Assignment on Benefits of HRM Practices

Managing and Leading Human
Resources

Table of Contents
PROJECT 1......................................................................................................................................1
LO1..................................................................................................................................................1
P1. Purpose and functions of human resource management applicable to workforce planning
and resourcing.............................................................................................................................1
P2. Strengths and weaknesses of different approaches to recruitment and selection.................3
LO2..................................................................................................................................................4
P3. Benefits of HRM practices for employer and employee .....................................................4
P.4 Effectiveness of HRM practices to raise profits and productivity........................................5
LO3..................................................................................................................................................6
P.5 Importance of employee relations at time of HRM decision making .................................6
P.6 Impact of employee legislations on HRM decision making.................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Human resources management is a concept which is related to recruiting right person at a
position. It basically focus on managing workforce is best way possible. Management provides
training and adequate compensation to all employees so that they can perform efficiently and
effectively (Albrech, 2011). Employees can also maintain good relationship with each other.
Report discusses about the Virgin Atlantic Airways limited which provides airline services to
people across world. It was found in the year 1984. Project explains about the scope and
functions of human resource management as well as strengths and weaknesses of recruitment
and selection approaches. Assignment discusses about the benefits of HRM practices to
employer and employee as well as effectiveness of human resource management to raise
company's productivity and profit. Report also explains about the importance of employee
relations and key elements of employment legislation which can affect the human resource
decisions.
PROJECT 1
LO1
P1. Purpose and functions of human resource management applicable to workforce planning and
resourcing
Human resource management is important as it provides training and compensation to
employees so that they can perform efficiently and effectively to achieve their objectives. Below
are the objectives of personnel management of Virgin Atlantic Airways limited - Employees – Human resource department manager of Virgin Atlantic airways limited has
to provide training according to the needs of employees. It is important so that they can
give good results. Manager also solves their conflicts and issues of staff members so that
they can work efficiently and effectively. It results in increasing the productivity of
company. Thus, workers can be retained for a longer period of time. Organization – Human resource management recruits and selects the qualified and
trained employees, so company can select talented staff members. If employees will
perform better then they can attain their targets. This also leads to improve the
performance of organization (Bacon and Voss, 2012). Thus, manager of company can
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maintain a unique position in front of customers and market. They can give a strong
competition to other companies as well. Performance management – HR manager of company solves all problems and conflicts
of employees so that they can perform better (Armstrong, 2011). They do not face any
problem in their work. It results in improving the performance of employees and staff
members can easily achieve their objectives and targets. Thus, it increases the
productivity of employees. Hence, company can increase the profits and market share.
 Employee relations – Human resource manager of company tries that there can be good
relations of employee and employer. Manager tries that no conflicts will arise in between
them and employees can perform better. He maintains a strong and healthy relationship in
between employer and employee. Hence, staff members can perform better and render
desired results. It ultimately increases the productivity and profits of company.
Functions of HRM Recruitment and selection – HR manager recruits and selects qualified and educated
employees so that they can perform better. It selects workers according to the
requirements of job.
 Planning – HR department creates plans and policies regarding methods used in
recruitment and selection. It is done so that appropriate candidates can be selected
according to the job profile.
 Maintains positive environment – HR manager of company tries to solve all problems
and disputes among all employees so that goo and positive environment is created. This
leads to improving performance of firm.
 Training and development – HR manager provides training to all employees so that they
can increase their skills and knowledge to perform all activities and tasks. Thus
employees can perform efficiently and effectively.
 Orientation – HR manager explains all new rules and regulations of company to new
employee(Bamberger, Biron and Meshoulam, 2014). This is important so that new
members can families with rules of firm.
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P2. Strengths and weaknesses of different approaches to recruitment and selection
Company has different choices regarding selection of source of recruitment and selection
methods. Firm has to choose employees who fits according to job. Company can have different
approaches of recruitment and selection such as job description,skills inventory,job posting etc.
for selecting and recruiting all employees. It uses internal and external sources and third party
sources to select candidate (Bloom and VanReenen, 2011). Third party is agency of placement
which choose candidate according to job. They can offer various packages to different
employees such as salary compensation packages and other attractive offers to attract candidates
for the job. It also includes employee recommendations,employment agencies,labour contractor
and college recruiters etc. who selects candidate for job. Below are the various sources of
recruitment and selection of Virgin Atlantic Airways Limited (Internal and external sources of
recruitment, 2011):
External source It is source where employees are recruited from within the company. It can be
college recruitment, newspapers, magazines, etc.
