Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in influencing HRM decision making and its impact on organizational productivity and profitability. It explores the benefits of HRM practices for employers and employees, including payment and reward management and flexible working options. The article also covers the role of workforce planning and different approaches to recruitment and selection. It concludes with a discussion on the application of HRM practices in a work-related context.

Human Resources
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Purpose and functions of HRM which application to workforce planning ...........................1
P2 Strength and weakness of different approaches to recruitment and selection .......................2
Task 2...............................................................................................................................................4
P3 Benefits of HRM practices in organisation for employer and employee ..............................4
P4 The effectiveness of HRM practices in raising organisational productivity and profitability
......................................................................................................................................................5
Task 3...............................................................................................................................................6
P5 Importance of employee relations in influencing HRM decision making .............................6
P6 Employment legislation and its impacts ................................................................................7
Task 4 ..............................................................................................................................................8
P7 Application of HRM practices in work related context .........................................................8
CONCLUSION................................................................................................................................9
REFERENCE ................................................................................................................................11

INTRODUCTION
The success of a business organisation depends on employees who plays important roles
by managing all functions and activities effectively. The meaning of human resources is to
manage the employees and people who are working in organisation and put their efforts to
complete the task and manage the all functions. Human resource management is defined as
strategic approach which is uses by a responsible person in order to complete task and attain the
business goals (Baldwin, 2019). It is mainly concerned with with management of employees,
organising, directing and formulating the policies which can help to develop the right
information and attain higher profits. This report mainly based on Capita organisation that is an
international business process outsourcing and professional service company. The headquarter of
organisation is London, England where it is operating professional services. This report covers
following topics such as purpose and scope of human resource management, key element of
HRM, internal and external factors that affect HRM and practices in work related context.
Task 1
P1 Purpose and functions of HRM which application to workforce planning
In organisation, workforce planning means to collection of number of people who are
working and managing the all activities. This is important for enterprises to manage the people
and complete the task along with employees who are working and performing well by using their
skills and talent (van Noordwijk, 2019). In other words, a process of analysing, forecasting,
directing, organising and accepting the challenges is workforce planning which is needed to
working and manage the all functions. In Capita, HRM management is working as workforce
planning where it identify needs of people and formulate policies that can help to operate the
business effectively. The purpose and functions of HRM are as defined:
To formulate various policies and standards for the purpose of employee's benefits and make feel
them good by providing various benefits.
Identification of employee needs in particular department and fill the vacancy by selecting the
candidates according to needs (Pattanayak, 2020).
HRM department of any organization concentrates upon requirements of workforce that helps to
perform job responsibilities effectively.
Functions of HRM
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Planning: This is first function which has a speciality to manage the all functions and
activities step by step. The management of organisation is responsible to make plans by deciding
goals which can help to reach the potentiality. In Capita, HR manager is responsible to make
plans and strategies for attaining the business goals by completing work.
Organising: This means organise all activities and plan which is formulated by a person.
In Capita, all functions and activities are managed by HR management who states that all
planning and strategies are running accurately.
Directing: Such function is important in which management provide direction to
employees how and when such plans should be implemented that can help to complete the task.
In Capita, HR manager allocate the role and responsibilities of employees by providing them
right direction and training to work.
Controlling: In organisation it is important to control functions and activities in case
they are uncontrollable and excessive. The management department of Capita focusing on this
functions and control all activities which can help to attain the business goals.
P2 Strength and weakness of different approaches to recruitment and selection
Recruitment: In organisation, there is need of people who cam understand the working
environment and accept it to work. A process of identifying, attracting, interviewing and
selecting the on-boarding employees is considered as recruitment which helps to collect the
number of people for getting work done. This involves:
Internal recruitment: This means when people are recruiting and hiring the people
within the organisation is internal recruitment.
Retire employees: This means when people is going to be retire according to working
regulation but have willing to work more then organisation have chances to re-recruit such
person that can help to manage the responsible position (Barrena-Martínez, López-Fernández
and Romero-Fernández, 2019).
Promotion: The another source of internal recruitment is promote the working staff by
analysing their performance which can help to increase the morale and complete the workings. In
Capita, management can use this process to filling the responsible position by promoting the
existing employees as have trusted to work well.
Advantages and disadvantages
Advantages Disadvantages
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 In Capita, internal recruitment is uses
to source the recognised candidates
who already knows the working
environment (Pattanayak, 2020).
 By recruiting retired employees time
and cost of organisation can be save.
 In Promotion, morale of working staff
increases and also strengthen the
employee engagement.
 Internal recruitment is limiting the pool
of candidate in Capita organisation that
may limit new talent.
 Creation of inflexible culture that make
more problematic in leadership culture.
 In promotion, there is chances of
creation of resentment between
employee and managers as some
employees are eventually hired.
External recruitment: This means when people are recruiting outside of the
organisation is considered as external recruitment.
Employment agencies: For hiring the new skills and talented employees agencies in
relation to employment are considered as potential source from where organisation can hire the
right candidates as per required skills and talent to manage work (Opatha, 2019).
