Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in HRM decision making and its impact on business success. It explores the key elements of business legislation and how it influences HRM decision making. The article also highlights the various HRM practices implemented by Toyota to enhance productivity and profitability.

Human Resources
management

Table of Contents

INTRODUCTION
Human resource management is the different types of operations which is deigned by
organisations in order to increase employee execution to fitting employer's plan of action and
objectives. Along with this, HRM mainly focuses on management of people within firms to
implements of different types of systems and policies. Therefore, HRM is the activity of
selecting and hiring employees and gives proper orientation to developing and training skills.
This assignment is based on Toyota which is a Japanese multinational automotive manufacturer
organisation and it is headquartered in Toyota, Aichi Japan (Noe and et.al. 2017). Further
discussion will be based on effectualness of central elements within organisation. Lastly, strength
and weakness and Human resource management practices will get covered.
TASK 1
P1 Functions and purpose of HRM, relevant to manpower designing and beginning an
organization.
It is necessary part for each and every organisation which generally focuses on overall
management functions of firm to accomplish targeted mental object in an proper manner. That's
why it involves assorted types of utility which are fruitful for Toyota and their employees, those
are listed below:
Functions of HRM:
Recruitment and Hiring:
It is mainly considered as an significant functions of HRM practice that bring highly
skilled and knowledgable employee's for firm to achieve their targeted and goals. In context with
Toyota manager of this firm mainly use this function in order to organize and manage their
overall hiring method of candidates (Marchington, and et. al., 2016).
Training and Development:
It is another crucial function which aid firm to addition their workforce and resource
planning. Herein, Toyota is always able to increase employee's working performance by
providing them effective tools and strategies. On the basis of this they can perform better and
achieve their target.
Performance Appraisal:
1

According to this function of HR, manage of Toyota can easily measure employee's
performance through influencing overall workforce planning and resource. Along with this, they
check employees performance and gives benefits as per their performance (Kavanagh and
Johnson, 2017).
Labour Relations:
As per this all over employees work together within the Toyota along with manager of
this firm is able to make strong relationship with their employees in a perfect way. Therefore,
employees relationship with another people into firm increases high sales and revenue.
Purpose of HRM:
The main aim of HRM is to encourage employees into the firm and able to give them
several sorts of training and developing programmes for betterment of future. Some of the few
purpose of HRM in Toyota are mentioned below:
 In context with Toyota, the primary intent of human resource function is to increase firms
fruitfulness through optimizing effectiveness of its overall employees.
 Another aim of HRM in respective firm is to create and administrating an employee
benefit programmes to recruit and select different candidates for firm (Mello, 2014).
 HRM department always have responsibility to conjunction with individual department
whereas, manager of Toyota mainly evaluate employees performance. On the behalf of
this aim they can give better salary to its employees and increase firms value.
P2 Strength and weakness of several approaches to recruitment and selection.
To form appropriate approaches towards posture and imperfection manager of Toyota is
responsible to conduct several sorts of activity and improvement programmes to increase
cognition and skills of their employees. In addition to this manager have responsibility to make
their firm attractive or productive as well to beat their competitors in a perfect way. During this
process they can achieve its targeted goals and objectives in a perfect manner (Jiang, and et.al.
2012).
Selection:
It is procedure of selecting and taking correct nominee who is appropriate for a empty job
place within the structure. Along with selection of employees is procedure of matching firm's
needs and wants with the qualification of employees. Therefore, it is mainly based on face to
expression interview, debate, grouping discussion, ability test to prime high skilled employees.
2

Strength of selection process:
 It is easy for managers to measure overall performance of their candidates like they are
able to work or not into the organisation.
 It help managers to select eligible candidate for firm. This procedure of selecting people is less costly and increase firm's value.
Weakness of selection process:
 Erstwhile applicants are not able to carry through organisation's demand along with not
able to answer frequently it creates issues and conflicts between interviewer and
interviewee.
 If candidates are not cope up with interviewer then arguments can be raised any time that
influence firms reputation (Figueiredo, and et.al., 2016).
Recruitment:
It is mainly considered as a positive procedure of inquisitor different campaigner and
those who employ for the jobs within the particular firm. When so many persons apply for a job
then there is a chance of recruiting better person out of them. This process is based on 2
approaches, those are mentioned below:
Internal approach:
This approach of recruitment is generally followed by so many firms in order to fill their
job vacancies through recruiting knowledgeable candidates. In context with Toyota they recruit
its employees to accomplish business content and verifiable. Hence, it is segmented in 2 parts
that are:
Transfer approach- It is based on working environment towards Toyota. Herein,
employees are able to got transfer from one section to another division so that they work
properly (Chelladurai and Kerwin, 2018).
Promotion approach- In this approach employees get higher promotion as per their
work. Along with they boost from take down job chart to high job visibility. So that this factor is
beneficial for people and increase productivity of firm as well.
Strength of internal recruitment:
 Not overmuch costly rather than the external recruitment.
 There are different types of programmes such as training and development etc. It also provide job securities to employees for betterment of future.
3

