Human Resource Management

This assignment provides a comprehensive analysis of Human Resource Management (HRM) at McKinsey & Company, covering topics such as the purpose and functions of HRM, recruitment and selection approaches, benefits of HRM practices, employee relations, employment legislation, and the application of HRM practices in a work-related context. It also includes a job advert for an HR Manager position at McKinsey & Company.

HUMAN RESOURCE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
LO 1.................................................................................................................................................3
Purpose and functions of HRM and how the functions can provided talent and skills to fulfil
organisational objective..........................................................................................................3
Strength and weaknesses of various approaches to recruitment and selection for organisation.5
LO 2.................................................................................................................................................7
Benefits of different HRM practises for both employees and employer................................7
Effectiveness of various HRM practises in terms of raising organisational profit and
productivity.............................................................................................................................8
Exploring different method of HRM practises.......................................................................9
Evaluation of strength and weaknesses of different approaches of recruitment and selection10
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
TASK 2..........................................................................................................................................14
LO 3...............................................................................................................................................14
Importance of employee relation in respect to influencing HRM decision making.............14
Key elements of employment legislation and their impact on HRM decision making........15
Application of HRM practises in work-related context and providing a rationale of specific
HRM practises......................................................................................................................15
Evaluation of employee relation and the application of HRM practises that inform and
influence the decision making..............................................................................................17

INTRODUCTION
Human resource refers to both the people who work for the organisation and the
department who is responsible for managing resources related to the employee. Human resource
management is a contemporary term of management and development of employees in the
company. The study is based on Human resource of McKinsey and Company that is an
American worldwide management consulting firm and the objective of the organisation is
conducting qualitative and quantitative analysis to evaluate management decisions . The report is
divided in two tasks, the first task will analyse the purpose and functions of HRM and how it will
provide talent and skills to fulfil the objective of McKinsey. Furthermore, Strength and
weaknesses of various approaches to recruitment and selection will be analyse. Along with that
study will evaluate methods, effectiveness and benefits of HRM practises to employees and
employers. The second task analyse the importance of employee relation and key elements of
employment laws. Lastly the report will include the design of job advert.
TASK 1
Purpose and functions of HRM and how the functions can provided talent and skills to fulfil
organisational objective
Human resource management is the practise of recruiting, hiring, deploying and
managing employees of an organisation. In other words HRM is the term that is used to describe
formal system devised for the management of people within the organisation.
Human resource management is considered as a very important part of McKinsey and
Company (Antonacopoulou, 2016). It is the coordination of the people within the organisation to
achieve desired objective and goal, fulfil staffing needs and maintain satisfaction level of
employees.
Purpose of Human resource management:
 To procure required man power in right quality, right quantity at right time.
 To coordinate organisation's people and utilize the developed manpower to achieve the
goal or objective of business.
 To retain procured manpower for the benefit of McKinsey and Company as well as entire
workforce.

Moreover, purposes include; Internal customer management, Benefit management, Laws,
Cultural sensitivity, etc.
Functions of HRM:
HRM functions are carried out by the manager of McKinsey to fulfil the objectives of the
company (Bailey and et.al., 2018). The core function of HRM like; recruiting, staffing, training
and development are very important for the company to provide quality talent and skills to fulfil
the organisational objectives.
Staffing- Staffing is the process of McKinsey's human resource management that
acquire, develop, employ, appraise, retain and remunerate right people at right position on
appropriate time. This function is related to employment of personnel of all type; operational and
managerial. The purpose of staffing in the organisation is to fill various position by most suitable
personnel. This function provide McKinsey and Co. best of talent and knowledge that enhance
productivity of organisation and attaining its objectives.
Recruitment and Selection- Recruitment is the process in McKinsey company that
attracts and find capable applicants for employment and selection is responsible for selecting the
best candidate among all (Functions of HRM, 2019). During the process of recruitment, HRM of
Illustration 1: Functions of HRM
(Source: Functions of HRM, 2019)

