Importance of Employee Relation in HRM Decision Making

This article discusses the importance of employee relation in decision making of human resource management. It explores how employee relation influences HRM decisions and their impact on the overall functioning of an organization.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Function and purpose of human resource management.........................................................3
Strengths and weaknesses of approaches that are needed for recruitment as well as selection.
................................................................................................................................................5
TASK 2............................................................................................................................................7
HRM practices that gives benefits to employees as well as employers.................................7
HRM practices to increase productivity and profitability......................................................9
TASK 3............................................................................................................................................9
Importance of employee relation that influence decision making of human resource
management............................................................................................................................9
Elements of employee legislations and its impacts on HRM decision making....................10
TASK 4..........................................................................................................................................11
Application of HRM practices in the context of work.........................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management refers to the planning, organising, managing as well as
controlling the procurement, development, training, compensation as well as maintenance of
human resource in order to accomplish the individual’s, organisational and social objectives as
well (Nankervis, 2016). It considered as an interrelated approach related to the activities of
human resource. This report is based on the Merrill Lynch firm which is founded in Central
London. This deals in several services related to making an investment as well as wealth
management for their customers and also facilitates brokerage and security dealing services.
Under this report discussed about the purpose and function of HRM as well as discuss the
strengths and weaknesses of different approaches of recruitment and selection. In addition, study
about the hard and soft skill of individuals and HRM practices. Lastly, discuss about the
employee relation and elements of significance of employee legislation and their impacts on
decision making.
TASK 1
Function and purpose of human resource management.
Human resource manager is a person who takes all responsibilities towards the
achievement of an organisational goals and objectives as well as trained and developed entire
workforce (Moutinho, 2018). HR department Merrill lynch can develop effective procedures in
order to provide training, development as well as training approaches in order to choose right
kind of candidate and develop them according to the requirements.
Purpose of HRM: Staffing needs: HR department are known for the management of human resources as it
is responsible for recruiting employees for an organisation. Within the context of Merrill
lynch company requires to perform some different kinds of functions such as duties,
tasks, skills, qualifications etc. that are needed for a specific job position. Performance appraisal: As HRM considered as a bridge between all the departments of
manager as well as employee’s performances in order to measures the performance of
employees on timely basis. The department of Merrill lynch are liable to perform several
roles and duties in order to check individual’s performance.

 Recruitment: It refers to the screening of suitable candidates from a given pool that is
skilled and knowledgeable by using internal as well as external methods of hiring
(Morschett, 2015). As Merrill lynch can use internal methods of recruitment to hire
employees that helps in choosing right candidate for a right job.
 Law compliance: All organisations are liable to safe and secure their workforce
especially by protecting their interests in an appropriate manner. As it is mandatory for
Merrill lynch to applicable rules and legislations that is legal in order to perform tasks in
lawful manner.
Function of HRM: Managing employee relation: HR manager of Merrill lynch organise several kinds of
activities which includes formal meetings as well as informal parties in order to manage
their employees at personal as well as professional level. Maintain positive working condition: The human resource manager is responsible for
developing safe, healthy, positive, hygienic workplace in order to get effective results. As
Merrill lynch, HR manager came up along with the concept of welfare while formulating
their policies (Kowalski, 2015). Reward management: HR manager of Merrill lynch works towards the function of
attracting their employees towards the attractive compensations as by providing high
salaries, benefits, facilities, insurance policies etc. in order to retain them for a longer
duration of time period.
Approaches of HRM:
Human resource management refers to the mainly two types of approaches i.e. soft
and hard approach which are essential for every organizations. Within the context of
Merrill lynch, it can be considered as follows:
Soft approach of HRM Hard approach of HRM
 This is emphasised on the behaviours,
wants as well as commitments and
needs of an individual on the behalf of
trust.
 In this approach of HRM, workers are
preserved as an asset for a company.
 It focused on the performance
management by facilitating directions
as well as guidelines to all persons.
 workforce is preserved as an
organisational resource like machinery

