Importance of HRM Practices in Organizations

The assignment explores the significance of HRM practices in an organization, focusing on their role in enhancing employee skills and knowledge, improving product quality, and building strong brand image. It also examines the importance of HRM in managing and controlling individuals at work places, leading to increased productivity and performance. The document provides a comprehensive overview of the topic, citing relevant studies and research papers to support its arguments.

Human resources
management

TABLE OF CONTENT
INTRODUCTION.................................................................................................................................2
TASK 1.................................................................................................................................................2
P1. Explain purpose and function of human resource management...................................................2
P2. Explain benefits of internal and external recruitment method can be included in report that you
have observed....................................................................................................................................4
TASK2..................................................................................................................................................5
P3. Describe the usefulness of the different HRM practices in a firm for both employer and HSBC 5
P4. Explain different effectiveness of human resource management practices..................................6
TASK3..................................................................................................................................................7
P5 Importance of employees relations...............................................................................................7
P6 Employment legislation that create impact on HRM....................................................................9
TASK4................................................................................................................................................10
P7 Applicants of human resource practices at work related context................................................10
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13

INTRODUCTION
Human resources management is a important part of the company in order to achieve
set goals and objective in given time frame. They manage, recruit, select, trained, appraise of
employees that help to increase their productivity and profitability in long period of time.
Both workers as well as employer gain benefits from this activities at work place. Human
resource manager conducting training program at work place that increase staff member’s
skills and knowledge which enhance firm brand image at market place. In this assignment
HSBC bank has select in order to analyse impact of HRM practices on an organisation. It is a
British international financial and banking service. That is world seventh largest bank
according to their total asset (Arnaud and Wasieleski, 2014). HSBC established in the year of
1866. They operated their business activities around 67 countries with 3900 offices. The net
income US Dollar 11.879 billion in the year of 2017. This report covers human resource
management function and their impact on performance of business unit. It covers
employment legislation, effectiveness of HRM, internal and external recruitment factors and
many more.
TASK 1
P1. Explain purpose and function of human resource management
Human resource management is a department in organization which manages all the
activities of humans from procurement to training & retention of employee. Human resource
department is responsible for recruitment, training, compensation, appraisal & employee
turnover. This department focuses on the productivity of employee, high morale &
motivation. The planned human action can bring a dramatic change in employee productivity
& performance (Bardoel and et. al., 2014). It Apply to workforce planning and resource to an
organization. Strategic Human resource works as a pool between organization & employee
and maximize the works for the mutual benefit. Purpose & function of Human Resource
management:
1. Requirement & Selection: The primary function of human resource management is
recruitment and selection. Recruitment is the process of screening the potential
candidate.
2. Orientation: The next function is to give orientation to employee. Orientation helps
employee to understand the work culture and environment of organization (Collins,
Zhu and Warner, 2012 ).This gives direction to employee that what is expected from
them.
3. Work culture: As a tree grows in a good environment and produces fruit and flower
on the same way an employee grows and become more productive and performance
oriented in a good work culture.

4. Managing employee relation: A healthy employee relation creates a sense of
belongingness and togetherness. This creates a spirit of trust and team work. It is very
important factor that increase employees moral, self confidence, positive attitude and
many more that improve firm profitability in long period of time.
5. Training and development: training helps to adapt the change scenario in market and
industry. Thus, employee becomes confident about their knowledge. They perform
with enthusiasm. Human resource manager of HSBC bank has conduction training
and development program for employees that increase their skills and knowledge in
order to achieve goals and objectives in an effective manner. Through this activities
firm are able to increase productivity and profitability.
Scope of Strategic human resource management:
 Personnel Aspect: It manages all the aspect of personnel department. It manages all
the activities of humans (Glover and et. al., 2011).
 Job Description and job design: The job description contains the roles and
responsibilities of candidates. It also include task. It describes the nature of job. The
major of the task is to collect the information and data of employee.
 Recruitment & Selection: It is the process of advertising vacancy. However it also
involves the process of internal & external recruitment.
 Welfare aspect: Human resource department is concerned with the welfare aspect of
the employee.
 Industrial relation: The human relation department is concern with the industrial
relation. It creates healthy relation in industry.
HRM approaches for planning and resource in global organization: In a global
organization it is very challenging to manage diversified workforce. It is very important to
have balance an in work force as well as maintaining an environment of equality. Every
country has it own industrial and labor law. To compile with these law it is very important for
human resource to plan strategically (Guest, 2011). These strategies should align with the
international human resource management process and regional law of labor and industrial
relation. There should be equality in compensation, appraisal and training plan for employee
of each nation. Beside that all activities should be coordinated towards organizational goal.
P2. Explain benefits of internal and external recruitment method can be included in report
that you have observed
There are various methods of recruiting and selecting Personnel management.