the organisation deals with various areas such as; Vacancies, job description, personal
specification and promotional activity like advertising regarding the same. HRM also plays an
essential role in the process of selection by selecting the best eligible candidate for McKinsey
with needed skills and talent among all the members (Barbieri and Cutuli, 2015). These functions
and role of human resource management are responsible to attract the best talent towards the
industry.
The process is essential for fulfilling business objective as the best eligible people will be
select by the HRM of McKinsey that lead the company to higher productivity and profit by using
their skills and talent.
Training and development- Training and development is the act of increasing the skills
and knowledge of employees for doing specific task or job. This function of human resource
management are responsible for giving training to the employees and development programmes
that is responsible developing their skills and knowledge. The objectives cannot be achieved if
the employees are not trained, skilled and productive. For that practises of human resource
management must concentrate on development and training of the employees as this help in
enhancing their skills and talent, motivate them and increase their knowledge which further leads
them to achieve business objective.
Along with that, according to the function HRM also take care of work performance of
employees and examine their performance eventually that also result in enhancing their skills
and talent and accomplishing the goal, growth and success of organisation (Bratton and Gold,
2017).
Strength and weaknesses of various approaches to recruitment and selection for organisation
The recruitment and selection process plays an important role in McKinsey's success.
Right procedure of recruitment and selection allow the organisation to attract top talent and help
in build a result driven team. Well there are some strengths and weaknesses of recruitment and
selection process (Gatewood, Feild and Barrick, 2015). It is stated that recruitment is a positive
approach and selection is negative approach.

Internal recruitment- This kind of recruitment approach generally promote existing employees
to the higher level position within the organisation or transferring them to another department.
The major forms of internal recruiting are: promotion from with in, contact referrals, job posting.
Promotion- Promoting employees to more responsible position with the use of human
resource planning system.
Strength
 Internal promotion act as an incentive to all staff who work harder and this is the
motivator for good performance.
 This is helpful for the organisation to made considerable saving and give accurate view of
candidate's skills (Johnson and Szamosi, 2018).
 It improves employee morale and loyalty towards the organisation.
Weaknesses
 Internal recruitment need management and development programmes and departments by
the organisation that affect the cost.
 The weakness of internal recruitment is it creates narrow thinking among working
employees and stale ideas as well as create homogeneous workforce.
External recruitment- There are broad variety of external recruiting (Types of
Recruitment, 2019). It is important for McKinsey to carefully fill the position by selecting right
recruiting process that produce best result. It includes various methods such as;
Illustration 2: Approaches to recruitment and selection
(Source: Types of Recruitment, 2019)

Advertising- This is the method of communicating employment need of McKinsey to
public through media like; television, newspaper, etc.
Strength- Advertising attract large number of candidate with large number of skills and talent
that is beneficial for McKinsey because outside people bring new ideas in the organisation.
Weaknesses- This is a longer process and more expensive and time consuming.
Employment agencies- McKinsey attached with many employment agencies that recruit
employees and at the same time they aid individuals to attempt locate jobs.
Strength- External recruitment approach attract large number of candidates with large number of
talent and skill that have more job suitability.
Weaknesses- This approach demotivate internal employees of the company by destroy incentives
of present employees (Marchington and et.al., 2016).
Walk-in-applicants- This kind of recruiting process work if the organisation are reputed
and may able to attract prospective employees without extensive recruitment efforts and allow
them to give walk-in-interview.
Strength- Provide opportunity to handle rapid growth of the industry.
Weaknesses- There are more chances of commit hiring mistakes because of difficult applicant
assessment that lead organisation to wastage the limited resource.
Selection
Selection is the process of evaluating and interviewing candidates for a particular job.
There are variety of approaches are available, including; Online screening and short-listing,
interview, ability and aptitude test, group exercise, personality profiling, etc.
Interview- Interview give recruiter an opportunity to find out about the candidate in
depth.
Strength- It is useful for obtain detailed information about personal feeling, opinion and
perception of the candidate and the face to face interview help HR of McKinsey to select the
best, confident candidate.
Weakness- It can be very time consuming and costly for the organisation.
Screening- This is a part of the hiring or selecting process. It a type of employment
testing in the form of questionnaire composed by McKinsey's Recruiter.
Strength- Screening allow organisation to take skill test that is required for the position that
ensure that selected candidate is capable for leading McKinsey towards great performance.

