Purpose and Functions of HRM in Business Organization

This document discusses the purpose and functions of HRM in a business organization, specifically focusing on its applicability to workforce planning. It also explores the strengths and weaknesses of various approaches to recruitment and selection. Additionally, it examines the advantages of HRM practices for both employees and employers, as well as the efficiency of these practices in achieving profitability and productivity. The significance of employee relations in influencing HRM decision making is also assessed.

Human resources
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Discuss the purpose as well as functions of HRM, applicable to human resource planning
of business organisation...............................................................................................................3
P2. Define strength as well as weaknesses of various approaches of recruitment and selection.
.....................................................................................................................................................4
TASK 2............................................................................................................................................6
P3 Define advantages of various HRM practices within business organisation for both
employee as well as employer.....................................................................................................6
P4 Explain the efficiency of various HRM practices that helps in achieving profit as well as
productivity of business organisation..........................................................................................7
TASK 3............................................................................................................................................8
P5 Assess the significance of subordinate relation that helps in influencing decision making of
HRM............................................................................................................................................8
P6 Assess the key factors of employment legislations as well as imposes direct impact on
decision making.........................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Explain the application of HRM...........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
HRM can be describing as one of essential part of business or it will posses influence on
performance and capabilities of organisation. It is very important that human resources activities
of business are successfully performed with the motive of accomplishing the goal as well as
purpose (Albrech, 2011). Chosen company for conducting this report is Marks and Spencer. This
organisation is performing organisational operations in retail market sector and its major
products are fashionable cloths, footwear as well as other accessories. This organisation was
established in1994 and Thomas Spencer Michael and Marks has developed this organisation.
Head office of this organisation is established in London, England, UK. This report will include
various task and purpose of Human resource management that is applicable to workforce
planning. In this different ways of hiring and selecting employees has been determined along
with its strength and weakness. Different advantages of human resources practices for both
employees as well as employers are identified. Usefulness of Human Resources Management
practices for profitability of business has been determined. It will include the importance of
relationship with employees along with various elements of employment legislations. Apart from
this, different application of HRM practices has been analysed.
MAIN BODY
P1. Discuss the purpose as well as functions of HRM, applicable to human resource planning of
business organisation
Human resources refer as the procedure of managing and implementing different activities for
hiring and managing performance of employees. It is significant for selecting right and capable
employees as well as place them on right job so that all functions of business can be successfully
performed. It is very helpful in effective and efficient workforce planning as well as enhancing
the performance of respective company. Different functions and purpose of HRM in relation to
respective organisation is mention below.
Purpose of human recourse management
 Meeting with staffing need – HRM practices carry out by respective company is
conducting business activities with the intention of meeting staff need (Armstrong and
Taylor, 2014). It is crucial for respective organisation to develop effective workforce plan
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which will help in finding and hiring right employee for conducting business task. This
will help in successfully accomplishing the employee requirement with in the business.
 Compensation – Marks and Spencer company HRM team is created with the motive of
providing correct and accurate compensation to employees which is as per the
performance of employees (Campbell, Coff and Kryscynski, 2012). Staff member of this
company is using their full capability and potential for conduct business task. By
providing correct compensation to employees it will lead to motivate employees as well
as increase their performance.
HRM functions
 Employment hiring and selecting – It is refer as the function of Human resource
management that includes finding and selecting the most suitable and effective candidate
for Marks and Spencer company. There are sources through which respective company
can hire right candidate to successfully perform business task. Recruitment and selection
function is significant for workforce planning and full fill the staffing need of business.
 Training and development – This is essential function of HRM as it helps in providing
training to employees. Education and growth with the motive of increasing capability
and presentation of workers for successfully attain business goals. This function is
beneficial for employees and employees as it will increase potential of staff member to
carry out business operations in more accurate and most effective way.
 Performance management – It is important function for respective company as it help
in identifying the actual performance of employees (Collings and Mellahi, 2011).