Job description: The first prime task is to create a job description, which describes the
pay, role, responsibilities and expectations. The job description not only express the area of
responsibilities and role it also helpful in giving direction to candidate that what is going to
be his/her future. The shortcoming of job description is that some time employee has to do
more than or just little of job description.
Skill Inventory: The asset of personnel skill with the company. Higher the skills
required for company complex the job description. It is important to have a right skill
inventory in order to create a balanced job description. In this approach sometimes it is hard
to find a balance between Job description and skill inventory (Hobfoll, 2011). Since human
nature is dynamic not static it is hard to find all skill in a one candidate hence Job description
loses its relevance.
Job posting: The next step is to post he job. It is very much important to post the job
at right platform to have a right pool of candidate. There is various method of attracting right
candidate. There are internal and external methods of recruitment.
Internal method: In internal method candidate are identified and selected within
organization. In this process organization is already aware about the personality of candidate.
The potential can be easily assessed in this method. In this method bright candidate are
considered for the promotion. Few interviews are taken for the assessment of potential and to
judge the capabilities to of candidate to perform the job responsibilities. This also allows for
internal shift (López-Nicolás and Meroño-Cerdán, 2011). If it is found that a candidate has
more caliber for other job than position is filled internal shift. The candidates are already
aware of the culture of the organization so it reduces the cost of training. The shortcoming of
this approach is that it gives only limited choice. It does not provide an opportunity to
increase the skill inventory by taking new candidate.
External method: The external method is when recruitment is done outside the
organization. In this method recruitment is done by campus placement, advertisements, walk-
ins, The advantage of this method is that it attracts a large pool of candidate hence more
choices to select candidate. It is helpful in increasing the skill inventory of the organization
by taking fresh candidates. New candidates come with new perspective and latest learning
about market and technology. The limitation of external method is that is very expensive. To
publish advertisement, going for placement make is expensive. Another limit is that it is very
time consuming (Messersmith and et. al., 2011). Screening the resume, select the candidate

and interviewing them is lengthy and time consuming process. Selecting fresh candidate
comes with an expense of training and coaching them.
TASK2
P3. Describe the usefulness of the different HRM practices in a firm for both employer and
HSBC
There are various benefits of HRM practices which are mentioned below:-
HSBC Employee
The benefit of organization culture for HSBC is that it
is helpful in employee retention. It brings loyalty and
sense of belongingness in employee for HSBC. The
good organization culture brings equality and makes a
company a brand. It creates a demand among
candidates to be a part of HSBC (Minbaeva and et. al.,
2014). In good work culture employees show
dedication and commitment towards company. This
reduces employee turnover and absenteeism.
A good organization culture is important to
utilize full potential of employee. This helps
employee to perform well and become more
productive. The value and belief system create a
feeling of self-worth in the organization. This
creates job satisfaction hence it helps to reach at
the stage of self-esteem in Maslow need
hierarchy theory.
Change is only the universal thing. A change with
come with opportunity and some challenges. It gives
an opportunity to grow and capitalize unexploited
area. HRM practices helps to easily introduce the
change. Conflict and issues are resolves quickly and
efficiently thus less political environment. . Since
employee retention and development is very much for
the organization employee understands and appreciate
the organization efforts hence try to give 100% in the
situation of change Good HRM practices help to
easily establish change without conflict and stress.
With a cleared HRM practices employee feel
comfortable with the change. Change becomes
easy and fun for the employee. Hence employee
performance does not get affected by the change
hence productivity remains the same. Change
brings the scope and opportunity to improve
skills and potential. It makes employees more
skilled and productive (Purser and et. al., 2015).
Hence employee becomes more worthy and
efficient. HRM practices helps to maintain
morale and motivation at the time of change
when conditions are diverse and opposite.
In HRM practices where individual roles and
responsibilities are clear. Individual know his job and
what is expected from him. It reduces confusion and
Everyone works for growth and success. With
good HRM practices individual can see his
progress as a part of organization. In HRM

