Human Resource Management: Functions and Impact

This assignment delves into the core functions of Human Resource Management (HRM), examining their significance in creating a positive work environment and driving organizational success. It analyzes various aspects of HRM, including personnel psychology, performance management, and the impact of high-performance practices on employee attitudes and behaviors. The role of strategic HRM in fostering organizational resilience is also discussed, highlighting its crucial link to organizational outcomes.

Human Resources
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM.............................................................................................1
P2. Strengths and weaknesses of different approaches to recruitment and selection.................2
TASK 2............................................................................................................................................4
P3 Benefits of HRM practices to employer to employees..........................................................4
P4 Effectiveness of HRM practices for raising profits and productivity of organisation...........5
TASK 3............................................................................................................................................6
P5 Importance of employee relation and its impact on decision making process......................6
P6 Key elements of employment legislations and its impact on HRM decision making...........7
TASK 4............................................................................................................................................8
P7 Application of HRM practices in work related enterprise.....................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
HRM (Human resource management) is a process of organisation in which it deals with
recruitment or selection of right candidates along with providing guidance or managing worker’s
activities so that goals of enterprise can be achieved easily (Armstrong and Taylor, 2014). This
function guides manager and help him in providing necessary tools, techniques or methods to
subordinates so that performance of enterprise can be maximised. It deals with various
employment legislations which help the employer in making transparent policies for workers. All
this helps in creating or maintaining a positive work environment which automatically increases
the performance of subordinates. In the present report, ALDI has been chosen that is one of the
largest retailer UK. Present report is based on the purpose and various functions of HRM in
organisation. Benefits to employer and employee with these practices are also discussed here.
Along with this, main elements of employment legislation and their effect on the decision
making process of firm are studied.
TASK 1
P1. Purpose and functions of HRM
Main purpose of HRM is to attract a large number of applicants and choose the best or
most deserving one from them for achievement of organisational goals effectually. For achieving
success, it is highly important for an enterprise to have skilled or qualified workforce and
effective human resource management activities that help manager in acquiring the best talent.
This not only helps the firms in fulfilling business objectives but also decreases the cost of
overall business operations. Managers of ALDI need to do same for achieving smoothness and
efficiency in the business operations.
Functions of HRM Training and development of workers: It is one of the most important functions of
human resource management. Conducting training programmes for new or existing
employees is the responsibility of HR manager (Bloom and Van Reenen, 2011). This is
done by the firm to enhance current skills of workers and make them able to survive in
competitive business environment. Recruitment and selection: Recruitment is the process of attracting skilled candidates for
specific vacancies in the organisation and selection is a process of selecting the best one
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from them. Activities of HRM help in performing various activities like job description
and job specification which help in defining the roles and responsibilities related to a
particular job. All these activities help recruiter or employer in selecting the best
candidates for performing a job. Orientation: Under this, enterprise organises an induction programme for new employees
and help them to adjust in the business environment (Boxall and Purcell, 2011). This
program helps new candidates in understanding the way in which organisation can
achieve short or long term goals in organisation. Managers of ALDI need to do the same
to help new candidates in understanding the business environment or process of doing
work. Maintain good working environment: Healthy working environment not only enhances
the productivity of workers but also increases their morale and commitment towards firm.
It is the fundamental duty of manager of human resource department to provide risk free
or safe working conditions to employees (Functions of HRM, 2017). This influences
workers in increasing their contribution towards the success of organisation.
 Managing good relations with employees: This can be done by the manager of ALDI by
eliminating discrimination from the workplace and providing equal growth opportunities
to all workers. Manager should help the employees on both personal and professional
level. Good working relations with workers is one of the key elements of organisation’s
success.
By performing all these functions in an effective way, managers of ALDI can increase
the overall output of organisation.