 Soft HRM approach is also known as
humanistic approach.
and buildings.
 Hard approach is also called as an
instrumental approach of HRM.
Strengths and weaknesses of approaches that are needed for recruitment as well as selection.
Recruitment:
It is a most effective function of HRM as it is used to screening of effective candidates
from a given pool as they adopt traditional method in order to attract them like interview,
advertisement and so on (Kavanagh, 2017). In a competitive marketplace a company which is
Merrill lynch develops this function by selecting skilled and most appropriate candidates. There
are basically two methods of recruitment such as internal as well as external that are as follows
along with its strengths and weaknesses.
Internal recruitment:
Human resource department of Merrill lynch consider their existing staff, retired
employees as well as interns and trainees to fill the vacant job position of an organisation. It
considered as a most effective method as it assists in that the employees ate already familiar with
the culture of company as well as understand the goals and objectives very closely.
Methods of internal recruitment: Promotion: Most of the time employees are hired from internal source of recruitment as
it is more effective method for Merrill lynch in order to fill vacancy of upper level
management. For example, a company thinks to recruit a new supervisor thenthey firstly
consider their existing staff as they are experienced and familiar with the needs and wants
of customers (Jabbour, 2016).
 Recruitment techniques: It is a common method for recruiting candidate from inside the
organisation as sometimes businesses recruit workers to complete the tasks within the
specified time period as they are recruited on temporary basis. Moreover, organisation
has many choices towards the filling vacant jobs from insiders people or worker.
Advantages and disadvantages of internal recruitment:
Advantages Disadvantages
Retention: Human resource manager is highly
known towards the employee’s behaviour,
Conflicts: In internal method of recruitment an
employee are promoted and transferred for a

values as well as ethics and workers also aware
about the company’s norms and policies so as
they take all responsibility towards the
working performance in order to retain them
for future.
Continuity: as employees perform similar kind
of tasks in a same organisation that keeps all
process ongoing as it will assist in saving time,
wastages, efforts as well as money.
higher position in a company as it will creates
conflicts among individual’s and management
as they are less participated and perform
towards the business objectives with a reason
of low interest.
Limited option: Human resource manager of a
company have small choices for selecting a
candidate for a higher job position as well as
they have limited knowledge towards the task
completion.
External recruitment: This kind of recruitment method is used by an organisation in order to
generate large pool of candidates that are skilled and experienced who exist outside the
organisations (Shen, 2016). This will help Merrill lynch to hire appropriate applicants whose
qualification and skill match with the vacant job requirements. There are some methods that can
be used by Merrill lynch are as follows:
Methods of external recruitment: Advertisement: It is defined as a traditional method of businesses that will help them to
create huge number of requirements towards the vacant job opening. Within the relation
of Merrill lynch this kind of method is suitable as it will helps to shows their recruitment
process at a great extent as it will involves social media, radio channels as well as print
media (Hasle, 2019).
 Direct recruitment: It defined as a process of choosing right kind of candidates at a right
time for a correct job positions in a business organisation. This includes that the skilled
candidate is hiring from an external source of recruitment that includes institutions as
well as colleges. Along with it’s a company like Merrill lynch puts notice on a board at
different places to start the recruitment process effectively as well as efficiently.
Advantages and disadvantages of external recruitment:
Advantages Disadvantages
Fresh skills: External method helps in Risk: External recruitment considered as a

