HRM Practices and Employee Performance

This assignment provides a comprehensive review of Human Resource Management (HRM) practices and their effects on employee performance, innovation capabilities, and organizational success. It includes a list of academic sources, including articles and books, that investigate the relationship between HRM practices and various outcomes. The sources cover topics such as recruitment and selection, e-recruitment, rewards, and performance management. By analyzing these studies, you can gain insights into how HRM practices can be used to improve employee performance, foster innovation, and drive organizational success.

HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Identifying the purpose and functions of HRM which is applicable to workforce planning
as well as resourcing within an enterprise. .................................................................................3
P2. Analysing the strengths and weaknesses of different approaches to recruitment and
selection.......................................................................................................................................7
TASK 2..........................................................................................................................................10
P3 Explain the benefits of different HRM practice within the organisation for both employer
and employees...........................................................................................................................10
P4 Evaluate the effectiveness HRM practices in terms of rising organisational profit and
productivity...............................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
HRM can be referred to as practice of recruiting, hiring, deployment as well as
management of employees within an enterprise. It can also be defined as procedure of hiring as
well as developing workers so that they can become valuable to an enterprise. HRM is a formal
system designed for management of people within an organisation (Bratton and Gold,
2017).Objective of HRM is to assist firm in developing the team of highly skilled and talented
workforce. It is the procedure which binds people and assist both employees as well as
enterprise in accomplishment of desired objectives. The HRM in an organisation is mainly
concerned with the an effective as well as efficient use of human resource so desired
organisational goals could be achieved.
Study emphasizes on identifying the purpose and functions of HRM which is applicable
to workforce planning in Microsoft corporation. It is basically an American multinational
technology company. An organisation sells computer software, personal computers and other
consumer electronic products. Report also have focus on analysing the strength and weakness of

different approaches to recruitment as well as selection. It will highlight the benefits of different
HRM practices to employee and employer.
TASK 1
P1. Identifying the purpose and functions of HRM which is applicable to workforce planning as
well as resourcing within an enterprise.
HRM can be defined as procedure of hiring, selecting and managing people in order to
accomplish desired business goals. It is the procedure which also involves developing policies,
incentives programmes for motivating employees to increase their participation in business
activities (Buckingham and Goodall, 2015). In context of Microsoft corporation, HRM in an
enterprise also includes planning, organizing, directing and controlling the activities of people. It
is the department in Microsoft organization which mainly handles all as aspects of workers. Key
objective of HRM in Microsoft corporation is to assist an enterprise in maintaining high level of
working efficiency. HRM in Microsoft also intends to support business entity in maintaining
high employees' retention rate. In context of Microsoft organization, the functional objective of
HRM in an enterprise is to confirm that human resource are being allocated to its full potential.
The main function of HRM in firm is to recruit highly skilled and talented people. Role of
human resource manger in firm is to manage people in systematic manner. The different
functions of HRM in Microsoft corporations are :
Employee recruitment, on boarding and retention : This is important role of HRM in
Microsoft corporations (Cascio, 2015). The main function of HRM in Microsoft organization is
to hire talented and skilled employees by conducting the interview procedure or tests. Objective
of recruitment process by HRM in an organisation is helping Microsoft organisation is to help
business entity in development of team of highly skilled workforce which is very much essential
in order to accomplish desired business goals. Function of HRM in Microsoft is providing new
employees' knowledge related to companies, policies, procedures and make them familiar with
regulation of firm. Main objectives of on boarding functions by HRM is to assists firm in
maintaining good culture as well as effective environment at workplace.
By performing the on boarding function, HRM in Microsoft corporation is intends to
help newly appointed employees in acquiring the abilities, knowledge as well as behaviour
which are needed in order to become an effective manner in an enterprise. Employees on