Through performance management Marks and Spencer company will be able to
determine the contribution of each employees towards the accomplishment of business
goals and objective. It is essential for human resource to correctly manage performance
of all employees in order to determine their effectiveness.
Functions of workforce planning
There are various methods which are used for HR planning that is going to be
mentioned below:
Recruitment and selection recruitment is considered as a method that helps in
recruiting talented and competent workforce for organisation. On the other hand, selection means
choosing the most appropriate candidate for available job vacancy.
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Performance management performance management is considered as an important
method that helps in increasing the performance of employees during a particular period of time.
Superior management of performance includes good leadership, open feedback as well as clear
goal setting and many more.
Learning and development it helps the employees in increasing the skill they require
in future period of time in order to fulfil the responsibility during particular period of time.
Recruitment and selection functions are suitable for workforce planning and resourcing.
This function of HRM is significant for determining the need of employee with in the business
and develop effective workforce plan in order to select most suitable employees.
P2. Define strength as well as weaknesses of various approaches of recruitment and selection.
Recruitment and selection both are very essential part of human resources management as
it will lead to have direct impact on overall performance and profitability of business. There are
different approaches through which Marks and Spencer company can successfully conduct
recruitment and selection practices in more to attain the set goals of business. Strength and
weakness of various approaches of recruitment and selection is mention below.
Recruitment
Recruitment refers as procedure of stimulating and finding the right candidate for
performing business task (Guest, 2011). This is considered as a positive process in order to
search for the potential employee and influencing them to apply for the in respective company.
This will support in hiring highly capable and talented employee carrying out business activities.
Recruitment process will help in finding most suitable candidate that is significant for
performing organisation task in correct manner. There are different sources through which this
company can perform recruitment process.
Recruitment
Internal recruitment – This refers to the way of finding capable staff member in the
company. Internal recruitment is very cost effective for Marks and Spencer Company as well as
more time saving process. This consists of promotion, demotion, transfer, employee referral and
many other approaches.
 Strength - This will assist in saving the induction training cost and time of new employee.
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 Weakness – Internal recruitment will lead to limit the idea or creative in business.
External recruitment – When company is searching and finding candidate outside the
business then it is considered as external recruitment process. In this approach of recruitment
respective company will use different tools and technique for influencing candidates from
outside organisation.
 Strength – External recruitment will help in introducing new idea and creativity in
business.
 Weakness – This will require more cost as well as it is time consuming process to hire
employees externally.
Selection
This can be defined as the process of choosing the most capable and correct employee
form the pool of candidates (Huselid and Becker, 2011). Selection is considered to be negative
process as in this candidate who are no suitable for Marks and Spencer company will get
eliminated at each stage. This is a long process which will help in selecting the right candidate
as well as placing at right job role.
Approaches of selection
Screening of application – This refers to screening of application of large number of
candidates. This is considered as one of the most important step for selecting right candidate
(Jiang and et. al., 2012). In this company will screen all application and match candidate
qualification and experience with business requirements.
 Strength – This will help in saving time of company and selecting candidate who is more
appropriate as per business requirements.
 Weakness – In this company can reject capable employees due to qualification or
experiences.
Interview – In this approach of selection interviewer will directly communicate with the
candidate in order to gain more information. This is significant for determining other aspects of
candidates as well as taking better decision.
 Strength – This will provide in depth information about the candidate so that better
selection decision could be taken.
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 Weakness – This is very long and time-consuming process and it may include bias
practices.
TASK 2
P3 Define advantages of various HRM practices within business organisation for both employee
as well as employer
Advantages in relation to HRM practices of employees as well as employer
Advantages to employee
 It is necessary to provide flexibility option to its employees and also changed their need
as per circumstances. There are different kinds of option which is provided to it
subordinate in order to provide flexible working hours such as work from home, part time
jobs and many more. Therefore it is advantageous for subordinate that it provide
allowance or permission to its subordinate to perform their work in an appropriate
manner. It reduces Burnout of employee due to the different reasons such as time as well
as fuel cost overloaded and many more.