Advertisement: If there is vacancy in Capita organisation then management have option
to recruit the candidates with the help of advertisement on notice board and social medial which
provide information to people regarding vacancy and help to get potential people for managing
workings.
Advantages and disadvantages
Advantages Disadvantages
 Capita can get chances of receiving
number of candidates as it is business
processing outsourcing organisation
where requirement of number of
people is important (Barrena-
Martínez, López-Fernández and
Romero-Fernández, 2019).
 Quite better possibility of identifying
 The new employees are facing the
problems to understand working
environment of company.
 In Capita, management might be face
risk as new staff can misuse the position
offered.
 Time taken process that does not make
sure that right people is hired in
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and getting the fresh skills and talent
that gives high level of input.
 In advertisement and employment
agencies there is opportunity to face
the better competition for recruiting
new skills.
organisation (Riccucci, Naff and
Hamidullah, 2019).
Task 2
P3 Benefits of HRM practices in organisation for employer and employee
Payment and Reward management: For motivating the employees and increasing the
workings of an organisation payment and reward management is considered as important
practices which is related to HRM. In Capita, management is following this practices by
implementing fair wages and performance appraisal approaches which can help to boost the
morale of workers and increases the functions in changing environment (Song, Fisher and
Kwoh, 2019).
Benefits to employer and employees
Employer Employee
 In Capita, employer benefited as
employees sourcing and saving cost to
provide training as employees retain in
organisation for long period
(Ogbonnaya and Messersmith, 2019).
 The working activities of organisation
increases that is advantage for
employer to treat equally all workers.
 If employee are receiving the fair
payment and rewards for their
performance then they uses more their
skills and talent to improve more
production.
 This make feel good to employees and
increases willing to work more for
developing their career.
Flexible working options: The strategic approach uses by management for the purpose
of motivating staff and getting the work done through non traditionally working hours. In Capita
organisation, whenever organisation is required to getting more work then such practices is
beneficial as it give flexibility to employees to work in flexible working hours, location and job
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structure which increases value and make efforts to complete task (Dhiraj, Joshi and Kumar,
2020). The result of this practices is to achieve the high sustainability and improving business
performance.
Benefits to employer and employees
Employer Employee
 This make workings in consistent and
flexible ways which bring
improvements in traditional workings.
 This brings creativity and improved
well being of organisation by giving the
option to work flexibility.
 Employees retention is effective.
 Incremental in employees morale by
working in flexible hours (van
Noordwijk, 2019).
 Employees feel free to work as no one
employer interrupt and bound to
employee to work in fixed time.
 Increases learnings and capacity to
work more.
P4 The effectiveness of HRM practices in raising organisational productivity and profitability
HRM practices are considered as approaches and strategies that needed to follow by
organisation in order to improve the workings and attain the higher performance. Human
resource planning and activities are performed by management who evaluate employee's
performance and give them ratings which can help to bring improvements. Payment and reward
management practice is uses by Capita organisation which is effective and influencing strategies
to retain the employees for long term in organisation. For example, manager of chosen
organisation treat fairly all staff and give rewards for their good performance that increases
morale to work more. Resulting, productivity and profitability of organisation increases
continuously. Moreover, task is assigned by employer between employee who can work
effectively by using talent and skills in challenging environment and manage the all activities in
good way (Opatha, 2019).
Flexible working option practice is useful for organisation as it allows employees to work
in flexible hours, location and job role in which they are expert so working can be done timely
and improve the organisational profitability. For instance, Capita is international BPO which
allows employees to work in flexible hours as they wants and also give opportunity to work from
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home that increases job satisfaction and more efforts are done by employees for improving
business performance and profitability (Selig, and et. al., 2019).
It has been evaluated that flexible working option and reward management both are
important practices that uses by Capita for the purpose of retaining employees and increasing
profitability by completing task and performing well by accepting changes.
Task 3
P5 Importance of employee relations in influencing HRM decision making
Worker relation mean to maintain genial perceptive between employer and employee
within business administration. Having good relation leads to boost employees morale, raise
organizational productiveness and make higher profits by attaining the goals. The essential
requirement of any administration is to maintain the good relation among employer and
employees so all information can be share and complete the task in certain period of time. In
Capita goals are decided by HR management and share with employees that helps to know their
views and thoughts in order to achieve goals. Manager provides training and proper guidance to
reduce to conflicts and remove barriers for the purpose of improving productivity and
profitability. The importance of employees relation in selected organisation are as defined:
Employee engagement: It is a property of business firm that is used to maintain the
relationship between employees and employer. It states that employees are fully absorbed by
morale and enthusiastic about their work that helps to take positive actions and also increase
business performance. The employees of Capita are enthusiasm and dedicated that make feel
good towards their job and they work properly (Ogbonnaya and Messersmith, 2019). It facilitates
that employees are working efficiently and will definitely complete their target in short period.
There are different importance of workforce relations which may influence decisions of
organization that are as explained:
Easy delegation of work: If there is good relation between employer and employees
then it will be easy for management to achieve business objectives by delegating the work easily.