boarding is basically a procedure of integration of new workers with an organisation as well as
its culture (DeCenzo, Robbins and Verhulst, 2016). In context of Microsoft, the main purpose of
HRM in relation to on boarding functions is to assist business entity in increase employees
retention rate.
Talent and workforce management : In context of micro soft corporations, Main
function of HRM in a firm designing a proper management system in order to ensure that Talent
is talent of all workers are utilise in proper manner. The main purpose of talent management
function by HRM is to assist an organisation in accomplishing desired goals.
Assignment of Job role and career development: The main role of HRM in Microsoft
organisation is to assign the role as well as responsibility to an individual on the basis of
knowledge as well as skills possess by an individual. The objective of performance of Job
function of job assignment by HRM in Microsoft corporations is to help an enterprise in smooth
functioning of business. In addition to this, function of HRM in Microsoft corporation is to assist
employees in building their career. It is the function which is performed by HRM in an
organisation with the intention to help firm in attracting more skilled as well as talented
employees.
Labour law compliance : The main function of HRM in Microsoft corporation is
ensuring that different norms related to industry are complied in different business procedures.
The main purpose of this function by HRM is support firm in eliminating the legal
issues(Donate, Peña and Sanchez de Pablo, 2016).
Training and development : In context of Microsoft corporation, main function of
HRM in an enterprise is to give an appropriate grooming to workers. Functions of HRM in
enterprise is to assist employees in development of skills and knowledge required for performing
specific function. The Objective of such function by HRM is to support firm in maintaining high
performance as well as quality standards.
Team building : it is the function of HRM is to create the group of extremely skilled
and talented workers.
Compensation and reward ; The main role of the HRM in Microsoft corporations is to
develop compensation policies. In addition to this, function of HRM is to develop reward
system for motivating employees to make their significant contribution in accomplishment of
desired business objectives.

The best fit as well as practices are generally utilised in strategic HRM. These
approaches are basically applied to the particular policy area of reward system. Both
approaches that is best practices and fit intends to highlights the way general as well as reward
policies developed by HRM in an organisation leads to increase in effectiveness of firm
(Ekwoaba, Ikeije and Ufoma, 2015).
The main difference between the both approaches to strategic HRM is that best fit
approach states that HRM in an organisation is required to align policies with other business
strategies, as it will assist Microsoft corporation in gaining the competitive advantage. In context
of the Microsoft corporation , HRM in an enterprise need to ensure that all the strategies
designed by them are suitable for different situations along with culture as well as operational
procedure. In simple words, the management in Microsoft corporation should focus on catering
to the needs of both company as well as workers. On the other hand, best practise hypothesis that
there are number of activities which are performed by HRM in an organisation which assist an
enterprise in gaining competitive advantage. It is the model which also states that the practices
performed by HRM can be applied in an enterprise, as it will assist business entity in imp-roving
performance (Farndale, Nikandrou and Panayotopoulou, 2018). According to the best practice
model, the various best practice performed by HRM in Microsoft organisation includes
selection , recruitment, performance management etc.
Hard and soft model of HRM
The hard and soft are generally a two approaches which are used by HRM for managing
people as well as performing other functions within an organisation. The HRM with hard
approach treats workers as business resource. In addition to this, they have much concentration
on identifying the needs of employees as well as organisation. Managers with hard approach
doest not prefer to delegate their authorities to employees. They just make judgement about the
performance of employees.
HRM with soft approach considered employees to be as most valuable business resource.
These type of HRM workers as an individual and make plan accordingly for fulfilling their
requirements. In context of Microsoft corporation , HRM in an enterprise has adopted the soft
approach. They are mainly concerned about fulfilling the needs of employees (Farooq and
Shafique, 2016). The strategic focus on HRM in Microsoft corporation is on long term workforce
planning.

Pestle analysis is the technique which can be utilised by management in Microsoft
organisation for analysing the effect of changes in external factors on HRM practices. The
various factors which can have impact on the HRM practices are :
Political factors: Implementation of new workplace standards by political party related
to specific sector has created the high level of pressure on HRM in Microsoft corporation.
Changes in the workplace standards has significant effect on the different practices by HRM in
Microsoft corporations these are recruitment, termination, training, compensation etc. In context
of the Microsoft corporation , an organisation is required to develop plan for managing people
by considering all the workplace standards.
Economic factors: It is considered to be as important external factor which has
significant influence on the firms ability to conduct the procedure for hiring candidates. It is
required by HRM in Microsoft corporation to kept separate reserve for HR activities.
Economic factors also include the increase in costs of labour which lead to additional expenses
for an organisation (Hassan, 2016).
Social factors: It includes the workforce demographics which has significant effect on
HRM practices within an enterprise . For instance, due to change in continuous demographics the
management in Microsoft corporation is facing the difficulty in developing an effective plan for
attracting new generation. In context of Microsoft corporations, HRM needs to develop an
effective compensation packages, as it will provide them an ease in attracting workers.
Technological factors:In context of Microsoft corporations, It is the advancement in
technology which has helped HRM in increasing the working efficiency. Advance technology
has provided HRM an ease in managing the large number of people.
Legal factors: The changes in the employment law in the nation have great effect on the
plans as well as policies that are created by HRM. Amendments in legislation have significant
influence on HRM practices.
Environmental factors:
The three benefits of HRM practices to employees is that recruitment practices conducted
by HRM helps e employer in getting the highly talented and skilled workforce. The motivational
techniques applied and compensation policies developed by human resource assist in reducing
the staff turnover rate in an organisation. It assist employer in ensuring that all the work within
an organisation are being performed according to set standard.