 Learning development and training practices it is helpful for the employees of the
organisation to increase their skill as well as knowledge that help in performing their
work in an appropriate manner. It is also beneficial or advantageous for the subordinate
that help in motivation level of employees and providing them job satisfaction by using
innovative technology in an improved manner.
 Payment and reward management it is determined as the formulation as well as
implementation of different strategy in order to provide reward or incentive to its worker
of Organisation in order to perform the work in good manner. There are various forms in
which the organisation provides health Insurance, bonus as well as other benefit to its
employees. Then, it helps in bringing positive environment within business organisation
and also increases the loyalty as well as trust among them (Brewster, Mayrhofer and
Farndale, 2018)
Advantages to employer
 Flexible working option is beneficial or advantages for employer because it increases the
moral of employees and commitment to company. It decreases turnover of employees
during the particular phase of time period.
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 Learning development and training practices increase the performance level of employees
that help in achieving the goal of Organisation in pre-decided period of time. It also helps
in finding weaknesses of organisation by providing effective training program to its
employees.
 Payment as well as reward system is advantageous for the employer because it helps
them in attracting new talent towards business organisation. And also they bring positive
environment within business organisation that helps in increasing reputation or image of
company.
P4 Explain the efficiency of various HRM practices that helps in achieving profit as well as
productivity of business organisation.
There are various practices in relation to increasing productivity this is going to be
mentioned below:
Learning development as well as training practices here in the human resource manager
of Marks and Spencer focuses on increasing or enhancing knowledge of the employee during the
particular phase of time period. They also offer appropriate training in order to increase level of
productivity. Through training and development session, the employee of organisation
emphasised on increasing skills as well as knowledge in relation to innovative technology for
performing their work in an appropriate manner. It is also helpful in the growth as well as
productivity of organisation. For instance, if the organisation adopts innovative technology at
Marketplace then they offer appropriate training to its employees that increase their knowledge
as well as information regarding new technology in order to perform their work in proper manner
and also eliminate the errors that involved in particular work (DeCenzo Robbins and Verhulst,
2016).
Flexible working option it is significant to boost the profit as well as level of productivity
of organisation if the individual person are not capable to come in office due to the Reason of
sick as well as some urgent work and many more. Therefore it is necessary for organisation to
provide work from home facility to the individual person when they need. It helps employee to
complete their task in pre-decided period of time that increases level of productivity of
organisation.
Payment and reward management it is considered as the most important practices of
HRM that assist the organisation in boosting productivity as well as profit. If the organisation
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offers rewards or incentive to its staff on the basis of the good performance, then it increase the
motivation level in order to perform their work and also achieve growth as well as profitability of
Organisation in future period of time.
TASK 3
P5 Assess the significance of subordinate relation that helps in influencing decision making of
HRM.
Employee relation it is considered as the effort or contribution of company to maintain
appropriate relationship among employees as well as employer of organisation. It helps in
providing appropriate communication among supervisor as well as employee that help in taking
appropriate decisions during the particular phase of time period.
Importance or significance of employee relation that influences the decision making in
relation to HR
Employee relations are considered as a more important that help in taking appropriate
decisions during the particular phase of time period. In context of Marks and Spencer, it is
significant to maintain good relationship among employees as well as employee which will be
beneficial in future period of time. It is necessary to take the views or opinion of employees that
help in making appropriate decisions strategy for growth of the organisation. In addition to this it
is necessary to maintain good relationship with its employees in order to take effective decisions
during the particular period of time. If the employees of the organisation feel comfortable to
work then it help in achieving goal as well as objective in pre-decided period of time. It also
eliminates the conflict as well as grievances which arise between the employees as well as
employer that are helpful in boosting profit as well as level of productivity. In respect of Marks
and Spencer, the organisation provide good or positive environment to its employees and also
provide training to its staff for increasing skill as well as knowledge. If there is a good relation
among the employees of the organisation that it increases the sales of Organisation in future
period of time. It also increases the profit margin and productivity level of organisation that is
beneficial for taking good decision. The supervisor of the company also focuses on increasing
the performance level of employees and provides them rewards as per their performance.