Weakness of internal recruitment:
 In Toyota, huge opportunities for employees but not for all as they measure employee's
working performance. In this process issues can be create any time during the interview.
External approach:
It is considered as a best process and procedure in which, employees are able to perform
their entire activities towards work. In context with Toyota they use some methods, mentioned
below:
Direct recruitment: This method is used by Toyota and many more organisation in
order to ignore middleman during the process of recruiting employees towards firm (Cenzo,
Robbins and Verhulst, 2016).
Campus recruitment: It is a activity in which ample figure of worker apply for a job and
filled job vacant by candidate's experience along with fresher.
Strength of external recruitment:
 It is helpful for employer to gain contending asset. On the basis of this process employees are able to gain high possibility.
Weakness of external recruitment:
 Sometimes it can be costly for an organisation. Other weakness is external candidates generally demands for pay and high wages.
TASK 2
P3 Welfare of various HRM pattern within an arrangement for both employer and employee.
It is observed as a helpful tool for managerial aspects which help firm to maximise their
sales and revenue effectively (Buller and McEvoy, 2012). Along with, it brings effective changes
in order to make better employment within an organisation. To better understanding of this topic
there are few management practices in context with Toyota, those are explained below:
Recruitment and selection: It is crucial aspect of human resource planning. Herein,
human resource planning ensures that employees with right quality are employed in order to
attain targeted business goals. Therefore, it is necessary for Toyota to select working candidate's
in a perfect way.
Benefits for employee and employers are listed below:
4

Employers: According to this HRM practice Toyota is able to give huge benefits to their
employers by which they can get appropriate guidance and able to meet their targeted goals
effectively.
Employee: During the procedure of selecting and recruiting employees can be more
beneficial for them and able to give their better performance in firm to develop effective results
and outcomes (Brewster, Gooderham and Mayrhofer, 2016).
Training and development: It identifies ongoing and formal efforts that are made within
the organisation in order to change performance of their employees by applying numerous
educational methods and programmes. In context with Toyota, they use modern working culture
in which they have different types of learning concept which is beneficial for all people in to the
workplace.
Benefits for employee and employers are listed below:
Employer: As Toyota providing different types of training and developing programmes
by which employers are able to make strong relations with their colleagues and learn so many
new concept in order to achieve specified goals and objectives.
Employees: As per this employees are able to get huge knowledge and learn about new
rules and legislations in order to create effective programmes through implements on innovative
tools and techniques to make Toyota more better, therefore, it is beneficial to employees for
better learning.
Labour relations: This is more attractive and effective practice of HRM which is more
helpful for employees and employer's as well within the firm. In context with Toyota, manager
of this firm always able to make good relations with labours by which they can encourage them
towards better work (Buckley, Wheeler and Halbesleben, 2018).
Employer: In context with employer Toyota always trained its workforce and make them
capable to gain competitive advantages in a present scenario. With the help of this they can
develop better image of their firm.
Employees: It is very important term for employees within Toyota. This is because
respective firm generally focus on their employees working performance in order to formulates
unique concepts by which employees can make its performance better to achieve targeted goals.
5

P4 Effectualness of antithetic HRM practices in status of increasing structure net profit and
fruitfulness.
Assorted HRM pattern generally consist several factors which help Toyota to increase its
profit as well as productivity, those are going to be discussed below:
Recruitment and selection: This is much essential cognitive process in which
campaigner can get selection in firms and able to fulfil requirements of organisation in a perfect
way. In reference with Toyota, there are different types of tools and techniques which is used by
them to recruit and select people who can fulfil their needs. Together with before applying this
practice on their business they also seeks to their profit and productivity. For example: If Toyota
recruits or select highly educated people then they can easily achieve their business goals and
increase firms productivity as they recruit knowledgable persons (Brewster and Hegewisch,
2017).
Labour relations: This system or practice mainly develop by those people who has been
work together and able to gain firm profit and advantages in an appropriate manner. In reference
with Toyota, HR manager mainly develops effective labour relation in order to gain better brand
image at marketplace and increase firms value in front of their competitors. For example: If
manager of Toyota build such strategies by which they can encourage their employees
confidence towards achieving appropriate goals so that they can easily cope up with their seniors
and increase firm's productivity along with profit.
Training and development: In order to increase employee's working capability then
firms are required to have different types of activity and evolution course of study to gain better
output at marketplace. In context with Toyota, there are several types of training and developing
programmes of skills which always maximise employees performance and their capability of
work appropriately. For example: Toyota is one of the best automotive manufacturer
organisation so that they have large number of employees for increasing their working
performance they provide training and developing programmes to employees. It increase firm's
value and their productivity in an befitting mode.
TASK 3
P5 Importance of employee relation in respect to determinant HRM decision making.
Dealings and conflict of employees: (Collaborative approach)
6