gives a clear message (Tochaee, Hosseini and Reihani,
2016). Individual understands his responsibilities and
importance in the organization and contribute in
achievement of organization goal.
practices individual work area, promotion,
increment everything is mentioned. It gives a
future visit to employee that where would be he
in near future.
This increases organization credibility in the market.
Companies who take cares of employee that become
competitive stronger as the candidate choose the
company over competitor. This gives a competition
advantage over others.
A sense of self worthiness creates satisfaction
and sense of being important. It helps to
appreciate self-existence. This is important for
the internal motivation. Satisfaction creates
motivation to achieve more and work hard.
Hence employees understand their self-worth
and potential. This helps an individual to reach at
the stage of self-actualization.
P4. Explain different effectiveness of human resource management practices
Development, Learning and training, Flexible working option, Employee
performance, monitoring and management, Reward and payment management is a various
human resource practices with in a work place. HRM practices are very important in order to
increase organization profit and productivity. Personnel are responsible in organization for
any development (Vaiman and Brewster, 2015). An employee uses technology and
machinery to produce product. Employees are trained to properly utilization of resources.
Hence employees are responsible for execution of policies and procedures. These policies are
framed to get more output and productivity.
Training and development is an essential tool to improve the skills of the employees.
The technical knowledge is important for the better and efficient use of technology. In this
era of science, Technology is changing rapidly. New technologies are coming in a short span.
It is immense important to keep train and update the employee to fully utilize the new
technology.
A part from technical knowledge soft skills is also important for the execution of
policies and plans. Plans are effectively executed when employees are efficient with the
personality traits like: Hard work, Passionate, dedicated and fast learner. In these soft skills
communication, interpersonal, decision making and confidence is important for proper flow

of messages and reducing conflict and issues (Warner, 2014). It also creates coordination.
This training and development become more important when cross functional team works
together.
Competition is one of the most important threat and challenge for any organization.
By the help of internal strength this threat can be minimize and even it can be beat. To beat
the competition the company’s internal structure should be competent and strong enough to
stand before competition. Thanks to training in development which helps to maintain and
improve the employees’ skill set to fight with competition. By defeating competition
company improves it position in market. This also helps in creating trust in customer that
company follows consistent policies and procedure and hence follows the standard. The trust
among customer is an asset for the firm as it increases the company revenue and customer.
The market place of company improves. Human resource manager of HSBC has develop plan
and strategies in order to achieve goals and objectives in given time period.
The next step to measure the relevance of training and development is the company growth.
In a firm where employees are trained and developed they perform better they perform with
dedication. Since employees execute the policies at each level it is clear that the more
efficient personnel the more efficient execution (Arnaud and Wasieleski, 2014). When plans
are executed successfully and target are achieved it takes the company to next level. It
provides an upward movement to organization. As the firm reaches to the next level the old
skill inventory become irrelevant. Here is again the time to provide training and development
to employees in order to give them knowledge which matches with the level of the
organization. At different level, organization need different skill set in the employees to
perform according to the benchmark, Hence Company makes more profit and grows more.
TASK3
P5 Importance of employees relations
Human resource manager develop strong employees relations at work place that reduce
conflict among all workers as well as administration. Employees relation is a very important
factor for an organisation in order to achieve set goals and objectives. Human resource
manager of an organisation has develop healthy working environment which reduce conflict
among employees as well as between management and workers. Both staff and employers are
beneficial for implementing relationship management at work place. They appreciate take,
discussion of ideas with each others that share happiness and sorrow (Arnaud and Wasieleski,
2014). Individual person can not work own, they wants persons who help them to complete
task effectively. Through strong employees relation, firm are able to increase their
profitability and performance. Some important of employees relations are describe as
follows:

 Individual person can not complete whole task effectively, so they need more people
to manage work. Work in team with healthy relations can improve firm performance.
It is very important for leaders to build healthy relations with in team.
 Work in a team or group has develop efficiencies of members which can improve
quality of product and services. Through workers relationship, company has manage
all their managing.
 Through strong staff members relationship at work place, firm are able to reduce
conflicts and fight among worker. It is important to manager empower staff that
improve their self conference.
 In an organisation, employees are interdependent to provide services to their
customers. Workers relations increase customer's satisfaction by providing quality of
product and services.
 It reduce staff turnover at work place. That shows employees are interested to work,
because they enjoy it and feel energetic when they communicate with supervisor. It is
only possible when management of an organisation established healthy working
environment at work place (Bardoel and et. al., 2014).
 Human resource manager of the company conducting training and development
program at their work place which enhance staff members skills and knowledge.
Through this, they are able to increase workers productivity and profitability in long
period of time. That affect decision making process of human resource assistant of the
company.
 Environmental culture of the firm has influenced workers behaviours, attitude, moral,
perception, motivation and many more. That provide helps to gain competitive
advantages at market place.
 Through healthy employees relation, firm are able to produce differentiated product as
compare to their competitors which provide competitive advantage at market place.
So that, it is important for an organisation to manage all task effectively with in
workplace.
So that, for every organisation employees relationship is important in order to achieve
predetermine mission and vision in an effectively manner. It is a human resource manager
responsibilities to develop safe working environment with in firm. They want to receive
feedback about working culture and implementing most effect one at work place which
enhance all staff members moral and confidence. Through this, management are able to
manage and control all employees effectively (Collins, Zhu and Warner, 2012 ). Trained staff

provide high level of services to clients which increase customer's satisfaction. Management
of enterprise is develop strategies in order to build positive brand image at market place.
P6 Employment legislation that create impact on HRM
Various type of government legislation can affect human resource activities. HSBC
bank consider government law for develop workers policies at work place. They make labour
rule and regulation in order to save staff members right. An organisation human resource
manager can consider and understanding these all government policies on time to time bases
for recruiting, managing, organising people in the work place. HSBC has an obligation to
follow legal law if they can not do the same face critical problem. Some important legislation
those follow by HSBC bank is mention below:
National minimum wages act: It is compulsory of every united state company to
provide minimum salary or wages to their employees. it is a workers right to receive payment
according to work. Human resource manager of HSBC bank has implemented this act in their
work place in order to increase staff member’s moral and self conformance about firm rule
and regulation. National minimum wages act can help to save right to minimum or fix
payment by an organisation.
Maternity leave polices: For women, government of united state has develop
maternity leave policies that helps in pregnancy time. They receive approx 180 days leave. In
this duration, they receive their salary or others benefits as the same as before. They also
apply for more leave if they want, but for this, female want to full fill certain condition of the
company (Bardoel and et. al., 2014). Maternity leave is a basic right of the women at work
place. Human resource manager of HSBC bank has also provided this kind of leave to their
female employees which increase firm brand image at market place.
Safety and healthy act: It is a human resource manager responsibility to develop
healthy and safety working environment at their work place in order to enhance employees
performance and productivity effectively. Under this act it is a workers right to work in safe
environment. For this, firms are using safety measurement like fire exist system, machine
maintenance, security system and many more.
Equal employment opportunity act: Through equal employment opportunity act, it is
compulsory for company to provide equal employment opportunity to all candidates. HSBC
bank has developed policies related to equality that affect staff members presentation at work
place (Collins, Zhu and Warner, 2012 ). Human resource assistant has recruit talented
applicants and provide equal opportunity without discriminating by sex, age, colour, religion,
nationality etc.
Discrimination act: Any type of discrimination at work place is prohibited by law. So
that, human resources executive of an organisation has can not discriminate employees on the
basis of age, sex, education, religion, nationality, colour, language and many more. These all
element can reduce workers moral as well as self confidence that affect their work and
performance. HR assistant of HSBC provide healthy and discrimination free working
environment to their staff members that enhance firm brand image in people mind. Through