Employee relation it is considered as the effort or contribution of company to maintain
appropriate relationship among employees as well as employer of organisation. It helps in
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providing appropriate communication among supervisor as well as employee that help in taking
appropriate decisions during the particular phase of time period (Brewster and Hegewisch, 2017)
Strategy for improve engagement of employees
The organisation offer challenge of open communication to its employee in order to
directly interact with its employer. Through open communication tactic the organisation assist
the employer as well as employee to maintain their relation in good manner. If the organisation
adopts this kind of strategy than the employees of company carry out their task in an appropriate
manner that help in achieving goals as well as objective in pre-decided period of time. It also
helps in reducing the conflict within business organisation with this strategy the supervisor get
skill as well as knowledge regarding the strategy and technique and remove the gap of
communication. For example if the subordinate of marks and Spencer communicate regularly
with its manager than they have a proper or appropriate Knowledge regarding the policies of
business organisation and they get loyal towards organisation.
There are various functions which is suitable for workforce planning that is going to be
mentioned below:
Performance management performance management help in analysing the performance
of an individual person and providing reward as per their performance that help in achieving goal
as well as objective in future period of time.
Learning and development the learning and development help the company in
increasing skill or knowledge of an individual person within business organisation. It helps the
chosen organisation in performing work or task in an appropriate manner for increasing profit
margin that help in increasing productivity level in future period of time.
Recruitment and selection recruitment and selection is considered as a process is in
which the HR manager focuses on recruiting capable candidate for available job vacancy.
Therefore, the chosen organisation focuses on recruiting capable candidate for achieving goals as
well as objective and timely manner.
On the basis of above given topic, is it has been analysed that recruitment and selection is
considered as the most important method for hiring capable or talented subordinate that help in
achieving goal as well as objective in timely manner.
Employer or employee relation it is necessary to maintain appropriate relationship
among employer and employee in order to conduct work in an appropriate manner. It is also
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helpful in increasing productivity in future period of time. It is also helpful in bringing positive
environment at workplace that help in resolving different kind of issues or conflict during
particular phase of time period.
 EMPLOYEE CONSULTATION: It is necessary to consult with employees in order to perform their
work in an appropriate manner and it is also help in taking decisions during the particular phase of time
period.
 QUALITY CIRCLES: Herein it is necessary for organisation to maintain quality of product in order to
perform different work in an appropriate manner.
 TRADE UNIONS: It is necessary for company to make Trade union in order to complete their task in
timely manner.
P6 Assess the key factors of employment legislations as well as imposes direct impact on
decision making.
Employment legislations are related to the rights of staff members which regulate relation
with employers. In an organisation human resource division is responsible for implementation of
employment law within business policies for conducting overall activities in correct manner. In
relation of Mark & Spencer, Human Resource manager implement legislation within their
employment policies which provide assistance in building positive employees relation in
business firm. There are some employment legislation which Marks and Spencer have to
implement in their working for gaining better opportunities explanation of these are as follows :-
Data protection act – Motive behind developing this act is to protect data and information of
customers as well as employees which are part of company. Major responsibility in an
organisation related to data protection is of Human Resource manager as they have to ensure that
detail of their customer and employees both are safe. Human Resource manager of M&S handle
each and every information of their staff and ensure that it remain confidential.
Minimum Wages act, 1998 – This act helps in making provision for staff for getting setted
amount of wages for their staff members. In addition to this, as per minimum wages act it has
been determined that what is rate of person on the basis of hours. Thus, Human Resource
manager of Mark and Spenser implement such legislation within their business policies for
offering sated amount of wages to their employees.