P2. Strengths and weaknesses of different approaches to recruitment and selection
Process of influencing or attracting large number of candidates towards a vacancy in the
enterprise is called recruitment (CHUANG and Liao, 2010). For this, managers of ALDI can use
one from the following approaches:
Internal approach of recruitment: Under this method of recruitment, manager gives
chance to the existing workers for promotion or for filling up the vacancy in firm. It is one of the
fastest methods of hiring as manager does not need time to waste on activities like advertisement. Strengths: One of the main advantages of this method is that it increases the morale or
commitment of employees. It saves the cost of firm on activities like advertisement or
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training. Also, it gives chance to the workers for changing their job position and making
the work environment more competitive (Daley, 2012). Promotion of existing workers
increase their performance which maximises the productivity or effectiveness of whole
enterprise. Weakness: This method fails to bring new or innovative skills in the enterprise.
Sometimes, it becomes difficult for the manager to choose right candidate a large number
of applicants. This method demotivate the workers who fail to achieve promotion.
External source of recruitment: In this method, recruiter attracts a large number of
applicants or evaluate their skills to fill the vacancies of firm. This is one of the effective
methods as this brings fresh or new talent in the enterprise. Strengths: One of the main benefits of using this approach id that it brings innovative
ideas through new candidates in organisation. This makes the workplace more
competitive which enhances the productivity of enterprise and increases profit of
business.
 Weakness: It is a lengthy or time consuming process of recruitment. It is costly as
manger has to invest a large amount in advertisement and training programmes for new
candidates. As large number of candidates apply for a particular job in this method, it
becomes complex for manager to choose the best or most deserving candidate (Gruman
and Saks, 2011). This method sometimes create conflicts among the new or existing
candidates which negatively affect the performance of firm.
As one approaches not useful in all situations so for recruiting capable candidates,
manager of ADLI can use both methods .
After screening and short-listing of capable candidates, selecting the best one is called
process of selection. For this, managers of ALDI can use one from the following: Systematic approach of selection: Under this method of selection, employer chooses a
sequence of steps for selecting the best candidate. This is one of the effective methods of
selection.
 Unsystematic approach of selection: In this, manager does not follow a sequence of
steps for selecting the candidate but he randomly chooses or selects a resume form large
number of applicants and then compares skills of candidates from qualities required for
performing the given job.
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TASK 2
P3 Benefits of HRM practices to employer to employees
Practices of human resource manager helps in creating a positive work environment and
brings coordination among large number of business activities (Gruman and Saks, 2011). ALDI
can apply the same concept for getting the advantage of HRM concept. This approach provide
benefits to both employer and employees.
Benefits to employer Future planning: Activities of human resource management helps manager in collecting
large amount of relevant information which help managers in deciding future activities of
organisation. Planned decision help enterprise in maximum utilise its resources and also
decrease the cost of commercial activities. Building team: HRM practices make a ground which help in setting mutual goals for
both employee and organization. This not only help enterprise in achieve its goals but
also ensure the development of workers. All this create in building a team and enhance
the profits of overall entity. Guides in making or evaluating policies: It is responsibility of manager of human
resource department to make policies regarding the management of worker's activities
and their compensation. Activity of human resource help manager in evaluate these
policies so that satisfaction or moral of subordinates can be enhanced (Guest, 2011).
Manager of ALDI can do the timely evaluation of these policies by applying this concept.
 Create a positive work environment: Transparent or effective policies of HRM helps in
creating a positive work environment. This not only increase the overall productivity of
organisation but also attract large number of deserving candidates towards the
organisation.
Benefits to employee Training and development: Collection or evaluation of activities regarding the
performance of workers help manger in conducting training or development programmes
of employees. This help subordinates in getting knowledge to perform their routine tasks
and get information about how to done the future complex jobs.
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 Motivate workers: Ethical practices of human resource management help employees in
getting fair wages or treatment by the enterprise all these conditions motivate workers in
increase the output of their performance.
 Provide healthy working conditions: According to various employment laws, manager of
every enterprise is liable to provide healthy or risk free working conditions to all
subordinates (Huselid and Becker, 2011). By doing this manager of ALDI can increase
the productivity of their employees which will help the firm achieving its objectives.