IN context of employees, the training and development program organised by HRM in
an organisation assist workers in development of skill required which could be beneficial for
them in context of fostering personal as well as professional growth. Policies developed by
HRM enables employees to feel motivated and satisfied from their Job. In context of conflicts,
HRM assist an individual in resolving personal disputes.
P2. Analysing the strengths and weaknesses of different approaches to recruitment and selection
Recruitment can be defined as procedure which is conducted for attracting, selecting and
appointing suitable candidates for performing specific job role within an enterprise. In context
of Microsoft corporations, the different sources which can be utilised by HRM for recruiting
candidates includes :
Internal recruitment : Internal recruitment includes filling the empty position by
promoting talented employees. There are different origin of interior enlisting such as promotion,
employees referrals, transfer, internal advertizing etc.
Promotions: It is the most common and most preferable form of internal recruitment. In
this type existing employees of Microsoft corporation are moved to the upper position with
having more responsibility. It encourages and boosts the morale of employees (Islam, 2018).
Transfer: Transfer is other method in which employees are being moved from one task to other
that has akin nature of the job. The main aim of transfer is to make employees able to get well
versed with the broad based view of the company that is required for the future promotion.
Positive impact of internal recruitment
It increases the mental state of worker that assist in depreciating labour employee turnover. This
require less paper work so it is affordable in terms of time. There is no requirement of providing
training to employees as all employees are well known with the company's policies and work. It
also lowers the cost of Microsoft corporation.
Negative impact of internal recruitment
One of the negative factor in this form of enlisting is it has limited internal sources as there is a
limitation of skilled manpower so it is not good at all.

External recruitment : External recruitment is an assessment of an available candidates
and pool of job candidates (Holm and Haahr, 2018). It is an approach of recruitment of
employees from the outside of an organisation. Microsoft utilises the plan of attack as it has
different advantages and by this approach they can recruit proficient workers. The external
recruitment method are advertisements, direct recruitment, word of mouth, employment
exchange, campus recruitment etc.
Educational institutions: It is a modern method of external recruitment as in this
method, recruiters are being sent to the educational institutions where they meet to the person in
charge of placement service. The main aim of selecting this method is person in charge and the
members of the faculty recommend recruiter about suitable and skilled candidates.
Advertisement: It is the most preferable method of external recruitment sources with the
main aim of generating a large number of applicants. Microsoft corporation send their
requisition and messages to specialized agencies that provide advertise about position in leading
newspaper.
Positive impact of external recruitment
Positive part of external requirement is that they make a wider pool of skilled and potential
employees within an organisation. It also brings up new and innovative ideas by recruiting
different employees from outside which can motivate current employees to produce more and
work productively.
Negative impact of external recruitment
Negative impact in this is, it decreases the morale of existing employees as they do not get the
chances of promotion (DeVaro, 2016). It is a longer process as compared to internal recruitment
that can increase cost and time of the company.
Selection:
It is the process that choose the most candidate which is most suitable for the vacant position in
the organisation. Selection is the process that weed out the unsuitable candidates and select the
individual who is most suited for that job in terms of qualification and capabilities the person is
having.
Selection approaches
Personalised selection method

