Impact of HRM Practices on Organizations

This assignment examines the significant impact of Human Resource Management (HRM) practices on organizational effectiveness. It analyzes diverse HRM functions, including recruitment, training, performance management, and compensation, and explores how they contribute to improved employee engagement, productivity, and overall organizational success. The assignment encourages critical thinking about the relationship between HRM strategies and organizational outcomes.

HUMAN RESOURCES
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance of HRM along with its purpose and functions in an organisation................1
P2 Strengths and weaknesses of approaches for recruitment and selection process.............2
TASK 2............................................................................................................................................3
P3 Advantages of HRM practices for employers and employees..........................................3
P4 Effectiveness practices of HRM in terms of raising profits and productivity...................5
TASK 3............................................................................................................................................5
P5 Importance of workers relations to influence decision-making of HRM..........................5
P6 Key element of employee's legislation and its impact on decision making process of HRM
................................................................................................................................................6
TASK 4............................................................................................................................................8
P7 Application of HRM practices in British Gas Plc.............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is the most important part of organisation which helps
workers to work with full efficiency and support business in attaining highest profitability. HR
managers engages in providing benefits to workforce by which firm can secure its best position
at marketplace. They perform many activities in order to maximise productivity of enterprises by
recruiting most qualified and skilled persons as well as provide essential training and induction
program to new employees which make them familiar with new working organisation
(Bondarouk and Ruël, 2013). This assignment is discussing the importance of management in
context with British Gas Plc. This company is known for its energy brand and is largest energy
supplier in UK. In order to compete with competitors, its management tries to recruit high skilled
workforce in organisation using various techniques of recruitment and selections. This report
highlights function of HRM along with basic purposes.
TASK 1
P1. Importance of HRM along with its purpose and functions in an organisation
Human resource management of an organisation performs various functions which
directly links with its success like planning workforce. It means to introduce high skilled
members who has innovative idea and desired knowledges in a company. British Gas Plc. always
want to supply better services to clients. Therefore, to achieve this goal it requires expert workers
in firm who are able to provide best customer services. In consist with this, HR managers help in
enhancing abilities and capabilities of employees so that they can work in desired manner.
Functions of HRM: British Gas Plc. is the largest and reputed energy company, it has many HR
professional in each department who do a lot of jobs including recruiting to cessation. Managers
redirect workers and provide them vision to work well (Messersmith and et. al., 2011). They are
also responsible for controlling and managing people as well as incorporating their personal
management tasks in order to enhance reputation of organisation.
Recruitment and Selection:This is the main role of management of an organisation
which helps in strengthening internal power of company and able it to stay competitive at
marketplace. Therefore, managers introduce fresh blood who are having unique ideas in
workforce using various recruitment and selection procedures.
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Training and development: The most creative of HR managers is training and
development which helps in improving performance of workers and reducing their weakness.
Since this firm is also a home service provider so, it provide training to workers how to provide
services to customers in a better way (López-Nicolás and Meroño-Cerdán, 2011).
Healthy and safe working environment: For providing safety to workers, managers
provide essential training programs to employees so that they become able to handle hazardous
situation like gas leakage problems in a safe manner. They provide healthy working environment
as well.
Purpose of HRM: The main motive of managers in British Gas Plc. is to forecast demand and
supply for different kinds of resources like manpower as well as to determine in which
department there will be labour surpluses. This purpose is ascertained by simulation, vacancy
analysis, managerial estimates and sales projections which was done by labour market analysis.
P2 Strengths and weaknesses of approaches for recruitment and selection process
Human resource management conducts various methods to recruit best talent persons in
organisation. Process of screening and selecting the skilled candidates for a job by using internal
and external sources is recruitment (Chang, Chiang and Han, 2012). Organisations generally
used to give advertisement in newspapers and on websites if they want to employ new people in
their workforce. After getting application of interested applicants, managers used to take
personal interview of few selected persons for judging their abilities. This process is known as
selection method.
Internal source of recruitment: Sourcing candidates by transferring or promoting them
in a firm is internal source of recruitment which is conducted within in enterprises. So, it takes
less time as compared to external source and is regarded as cost effective process also.
Advantages:
 Through this method, managers can motivate workers by providing job satisfaction and
boost their morale. They provide an opportunity to employees to acquire new position
and develop their career as well.
 Since it takes workers from within organisation so, doesn't need any type of verification
process.
