Importance of Employee Relations in HRM Decision-Making

This article discusses the significance of employee relations in HRM decision-making. It highlights the importance of maintaining positive relations with employees to promote effective outcomes and boost company's performance.

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,

2020). This process helps company in getting new and fresh ideas which leads in growth of the
company. Approaches of recruitment adopted by H&M is mentioned below-
Approaches of recruitment: Internal approach: In this type of recruitment approach, HR manager places the existing
employees into another vacant position of the same company. The company take
references from other employees in order to fill the vacant position. Advantages and
disadvantages of internal recruitment is mentioned below:
Advantages: One of the best advantage of internal recruitment is that people already knows about
the business, culture and its operation. There is no need to train about that.
Disadvantages: Internal recruitment will not generate new ideas for the company. External approach: External approach refers to the process of hiring the candidate from
outside the organisation. H&M uses this approach in finding new candidate for the
organisation and its advantages and disadvantages are given below:
Advantages: External recruitment brings person with new ideas which is beneficial for the
company.
Disadvantages: Recruiting process will be expensive due to advertisements and interviews.
In context to H&M, they prefer to use external approach as new people will bring new
and innovative ideas which helps the company in provide new products and services to the
customers.
Selection: Selection refers to the selecting the right candidate for the organisation in
order to fill the vacant position. And it is done after recruitment. Approaches used by H&M are
mentioned below:
Approaches of selection: Telephonic interview: In selection process, the candidates have to answer questions of
the company telephonically (Kavanagh and Johnson, 2017). It is one of the most simplest
interviews. Its strengths and weaknesses are given below:
Advantages: Telephonic interviews are cheap and affordable and also save a lot of time.
Disadvantages: In telephonic interviews, HR manager cannot see the body language and
behaviour of the person.

 Face to face interview: Face to face interviews is the process of interaction of employer
and the candidate. Employers can easily see and watches the behaviour of the candidate
(Malik, 2017).
Advantages: It prevents interruptions between employer and candidate.
Disadvantages: It is time consuming and expensive process.
In reference to H&M, they will prefer to take face to face interviews of the candidates, as
it gives an opportunity to observe and analyse the candidate behaviour. Staff behaviour is the
reflection of brand in the market.
LO2
P3 Importance of several HRM duties within a company for both boss and worker.
HRM These practice helps in employee's growth and development which creates impact
on the organisation in a positive manner. In reference to H&M, HRM practices used by
them are mentioned below- Reward & Benefits: Rewards play a vital role in developing and encouraging behaviours
and values. Companies gave their staff members rewards according to their performance
in the organisation. These can be both monetary and non-monetary rewards. In context to
the selected firm, they offer their employees with various rewards and benefits such as
travel packages, bonus and many more which encourages employees to work with full
potential and interest.
Benefits to Employer- Benefits given to employees helps in motivating them to enhance the
performance of the employee. Also, it helps in increasing the productivity of the organisation.
Benefits to Employees- Benefits given to employees helps maintaining their standard of living
and also helps in getting their requirements fulfil. Training and development: Training and development helps in improving the skills and
performance of the employees in an effective manner (Masri and Jaaron, 2017). In
context to H&M, they provide training to all the new and existing employees in
improving the skills in order to make them skilled in their job. And on the other hand,
development helps in improving and developing of their soft skills.

Benefits to Employer- Training and development program helps staff members in increasing their
skill and knowledge which create impact on the profitability of the organisation in an effective
manner (Nasir, 2017). It helps H&M in creating a higher profit and a good image in the market.
Benefits to Employees- Training and developments gives a great opportunity for employees to
polish their skills and increases their growth. In addition to it, it also helps in organisational
productivity and profitability.
P4 Importance of several HRM performs in positions of raising structural income and efficiency.
HRM practices is the managing to people performing tasks in order to achieve the
organisational goal as well as personal goal. I help in finding the appropriate and maximum
output from their staff and also helps in maintaining he resources. Furthermore, it also helps in
better decision making with quality. HRM make sure to conduct all the activities in motivating of
employees to perform well in the organisation in order to increase the productivity and
profitability. Human resources management helps organisation in making healthy working
environment and maintaining the relationship between all the departments. In reference to H&M,
effectiveness of HRM practices has been evaluated below-
 Performance management: Manager uses this tool for evaluating the performance of
the employee in the organisation. It helps in analysing the performance of all the
members on the measures of task completion, time taken and the quality of work done.
Manager gives appreciation to the employees on the basis of their performance. In
reference to the selected company, they use this tool in evaluating the performance of
their staff.
 Career planning: Career planning refers to the classifying of employees on the basis of
their skills and capabilities for pursuing future growth in the organisation. In reference to
the selected company, they analyse the skills of the employee by setting up various
standards and expectations.
 Employee relation: Employee relations refers to as the backbone of the organization.
Management helps in establishing a good relationship with its employees of the company
(Park and Chae, 2017). They motivate their employees by conducting various activities.
In context to H&M, they make sure that relation between all the staff members are
maintained. No conflicts or issues should be occurred in the organisation.

