Benefits of HRM Practices for Organizational Profit and Productivity
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This article discusses the benefits of different HRM practices for both employers and employees in terms of raising organizational profit and productivity. It covers topics such as employee motivation, flexibility, training and development, and recruitment and selection.
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Table of Contents INTRODUCTION......................................................................................................................3 TASK 1......................................................................................................................................3 P1 Explanation of the purpose and the functions of HRM, applicable to workforce planning and resourcing an organization..............................................................................................3 P2 Strengths and weaknesses of different approaches to recruitment and selection.............5 TASK2.......................................................................................................................................6 P3 Explain the benefits of different HRM practices within an Organization for both the employer and employee.........................................................................................................6 P4 Evaluate the effectiveness of different HRM practices in terms of raising Organizational profit and productivity............................................................................................................7 TASK3.......................................................................................................................................8 P5 Analyze the importance of employee relations in respect to influencing HRM decision making....................................................................................................................................8 P6 Identify the key elements of employment legislation and the impact it has upon HRM decision making.....................................................................................................................9 TASK4.....................................................................................................................................10 P7Illustrate the application of HRM practices in a work-related context, using specific examples...............................................................................................................................10 CONCLUSION........................................................................................................................10
INTRODUCTION Recruitment is the process of hiring the competitive individuals on the vacant post within the organisation. Importantpart of an organisation as it helps in identifying the abilities and capabilities of the workforce within the organisation for performing different tasks and activities. This is directly associated with productivity and profitability of the organisation as employee are the key of success for company.it includes attracting shortlisting selecting and appointing the suitable candidate for the jobs within the organisation and choosing the individualsfordifferentroles.Theprocessofhiringincludesjobanalysis,sourcing, screening and selection(Mahood and Rane, 2017). In this report the chosen organisation will be ASDA. It is a British multinational supermarket retailer. Companies operating in business globally where it has more than 631 outlets in UK, company also employed 165000 employees.The beginning of this report consist of explanation of the purpose and functions of humanresourcesmanagementandtheirapplicabilitytotheworkforceplanningand resourcing within the organisation it also included the strength and weaknesses of different approaches of recruitment and selection for an organisation. There is also explanation about the different practices of HRM for the organisation as well as employee and employer buy with the evolution evaluation of these practices. In the middle of the report there will be analysis of employee relationship as well as their influence on human resources management decision. The end of the report is consist of identification of the key elements which have their impact on human resources decision making as well as application of human resources practices within the organisation. TASK 1 P1 Explanation of the purpose and the functions of HRM, applicable to workforce planning and resourcing an organization. Human resources management is an internal part of organisation which is directly related to the management of human resources within the organisation. It includes various functions related to human resources which are recruitment planning selecting placement orientation job analysis and many more. This all will help up the organisation in maintaining itshumanresourcesaswellasdoingaproperworkforceplanningandsourcingin organisation.IncontextofASDA,companyalsofollowingproperhumanresources management where it recruit a separate human resources manager who identify the needs of workforce and use proper resource in method within the organisation for improving the
productivity and increasing profitability with the help of competitive employees. The main purpose of human resources department within the organisation discussed below: Recruitment: Recruitment is the first step towards the workforce planning within the organisation. the method of identifying attracting selecting interviewing hiring and retaining the workers is called recruitment, indirectly involved identifying the potential candidates who can perform the task on some specific jobs within the organisation. It is an important purpose in a workforce planning in the sourcing because human resources are the important part of an organisation and proper recruitment will ensure the effectiveness of workforce within the organisation. The proper recruitment can be considered as hiring the adequate candidates who have potential ability and skills for performing specific jobs within the organisation.In context of ASDA, company also use its human resources management department for recruiting the adequate professionals within the organisation. For hiring employees in there organisation human resources department of ASDA properly identify the requirements of the job and the job specifications and requirements to market for inviting the applications of interested candidates. They also identify the candidates who applied for the job according to their skills, abilities and qualifications. This all willfacilitate ASDA in recruiting the proper individualswhocanperformjobeffectivelyandbringproductivitywithinthe organisation(Kushnirovich, Raijman and Barak‐Bianco, 2019). Training & Development: Purposeofformationofhumanresourcesmanagementinanorganisationfor developingtheworkforceaswellasresourcesplanningincludesthetrainingand developmentfunctionofhumanresourcesmanagement.Thisisbecausetrainingand developmentisanimportantanintegralpartofthemanagementforincreasingthe productivity skills abilities and competitiveness within the employees for performing their job more effectively and identifying different tasks with the time limit for giving competitive advantage to the organisation where they are working. Training and development is a process of increasing the skills of employees to perform their job and increase the competitiveness within the market where company is trading.ASDA also perform specific training and development programs to increase the skills of its HRM department of ASDA,perform various task within the organisation which are also include training programs. These training programs are specially designed for increasing skills of employees while working on the job