Cooperative conceptualization generally defines the relationship and engagement of
worker into the firm. If employer of Toyota have effective powers and authority then they are
able to face different types of situation towards business to achieve better content and subjective.
Therefore, this formulation is precise effective and it is described below:
Effectiveness of approach: It is more effective and helpful approach by which Toyota
company is able to attain its targeted mental object and accusative. With the help of following
this approach they can increase employees confidence towards work by giving them appropriate
tools and strategies. It directly assist them to win their targeted goals and objectives to face any
kind of challenge within the competitive scenario. Therefore, it is necessary for all over
employees to have unique and effective strategies that will help them a lot and encourage them to
work with high skills and capability (Armstrong and Taylor, 2014). This approach is also helpful
to develop effective working culture for accomplishing their targeted goals. There are few
benefits of this approach in context with Toyota, mentioned below:
 With the aid of this approach HR managing director of Toyota is able to make right
decision towards employees to build strong relationship with them.
 Employees are able to create positive environment in firm at workplace by having strong
bond with each and every people.
 This approach is helpful for every people in firm as it help people to learn new concepts
so that they can easily communicate with each other in an appropriate manner. Along
with able to improve manufacturing of goods and services.
P6 Key elements of business legislating and the contact it has upon HRM determination
devising.
Employment statute law refers different kind of rules and laws in order to make good
decision with people towards government rules within the system. There are assorted form of act
which is followed aside Toyota, those are given at a lower place:
Fair Work Modular Act, 1938: Within this act Toyota is able to paid their workers
properly. Along with this, company always keep records of every employees towards their salary
so that they can easily take decision if there is anything wrong. Therefore, this act is very useful
for firm to accomplish their targeted score in a perfect mode. So that it also helps firm to make
effective decision towards human resource.
7

Minimal Reward Act, 1998: This act developed to identify about employees knowledge
and skilled of employees within firm. In context with Toyota, there are different types of
marketing tactics and strategies which is mainly developed for employees by which they can get
motivated and able to get effective salary towards their work in an suitable style (Bratton and
Gold, 2017).
TASK 4
P7 Utilization of HRM pattern in a work-related context with illustration.
HRM mainly consist several approaches which is also focused by Toyota to make each
and every operation better.
Toyota: It is Japanese multinational automotive manufacturer organisation which is sixth
largest organisation and having 364,445 employees globally. Along with it is Global basic
automotive manufacturing business which make many than 10 million conveyance every year. It
deals with hybrid electric vehicles and provide its services across the globe. To maintain this
global presence they precede some HRM exercise, elaborated infra:
Selection of experienced person: It is necessary for firm to select knowledgable
candidates to make better image of industries in a perfect manner. Herein, Toyota is responsible
to reduce conflicts and errors from the firm in order to select high skilled employees to satisfying
customer's needs and gain competitive advantages (Cascio, 2015).
Strength: With the help of applying this process of selecting people company is able to
give better training programmes to its employees and appreciate their performance in a perfect
way. On the basis of taking feedback from customers.
Weakness: If employees will not give proper response towards strategies which is made
by firm so that it can develop problems at workplace.
Job description: It refers to the enlightening certification which includes scope,
responsibility, roles as per the occupation. Hence, it is essential for firm to create knowingness
towards business in group mind.
Human resource manager of the company have to perform range of practices for bringing
effective workforce within the firm so that they can attain their predetermined goals in quicker
manner. With reference to the manager of Toyota, its respective business manager makes use of
8