Selection is done on personalise manner and it is being done from the long time for
choosing the best candidate. This method is still followed by many organisation and they give
the preferences to those candidates. It is one of the favourite method for the chief executive to
make the final decision like choosing the school team captain approach in this they can pick
whom they want to appoint.
Positive impact of personalised selection method
Positive impact of personalised selection method is that it reduces the operational cost and finds
the right candidate for the vacant position. There is the chance to take the inappropriate selection
of candidate.
Negative impact of personalised selection method
There is always the doubt attached with this way and it may become subjective. It may create the
conflict among the employees. Company can limit their choice as they can choose from the talent
pool.
Screening approach
This approach aim to decrease the amount of personal biased in the process of selection,
in this everyone will get the equal opportunity to show their talent at the time of selection in
Microsoft corporation. In these they have to follow the laid down procedure as it is needed and
all interlocking with each other and it leads to the rational selection for the best candidate. In this
approach the Microsoft corporation take the interview through the online screening and than they
select the suitable candidate (Heilman, Manzi and Braun, 2015).
Positive impact of Screening approach
Positive impact of screening approach is that there is a ability to predict the job performance
even for the complex position. It is cost effective for the large number of test takers and even it
can easily evaluate the knowledge skills and the personal qualities of an individual.
Negative impact of Screening approach
Everting is having two sides in this the negative point is that it might be expensive and consume
more time for the internal development rather than using off - the - shelf version. There is the
chances to differ by the gender and race as compare to other tests.

TASK 2
P3 Explain the benefits of different HRM practice within the organisation for both employer and
employees.
There are different HRM practices which are help to HR of Microsoft corporation which
is technology company. The HRM practices are includes training and development, workplace
design and reward management are very important for HR Trainee of company. Those are
beneficial for employer and employees are as follows:
Training and development
Training and development is crucial HRM practice. It assist in improving performance
of trainee member and also growth factor. Training and development both are different process.
Training is the learning process for the new and existing employees. In this they are get to know
about key skills and abilities are required for the job and vacant process (Holm and Haahr, 2018).
Other hand, development is the process of training for the existing trainee employee for their all
development. Training is needed for increasing higher productivity by reducing cost of
production. It is also need for improving quality work and employees performance. The
company is use on the job training method because it is effective and valuable for company. This
HRM function is beneficial for the HR trainee member of the company. This provide specific
knowledge and information which are help to develop their skills and talent and roles. This is
Appropriate for successfully meet with business and its objectives.
This practice is beneficial for the employees and employers of Microsoft corporation
technology company as well as Hr trainee members. This is beneficial for employees because it
increase the job satisfaction and morale of employees and also helped to increase employee
motivation at workplace. Highly motivated employees and Hr trainee are always ready to give
their hard contribution for achieve goals and objective of company (Ibrar and Khan, 2015). Other
hand, it is beneficial for employer because all employees have proper knowledge and
information of doing work. By this employer get effective and eligible employees for work who
are highly able to done work in proper manner. This HRM practices are help to achieve goals
and objective of company when goals and objectives are achieved then profit and productivity is
increase in proper manner.
Work place design

Workplace design is refers the process of designing and organising the effective
workplace by optimizing workers performance and safety. It is very important for healthy and
safety issue for the workers in both perspective high risk and low risk workplace. This includes
design factors such as the lighting, furniture, temperature, air quality, provision of work, safety
and healthy work environment. This practice is beneficial for employees and employer of
Microsoft corporation as well as HR trainee because by this they are feel safe and done work in
effective manner (Milliman and Clair, 2017). This is beneficial for the employees for a good
feedback. In this employees and HR trainee have more opportunity and variety of options for
competing their task. Workplace design is beneficial for HR trainee because by this they are gain
time to time training and rewards for their hard work as well as this provide talent and skills for
fulfilling the business objectives and goals. Other hand, it is more beneficial for the employer
because with the help of effective workplace design employer rest and make schedule for the
work. By this employer not need to define and clearing task each and every day to employees.
With the help of this profit and productivity of company is increase in effective manner.
Reward management
Reward management is very important HRM practice for Microsoft corporation. This
help to motivate to HR traineefor their hard contribution for achieving goals and objective of
company. There are two types of reward management such as intrinsic and extrinsic reward
system. The intrinsic reward system is the non physical and non financial reward system. In this
employer of Microsoft company is provide the best and effective comments in front of whole
staff members, promotion, appreciation and motivation those are considers in this reward (Noe
and et.al., 2017). Other hand, for giving extrinsic rewards company is use the cash price, bounce,
prices, gifts to their employees against of their hard contribution. This provide the basic talent
and skill to trainee members for fulfil the needs of business objectives. Reward management is
more beneficial for employer and employee of Microsoft corporation. This is more beneficial for
employees because this giving job satisfaction to employees and also employees are more happy
with that. Happy employees are always give hard contribution for achieving goals of company
when employees are happy then it is beneficial for the employer. With the help of this HRM
practices profit and productivity is increased in effective manner.