Equality act – according to this act it is responsibility of employers to provide equal
opportunities to each and every employee working in their organisation. Thus, Human Resource
Manager of Marks and Spencer must have to implement equality policies within their
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employment structure which result in prohibiting discrimination on the basis of disability, sex,
age, gender as well as several other factors. Although, it is important to provide employment
opportunities through implementation of equality act on the basis of individual experience and
qualification
TASK 4
P7 Explain the application of HRM
Job specification:
Job Specification
Company: Marks and Spencer
Job Role: Marketing Manager
Department: Marketing department
Salary: Negotiable
Job type: Full Time
Location: England, UK
Job Specifications:
 Supervises all promoting just as crusades exercises.
 Demonstrated capacity for upgrading efficiency of business, departmental
methodologies just as contribution from on-going exercises.
 Responsible for executing of showcasing efforts in business firm.
Responsibilities:
 Market assessment for new item opportunity, client need examination just as
request of likely item and administrations.
 Market information and comprehension of market procedure for the compelling
execution of plan and item benefits.
 Evaluation and the executives need of dissemination channels.
 Knowledge of print media, web-based social networking and paper media
approaches for advancements and publicizing.
Candidates who are interested can forward their CVs at hr@m&s.com or contact us on
+0012345.
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Thanks and Regards
Mr. XYZ
HR Manager
(Marks & Spencer)
England, UK
+0012345
CV: Curriculum Vitae is the format in which detail related to individual is mentioned such as
qualification, rewards and scholarship, skills and knowledge, extracurricular activities and
several others. It is important for an individual to design effective CV because it gives wide
impact on employers.
Curriculum Vitae
Name: Mr. ABC
Contact Number: 1234567
Email Id: [e-mail]
Address: Old Gloucester Street, England, UK
Position: Marketing Manger
Excellent interpersonal as well as leadership skills which will provide assistance in
development and maintain good relationship with team members while motivating them for
carrying out project in effective manner.
Educational Qualification:
 Graduation: B.com (Bachelors in Commerce) From University of Oxford, United
Kingdom in 2012. Post-Graduation: MBA (Masters in Business Administration) in marketing from
University of Oxford, United Kingdom in 2015.
Professional Experience:
 Company Name: NEXT plc
Duration: 3 years (2017-2020)
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Position: Marketing Manager
 Company Name: H&M
Duration: 2 years (2015-2017)
Position: Marketing Manager
Key skills:
 Good communication skills
 Leadership skill
 R&D skill
Evaluation of the process:
 Training and development - In setting of assessment, it is duty of HR director to lead
instructional meeting for their representatives so as to break down their abilities for the
improvement. HR administrator of M&S conducts a few instructional courses for their
workers so as to improve their relational expertise so as to wanted goals and focuses of
firm.
 Compensation and performance appraisal - This is a best assessment process that
helps in building up worker's resolve. HR chief of M&S direct ideal assessment process
so as to break down ability of their current workers for their presentation examinations.
This is a best procedure that additionally fills in as an inspiration device for
representatives so as to hold them in association for a long span.
CONCLUSION
After going through overall discussion it has been concluded that, human resource is
important division of an business firm as it manage several activities for accomplishing
organisational goals and objectives in better manner. There are some major responsibilities of
HR manager is organisation such as recruitment, staffing, training as well as development for
enhancing productivity of company. In addition to this, Human resource manager provide
assistance in developing employees relation for maximisation of opportunities to accomplish
desired goals through productive employees. Along with this, another major role performed by
HR Manager is implementation of employment legislation for creating sustainability in
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company. . In this different approach of recruitment and selection has been determined along
with its strength and weakness. Different benefits of HRM practices for employer and employee
is identified. Effectiveness of HRM practices for profitability of business has been determined. It
will include the importance of employee relation as well as different elements of employment
legislations. Apart from this, different application of HRM practices has been analysed.
15

REFERENCES
Books and Journals
Albrech, S. L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest. 19(7).
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Campbell, B. A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage
from human capital. Academy of Management Review. 37(3). pp.376-395.
Collings. D. G. and Mellahi. K., 2011. Strategic talent management: A review and research
agenda. Human Resource Management Review. 19(4). pp.304-313.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M. A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K., and 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.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
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