this act, strong relationships among employees as well as between management and workers
have been established, that improve firm overall performance in long period of time.
TASK4
P7 Applicants of human resource practices at work related context
Human resource manager of the company are recruit and select talented candidates for
their work place in order to increase performance. They prepare job analysis process which
helps to full fill vacant position with in an organisation. Company have position of marketing
manager in their outlet (Glover and et. al., 2011). In order to full fill these vacant position,
management of an organisation has develop job specification as well as curriculum vitae for
applicants.
Job specification:
Job specification
Job Details:
Post: Marketing manager
Department: Administration
Job purpose:
Manager are responsible for sales and marketing in industry. They have ability to develop
strategies to increase profitability.
They support other employees with in work place and motivating them in order to achieve
predetermine goals and objectives effectively in given time frame.
Role and Responsibilities:
 Increase sales by directing team members.
 Build positive brand image in customer's mind in order to increase brand value.
 Reduce employees turnover as well as improve their retention with in an organisation.
 Develop healthy and safety working environment.
 Improve customer's satisfaction.
CV
Curriculum vitae
Name:
Email ID:
Contact number:

Address:
Objective: Responsible for manage all business activities effectively. Able to increase workers
productivity at retail store. Maintain inventories by using strategies. Able to establish strong
communication process with in an organisation.
Education Qualification:
Fields University Grade Passing year
MBA VFGF university A+ 2015
Graduation in
commerce.
BCVFY University A 2012
Diploma in IT. VGHH College of
London.
B+ 2013
Experience:
Minimum Five years of experience in same industry.
Skills:
 Strong communication skills.
 Analytical knowledge and experience.
 Manage large number of employees in big organisation.
 Strong interpersonal skills.
Creation of interview structure: Human resource assistant are prepare all necessary
documentation for recruiting and selecting appropriate candidates as well as job analysis
process. Human resource executive collect various resumes form all interested applicants.
Therefore, administration of the company are develop strategies and plan to conduct
interview process, offer letter and questionnaire etc.
Offering offer letter: Human resource manager of the company are select most
appropriate candidate according to their requirement. After selecting desire candidates, firm
have give offer letter to them (Guest, 2011). In this letter they include date of joining, salary,
compensation plan,working days or hours, HR policies and rule or many more.
Evaluation: It is a last step of all recruitment and selection process. Human resource
manager provide training to new candidates which help to improve awareness about firm
working culture and environment. Company are provide six months probationary period.
After then performance appraisals form give by management of an organisation.

CONCLUSION
From the above report it is concluded that human resource management practices is
very important for an organisation in order to achieve competitive advantages at market
place. Human resource manager conducting training event at work place to increase
employees skills and knowledges which improve their productivity and performance.
Through this, administration has produce quality of product and services. Through this, they
are able to increase profitability and long term sustainability in industry. Management of an
organisation has improve quality of goods that improve customer's satisfaction. They develop
strategies to build strong brand image in clients mind which enhance brand value in industry.
Human resource practices in important for an organisation to manage and control all
individuals at work place.

REFERENCES
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Importance of HRM practices in an organisation, 2018. [Online] Available through:
<https://www.managementstudyguide.com/importance-of-hrm.htm>.

Key element of employment legislation, 2017. [Online] Available through:
<https://businesscasestudies.co.uk/business-theory/people/employment-
legislation.html>.