Disadvantages:
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 It fails in providing innovation in a firm as well as arise competition in workers which
might affect their position. This method is applicable mostly for big organisations having large number of
employees.
External source of recruitment: Searching employees from outer environment through
employment agencies, job search engines, recruitment websites and campus placement is
external environment (Hobfoll, 2011).
Advantages:
 This method is fruitful for big organisations as it provides many applicants for single
position so that managers can choose the best one from them.
 It onboard overall process of accommodation, assimilation and acceleration new
members in workforce.
Disadvantages:
 It is a complex process which pushes HR managers to create job profiles, specification
and other documentation which cannot be changed during whole process of recruitment
(Costea, Amiridis and Crump, 2012).
 For further selections procedures, managers have to screen resumes then conduct many
interviews methods in order to know abilities of applicants.
HR managers of British Gas Plc. use both methodologies according to requirement of
jobs. From external sources they use employee referrals for fulfilment of vacancies. In this
process, employees who are currently working in its organisation can refer their friends and
known persons for relative positions (Durão and et. al., 2012). The main advantage of this
process is that recruiters may have some idea about what culture and working conditions of
organisation. But it create discrimination or nepotism in workforce.
TASK 2
P3 Advantages of HRM practices for employers and employees
Human resource management managers of an business like British Gas aid in creating a
best communication within an company by making a bridge of it. This not only gives profits
along with this it also help in meeting desired outcomes in a proper manner. There are different
advantages of HRM for both employee as well as employer which are discussed in detail below:
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Various practices of HRM in British Gas Plc. Growth of employees by training and development: This firm provide employment to
many workers using different functions of enterprise in well-defined departments
(Ehrnrooth and Björkman, 2012). It is consider as an important liability of manager for
coordinating training and learning session for workers as it will lead in boosting
confidence as well as increasing knowledge. Managing performance of employees: Workers are consider as a central asset for this
organisation. Therefore, its management engages with making a new sessions as well as
programs which make a more flexible for retaining & satisfying workers in a better
workplace. Performance management process is very main to manage within a
organisation for raising skills along with performance. As per this, evaluating workers
performance by difference between standard and actual actions. It will aid in increasing
overall employees outputs and indirectly satisfying customers by managing quality within
a marketplace.
Advantages of HRM practices for workers Advantage of HRM practices to employer Encouraging workers for giving their
best performance: It is an main benefits
of practices of HRM is which it aid in
motivating workers for better outputs in
activities. Giving training for better performance:
Effective human resource functions
organise training for their workers
which lead to raise productivity but
also provide benefits to business. Motivates employees effectiveness:
Workers performance are managed on
daily basis with aid in finding out gaps
between standard and actual abilities.
 Help in decision making: Employees
performance aid in the process of
taking decisions by higher authorities.
Hence, manager support them by
providing various opinion and ideas of
organisation in a very proper manner.
 Create an healthy and effective
environment of working: Through
training as well as learning programs,
workers can motivate their knowledge
level along with that they can increase
their confidence level in a very proper
way.
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P4 Effectiveness practices of HRM in terms of raising profits and productivity
Practices of human resource management is an one of an important elements which an
organisation focus over different types of structure as well as changes are conducted within an
company. For giving employees profits, British Gas enhance strategies and plans such as rewards
system, incentive programs etc. Workers of British Gas play a very main role in making higher
revenues along with its benefits to organisation by dealing a best as per its demands which are
fulfil by buyers. It will help in proper management of workers and its growth for reaching
parameters within an enterprise (Benefits of employee and employer through HRM practices.
2017). They make coordination within different HRM practices and management of sessions for
building relations with their employees along with that controlling a whole operations of
enterprise.
Various practices of human resources management such as flexible environment of
working, rewarding system, compensating and encouraging all workers of British Gas. It will
lead to increase and manage amount of profitability in context of products as well as services.
Proper numbers can be achieved by giving better quality of products which they highlight
revenue along with higher performance of work within enterprise (Warner, 2014). Various
benefits of workers raise morale and values of employees which lead to achieve organisation
goodwill and edge of competitive of company. Therefore, by giving direct influence on the
process of production and giving products and services by workers. Organisation lead to meet
productivity as well as increasing profits in work within a competitive market.