Weakness- Screening can be disadvantage for the organisation as it requires necessary
techniques for screening that affect the profit.
Benefits of different HRM practises for both employees and employer
Human resource management is used by both employers and employees in McKinsey to
improve the performance and control the activities of organisation (Meijerink, Bondarouk and
Lepak, 2016). Without the coordination of both employees and employers it may create conflict
within the organisation.
Flexible working practises
HRM practise provide a positive working environment in McKinsey and provide
favourable benefits for the employees and motivating them to be more productive. So it essential
for McKinsey to maintain the good culture and environment of organisations and employment
standard and laws. HRM practises are beneficial for employer as; it makes design of work
environment flexible, simplify the assignment of work for employers, it helpful for employer as
it enable them to composition of work accordingly.
Talent acquisition
HRM practises provides flexibility and easy access to benefits of employees and ensure
that organisation have qualified staff by acquiring talent that manage the risks and issues within
the organisation (Nankervis and et.al., 2016). McKinsey is following international standard for
HRM practises that allow organisation to appoint skilled and qualified employees with various
approaches of recruiting and selection. This HRM practise is beneficial for employees as their
talent has been acquired effectively that improve their working style.
Learning and development
HRM practises of McKinsey help to enhance the talent and skills that motivate
employees and increase their productivity and overall performance. It is beneficial for employees
as it help them to learn new skills and it develops their talent that is advantageous for them
professionally as well as personally. HRM practises also help to maintain the alignment between
the employees and employers. From the learning and development system, employers are able to
recognise and reward to the employees according to their work and it keeps employer productive
and happy with the performance of employees.

Effectiveness of various HRM practises in terms of raising organisational profit and productivity
Good HRM practises are instrumental in achieve organisational objective and increasing
profit and productivity (Schumacher and et.al., 2016). HRM practises provides formal and
informal training, coaching, talent acquisition, encouraging and motivating employees by
performance appraisal to work better that drive the profit and productivity of McKinsey.
Effective Planning
HRM practises include planning that can be human resource planning or manpower
planning. The practises set effective direction and provide a way to employees and other
departments to achieve the objective of McKinsey and with proper planning HRM allow
organisation to recruit appropriate mangers for right place and they lead the organisation to the
superior place with productivity and profit.
Training and Development
Training and development is an important part of HRM practice that help to develop the
skills and knowledge of employees and enhance their work performance that result in enhancing
productivity and finally increase the profit (Voegtlin and Greenwood, 2016). The overall
objective of training and development is to increase personal skills in one or more areas of
expertise that help them to work and perform more effectively.
Rewarding influence performance
HRM practice help the organisation to manage performance of the employees and reward
them accordingly. HRM practise i.e. performance appraisal, focuses on rewarding and praise
employees on the basis of their performance that increase their motivation which result in
enhancing productivity and profit of McKinsey. In the organisation flexible working practises,
job design and reward and payment system can be linked and raise profit and productivity of
McKinsey (Wilton, 2016).
Service quality enhancement
HRM practises promotes innovative environment in the organisation and motivate their
employees for better facility that enhance service quality and of course that help McKinsey to
increase their productivity as well as profit.
Exploring different method of HRM practises
Reward system- Effective reward system is a significant factor in the organisation.
According to this practise when employee are motivated and work at higher level of

productivity, McKinsey runs more efficiently and more effectively reaching its objectives.
Rewards are positive outcome that are earned by employee on the basis of their performance.
There are various type of rewarding system that motivate employees:
Intrinsic- This reward system is personal and it includes satisfactory feeling for finishing a
specific task.
Extrinsic- This kind of rewards system is outside of the employee's control. It includes;
incentives, share options, insurance, pension schemes, etc.
McKinsey should recommend to make effective reward management and appropriate
reward system for its employee that motivate them and increase the productivity of the
organisation (Antonacopoulou, 2016).
Performance monitoring method- Performance monitoring is the process where the
supervisor of McKinsey ensures that the employee is progressing towards the objectives and
goals by performing well. The supervisor makes sure that work being accomplished in
accordance to the business standard established and should provide regular feedback to keep the
employees on track. There are various methods of performance monitoring: Performance
reviews, Self-evaluation, Peer evaluation, Target setting for employees, etc.
It is important for the organisation to monitor performance of its employees by suitable
method that allow them to understand where the gap is coming and filling them by needed skill
as well as supervisor can understand the overall work performance and provide them needed
training and development programmes that enhance their work performance as well as
organisational productivity.
Evaluation of strength and weaknesses of different approaches of recruitment and selection
From the above explanation it was analysed that approaches of recruitment and selection
are beneficial for McKinsey as well as it have some disadvantages as well. It is important for the
organisation to select the best and cost effective as well as that approach that give the best result
to the industry (Bailey and et.al., 2018). It is recommended to the company to use external
recruitment and selection approach. Although it has some strength and weaknesses too in the
organisational context but external approach allow organisation to gather large number of skills
and talent that is beneficial for McKinsey productivity and profit.