All these are the various benefits of HRM practices to both employer and employee. By
applying this concept in the enterprise managers of ALDI can make or create a healthy working
environment.
P4 Effectiveness of HRM practices for raising profits and productivity of organisation
Activities of human resource management affect the working style of employees which
effect the productivity or profits of enterprise. Practices of HRM and productivity or profits of
enterprise has a direct link. In order to evaluate the effectiveness of these practices one can
calculate or evaluate the profits or product city of firm.
Policies of HRM are relate with the compensation of workers and management of their
activities and many more. All this affect the activities of subordinates. If these practices
encourage the pay for performance, transparent compensation packages of workers and it will
definitely affect the performance of employees in a positive way. On the other, hand if these
practices does not encourage the transparent decisions related with the workers than this will
disappoint employees and will negatively affect their performance.
Performance of employees is directly linked with the revenues of enterprise. In order to
increase the profits or productivity of whole enterprise managers of ALDI need to give
consideration on various factors while making the policies regarding the management of human
actions at workplace (Human resource management, 2016). During the process of making
policies employer need to comply with all laws included in the employment legislations.
Transparent and effective policies of HRM not only increase the performance of employees but
also enhance their satisfaction level. All this help directly affect the profits and productivity of
firm.
Managers of ALDI need to give consideration on various which directly affect the
performance or activities of workers in order to make effective human resource policies.
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TASK 3
P5 Importance of employee relation and its impact on decision making process
Every enterprise take variety of decisions in its daily life some are more important while
other are less. The process of taking decision is affected by various factors from which employee
relation is an important one. Enterprise's relation with its employees affect the process or quality
of decision in many ways (Jiang and et. al., 2012). Good quality relations with employees help
manager in getting the support or commitment of workers in taking complex decisions. For
maintaining good working relations is must for every enterprise in today's world. Because
workers are the one who contribute a lot in the success of enterprise. For maintain good working
relations with workers managers of ALDI ned to create or do the following things:
 Managers of ALDI need to follow a open ground policy which give opportunity to
employees in discussing various issues with authority of enterprise. This will help
manager in knowing the issues facing by the workers during their jobs.
 All policies regarding the management of human resource should be comply with all
elements included in the employment legislations.
 Every subordinate should be treated or compensated in a fair manner and discrimination
should be deleted form the workplace.
 Promotion or appreciation should be given to workers who perform well. This will
motivate the other employees for doing their best.
 Effective communication should be there among all levels of organisation.
 Participation or involvement of subordinates should be encouraged so that mutual goals
can be set by the ALDI.
 Manager or employer should treat all his or her employees in a friendly manner.
All this can be done by the manager of ALDI for building or maintaining good working
relations with workers. By getting the commitment of employees firm can achieve its objectives
in a better way with minimum cost (Kehoe and Wright, 2013). As workers are of the valuable
assets of every enterprise because they make the final products for end consumers. So for
maintaining the quality of products and to achieve the maximum utilisation of available
resources maintain good working relations with workers in very necessary.
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P6 Key elements of employment legislations and its impact on HRM decision making
Employment legislation is mix of large number of rules and laws which helps in
safeguarding the interest or rights of employees (Lengnick-Hall, Beck and Lengnick-Hall,
2011). These laws define or describe the responsibility of employers and employees towards
each other. It is very necessary to manager to comply with these laws while making policies
regarding the management of human resource. This will helps manager of ALDI in executing its
activities in an effective manner. Following laws are included in the employment legislation: Employment rights act: This act is the summary of all laws included in the employment
legislations. It define all rights and duties of an employee. According to this act, every
worker should be benefited from minimum wage for filling his basic needs or
requirements. Discrimination of workers should be eliminated, all this create or maintain
healthy and positive work environment in enterprise and increase the performance of
overall enterprise. Equal pay act: According to this act, two individuals doing same kind of job having
same skills and capabilities should get the same compensation or wage by the employer.