Strengths – Virgin Atlantic Airways Limited has many candidates for the job. By
selecting this source, company can have talented and educated employees. They can give unique
and innovative ideas which can be executed by the managers in company. Thus, activities and
tasks are run successfully and smoothly. Hence, firm can increase the productivity and profits
and maintain a unique position in the minds of passengers.
Weaknesses – It incurs huge cost and expenses of company when it recruits employees
from outside the enterprise. It is a complicated process when they follow all procedure involved
in college recruitments. By selecting this source, it reduces the morale and energy level of
present employees and they cannot perform better. It results in reducing the productivity of
company.
Internal sources It is the source when employees are recruited from within company. It includes
promotion, transfer, recommendations, etc.
Strengths – Organisation can save the cost and time when they recruit employees from
within company. Firm does promotion of employees and increases the energy level as well as
enthusiasm so that they can perform efficiently and effectively (CHUANG and Liao, 2010 . HR
department has trust on employees as they already know their skills and capabilities. Thus, firm
can earn more profits and increase their productivity.
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Weaknesses – Company cannot recruit talented and educated employees as they are
selecting them from within company. Hence, firm cannot have new and innovative ideas to
deliver the services to passengers(Giauque, 2015) So, it reduces the growth and productivity of
organisation and thus, results in declining profits and performance of company.
LO2
P3. Benefits of HRM practices for employer and employee
Human resource practices are very important to achieve the objectives of firm. Various
benefits of human resource practices to employer and employee of Virgin Atlantic Airways
limited are:Benefits to employees Good working environment – By practising the good human resource practices in
company it creates good and friendly environment between all employees. Discipline is
also maintained between all staff members. Hence they can perform efficiently and
effectively. Thus they can achieve their objectives and can give good results. Career growth – There are many promotions and incentives given to all employees. So
hence they can improve their performance and enhance their career. Thus members can
perform efficiently and effective hence give good outcomes. It results in growth and
development of all employees.
 Motivation – When company provides training according to employee’s needs and
adequate compensation is provided to them, it directly increases the motivation and
energy level of staff members to perform better.
Benefits to employer Reduces conflicts – By practising effective HR practices, it decreases the disputes in
between employer and employee (Gill and Meyer, 2011). Thus, it improves the
performance of firm.
 Quality workforce – Company can create qualified and talented employees by providing
adequate training to them. It increases the productivity of firm.
 Achievement of objectives – As employees receives adequate training and
compensation so hence they can give best results and can achieve their objectives. It
results in growth and success of Virgin Atlantic Airways limited.
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P.4 Effectiveness of HRM practices to raise profits and productivity
Every company can increase the profits as they can put right person at right job.
Effectiveness of HRM practices can also be evaluated through different ways. Firstly staffing in
which right candidates are selected at right job and thus fulfils all vacant positions. Secondly if
there are good and string relations between all employees then it proves that there is good
effectiveness of human resource practices (Innocenti, Pilati and Peluso, 2011).. Evaluation of
effectiveness of HRM Practices of Virgin Atlantic airways limited can be done through model
which is described below-
Kirkpatrick Model – It is model which can evaluate the effectiveness of training and impact of
training on employees so that it can be improved. It consists of 5 steps-
 Reaction – In thus employees reaction are evaluated in training events. Company wants
that they can good experience through training sessions so that they cannot complaint and
their problems are solved. Thus it increase productivity of employers top perform better.
It results in growth and development of employees.
 Learning – In this company evaluates the skills and capabilities of employee through
training session. It can be evaluated by checking promotion of employees. Many staff
members have promotion. Thus it results in success and growth of training sessions and
events. Thus there is effectiveness and efficiency in HR Practices. It results in increasing
the productivity and profits.
 Behaviour – In thus behaviour of employees are evaluated. If they have positive
behaviour after training session and seminars then training session is successful. It results
in effectiveness and development of training events. Hence HR department has done a
fantastic and good job. It results in growth and success of firm. Thus company can earn
more profits and can increase the productivity
 Results – In this results are evaluated in training session. If employees are satisfied and
they can achieve their objectives and goals and can increases the p[productivity and
profits then training is successful (Nabrzyski, Schopf and Weglarz, 2012) . Hence HR
department has done fantastic and good job.
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