RECOMMENDATION
From the above analysis some important recommendation are given to McKinsey that
allow them to overcome any sort of issues and enhance the work performance of employee as
well as enhance productivity of the organisation:
 It is recommended to the company to use external recruitment and selection approach that
allow organisation to gather large number of skills and talent that is beneficial for
McKinsey productivity and profit.
 McKinsey should conduct training and development programs within the organisation for
employees to enhance the skill and knowledge of employees and help them to become
more productive.
CONCLUSION
From the above report it had been concluded that the functions and purpose of HRM
provide pool of talent and skills to the organisation that help in fulfilling business objectives. The
recruitment and selection process have some strength and weakness but it analysed beneficial for
the organisation to attract new talent towards McKinsey and select right people at right position.
It also had been concluded that HRM practises such as; rewarding and performance monitoring
make impact on the organisational productivity and profit of organisation. The report had been
concluded that building and managing employee relation is essential for McKinsey.

REFERENCES
Books and Journals
Antonacopoulou, E., 2016. Practising Innovating through Learning-in-Crisis: Realising the
Impact of Man-Agement in HRM Practice. In Human Resource Management, Innovation
and Performance. (pp. 266-281). Palgrave Macmillan, London.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Barbieri, P. and Cutuli, G., 2015. Employment protection legislation, labour market dualism, and
inequality in Europe. European Sociological Review. 32(4). pp.501-516.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Gatewood, R., Feild, H. S. and Barrick, M., 2015. Human resource selection. Nelson Education.
Johnson, P. and Szamosi, L. T., 2018. HRM in changing organizational contexts. In Human
resource management. (pp. 27-48). Routledge.
Marchington, M. and et.al., 2016. Human resource management at work. Kogan Page
Publishers.
Meijerink, J. G., Bondarouk, T. and Lepak, D. P., 2016. Employees as active consumers of
HRM: Linking employees’ HRM competences with their perceptions of HRM service
value. Human resource management. 55(2). pp.219-240.
Nankervis, A. R. and et.al., 2016. Human resource management: strategy and practice. Cengage
AU.
Schumacher, D. and et.al., 2016. Explaining the relation between job insecurity and employee
outcomes during organizational change: A multiple group comparison. Human Resource
Management. 55(5). pp.809-827.
Voegtlin, C. and Greenwood, M., 2016. Corporate social responsibility and human resource
management: A systematic review and conceptual analysis. Human Resource
Management Review. 26(3). pp.181-197.
Wilton, N., 2016. An introduction to human resource management. Sage.
Online
Functions of HRM. 2019. [Online]. Available Through: <https://keydifferences.com/difference-
between-personnel-management-and-human-resource-management.html>.

Types of Recruitment. 2019. [Online]. Available Through:
<https://www.tutorialspoint.com/recruitment_and_selection/types_of_recruitment.htm>.

TASK 2
LO 3
Importance of employee relation in respect to influencing HRM decision making
Employee relation- Employee relation is a study of rules, regulations and agreements by
which employees are managed as both as a collective group and as individuals (Barbieri and
Cutuli, 2015). The term employee relation refers to effort of McKinsey to manage relationship
between employees and employers. Every person of McKinsey share a specific relation with
his/her fellow worker.
Maintaining healthy employee relation concern with how organisation gain people's
commitment to achieve the objectives and goals of business and it is important for the success of
McKinsey and strong relation lead the workers to be more productive, create less conflicts, etc.
Maintaining and managing healthy and good personal and professional relationship among
workers is not only beneficial for the individual, but to the organisation as whole.
Benefits of maintaining good employee relationship
Maintaining employee relation is beneficial for the organisation as:
 Gain employee loyalty and commitment
Maintaining employee relationship allow organisation to gain loyal and committed
employees that result in quality output. Interactive and pleasant working environment in
McKinsey help to create the loyal and committed employees. Another benefit is that when
employee turnover is low it ensures that employer has a trained and skilled set of employees.
The benefit for decision making of Hrm by having such workforce improve employee
retention, and in doing so it cuts the cost of recruitment, training and hiring.
 Improve communication and quality services
Maintaining a proper relation with employees improve communication within the
organisation. Management of McKinsey make sure that all the employees are having access to
each and every level by that they can feel prior and important in the organisation and that
enhance and improve their working pattern which result in quality services by employees
(Bratton and Gold, 2017).
Maintaining an open channel of communication will make employers to aware of
problems quickly and it is beneficial for immediate solution.