TASK 3
P5 Importance of workers relations to influence decision-making of HRM
When people are engaged with each other while working in same organisation then
positive relations between them can be expected. Healthy relationship of workers affect
performance of individuals as well as business of enterprises. To maintain mutual understanding
of workers, managers perform various activities like if possible they try to allot tasks in team
members. Managing good relations of workers is most beneficial practices of HRM which helps
in achieving desired success of an enterprise in a profitable way (Vaiman and Brewster, 2015).
Managers involve workers in decision making process so that they feel equally important like
other resources. Practices of human resource management of British Gas Plc. concerns on
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providing various training programmes to workers to make them able to work with efficiencies.
It helps in developing mutual understanding and resolving conflicts also. This process assist
them to provide better services to clients specially in home services. Therefore, for overall
success of a company and making decision regarding any changes in workplace and their part of
work, management need to create circumstances through which relations between employees can
be developed (Importance of HRM practices in an organisation, 2018).
Since British Gas Plc. is the largest firm of suppliers so to bring changes in any sector
needs effective relation of workforce. Healthy and safe working environment assist workers to
adapt changes and work accordingly. Working in group reduce stress level and pressure of
completing a work over employees as well as decreases resistance of them also. Along with this,
people will happy on the job which indirectly improve their performance at workforce and helps
in reaching business goals. Some basic points are given below which describes the effectiveness
of healthy employee relations in a firm:-
 Involving employees in making decisions helps in increasing productivity as through this
they will gain professional development. Workers will actively participate in every
activities which will prove beneficial for their success as well as for companies too.
 This process also helps in boosting morale of associated people of organisation and
reduce gap of communication between employees and employers too (Tochaee, Hosseini
and Reihani, 2016).
 Lack of absenteeism and poor performance can be reduced when employees actively take
participation in making decision.
 Working in group assist people to share their point of views and opinions on a common
task which helps in increasing knowledge and boost confidence level of them.
P6 Key element of employee's legislation and its impact on decision making process of HRM
Government of UK has established many laws and legislation to reduce discrimination in
organisations. These laws help companies to provide equality between people who are working
at same positions. It includes Equality Act 2010, Employment Rights, Equal Pay, Sex
Discrimination Act, etc. Regulatory bodies has made it mandatory for all enterprises which
comes in territorial regions to compliance their business with such laws. These legislations
prohibits all sort of discrimination, harassment and abuse behaviours with employees in a firm.
Treated unequally on the basis of gender, sex orientation, marital status and nationality etc. are
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taken as discrimination. It can be occurred in two ways in an organisation either Directly or
Indirectly. When workers are treated unequally on basis of physical appearance then it is called
as direct discrimination. But if rules and regulations are different as per individuals then it is
termed as indirect one. Therefore, government has made laws for avoiding all type of
discrimination in following way:-
Sex Discrimination Act 1984: This law give rights to people to speak out if any type of
harassment and bad behaviour happen with them through which they feel uneasiness,
awkwardness and humiliated (Purser and et. al., 2015). Therefore, its a duty of companies to
provide safe and secure working environment to workers and give them freedom to take actions
if such type of activities happened with them.
The Employment Right Act: HR managers should concern on this law at the time of
recruitment and selections procedure. Due to this law it is necessary for firms to give workers
one month notice period with specified reasons before termination. This process protect
employees from unfair dismissals and redundancy. They can demand flexible working hours if
they feel workload is much heavy. They can force organisation to give compensation if their job
becomes obsolete.
Equality Act 2010: This is the most effective law of government which replaces all
previous laws made to eliminate discrimination from workplaces. It gives right to person to feel
equal in all aspect and give them opportunity to work in organisations if they have all required
abilities. This law also proves beneficial for human resource management too as it helps in
making good relations among associated people in enterprises (Minbaeva and et. al., 2014). It
provide equal chances to physical disable persons having desired skills and abilities to be a part
of company's workforce.
Therefore, such laws impact decision-making process of HRM in a great way. In context
with British Gas Plc., these regulations make compulsory to provide safety equipments to
workers as it deals in gas and energy fuels which may create severe explosion. They provide
necessary training to them so that they handle such problems in a safe manner and protect
themselves as well as people nearby them. Managers formulate plans and policies accordingly in
order to avoid discrimination also by compliances its workforce with all laws and legislations.
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TASK 4
P7 Application of HRM practices in British Gas Plc.
