Importance of HRM in Managing Workforce and Business Operations

This report discusses the function and purpose of HRM, strengths and weaknesses of different recruitment and selection approaches, benefits of HRM practices for both employees and employers, and the impact of HRM on organizational profitability and productivity. It also explores the importance of employee relations and employment legislation in HRM decision making.

INTRODUCTION
HRM is defined as managing demand and supply gab of workforce within an
organisation in an effective manner (Noe and Hollenbeck, 2017). The main role of human
resource department is to deal with the issues of employees and provide them training,
development sessions, compensation, motivation, communication and also to manage
administrative activity in work place. There are several monetary and non-monetary benefits that
has to be provided to employee, in order to regain employee loyalty towards firm. The present
report is based on Merrill Lynch, which is an investing and wealth management divisions of
bank in America, the headquarter is situated in New York City. The company was founded by
Charles E. Merrill.
P1 Function and Purpose of HRM
Human resource management is concerned with managing, monitoring and controlling,
directing, creating balance between workforce and flow of business operations with an
organisation. HR department deals with various issues regarding to employees like performance
management, organisational development and many other aspects, for providing healthy
workforce in an organisation.
The main purpose of human resource manager is to hire right applicant for vacant job
profile at right time in an organisations. In context to Merrill Lynch, the purpose of HRM is to
fulfil demand and supply of workforce in work culture of company.
The function of HR department is bifurcated into managerial and operative function which are
effectively utilised to achieve desired objectives of an organisation. In reference to Merrill Lynch
the role of HR is to provide accurate information to employees in operating business actives in
an organisation. The importance function which are been discussed below:-
Managerial Function
 Planning: It is the primary stage of performing managerial function in effective manner.
In context to Merrill Lynch human resource manger have to analyse and identify about
current future requirement of employee in work culture for completing goals and
objective in effective manner (Brewster, and Söderström, 2017) It can effectively conduct
recruitment procedure within an organisation.

 Organisation: After planning the essential step is to conduct and develop organisation
structure by grouping of personal activities to different staffs in a company. In reference
to Merrill Lynch leaders can effectively distribute each task between skilled work force
and accordingly can collaborate every activities to achieve common goals of an
organisation. Directing: It has been identified that proper guidance is been required for performing
work in the work place. The active participations of employee productive for maximising
employee capabilities in banking sector.
Operative functions Performance Appraisal- It is necessary to guide and motivate employee in Merrill Lynch.
On basis of performance, top management can able to reward the best individual as a
employee of month in Merrill Lynch.
 Training and Development- It is important for those employees, which are skilled and
talented staffs in the Merrill Lynch. It is important that employee take interest in learning
new skills that are beneficial for operating business activities.
As per above mentioned functions of HRM, it plays an important role development and growth
of company in positive manner (Guest,2017). In reference to Merrill Lynch HR manger of this
bank have to work according to plan and procedure so that goals can be achieved on time by the
individual.
P2 Strength and Weakness of different approaches to recruitment and selection
Recruitment and selection is a process in an organisation which aid to attract effective
workforce. It helps to create pool of potential employees in order to select right applicant for
correct job role. Through recruitment correct and skilled candidate can be retain just like other
resources (Delery and Roumpi 2017).There are two type of recruitment internal and external.
Internal requirement which involves promotional activities, transfers with the organisation.
External recruitment involves newspaper ads, placements from educational institution and many
more.
Recruitment
It is a process of hiring and finding skilled and talented candidate for the right job role
according to their qualification. This method is to attract large number of candidate for specific

role and responsibilities in an organisation. There are various tools and techniques regarding to
digital media through which recruiter can easily attract pool of candidate in to their organisation.
Strength of Internal Recruitment
 In this company have an idea of the skills and they also know that they have an idea and
trust upon other employees. Internal recruitment can also create employee loyalty. It is
easily to assess internal candidate because their track record is easy accessible.
 Another advantage is that if the company focuses on sourcing passive candidates on
resume database, manger of Merrill Lynch can find co-workers with in the workplace
who may fit in the job role of organisation.
Weakness of Internal Recruitment
 Disadvantage is that mangers are often uncomfortable lose good team members and may
even go far as to hinder the transfer or promotion process.
 Create resentment among employees and mangers (Huemann and Keegan2018).
Advantage of External Recruitment
 There is a better possibility of finding and identify a fresh candidate who is capable of
delivering new skills and inputs for betterment of an organisation.
 When organisation post an advertisement in social media or newspaper the recruiter of
Merrill Lynch can able to find well experienced and qualified candidate individuals.
Disadvantage of External Recruitment
The De merits of external recruitment is that the company cannot trust new employees. They
might can also lack skills and efficiency.
This method of recruitment can take lot of time and can also increase operational cost of
business.
So after analysing advantages and disadvantages of both internal and external recruitment,
Merrill Lynch mangers can adopt external recruitment advertisement approach to attract pool of
candidates towards their organisation.
Selection
It is a process of selecting best candidate out of pool of all candidates or participate who
are applying for job. Selection of employees can range from simple process to a very
complicated process depending upon firms hiring and the position (Brewster and Hegewisch,
2017). In references to Merrill Lynch manger is emphasising on face to face interview and focus