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company news on the job training method for increasing the knowledge of employee about the work as well as performing it more effectively. This is an important function of human resources management because it enable organisation in identification of complex task as well as bring good performance in in dynamic situations of business environment. Performance management: Performancemanagementcanbedefinedasamechanismwhichensuresthe effectiveness and quality performance within the organisation. Ensure good functioning of the operations as well as the effectiveness of employees for increasing profitability and productivity of firm. This function also helps HRM in workforce planning as well as resource managementwithin the organisation. Thisis because it evaluatesthe performance of employees within the organisation and read them according to their performance. In context of ASDA,company use performance management for identifying the performance done by theiremployeesonthebasisofpredeterminedstandard.Thishelporganisationin identification and decision making process related to employee’s promotion and termination according to their performance. This also works as a tool of motivation within the employees for good performance and tool of evaluation for organisation to increase the performance of employees who are not performing well on their job(Amusan and Oyediran, 2016). Compensation: Compensationisalsoimportantpartofworkforcemanagementwithinthe organisation as human resources executive are responsible for developing a good pay structure for their employees that will able to recruit the efficient employees within the organisation for meeting the objectives started by top level management. For increasing the productivity within the organisation and managing the functions of ASDA, Companies recruiting the person at higher pay where the can fulfil their economic requirements as well as satisfying their job by bringing full effectiveness. P2 Strengths and weaknesses of different approaches to recruitment and selection There are various approaches for recruiting the employees in the organisation. They are categorised into category which are internal approach and external approach. Both internal and external approach of recruitment has number of merits and demerits which have to be considered by companies like ASDA while recruiting employees for performing different jobs.
Internal recruitment: Internal sources of recruitment include hiring from internal side of the organisation in the form of promotion transfer and employee referral, these are the three techniques which is used by as for hiring competitive employees within the organisation. This has number of merits and demerits to organisation. The main positive point of this type of recruitment is that it includes low cost as well as written and talented employees within the organisation which also decrease training and development cost for ASDA. This is used by as the for retaining the talented employees in the organisation. This type of employees is generally related to management staff for higher post within the organisation. the main demerits of this type of approachisthatitwillbemotivatethechancesofrecruitingfreshstaffwithinthe organisation which is being capable of doing new and technological innovations within the organisation.it also increase family culture within the organisation as recruitment style like employee referral will leads in hiring of non-qualified employees(Xiao, Wu, Zhang and Yu, 2017) External recruitment: External sources of recruitment organisation employees members from outside the organisation. This includes advertisement, direct recruitment campus placement and many more. This is also a means for recruitment of employees performing different tasks in organisation. This method also has number of benefits and demerits to ASDA. The benefits of external recruitment are that they provide large number of employee based organisation it canrecruitemployeesfromdifferentinnovativeandcreativeemployeesorganisation. Negative impacts of external recruitment on ASDA are that, demotivated in the organisation because of recruitment from external sources. The Cost in recruitment, from external sources also high which can impact on productivity and functioning of organisation(Līce and Sloka, 2019). TASK2 P3 Explain the benefits of different HRM practices within an Organization for both the employer and employee. Human resources is an important function for both employees and employers in an organisation.as it regulate different activities within the organisation which directly related to employer as well as employee of the firm. Also facilities number of functions which help
organisation in getting maximum productivity and profitability within the target market. There are some other benefits which are mentioned below: Traininganddevelopment:traininganddevelopmentisthatfunctionofan organisation which directly related to increasing the performance of employee as well as bringing productivity within the organisation. In context of ASDA,company use an effective training and development program within the organisation. This training and development program help company in increasing the productivity as it directly related to increasing the skills and information of the employees within the organisation performing different task. This help the employees in increasing the motivation because of their increased ability to solve complex task which are arise because of dynamic business environment. Is directly impact on increase productivity as well as profitability of organisation(Purwoko, 2016). This alsohelpemployeeintheirself-developmentastrainedemployeecanincreaseyour confidence while working on a particular job and will get able to work on difficult task which ultimately increase your confidence and lead to their personal development. Flexible working environment: Flexible working environment is also a benefit of using HRM