The Impact of HRM on Organizational Success

This assignment delves into the crucial role of Human Resource Management (HRM) in achieving organizational success. It examines various HRM functions, such as recruitment, training & development, employee relations, and compensation, and analyzes their impact on key organizational outcomes like productivity, employee engagement, and overall performance. The analysis draws upon academic literature and real-world examples to illustrate the complex relationship between effective HRM practices and organizational success.

Human Resources

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and scope of human resource management applicable to workforce planning and
resourcing...............................................................................................................................1
P2 Strength and weaknesses of different source of recruitment and selection.......................2
TASK 2............................................................................................................................................3
P3 Benefits of different HRM practices for employee and employer....................................3
P4 Evaluation of different HRM practices for organisational profit and productivity...........4
TASK 3............................................................................................................................................6
P5 Importance of employee relations in influencing HRM decision making........................6
P6 Key Element of employment legislation...........................................................................6
TASK 4............................................................................................................................................7
P7 Application of HRM practices in work related context....................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resources is defined to be a essential element in context of an organisation as it
comprises of a workforce of a company. It generally refers to the people working for a company.
It is a separate domain in the company which emphasis on effectively dealing with human capital
of an organisation (Alfes and et. al., 2013). The main function which are carried out in this
department are recruitment, hiring, performance management, retention and finally
compensation. This assignment analyse the working of BT group which is an emerging
telecommunication service provider in UK. This assignment aims to analyse scope of human
resources. The internal and external sources of recruitment will be evaluated so that their
advantages and disadvantages can be identified.
TASK 1
P1 Purpose and scope of human resource management applicable to workforce planning and
resourcing.
Purpose of human resource management defines reason of their existence in the
organisation. The purpose of human resource domain is to form a bridge between employee and
management of an organisation. It is essential to formulate a communication between employees
and management so that ideal work environment can be formed.
Customer Management: the most crucial purpose which is served by Human resource
department. The efforts of human resource domain are aimed to build a competent workforce so
that customer are served in an ideal manner (Armstrong and Taylor, 2014). It is carried out by
serving internal customers ideally so that ideal external relationships can be constructed.
Laws: the another purpose which is served by Human resource specialisation is that
legislation formulated by the government is to adhered. This is generally carried out by the
management so that legal trouble could be avoided.
Metrics: this is another domain which is served by the human resource department of a
company. These are the mathematical tool which is employed so that ideal level of efficiency is
attained within an organisation be it relation to different operation carried out in a company.
Various Function of Human resource department are:
Recruitment: This is the most crucial function which is carried out by human resource
department of an organisation. It aims to forecast and fulfil requirement of human resource
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capital in an organisation (Arumugam and Rouhollah, 2011). This further takes into
consideration strategizing and adopting most suitable measure of recruitment.
Employee Relations: Another major crucial task which is fulfilled by the human resource
domain of the country is to maintain ideal relation between different human capital in an
organisation. It includes various measures such as conflict management, negotiation and
collective bargaining.
Training and development: these are the measures which are to be employed by human
resource professional to uplift level of skills and capabilities of employees working with an
organisation. Training and development tactics are also employed to help and support cultural
change in an organisation (Bloom and Van Reenen, 2011). The major tactics which are utilised
are supervising, training and mentoring.
There are two approaches through which treatment of human resources in a company can
be ascertained i.e. Hard and Soft HRM. Hard HRM are the practices which sees employees as a
machines and aims to get the work done out of them. There is no emotional connection between
the employees and management and are considered as a mere tool to accomplish work. On the
other hand soft HRM practices are employee centred approaches by an organisation. The
multinational organisation such as BT have adopted this approach in context of workforce
planning and resourcing. The employees are valued and provided with respect so that they feel
committed and loyal to the company. This organisation aims to achieve competitive advantage so
that better results can be ascertained. The long terms workforce planning and resourcing is
emphasized in this approach.
P2 Strength and weaknesses of different source of recruitment and selection
There are several ways through which an organisation can fulfil their requirement of
human resources. It depends upon the requirement and suitability of measure which is employed
by the company. The main sources of recruitment are as follows:
Sources of Recruitment Strengths Weaknesses
Internal Sources: This is the
approach in which company
aims to fulfil vacancy of an
organisation from within. The
common approaches which are
This techniques is preferred by
an organisation due to its
economical and less time
consuming approach. The
existing employees are
The most crucial drawback of
this approach is that there is a
limited choice with the
company. The employees does
not feel encouraged to perform
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employed in this sector are
promotion, transfers, and
employee referrals.
provided with an opportunities
to exceed at a superior level
through promotion or transfers
which ultimately results in
higher morale of the same.
as they are achieving better
position without putting any
work. The situation of
conflicts can be seen when
fulfilling vacancy of human
resources through internal
sources.