recruiting employees by gaining the
advantages of fresh and new talent it is
beneficial for Merrill lynch that it will helps in
betterment of an organisation.
Creative ideas: In the external method HR
manager of a company give an opportunity to
them in order to share their creative ideas and
thoughts.
riskier method as it is complex in nature as
well as time consuming also. A new person is
less familiar with organisational culture so they
need some time to understand their roles and
responsibilities.
Time consuming: It takes more time in
selecting the candidates from the outsides of
business as many companies require to
advertisement but it consider as ineffective if
candidates are not interested in it which will
leads in huge cost and time.
TASK 2
HRM practices that gives benefits to employees as well as employers.
Human resource practices are useful for an organisation as it helps in observing and
controlling the overall performance of an individual who are engaged in operational activities. It
results that Merrill Lynch able to complete all activities in an effective as well as efficient
manner. In recent era all businesses are operates at international level in order to give strong and
tough competition to each other. In the context of Merrill Lynch firm that human resource
manager is responsible for considering all HRM practices as it enhances positive environment at
their workplace. There are some practices that will impacts on the Merrill Lynch performance as
well as functions that can be considered as follows along with its benefits to their employees and
employer.
 Flexible working option: In a business organisation flexible working practices plays a
crucial role that will impacts on the company’s productivity towards the production of
goods and services. As it is directly related with the workers performance in order to
make balance between personal as well as professional life of a person.
Benefits to employees Benefits to employer
This kind of practice is considered as a
motivation tool for Merrill Lynch as it
As it is beneficial for company’s employer that
motivated employees give better results as well

undertakes many factors that includes flexible
working hours, work from home and so on.
as retain for a long period of time with strong
kind of loyalty.
 Payment and reward management: Employees are considered as a first person who get
right to benefited by applying all business practices because of it facilitates financial
benefits. In this approach overall performance of an individual is analysed on fair manner
by using some activities such as self rating evaluation, monitor daily activities, measure
monthly results and so on (Gupta, 2016).
Benefits to employees Benefits to employer
In the context of Merrill Lynch employee’s
payment and reward management is beneficial
as this will assist them in order to analyse the
reasons behind their compensation.
This kind of practice is beneficial for
employer’s as this will leads in order to give
effective and fair salaries.
 Knowledge sharing: It is referred to that kind of activities which undertakes some
practices that assists to share knowledge within all organisational departments. As
Merrill Lynch consider this approach in an appropriate way by using formal and
informal communication methods to facilitates that information to workers
effectively. This defined as a process of determining, gaining, developing as well as
retaining knowledge towards an organisation.
Benefits to employees Benefits to employer
This kind of practice helps workforce to
develop their knowledge towards the required
activities which are performed by them in
order to fulfil organisational objectives.
As employers are liable to delegate and
distribute all activities among employees that
are already decided by the company’s
management as it consider as a most effective
practice for HR manager of Merrill Lynch in
order to delegate jobs in an appropriate
manner.

HRM practices to increase productivity and profitability.
HRM department is the essence of an organisation as it helps to control, monitor as well as
manage their workers effectively and efficiently (Donate, 2016). HR manager is responsible
towards the employees training and development in order to trained and developed them for
performing business activities. Merrill lynch can adopt several practices of management that are
executed by them in order to accomplish organisational goals within a specified period of time.
As there are several practices that impacts on the decisions of a manager in order to increase
productivity and profitability by raising products value. Training and development: This is to be considered in order to increase their
performances by providing skills and desired knowledge by facilitates training and
development programmes. As it will leads in increasing the Merrill lynch performance
along with its profitability and productivity.
 Performance linked bonus: This is related to the organisational human resource
department as in order to satisfying the employees requirements by facilitating benefits to
them. HR is responsible for measuring the employee’s performance due to which
developing their monetary benefits plan which will directly leads in high productivity and
profitability.
TASK 3
Importance of employee relation that influence decision making of human resource management.
As employees are considered as an asset of an organisations in order to achieve
organisational goals within a specified period of time as well as it helps in taking competitive
advantage from their rivals in an effective manner (DeCenzo, 2016). Human resources act in
order to performing all kinds of activities and includes various elements of an organisations
under their performance such as recruitment, training, compensation as well as transfer and
promotions. Human resource manager of Merrill Lynch firm is liable to maintain and develop
positive as well as healthy relationships among employees and employers of a company.
 As Merrill Lynch Firm have better relationships with their staff members or it can say
that there are better interrelations between employer, employees as well as management
that assists to perform tasks on time in order to accomplish organisational objectives. As