P4 Evaluate the effectiveness HRM practices in terms of rising organisational profit and
productivity.
All various types of HRM practice including like that of recruitment, selection or training
will be impacting the overall performance of company. As recruitment is generally based on the
mission and vision of organisation and culture of workplace as well so this will be having direct
impact on the performance of Microsoft. This helps managers to improve quality of work which
employees are doing, evaluating all certain practices which could be causing harm to their
performance and motivating them eventually. Training and development is another HRM
practice which enable the improvement in performance and productivity of employees who are
working with organisation. Moreover, it could be noted that bringing flexibility into workplace,
giving reward and appreciation to those employees who are doing good work is also one of the
impact.
It could be included that Microsoft must be having high HRM practice which is
increasing profit of firm and productivity of employees as well. Atkinson flexible model it
termed to as managerial or organisational technique which is using optimisation of allocating
human resources with respect to workforce flexibility and market instability as well. So as per
this model all employees are divided into 2 groups like that of peripheral and core, both of them
are been organised by 3 type of flexibility like numerical, functional and financial. All these 3
flexibility could be defined to as:
The three benefits of HRM practices to employees are that recruitment practices
conducted by human resource manager helps e employer in getting the highly talented and
skilled workforce. The motivational techniques applied and compensation policies developed by
human resource assist in reducing the staff turnover rate in an organisation. It assist employer in
ensuring that all the work within an organisation are being performed according to set standard.
IN context of employees, the training and development program organised by human
resource manager in an organisation assist workers in development of skill required which could
be beneficial for them in context of fostering personal as well as professional growth. Policies
developed by human resource manager enable employees to feel motivated and satisfied from
their Job. In context of conflicts, human resource manager assist an individual in resolving
personal disputes.

Functional Flexibility:- This flexibility is related to the people who are having high skill to
perform a particular task in the organization. In this workers are doing different task as they are
capable of doing work effectively and efficiently. In Microsoft under this flexibility employees
are providing training and flexibility in the working hours that will be valuable for the company.
Under this employees are providing proper training so that will be able to become skilled that
will help them in future course of action. Microsoft is the big company that require skilled
employees so that there work can be done effectively and efficiently.
Numerical Flexibility:- This will applied to the low-skilled workers. In this employers of the
company have to fulfil the labour demand so that this will be applied in the company. In
Microsoft employer have to fulfil the demands of it labour so that they will do work efficiently
and helps in growth of the company. This flexibility is applied by achieving some methods like
completing short term contracts and by fulfilling needs of the temporary workers.
Financial Flexibility:- This is related to the adjustment of price according to the demand and
supply of workers in the company. This also include compensation that is provided to the
workers. In Microsoft this flexibility is adopted by fulfilling the demand of workers as by giving
them compensation of doing work in the company. In this price is decided according to the
demand and supply of the company.
The human resource manager in Microsoft corporations provides the regular training as
well as guidance to employees which are helpful in context of helping an organization in
increasing profitability. In addition to this, Human resource manager provides monetary as well
as non-monetary incentives to workers in order to encourage them for increasing the productivity
as well as performance at workplace. Human resource manager provide open communication
channel to employees and enables them to share their opinions or views which can be helpful in
context of identifying suitable ways for increasing the organisational productivity as well as
profitability.
CONCLUSION
From the above study it has been summarised about the purpose and scope of HRM in the
matter of resourcing the organisation from the talent and skills as appropriate to fulfil the
objective of business. Some objectives of the business are talent and workforce management,
employee recruitment, on boarding and retention and many other objectives that is being need by
the organisation. This reports also explains the types of approaches for the recruitment and

selection procedures further it define the recruitment and selection procedure and also explains
their approaches and mention their weakness and strength of these different approaches. This
report also elaborates the benefits of different HRM practices within the Microsoft corporation in
context of both the employer and employee. This report show the effectiveness of different HRM
practices ion terms of raising the profit and productivity of Microsoft corporation and explains
the extrinsic and intrinsic rewards from work.

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