 Improve morale and motivation
Maintaining healthy and good relation between employee and employer motivate them
and increase their morale to do better and get the best out of their usual performance. Employees
can motivate through incentives and encouragements that is beneficial in HRM decisions to
enhance and manage workforce morale.
Key elements of employment legislation and their impact on HRM decision making
The working time directive
The employment legislation got implemented for the purpose of correcting conditions of
hours. According to this act, the working hour prescribed for an adult employee is 8 hours per
day or 48 hours per week (Gatewood, Feild and Barrick, 2015). It is mentioned in the law that
person who hold the position of executive or administrative are expected to work long hours
without overtime pay.
Occupational Health and Safety Act
The occupational health and safety act was enacted in 1970. The legislation specifies
certain provision regarding employee safety and health care. According to this law, organisation
should provide a safety to employees and every employer should provide the employees with
suitable means of protection that include; fire and hazards, injuries, occupational diseases, etc.
The legislation may totally change the decision or plan set of human resource
management. Their decisions of contractual agreement should match the employees legislations.
The impact on decsision regarding safety law of worker where the HR personnel should comply
with minimum requirements otherwise they will legaly penalized. On the basis of law HR must
have to formulate special HR plans to manage workplace policies.
The laws have great impact on the decision making of HRM. It is important to ensure
these legislations while recruiting the employee as they contributed in organisation growth and
development and have positive impact on the success of company (Johnson and Szamosi, 2018).
Application of HRM practises in work-related context and providing a rationale of specific HRM
practises
The most common and widely used HRM practise is recruitment and selection that is
illustrated from the practical work related viewpoint of McKinsey and Company.
The social media recruitment process is very effective and gaining more hike because of
the implementation of various media tactics. It includes online job adverts, video interviewing,

etc. The logic behind this HRM practise is mainly hiring the best suited, talented and skilled
candidate for this post in accordance with company policies, purpose of this position, benefits to
the person. Other rationale is to put the selected one in correct position with sufficient
responsibilities and authorities.
Job Advert
Excellent learning environment with
great opportunities
HR Manager for McKinsey and Company
Come work as a HR Manager at a leading company that offers great benefits with opportunities
to advance learn alongside accomplished business leader.
THE COMAPNY:
McKinsey & Company is an American worldwide management consulting firm with more than
27000 employees derive organisation's development forward with their performance and
commitment.
 We offer great learning programs for our Managers.
 We are at the high edge of technology- you will be working with the best equipments
and software.
THE POSITION:
We invite application for the position of HR Manager with experience in managing employees
and make policies. Salary is $50,000 per year.
 Generous bonus program
 Very competitive benefits package
WHY SHOULD YOU APPLY?
 Top benefits
 Excellent growth and advancement opportunities
 Bonus programs

Person specification
Job title Human resource manager
Qualification  Bachelors degree in human resource field
Experience,
knowledge
and skills in...
 2 year work experience of working in the field of human resource
 Ability to communicate clearly and effectively.
 Understanding of employee laws
Other  They should be honest, responsible, organised
Evaluation of employee relation and the application of HRM practises that inform and influence
the decision making
In the context of employee relation and HRM practise, there are various key legal issues
and constraints such as; equality, data protection, health and safety, employment contracts that
affect influence the decision making by HRM (Marchington and et.al., 2016). However, they are
beneficial for employees if the issue implemented effectively within the organisation but in the
absence of these legal issues it can affect the Human resource decisions.
HRM practise like; performance appraisal, technical advancement, recruitment and
selection are interrelated. If organisation give reward to the employees according to the
performance it help to build effective relation and that help HR to take effective decisions
accordingly in the organisation.