they all are strongly connected and influenced with each other so it will help in achieving
individuals as well as organisational objectives.
 Positive and better interrelations among staff members assist to complete all tasks of an
organisations effectively as well as efficiently. In order to considering employee relation,
the HR officer of Merrill Lynch firm communicates appropriately its objectives, policies
and goals to their workers so as they performed their own targets and roles in a
systematic manner.
Elements of employee legislations and its impacts on HRM decision making.
Employees are considered as a most important and valuable aspects for an organisation and
they are engaged in all operational activities (Cascio, 2015). The government of UK formulates
and imposed some kind of rules and regulations in order to secure the organisational interest and
this is also related to the employers as well as employees in a separate manner. There are several
laws from which some of the laws are considered as follows: Health and safety act, 1974: This is related to the duties, actions as well as operations
which are to be performed by workers. Within the respect of Merrill Lynch Firm health
and safety act in order to facilitates healthy workplace, working conditions as well as safe
and secure inventory as this will involves businesses to accomplish goals within the
minimum period of duration. This will used to secure their workers from harmful issues
as well as accidents. Equality act, 2010: This act is mainly related with the anti-discrimination act that was
altered in 2010 as it states that it is an essential law for an organisation in order to protect
workers from discrimination. This act is implemented in Merrill Lynch Firm to protect
the interest of its staff members from their differences in age, genders and so on. This is
crucial for the firm as it secures the employees interests by facilitating rights as well as
formulating appropriate policies (Ahmad, 2015).
 Data protection act, 2004: This is referred to that regulations that includes the protection
of customers as well as employee’s data’s in order to safe them. As Merrill Lynch firm
collect some specific sets of information’s related to race, personal background, ethnic as
well as political opinions and keep it to confidentially. Under this act it is used in order to
informed as well as access personal information which protects employee’s skills and
trainings which are needed to engaged in objectives and goals of organisations.

TASK 4
Application of HRM practices in the context of work.
Currently all business organisations are planning to expands its operations at international
level as they required employee retention for a long period of time (Shields, 2015). In order to
that the human resource department of Merrill Lynch implemented several techniques to measure
and manage employee’s performance to get high profitability. For the purpose of attracting huge
candidates HR manager of Merrill lynch needs to focus on develop job specification document
that are considered as follows:
Job Specification Document
Administration: Merrill Lynch Firm
Department: Human resource
Title: HR supervisor
Location: West street, London
Job Summary:
A business organisation is looking towards the recruiting a competent candidate who have
skills, knowledge and experience to appoint for a particular vacant job position. Job opening is
mainly related to the human resource department in order to manage business operations in a
systematic manner. This covers almost all aspects of HR department.
Role:
To conduct training and development programmes after analysing the organisational
requirement.
Prepare strategical management plan in order to perform the activities and operational functions
effectively.
To analyse that all tasks should be performed in accordance with the societal norms and ethics.
Questions for a business manager
Q1) What is the function and role of human resource department?
Q2) Describe and analyse the concept of diversity along with its importance?

Q3) What kind of policies are more beneficial for employee’s welfare in an organisation?
Q4) Are you understand about the HR software and which is more familiar to you?
Q5) Discuss about the methods of employee’s retention for a long duration of time?
CONCLUSION
It has been concluded from the above report that human resource management is essential
for an organisation as HR manager are responsible to manage and plan the entire workforce
activities. This is required to increase the company’s growth, success as well as performances as
it helps in performing tasks within the time in an appropriate manner. Employee relations as well
as legislations also plays a crucial role in the company as it is essential for an organisation
because it increasing the employee engagement, potentiality as well as performance. In order to
retain employees for a long period of time a company needs to formulae effective practices and
policies.

REFERENCES
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