on group rounds for communicating with interviewee in recruitment process. Advantages and
disadvantages of interview which is adopted by this organisation, some of point which are
discussed below:-
Strength of interview method of selection adopted by Merrill Lynch
 Through interview suitable candidate can be selected because the interview can know a
lot about the candidate by this process.
 Interview can aid to collect fresh, new and primary information which is necessary to
know about the candidate.
Weakness of interview method of selection adopted by Merrill Lynch
 This type of method can take lot of time and also be considered not reliable. It can also be
more expensive.
 Interview method is expensive than other method of selections.
LO2
P3 Benefits of different HRM practises to both employees and employers of organisation
Human resource management involves various plans and policies, legal structures which are
beneficial for both the employers and employees within an organisation. Human resource
department is working effectively to build balance between operative and managerial function in
an organisation.
Benefits of HRM practise from perspective of employer
Learning and development it is a process of getting and developing skills, capabilities and
knowledge through leaning experience of an individual. Training sessions in the working
environment has positive and negative impact on the work place. Manger of Merrill Lynch
which has recently adopted planned strategies for creating positive and healthy relation among
supervisors and manger at the work place.
Benefits of HRM practise from perspective of employee
It is essential for employees to be have proper training and development sessions so that
they can improve their skills and capabilities in effective way. Employees of Merrill Lynch have
to perform multi task so that better performance of employees can be analysed. The development
of employee is beneficial, to get promotion in designated job profile. According to recent
scenario managers of Merrill Lynch have adopted 360 degree feedback method for analysing the

performance and providing training session to workforce in positive manner , so that they can
build up new skills for completing any activities in work place.
P4 Evaluate HRM practises in terms of raising organisational profitability and productivity
There are various benefits regarding to HR practises within the organisation, such as
improvement in labour turnover rate, conflicts resolutions, employee satisfactions, increment of
employee performance, training and development, as well as aids in controlling of financial
budget in an organisations. While implementing HRM practises, the main objective of top
management is to build mutual understanding and relationship among employees-employers
stakeholder and firm (Shobaki, 2017) In reference Merrill Lynch leaders are majorly focusing
on improving profit margin in the competitive market.
This will aid to increase productivity and profitability in effective manner. The benefits
of flexible working hours to employers and employees are listed below:-
Benefits to Employees and employers
 Management of Merrill Lynch provides work from home for those employees who can
able to come to office, hence it created positive impact on staffs of this bank.
 Manger of the bank ensure the safety of female staffs, they are providing women workers
free cab facility, so that they feel comfortable at night shift working hour .
 Proper training and development sessions are conducted once in a month with an
organisation. Employees and employers of Merrill lynch are motivated and hard workers
to attain their goals and targets on time, it aid to increase profitability and productivity in
effective manner.
LO3
P5 Importance of employees relations in respect to influence HRM decision making
Employees relation which are important part in the business industry, there are various
relation such as employees- employers, clients- suppliers, many more. In reference to Merrill
Lynch, the top management has to adopt effective strategy for building healthy relationship
between staffs and manger in the work place. To ensure higher productivity employees need to
be motivated and devoted towards their work . Some of the important factor which are
mentioned below:-