The role and responsibilities in selected organisation are delegated by HR manage by
understanding the skills and working capabilities that can help to complete the work on time.
Delegation of work is important for organization because it helps to know that which employees
can complete assigned task according to their skills and knowledge. So it is also important for
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Capita to maintain the relation between employer and employees in order to attain business goals
(Williams and Hunn, 2019).
Reduce the conflicts: Employer and employees relation are helpful for organization as
number of employees are working where chances can be arises of conflicts between employees.
So it is important to have proper coordination and communication between employer and
employee which can help to reduce the conflicts and increases the workings. In reference to
Capita, productivity of organisation increases as there is good coordination and communication
between employer and employees who works well and attain the business goals (Ybema, van
Vuuren and van Dam, 2020).
P6 Employment legislation and its impacts
Health and Safety: As per the Provisions of Health and Safety Act 1974 of labour law
great focus is made on this area . In factories proper arrangement is done regarding health and
safety . To control these measures health and safety officers are to be appointed . For example, in
Capita it is important to make proper arrangement of cleanliness and availability of toilets, water
facility, first aid facility, rest room for ladies, proper cleaning of floor daily, hand washing
facility along with sanitizers must be provided. Proper cleaning of toilets, canteen and working
place is major area where cleanliness is necessary (Singh and et. al., 2020). Dustbin must be
placed wherever needed. As the Morrisons works according to the provisions or act which helps
to improve workers satisfaction regarding health and proper safety measures are also be
considered attentively.
Data Protection : According to Data Protection Act 1998 , safeguard of data is the
major element for every organisation. Data are not to be manipulate by anyone without prior
approval of authority. It is important employment law that emphasis majorly towards protecting
personal data of individuals that are stored in organisational computers or in other form of paper.
In case with Capita, the human resource managers adopts the legislation and provide safety to the
data of all its employees as we all know that data is the precious element for any organisation
(Dhiraj, Joshi and Kumar, 2020).
Equal opportunity: As per Equal Opportunity Act 1972, discrimination on the basis of
race, religion, colour, age, nation is not to be involved as all the workers whether male , female,
apprentice must be treated equally. Equal Remuneration should be paid to men and women for
the same work they performed. If any employer found guilty regarding it penal provisions are to
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be attracted. In Capita equal opportunity is provided which improve employees satisfaction and
motivate employees (Crawshaw, Budhwar and Davis, eds., 2020).
Minimum Wage Act : According to Minimum Wage Act 1948 minimum wage must be
fixed by the government to avoid exploitation of labour . Minimum wage on the basis of time
and piece are to be fixed by appropriate Government as this act is applicable if 20 or more
workers are worked in an establishment. On the basis of various factors such as skilled labour ,
unskilled labour, seasonal work etc. minimum wage is fixed. Revision of fixing minimum wage
is done in every five years by appropriate government. Payment of wage act is also related to it
as it is also the duty of employer to not to default in payment of wage on time. Capita follow
these provision as they pay wage on time and below the rate which is fixed by appropriate
authority as it provide job satisfaction to workers (Pak, K., and et. al., 2019).
Task 4
P7 Application of HRM practices in work related context
HRM practices are related to organisational working which needed to follow and helps to
complete the task and attain business goals. In Capita, a job role for the profile for project
coordinator is identified for job description and person specification has been prepared.
Job description
Company name: Capita
Location: London
Designation: Project coordinator
Job summary
We are looking for responsible and accountable person for managing our organisation's ongoing
projects. The person should be able to work with team members by ensuring all project
deadlines, requirements and schedule are going continuously and will be completed before
timing efficiently.
Responsibilities
 The person is require to coordinate with cross discipline people who are working in
organisation.
 To make sure that all projects and activities are on track that will help to improve
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business performance.
 Making effective project communication and coordination plans that can help to
implement them.
 Meeting with team members and get resolve all problems in relation to business.
 Managing and focusing on customer satisfaction by providing right information.
 Generating new opportunities for employees so they give efforts in workings.
Person specification:
Position: Project Coordinator
Functional Unit: HR manager
Attributes Essential Desirable
Skills Speaking skills
Writing
Time management
Listening
Understanding project
Managing team
Maintenance
Supportive
Knowledge Knowledge about projects and
team.
Solving problems
Mechanical handling
Data handling
Job offer letter
20th August 2020
Aditya Huda
Capita
Dear candidate,
Our team impressed from your skills and knowledge in managing projects which is highly
demand in our organisation. We are offering you this responsible post by expecting that you
will perform well. The joining date is 1st September 2020 and package is 600000 per annum.
Kindly give us confirmation your joining and have any query then contacts with HR
department.
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Thanking you.
Best regards
HR department Capita
CONCLUSION
From the above report it can be concluded that Human resource department is made for
describing the formal system where employees can be managed and directed by a manager in
order to get high performance and competitive advantages. Different functions and purpose of
HRM are played by a manager who also provide many benefits to employees. Flexible working
and reward management practices give benefits to employer and employee as they get
opportunities to work. Different legislation and laws are followed by company which can help to
manage all activities and functions appropriately.
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