External Sources: these refers
to approaches to cater the
human resource requirement of
an organisation from outside
sources. This is generally
carried out when a
management believes that
particular vacancy cannot be
served from internal sources.
The tactics of Advertisement,
employment exchanges and
placement agencies. BT have
developed a job portal on
which people can apply.
The major strength of this
approach is that it provides an
organisation with wide number
of choices and access to talent
which can not be availed
through internal sources.
Another advantage which can
be availed by opting for
external sources that it
incorporates fresh talent to the
organisation which
simultaneously promotes
diversity.
The major drawbacks to this
approach is that it is time
consuming and involves higher
finances when compared with
internal sources of recruitment.
The morale of existing
employees will be lower as
outside talent is preferred over
them.
TASK 2
P3 Benefits of different HRM practices for employee and employer
It is a known fact that employees and employer both are benefited from the use of human
resource practices in an organisation. These are defined to be instruments which are employed by
an organisation so that its goal and objectives are realised (Boxall and Purcell, 2011). The
benefits to employee and employer are as follows:
Benefits to Employees 1. The first and foremost role benefit which is attained by the
employees is that there is lesser conflict at workplace. The
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application of right policies and practices ensure that relation
between employers and employees is improved.
2. Opting for practices which encourage training and
development of an Organisation help in fulfilling needs of
workers on personal and professional grounds (Buller and
McEvoy, 2012). Employees get a chance to develop and
enhance their skills.
3. Motivational level of employees is definitely enhanced when
an organisation adopts employee centric policies and practices.
4. The productive environment within the company not only help
in uplifting their productivity but also helps in making them
feel committed and contentment in context of organisation.
Benefit to Employer
(BT)
1. The first benefit that an organisation attains after application of
suitable policies and practices results in higher productivity for
the company.
2. BT will experience an increase in the brand awareness and
market value of the firm when applying practices which are
employees oriented.
3. The Employees in the organisation will be able to achieve
harmony which means lesser conflict. The decline in the
conflict means that there will be minimum disruption in
operation ultimately affecting the productivity.
4. Employer employee relation in the organisation will see an
improvement which is again beneficial for a business.
P4 Evaluation of different HRM practices for organisational profit and productivity
Training and developmental practices within an organisation comprises as a crucial
element. It refers to a formal process aimed to raise performance based outcomes of employees
working for an organisation (Choi, 2011). The main aim of an organisation is to achieve defined
level of productivity for a business with the help of employees. Training practices are being
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employed in business organisation since many years and have proved to be quite effectively and
efficient in terms of operations which are carried out by them.
Development of employees is the most effective way to achieve targets established by an
organisation. The common approaches which are utilised by an organisation are lectures,
mentoring and supervising. The efforts are directed not only to individual execution but also on
team performances of a business as well. The first major task which is to be carried out is to
identify the discrepancies in performance which means identification of area in which they are
not able to perform well. When supplied with right tactics to achieve the differences will
definitely results in better performance by employees therefore attaining efficiency in the work
carried out by them (Daley, 2012). It is the approach which is carried out in major organisation
to attain a superior position among its rivals. British Telecommunication have also taken help
from training measure to uplift the quality of performance of employees. Other than increased
productivity and profitability there is a lesser need for supervision on employees as they are able
to carry out the tasks govern without any supervisor. Another benefits which can be ascertained
from the same is that there are a substantial reduction in the chances of errors and accidents
which leads to better productivity with the company.
(Source: Importance of Training and development, 2014)
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Illustration 1: Importance of Training and development

TASK 3
P5 Importance of employee relations in influencing HRM decision making
Employee relation are defined as efforts of management to maintain ideals state of
relations between employees and employer in an organisation. It is essential to build a climate
where employees share ideal relation with each other so that they are more committed and loyal
to the organisation (Guest, 2011). The employee oriented practised are to be adopt by business so
that better position in the market is to be attained. The decision-making process is a vital
function which is carried out in an organisation as it affects status of company along with
redefining manner in which human resources interact with each other.
British Telecommunication along with practising employee oriented practices values
opinion and views of employees in the course of formulating decisions for the organisation.
Involvement of employees in the decision-making is the strategy which have been adopted by the
company to enhance employee engagement and involvement in the functioning of the
organisation (Importance of employee relations in HRM decision making, 2017). It is a major
exercise through which an organisation can reproduce trust by employees in the working of a
business. When decisions are formed without informing employees depicts as they have no
interest in taking care of employees. Inculcation of employees in the decision making process
provides with a better understanding of a problem as employees are the one who's facing it. Not
only it enhances employee engagement but carries a positive impact on the state of relations
shared by employees. However there a certain decision which are to be made by the management
itself as when shared with employees share a risk of being informed to an outside member which
increases chances of being harmed (Wright and McMahan, 2011). Besides that it is a major
strategy which ensures that employees carry an active participation in the working of the
company which enhances their commitment and loyalty to organisation. In these present
circumstances before formulating a decision a management have to ensure that it is beneficial to
the business as well employees working for the organisation (Hendry, 2012).