different practices for bringing best suitable candidate within the company. All practices
included in this are described as below:
Company TOYOTA
Department Human Resource
Job profile Human resource officer
Job location Toyota city, Japan
Job summary Applicant is needed to have effective communication ability and
knowledge towards product development which involves human
resource, designing skills and accurate information about
managerial skills.
Roles & Responsibilities  Utilize recruiting strategies and tools of an organization.
 Administration of research to bring better improvements
to give presentation towards their seniors.
 Written document should be in a better form that bring
changes into the firm which influence other employees
Curriculum Vitae
Name:
Address:
e-mail id:
Contact No.:
Objectives:
To obtain HR manager job in large scale Multinational company where I can effectively use my
human resource skills and knowledge and also contribute in obtaining organisation objectives in
quicker manner.
Academic Qualification:
 MBA (Human resource)
 Graduate in Business Administration (Human resource)
Experience:
9

5 year experience in General Motors as a Human resource manager
Roles and responsibility in previous job
 Recruitment
 Maintaining strong relationship with employees
 Handling pay roll section
 Resolving issues of employees within the company
 Conducting training and development sessions for employees.
 Complying with every employment legislation
Skills and abilities
 Strong communication skill
 Quick learner
 Adaptable
 Team player
 Effective presentation skill
Technical Skills:
 Taxation knowledge.
 Basic MS Office
DECLARATION:
I hereby declare that overall information stated in the above section is updating by
knowledge and certificates issued by recognized board/university.
After screening candidates on the basis of their CV, HR manager further conducts
interview in order to select right person for the vacant job role. For the current provided example,
Senior HR manager of Toyota makes use of structured interview questions which are stated as
below:
 Tell me something about yourself?
 Tell me one of your worst experiences associated to the previous job role in HR
department?
10

 State one of your core strength which makes you effective HR manager.
 How you will develop strong relationship with the employees at workplace.
Based on these interview questions, Senior HR manager of the company will provide
select HR manager and provide them below stated offer Letter.
Job offer for selected candidate
Job Offer Letter
Toyota Multinational
03, Kings Road Drive
England, United Kingdom
February, 7 2020
Mr. ABC
Human resource representative
Queen Street, England, United Kingdom
Heartiest congratulations on the selection of the job role of Human resource officer at Toyota.
Company offer offer time position with the salary of $45,000. Different types of additional
benefits is being offered to you. This document also enclosed benefits, principle attributes that
are offered to you as Human resource officer. This is being requsted to you to revert back as
earliest wit your qualification documentation. For any query do not hesitate to contact on
+00441134.
Sincerely,
Mr. XYZ
Human Resource Manager
Toyota
11

Rationale
The above mentioned question which is asked by company to candidates gives an
appropriate information about a person experience as well as qualification. This will also help
Toyota multinational company to select a suitable candidate who can carry out business activities
effectively. In addition to this, Job specification gives a clarity to scrutinized candidates for
further interview process.
Critical Evaluation
Person specification document which is provided by Toyota corporation provides idea for
making candidates to know about job role. With this, it facilitates company to shortlist effective
candidates for further rounds. Although, it is a cost effective as well as time consuming process.
Moreover, it is difficult to mention different requisite skills, qualification and criteria in person
specification document in effective manner.
CONCLUSION
According to the above mentioned report it can be said that, Human resource plays vital
role within the firms or organisation through hiring and selecting skilled employees to make
firms better and productive. Along with HRM always consist planning, training, staffing,
selecting and growth factor in order to manage and control overall activities of firm.
Additionally, there are different types of key elements in order to improve working culture which
directly influence employees positively. At last laws and legislations has been described to
increase working performance of employees at business place.
12

REFERENCE
Book and Journal
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Gooderham, P.N. and Mayrhofer, W., 2016. Human resource management: The
promise, the performance, the consequences. Journal of Organizational Effectiveness:
People and Performance, 3(2), pp.181-190.
Buckley, M.R., Wheeler, A.R. and Halbesleben, J.R. eds., 2018. Research in personnel and
human resources management. Emerald Publishing Limited.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review, 22(1),
pp.43-56.
Cascio, W. F., 2015. Managing human resources. McGraw-Hill.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
13

Figueiredo, E., Pais, L., Monteiro, S. and Mónico, L., 2016. Human resource management
impact on knowledge management: Evidence from the Portuguese banking
sector. Journal of Service Theory and Practice, 26(4), pp.497-528.
Jiang, K., et.al. 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Marchington, M., Kynighou, A., Wilkinson, A. and Donnelly, R., 2016. Human resource
management at work. Kogan Page Publishers.
Mello, J. A., 2014. Strategic human resource management. Nelson Education.
Noe, R. A., et.al. 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
14