 Training and development: The managers conduct training and development programs
for all new and existing employees of the organisation for polishing their skills and also
helps in improving their performance (Salas, Edens and Wilson, 2017). H&M conduct
training and developing programs for new and existing employees to make sure that they
all are updated with the changes in the organisation.
 Recruitment and selection: The selected firm adopts external approach for recruitment
and selection. This approach helps in getting fresh ideas in the organisation. And it is
important for the human resource manager to choose the right candidate for right role in
the organisation as it required a huge amount of money for hiring.
 Reward & Recognition: Rewards and recognition is used in motivation of employees in
the organization. This tool is used in every department of an organisation. Rewards are
monetary and are tangible while recognition is intangible and it can't be measurable. It
helps employees in maintaining a positive behaviour towards the organisation. In
reference to the selected company, they give various rewards and recognition to their
employees which helps in keeping the environment motivated and also helps in
maintaining the relationship between all the employees and departments.
LO3
P5 Significance of employee relationships in detail to prompting HRM decision-making
Employee relations have huge impact over companies overall decision-making. HRM is referred
to human resources management which requires support of workforce in order to achieve
effective outcomes. Therefore, it is mandatory to maintain good relations with employees to
boost company's performance. It requires formulation of adequate policies which will encourage
them for optimising their contribution level to provide efficient results. In general, it means
making efforts to maintain optimistic relations with employees to eliminate chances of any
disputes which may hamper the smooth flow of operations in an organisation. In this regard,
H&M is committed towards development of impactful workforce which will ensure company's
overall growth and productivity in the long run. This way it will be able to survive in the intense
competition with support of skilled employees (Smith et. al., 2019). In this context, HRM team
of H&M is functioning to promote healthy relations between employer-employees. It is done by

execution of strategic policies as well as adhering to various employment laws which are
developed for employee's benefits. There are inherent significance of employer-employees
relations in regard to HRM decision-making which can be highlighted as follows:
 Employee Engagement: It is often said to achieve employees satisfaction level. With
formulation of different approaches towards delivering employee satisfaction, can assist
an organisation to attain level of success it looks up to (Spivack and Woodside, 2019). In
this regard H&M has been working to provide flexible working hours, performance based
appraisals, increments, extra payment for extended working hours. These initiatives will
help an organisation to maintain healthy working environment in order to run smooth
business operations. Respective company is devoted towards achieving healthy business
environment by providing relevant benefits to their workforce for attainment of
maximum profitability.
 Application of relevant Employment laws: In order to maintain smooth flow of work,
it is expected of a company to implement relevant employment laws which will promote
healthy relations between employee and employer. These Laws can be employment
relations act 1999, national minimum wage act 1998, equality act 2010, etc. H&M has
been working in such a manner which will help in development of significant structure of
workforce resulting in effective outcomes. This way employees and company both will
work on systematic grounds that will lead to success of a company. Therefore, such
practices has been widely used across the globe in order to sustain in immense
competitive environment.
 Grievance Redressal: This approach is helpful in access to the maximum of employee
related problem in order to resolve them. This way it will become easier to understand
psychology of workforce in reference to their needs and requirement as well as their
satisfaction and dissatisfaction in long term (Traeger and Alfes, 2019). In this regard,
H&M has facilitated its employees with a tool that will help a company to address
problems and troubles being faced by their workforce in order to deliver effective
outcomes. This way company's overall productivity will be maintained and become easier
to attain level of profitability by support of its workforce.