This enhance the productivity of workers and increase their satisfaction level or morale. Workers discrimination act: This act state that workers should not be discriminate on the
basis of age, gender, colour, age or on any other basis. Equal opportunities should
provide to every individual for promotion. Elimination of discrimination create a positive
or healthy working environment. Minimum wage act: An amount is decided by government according to the inflation rate
exist in the market and that amount is called minimum wage. Every employer of
enterprise is responsible to give this wage to ell his workers (Ployhart and Moliterno,
2011). This help subordinates in fulfilling the basic needs of their routine life including
food, shelter or cloth. Working time directive: According to this act, in order to get the legal existence of
employment an employee is responsible to fulfil minimum working time in an enterprise
which is 48 hours in a week. Otherwise the employment will not be treated as legal. A
workers scan do for more hours if they want.
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 Employee relations act: As per this act, maintain good working relations with employees
is a responsibility of employer. Managers of ALDI can do this by encouraging or making
ethical policies of human resource management.
 Workers disability discrimination act: this act state that disable workers who are
working in the organisation should not be discriminated on the basis of their disability.
Same services should be provided to them as provided to the other employees.
TASK 4
P7 Application of HRM practices in work related enterprise
Scope of applying practices of HRM in an enterprise is very wide or large. As these
activities help in increasing the effectiveness of business operations so it can be apply to all
departments of organisation (Purce, 2014). At present, ALDI is facing a large number of
customers complaints as quality of their products are decreasing on an continuous basis.
Turnover of firm is also decreasing which is hampering the goodwill of firm. In order to make
the situation a better one or to solve the various problems managers of company can apply the
activities of human resource management in following areas: Planning of manpower required: Employees and workers are one of the important
element of organisation success. For achieving the success or for fulfilment of various
business objective large number of workers are required. For making the situation a better
one manager of ALDI can improve the process of staffing or can plan the workforce
required to meet up with the expectations of customers. Development and training of workers: As subordinates are the only one who make final
products for large number of customers. Practises of HRM helps manager in identifying
the training needs of workers this will not only increase the knowledge of employees but
will make more efficient in performing the duties of their daily life. Maintain quality of business products or activities: As right now ALDI is facing a large
number of customer's complaints due to the decreasing quality of their products or
services (Wright and McMahan, 2011). For this standard methods or process can be
taught to workers to maintain the minimum acceptable quality of firms products.
 Create vision or mission: Activities of human resource management helps manager in
knowing the current skills or capabilities of workers which help top manger in shaping its
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vision or mission. This will help ALDI in performing its business operation with
minimum cost.
Scope of HRM practices is very wide. As these activities bring coordination among large
number of firm's activities. Managers of ADLI can apply these activities in an effective way to
make the current situation a better one.
CONCLUSION
From the above information included in the report it can be concluded that management
of workforce and their activities is an essential task of an enterprise like ALDI. This help or
guide manager in deciding the future activities or decisions taken by firm and assist manager in
conducting training or development programmes for the employees. In absence of the concept of
HRM efficiency can not be achieved by the workers while performing their jobs. This encourage
fair compensation or treatment of employees which help in creating a positive or healthy work
environment. Execution of these practices provide large number of benefits to both employer and
workers of organisation. Overall it ensure optimum utilisation of firm resources and help in
decreasing the cost of commercial activities and make enterprise able in satisfying the different
needs and wants of its employees.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook
of labor economics. 4. pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
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.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
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Online
Functions of HRM. 2017. [Online]. Available through: <https://www.keka.com/5-major-
functions-human-resource-management/>. [Accessed on 18thJuly 2017].
Human resource management. 2016. [Online]. Available through:
<http://www.yourarticlelibrary.com/hrm/human-resource-management-functions-
managerial-operative-and-advisory-function/27995/>. [Accessed on 18th July 2017].
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