P6 Key Element of employment legislation
The government have formulated various laws and policies which aims to regulate
relation of employer and employee in an organisation (Jiang and et. al., 2012). It aims to define
and regulate right of employees working in an organisation. It is the duty given to human
resource department of a company to adhere the employment laws in an organisation. The needs
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and expectation of both the parties is given due consideration while constructing a law so that it
is fair for both the parties. The common laws are as follows:
National Minimum wage act 1998: this law defined the minimum amount which is to be
paid to an employee by an employer. For an workers who is above the age of 21 is to be paid
minimum of 6.19 euros per hour and aggregate working for a week should not exceed 48 hours.
This employment legislation have been revised and enforced on organisation as there was
exploitation which was carried out on employees. Strengthening this act ensures that there is no
such practice carried out and it influences decision making of the business.
Equality Act 2010: this law is formed and regulated by the government so that there is no
circumstances of discrimination in an organisation. This act carries the power to influence
decision-making of a employers as he can not discriminate and harass an individual on the basis
of his age, disability, race and pregnancy (Kehoe and Wright, 2013).
Terminations: In case of termination, both employers and employees needs to provide a
party with a minimum duration to serve notice period. The major reason which led to termination
of service are expiry of contract, death and retirement. Termination influences decision-making
as employer cannot terminate services of an individual without providing him with proper
explanation and chance to find another job in its notice period.
Data Protection Act 1998: it is the duty of management to protect the data provided by
employees. The company have to ensure that the data is used in an ethical and fair manner and
preserved under security (Renwick, Redman and Maguire, 2013). Any breach of data gets a
company into legal trouble and penalty of 50,000 euros in case of data breach of employees and
clients.
TASK 4
P7 Application of HRM practices in work related context
The human resource management practices is an tool which is employed by organisation
to facilitate a productive environment along with fulfilment of goals and objectives of the
company (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Workforce of British communication
constitutes around 106,400 employees which makes it essential for a business to opt for
employee centred approaches and practices. This is done so that business can see inclination in
its operations and productivity.
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AGENDA
Title: Training to a Receptionist
Location: London Date: 20 March 20XX
Facilitator: John Smith No. of Volunteers: 10
Activity Estimated time Method
Welcome 5 minutes The supervisor of this task will
formally introduce himself and explain
his role.
Learning objective:To facilitate
training to receptionist in a 5 star
hotel.
5 minutes Training manuals and software are
employed to facilitate training to the
volunteers. (Role play, customer
interaction and simulation)
Warm-up and Introductions: 15 minutes The people sitting in a training
programme identify suitable tactics
which help them nurturing their
receptionist skills. The volunteers are
formally introduced and asked for their
place of origin and their academic
background.
Main Points: it is essential to provide
training to receptionist as they help in
forming a perception about a
property. Training is vital as they can
enhance customer experience.
1. Never saying I don't know
2. Paraphrasing
3. Smile
4. Confirm (Names and
numbers)
20 minutes The training will take place with
mentioned tools and tactics along with
group discussion just to analyse amount
of work that has been put in. Random
volunteers are selected and provided
with a chance to perform.
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CONCLUSION
It can be concluded from the above report that it is essential to manage human capital of
an organisation in the best possible manner so that it can achieve its desired targets. This role of
management of workforce is carried out by human resource domain of an organisation. It ensures
that employees are utilised up to their full potential so that superior position is attained in the
market. The main functions which are carried out by human resource functions refers to
recruitment, compensation, training and retention of employees in the organisation. It is essential
to maintain ideal relation between employer and employee so that there is minimum disruptions
and more of productivity. The government have formed legislation which ensures that employees
are provided with fair treatment and data provided by them must be used in an ethical manner.
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REFERENCES
Books and Journal
Alfes, K. and et.al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Arumugam, V. C. and Rouhollah, M., 2011. The impact of human resource management
practices on financial performance of Malaysian industries. Australian Journal of Basic
and Applied Sciences. 5(10). pp.951-955.
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.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Choi, M., 2011. Employees' attitudes toward organizational change: A literature review. Human
Resource Management. 50(4). pp.479-500.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Hendry, C., 2012. Human resource management. Routledge.
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.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
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
Importance of employee relations in HRM decision making. 2017. [Online].Available through:
<http://www.business2community.com/strategy/strong-employeeemployer-relationship-
important-achieve-0876781#uiOcp2dFrGOaPAxV.97 >.
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