HRM practices also involve in determining the shortage of manpower in any part of
organisation. If there is requirement of new employees in firm then managers perform various
activities including job specification and interview process. Likewise, in British Gas Plc. HR
manager has observed that this firm needs to replace its customer service manager (Messersmith
and et. al., 2011). So, they conduct following process in order to get high skilled and experienced
person for this position:-
Job Details
Post: Head Manager
Department: Customer Service Department
Job Purpose
 Provide best customer services to clients by motivating team members to work with
efficiencies and provide necessary direction as well.
Roles & Responsibilities
 Monitor performance of each workers on daily basis.
 Complete demands of customers on time and maintain good relations with them.
 Sorting security issues and provide necessary training to members about how to deal
with customers' demand
 If necessary, replace existing workers who have poor performances with qualified and
high skilled workers.
CV:
Curriculum Vitae
Name:
Address:
e-mail id:
Contact No.:
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Objectives:
Multiple award wining, result-driven and client oriented customer service professional having
abilities to deliver efficient services and manage good relations with others. Seeking an
opportunity to work in customer service industries so as to leverage diverse background in
corporations.
Qualification:
 Bachelor in Business Administration from University of Cambridge
 Master in Business Administration from Oxford University
Experience:
Fifteen Years of experience in customer service department
Skills:
 Excellent communications skills
 Able to do multiple task simultaneously
 Have customer-centric attitude
 Effective leadership and managerial skills
DNA:-
 Driven and energetic
 Sense of urgency
 Competitive nature
Creation of Structured Interview: After getting list of required candidates, HRM of
British Gas Plc. has to conduct interviews of them in a structured way (López-Nicolás and
Meroño-Cerdán, 2011). For understanding abilities of selected applicants, managers can make a
questionnaire format as shown below which may help in selecting the best one from them for
desired position:-
 Describe yourself in a single line.
 According to you, what are the main characteristics a manager should have?
 How can you influences workers if they resist to imply changes in their part of work?
 What makes you best deserving candidate among all?
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CONCLUSION
Form the above discussion it has concluded that for success of an organisation, it needs
high skilled manpower who has all abilities and knowledges to work accordingly. In order to
introduce best talent in workforce, human resource management performs various activities.
Apart from recruitment and selection process, HR managers is also responsible for planning,
organising and production to gain business goals and objectives in a desired manner. This report
highlights all managerial functions of human resource management along with several practices
use to provide benefits to employees. For running business in a legal manner, managers
compliance workforce with employee legislation so that they can prevent workers from
discrimination.
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REFERENCES
Books and Journals
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brand-centered HRM, brand psychological ownership, brand citizenship behaviors, and
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Costea, B., Amiridis, K. and Crump, N., 2012. Graduate employability and the principle of
potentiality: An aspect of the ethics of HRM. Journal of business ethics. 111(1). pp.25-
36.
Durão and et. al., 2012. Bone regeneration in osteoporotic conditions: healing of subcritical-size
calvarial defects in the ovariectomized rat. International Journal of Oral &
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Ehrnrooth, M. and Björkman, I., 2012. An integrative HRM process theorization: Beyond
signalling effects and mutual gains. Journal of Management Studies. 49(6). pp.1109-
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Hobfoll, S. E., 2011. Conservation of resource caravans and engaged settings. Journal of
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López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6).
pp.502-509.
Messersmith, J. G. and et. al., 2011. Unlocking the black box: exploring the link between high-
performance work systems and performance. Journal of Applied Psychology. 96(6).
pp.1105.
Minbaeva, D., and et. al., 2014. MNC knowledge transfer, subsidiary absorptive capacity and
HRM. Journal of International Business Studies. 45(1). pp.38-51.
Purser, H. R., and et. al., 2015. Definitions versus categorization: assessing the development of
lexico-semantic knowledge in Williams syndrome. International journal of language &
communication disorders, pp.1-13.
Tochaee, E. B., Hosseini, H. M. and Reihani, S. S., 2016. On the fracture toughness behavior of
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Vaiman, V. and Brewster, C., 2015. How far do cultural differences explain the differences
between nations? Implications for HRM. The International Journal of Human Resource
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Warner, M. ed., 2014. Confucian HRM in greater China: Theory and practice. Routledge.
Online:
Importance of HRM practices in an organisation, 2018. [Online] Available through:
<https://www.managementstudyguide.com/importance-of-hrm.htm>.
Benefits of employee and employer through HRM practices. 2017. [Online] Available
through:<http://smallbusiness.chron.com/effects-hrm-workplaces-41697.html>
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