selection: Recruitment and selection is an important function as right
candidate should be hired in order to achieve the organisation goal. Recruitment refers to
the hiring for right candidate from a pool of people with required qualification and skills.
In context to H&M, various methods of recruitment and selection of candidates such as
face to face interviews, telephonic interviews and many more takes place in order to hire
the deserving candidate.
 Performance management: Here the human resource department evaluate the employee
performance on the basis of roles and responsibilities given and expectations from the
organisation. In context to H&M, human resource manager evaluate the performance of
employee in order to give review on basis of their performance and also make sure to
enhance the performance of employees in an effective and efficient manner.
 Compensation and benefit: Employees in an organisation offers various compensation
and benefits, so that they are motivated to work and retain the organisation. In reference
to the selected firm, employees in the organisation are provided with various benefits
which poses them to work and meet the targets of the organisation. In relation to H&M,
they provide benefits such as free transportation, health insurance, international
relocation and so on
P2 Various methods of recruiting and selecting with main benefits and drawbacks
The HR manager uses various approaches of recruitment and selection to chose the right
candidate for its organisation (Chesser, 2017). In context to H&M, human resource manager uses
various approaches with their advantages and disadvantages are mentioned below:
Recruitment: Recruitment is the process of hiring of candidate for the organisation from
a pool of people. HR manager identify and attract the qualified candidate for the job (Hermawati,