Conflicts Resolution : Employees relation creates positive environment inside the
organisation. Conflicts management plays an essential role for staffs in the company. It builds
mutual understanding and among employees and employers which resolves conflicts among
them. In reference to Merrill Lynch leaders have to set proper plan and policies through which
they can resolve staffs issues have to conduct various session regarding to conflicts management
programmes (Collings and Wood, 2018).
Productivity:To increase profitability and productivity leaders of the company has to
create positive atmosphere so that employees turnover can be reduced. In reference to Merrill
Lynch, HR manger of the bank are engaging each and every individuals of the bank in various
activities and programmes which is conducted in the organisation for betterment of employees..
P6 Employment Legislation which impact upon HRM decision making
It is necessary that rules and regulations should be framed by team of managers in
accurate manner, so that flow of business operations does not get hampered by minor change in
internal environment, within an organisation. The decision of growing business are purely based
on employment laws that are implement in work culture and are mandatory to be followed by
each individual in organisation. The legal act include national minimum wage act 1998, working
time regulation 1998,employee right act 1996 and pension act 1995. It has been identified that
satisfaction of human resource, are important to enhance productivity and profitability of
organisation.
Equality Act 2010: This law include several characteristics such as gender reassignment,
age, caste and disability and many more that have been included in this act by government of
UK. The core objectives of equality law is to protect employee from discriminations, as well as
physical and mental harassment being given to labour in work place. If it is talked about Merrill
Lynch, manager should give emphasis on every characteristic such as culture, religion and others
that have been included in equality act while planning strategies for development of
organisations (Teimouri and Jenab, 2017). For example, the leaders should divide role and
responsibilities to each member in a group or team, so that every individual feel motivated in
performing activities effectively that are assigned to them in an organisation.
Employee Right Act 1996: This act states that every individual in an organisation, have
right to ask what his role and what employer expect from team member on designated job
profile in work culture. This defines degree of employee-employer relationship in working

environment. The manager have to clearly explain responsibility and accountability of employee
in company. In regards with Merrill Lynch, human resource department are majorly concerned
that employee are being equally treated by employers in working environment.
Data Protection 1998: The data protection act was framed to secure official and personal
detail of customer and company with high tech software by UK government. If it is talked about
Merrill Lynch, manager have to communicate with IT department, in order to save detail of
potential customers and generate new leads for firm in banking sectors. Recently, IT department
are majorly concern with storing important information in different customised digital devices,
so that authorised team can monitor each activity via online connectivity and prevent data to be
leaked by hackers.
LO4
P7 Applications of HRM practises
Human resource department which are performing various activities for the growth of
employees as well as development of organisation. Through business operational activities in the
work place play an positive impact on the growth of staff. In the present era HRM department of
Merrill Lynch focusing on special documentation which aid to know about the individual in
effective manner. (Zijlstra and Vanoutrive, 2018). Some of the documentation like job
description, personal specification, offer letters etc. HR of the bank has to assess proper planning
for hiring HR manger in Merrill Lynch, to full fill requirement of vacant of job position. The job
description meaning and sample is discussed below:-
Recruitment process
Merrill Lynch first give advertisement on its website and job portal. All the deserving
candidates give them resumes and HR of the firm analyses these resumes. People are called for
interview and HR ask questions to them to analyses their capabilities At the end fiancla
candidate is selected in business.
Job advertisement
Post HR business manager
Company Merrill Lynch
Location England
Salary 25000 (depends upon experience)

Educational qualification MBA from well known university
Job description : It is a specific information about skills and qualities which are
required for doing job.
Organisation Name: Merrill Lynch
Designation: HR Business Manager
Department: Human Resource
Roles and Responsibilities
The roles and responsibilities that needs to be performed by HR business manager is handling
of human resources, managing and identifying problems which is being faced by human
resource in organization. They also need to provide adequate training and handling of
employees. They also need to coordinate with other human resource. Coordination must also be
done with supervisors so that the work can be easily managed. They must also engaged in
recruiting most efficient employees.
Required Qualification
Masters in business administration in HR and Marketing.
Graduation in management from affiliated university
Experience required
Minimum two years of experience marketing in banking industries.
Person specification
Essential met
Qualification
 Graduation
 MBA
Yes
yes
Experience
 Less than one year
 2 year
Yes
yes
Skills
 Technical skill Yes

 Problem solving skill
 Managerial skill yes
Yes
The prepared interview question for HR business manager profile are discussed below:-
 What is your daily routine?
 What was your previous salary which was drawn in past organisation?
 What are the strength and weakness which is identified by you when facing interviews?
 Do you have analytical and technical skill for conducting market research?
 What was your learning in duties you served to previous organisation?
Job offer letter
To,
Mr. XYS
You have been selected in Merrill Lynch on the post of HR business manager. You have all
the skill that require to perform this job well. Your annual salary would be 25000 and you
will get accommodation facilities and incentives according to your performance.
Kindly sign the require documents and submit to HR department
Thanks & regards
Merrill Lynch
CONCLUSION
From the above mentioned report, it has been identified that human resource management
play an important role for growing the business in a competitive market. The main purpose of
HRM are beneficial for fulfilling demand and supply of workforce within an organisation.
Therefore strength and weakness of recruitment and selections which have been analysed for
hiring right candidate in the work culture. Employment law which is necessary to adopt by the
top management in order to operate business activities in effective manner. Hence it is necessary
that job specifications in HRM practise should be accurately framed by managers of Merrill
Lynch.

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