P6 Main elements of employee legislation as well as influence on HRM decision-making
The employment legislation is the rules and regulations introduced by British government
to regulate the connections between employers and employees. It also helps in protection of
employment opportunities in the country (Wehrmeyer, 2017). In reference to H&M, following
legislation are included which help in effective functioning of organisation are given below-
 Data Protection Art, 2018: This act say that misuse of personnel data from employees is
considered to an illegal act and punishable by the law. Employees are required to keep
their personnel data secure under this act.
 Health and Safety Act, 1974: This law states that every organisation should take the
health and safety measures as it helps in increasing the performance and satisfaction of
the employees.
 Equality Act, 2010: This law state that every employer will get equal salary and
opportunities at the workplace. It was proposed to provide fair and equal treatment to the
employee in the organisation. In reference to the selected firm, HR manager ensures that
every employee in their company will get equal salary and benefits from the organisation
in order to maintain the equality among all the employees.
LO4
P7 Presentation of HRM follows in a work-related background by means of examples
H&M required an Assistant Store Manager in their stores as identify by the human
resource manager. The requirements are given below-
JOB SPECIFICATION
Job title: Assistant Store Manager
Department: Marketing
Job summary: The purpose is to conduct and promote various activities and fulfil the sales
target in order to increase the productivity and profitability of the organisation.
Responsibilities:
 Ensuring that store objective should met by the employees and maintaining of
cleanliness of the store.
 Assists customers whenever it is necessary.
 Display the products accordingly to their colour, size, gender on racks or showcase, so

that customer can easily locate it. Maintaining the quality service such as enforcing the standards of the organisation.
Qualifications:
 Effective interpersonal and managerial skills
 Past experience in retail industry
 Degree or diploma
 Good customer service skills
CV:

Curriculum Vitae
General information:
Name: XYZ
Father's Name: ABC
Mother's Name: KLM
Email ID: [e-mail]
Objectives:
I am employed by a reputable organization in order to bring my skills and experience to use in
furthering my professional life through contributing with day tasks that aid in the achievement
of the organization's goals and objectives.
Qualification:
Master's in Marketing
BBA in Marketing
Experience:
2 years of experience in retail industry as assistant store manager at QRS from January, 2019 to
February 2021.
Skills:
Negotiation skills
Communication skills
Learning attitude
Physical stamina
Person specification
Particulars Essential criteria Desirable criteria
Personal characteristics Adjusting to Change
Handling a group
Qualification MBA in Marketing XYZ College offers a Degree
in Business through Marketing.

Experience Self-assured of your capacity
to execute during extreme
stress
Skills Professionalism in the
workplace is a management
skill.
Imaginative capacity
Computer know-how
Interview notes:
• Can you ask me a little bit regarding yourself?
• What is your level of expertise?
• What does your skills and talents in terms of overseeing store operations?
• Why did you quit your previous employer?
• How much do you want to be paid?
OFFER LETTER
H&M
March 15th, 2021
XYZ
Dear XYZ,
We are glad to communicate you that you are recruited to work as an Assistant Store
Manager with our company by passing all the rounds of hiring. We have conducted procedure
to identify your knowledge, skills, background and qualification and analyse that you are
precious and valuable for our organisation.
According to our discussion, you are hired for performing the role of Assistant Store
Manager and your joining date will be March 22nd, 2021. If you are interested, please contact us
via dropping an acceptance mail or provided official contact number .
Sincerely,
Human Resource Manager

In order to hire a suitable candidate for the company, human resources manager make
sure to choose the right candidate for achieving the organisational goal. They use face to face
interview approach for hiring purpose. Face to face interview is a direct interaction between
interviewer and interviewee. It enable the manager to observe the body language and behaviour
of the candidate as the candidate has to deal with the customers.
CONCLUSION
From the above discussion, this can be argued that HRM is critical during an
organization's ability to employ employees in terms of achieving the organization's objectives. It
covers the function as well as roles of HR manager, as well as the advantages and disadvantages
of the recruitment process. It also includes the advantages of various HRM activities for both
employers and employees, as well as their efficacy in addition to increasing profit and efficiency
for the company. Furthermore, the role of employee engagement in HRM decision-making is
discussed, as well as the effect of employment regulations and HRM choice upon this. Finally,
the implementation of HRM practices in the workplace has also been identified.
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