practices within the organisation. Function of HRM is also important for both employee and employer. This can be seen in functioning of ASDA, company follow the flexible working power management system within the organisation where it manage its employee according to their capacity for performing different task(Pierce, 2018). This lead to motivation within the employees of the organisation, as they can work according to their abilities and skills, which reduce their work load as well as increased their efforts of doing the job. This also motivates employees to work working more efficiently as they are working on their choosing arts and according to their ability. Company gate also number of benefit of this has motivated employee will directly lead to increasing the profitability of organisation because of increased production and delay in wastage of resources. The wastage of resources will be stopped because employees are working according to their requirements which directly impact on proper use of the resources which leads in reduction of wastage in resources. Performance appraisal: Performance appraisal is that technique which is used by human resource organisation to measure the performance of employees while performing some specific task in the organisation. This is important for both employee and employer of the organisation. For employee performance appraisal will help in identification of employees
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performance in organisation where from can take the decision of promotion as well as termination of employees according to their performance. For employees, performance management appraisal techniques we can increase their skills and abilities of doing some task in organisation and get number of incentives for satisfying their monetary and non-monetary needs(Alansaari, Yusoff and Ismail, 2019). P4 Evaluate the effectiveness of different HRM practices in terms of raising Organizational profit and productivity Human resources department is an important part of an organisation where Pitt play various roles and responsibility in the organisation for increasing the profit as well as bringing productivity within the organisation where firm can achieve its goal and objective period. There are various functions which show that human resources management and its practices within the organisation directly associated with rising profit of organisation with maximization of productivity. Employee Motivation:Human resources play important role in employee motivation because it is directly related to increasing the profitability and productivity within the organisation. For this HR manager in follow up motivational plan regularly motivate the employees by providing them with monetary and non-monetary incentives. Flexibility:Flexibility is also factor which increases the productivity and profitability within the organisation and is in hand of human resources management department. In relation to ASDA, the manager of the organisation of effective functions which will bring the flexibility within the organisation where it maintain a proper structure so that employee doesn't feel rigid. Training and Development:Training and development is also important for the employee is because it bring efficiency in their working and will directly improve the productivity on different jobs because it enable employees to identify different tasks and methods which can be used in difficult situations at the time of need. Recruitmentandselection: recruitment and selection is set method of organisation where the employees from different sources of recruitment for filling the vacant job within the organisation. In context of ASDA,it follows up proper recruitment and selection structure within the organisation for hiring employees. Hiring qualified person in the organisation has
the use external sources as well as internal sources respectively in accordance of job requirement. It clearly identifies the job which is vacant in organisation and the need of qualification for performing the job. After completion of company used to fire the employees towards best suitable for the company. Good conductor strict selecting process where a proper interview to identify the skills and abilities of the candidates applied for the job. This process will bring productivity as well as effectiveness within the organisation as active recruitment system will fire the highly competitive and place who are police children to perform different organisation(Ladkin and Buhalis, 2016). Employeerelation:Managementarealsoanintegralpartofhumanresources department of company like ASDA. This is because it is directly related to the functioning and productivity of an organisation. Good relations between the employees will lead to reduction in chances of conflict which ultimately help in proper utilisation of resources and reduce the wastage of resources. With the proper use of resources there will increase the profitability ratio of organisation as well as productivity of employees will also increase. Recruitment and selection are the important part of the organisation as well as effectiveforhumanresourcespracticesbecausetheyprovideabetteropportunityto organisation as well as help human resources management in employee and highly qualified employees within the organisation for achieving the goals and objectives of the firm.it is also effective in employee relation because it provide different services and satisfaction to the employees where they can easily satisfy their personal needs and can contribute towards the organisation for maximizing the profitability and increasing the level of productivity within the firm. TASK3 P5 Analyse the importance of employee relations in respect to influencing HRM decision making. Success of every organisation is important and there must be a good relationship between employer and employee of the firm. This is because the relationship between these twowilldirectlyimpactonorganisationalperformanceaswellashumanresources management decision. There are some key findings and factors which are directly impact on the HRM decision related to employers and employees of the organisation. Some of these measures are defined below:
Effective communication:communication can be defined as a way of transferring information from one person to another which is directly related to the work within the organisation. It includes minimum two parties who act as a receiver and sender of the information. It is important part of an organisation where it ensure effective transfer of information from one person to another where the message can be conveyed in proper way for completing some specific task(Asseburg, Homberg and Vogel, 2018). It is important for organisation and human resources manager to ensure that there is effective communication within the organisationbecause flow of communicationwill ensure proper work and productivity within the organisation. For ensuring the good communication it is important to maintain good relation between the organisation employees. Good relation will directly impact on communication as it will reduce the chance of conflicts which will help in smooth flow of information within each and every department of ASDA. Career development opportunity:human relations will also provide good career development opportunities to employees as well as employer of the organisation. Effective relationship will lead to decrease in conflicts as well as increased management of employees in a good way which facilitate them number of opportunities for developing their career goals and accomplishing them in a specified time period(Bohmova, 2016). Health and safety: Good human relation between the employees of the organisation will also enjoy your health safety and environment within the organisation.This is because if employee follow the rules and guidelines of the organisation and maintain effective relations then there will be low chancesof conflict which directly improve the health of the environment where the employees are working. P6 Identify the key elements of employment legislation and the impact it has upon HRM decision making. There are various rules and regulations which have to follow by the organisation when it is functioning in the market. These laws and rules are related to the safety of consumer as well as employees of the organisation from unethical practices by some miscreantsandnon-socialelementsinthesociety(David,BanerjeeandPonnam, 2017).ASDA is a reputed organisation in London which is operating from more than 70 years. For maintaining quotation company follow each and every rules prescribed by the government and legal authorities of the UK which are in interest of employees as well as
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society where companies working from last 70 years. Some of the major losses which company follow are mentioned below: Equity act 2010:This act was passed by the parliament of UK, according to this act every organisation has to follow the right of equality between the employees, where is there is no discrimination according to caste gender and religion of the employees. If any person founded guilty then there is provision of 5 years jail with adequate amount of fine. Employment protection act 1978: This this act was passed by the government of UK there are uncertain situations in the industry and employment. According to this no company will get the right to terminate the employee before giving them adequate notice as well as reasons for their termination. This act protects the employees of the organisation from inferior and trade termination done by some organisation while facing losses are low revenues. According to the set if any organisation filed guilty under this act then there will be penalty of $10,000 as well as complete sealing of the company operation for 3 months(Siew- Chen and Vinayan, 2016). Health and safety at work 1974:this is the act which provides the power to the employees of the organisation to remain safe and healthy at workplace. According to this act employees must be treated as a part of organisation where they have full right to protect their health and safety within the organisation. In context of ASDA,company use proper means and policies which are directly related to health and working condition of the employees on their job. For this is the use proper health insurance system as well as life insurance system for employees we are the kings safe and secure their life while working on the job. Also provide training to the employees who are working at dangerous jobs within the organisation reduce chances of accident. TASK4 P7Illustrate the application of HRM practices in a work-related context, using specific examples Job specification: Job Specification Company: ASDA Job Role: Marketing Manager
Department: Marketing department Salary: Negotiable Job type: Full Time Location: UK Job Specifications: Supervises all promoting just as crusades exercises. Demonstratedcapacityforupgradingefficiencyofbusiness,departmental methodologies just as contribution from on-going exercises. Responsible for executing of showcasing efforts in business firm. Responsibilities: Market assessment for new item opportunity, client need examination just as request of likely item and administrations. Market information and comprehension of market procedure for the compelling execution of plan and item benefits. Evaluation and the executives need of dissemination channels. Knowledgeofprintmedia,web-basedsocialnetworkingandpapermedia approaches for advancements and publicizing. Candidates who are interested can forward their CVs at hr@m&s.com or contact us on +0012345. Thanks and Regards Mr. XYZ HR Manager (ASDA) UK CV: Curriculum Vitae is the format in which detail related to individual is mentioned such as qualification, rewards and scholarship, skills and knowledge, extracurricular activities and several others. It is important for an individual to design effective CV because it gives wide impact on employers. Curriculum Vitae
Name: Mr. ABC Contact Number: 1234567 Email Id: ABC123@outlook.com Address: Old Gloucester Street, UK Position: Marketing Manger Excellent interpersonal as well as leadership skills which will provide assistance in development and maintain good relationship with team members while motivating them for carrying out project in effective manner. Educational Qualification: Graduation: B.com (Bachelors in Commerce) From University of Oxford, United Kingdom in 2012. Post-Graduation:MBA (Masters in Business Administration) in marketing from University of Oxford, United Kingdom in 2015. Professional Experience: Company Name: NEXT plc Duration: 3 years (2017-2020) Position: Marketing Manager Company Name: H&M Duration: 2 years (2015-2017) Position: Marketing Manager Key skills: Good communication skills Leadership skill R&D skill CONCLUSION It can be concluded from the above mentioned report that an organisation has to ensure the proper organisational efficiency and define the rule of managers properly. This will help the firm in handling the human resources within the organisation. Human resources department play important role in functioning and maintaining different functions for human resources of organisation which have to be considered by the firm seriously.it is also
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important for an organisation to maintain relations between employee and employer for facilitating smooth functioning within the organisation has won maximum advantage in competitive world. Number of laws related to employees interest for saving them from unethical practices. These laws must be considered by the organisation seriously for gaining the trust of employees and future profitability.
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