Importance of HRM in Organizational Success

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The provided document is a solution to an assignment on Human Resource Management. It discusses the importance of HRM in organizational success, focusing on recruitment and selection processes, employee motivation, and the benefits of good HR practices for both employers and employees. The study concludes that effective HR management is crucial for achieving overall goals and providing satisfaction to employees.

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RESOURCE AND TALENT
PLANNING

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Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Current labour market trend that influence talent management and workforce planning1
P2. Different legal requirements that should be consider during workforce planning...........2
P3. Anticipated skills required based on current trend and legal requirement.......................4
P4. Job description and person specification..........................................................................6
P5. Different recruitment and selection method for effective talent resourcing and planning9
P6. Stages of HR life-cycle..................................................................................................10
P7. Effective organisational HR strategies that integrated to stages of the HR life-cycle...12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Resourcing and talent planning is a critical function that involves coordination from
human resource department in various aspects such as; networking and selecting proper hiring
channel, forecast of required resources, delivering the resources on particular schedule, maintain
the talent and skill pool for future requirement, etc. Thus, this function ensures that Argos able to
identify and attract key talent from the market. Argos is a British catalogue retailer that is
subsidiary of Sainsbury's. It operates in United Kingdom and trades both through internet and
physical stores.
The report will analyse the current trend in labour market and appropriate legal
requirements that influence talent management and workforce planning. Current and anticipated
skills that are required in the trend will also determine. The study will also evaluate the
appropriate documents and procedures that contribute to effective recruitment. Lastly, HR
strategy will explain to manage the human resource cycle.
P1. Current labour market trend that influence talent management and workforce planning
Talent management can defined as the anticipation of needed human capital for an
organisation and strategic planning to meet those needs (Bratton and Gold, 2017). In UK labour
market the trend is beneficial for the organisational issues are; fulfilling gender gap in labour
income. Labour market can be categorise into two parts; loose labour market and tight labour
market
Loose labour market- it is an employer's market that give organisation a large pool of potential
employees to hire on desired position according to their skills. Loose labour market is for low
level skill position (Collings and et. al., 2018).
Tight labour market- in the situation of relatively high demand, the labour market is tight. In that
case, unemployment will be low and there will be many unfilled job vacancy and there are
shortage of skills and knowledge.
There are certain labour market trends that influence the talent management and
workforce planning in Argos.
Technology
The pace of change in technology is fast and accelerating that makes it essential for the
workforce to be skilled in information technology (Dale-Olsen, 2016). The current trend of
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market is being advance with emerging technology that is essential for being in competitive
market with productivity. Employers expect higher qualified technical and professional workers.
Technological advancement allow organisation to identify and attract key people as well as in
talent planning and improve organisational performance of Argo. Technological advancement
allow organisation to enable more efficient matching between opportunities and talent as online
employment of UK is independent (Jennings and et. al., 2017).
Trend in wages and benefits
Over past 20 years, the average earning of UK workers is slightly declining. The labour
market trend is emerging as organisations are favouring flexible cost structure and employees are
more demanding in wages and benefits as well as in job security that satisfy them in their need
(Noe and et. al., 2017). UK labour market is changing from manufacturing economy to service
economy. This trend is essential for the employees as it fulfil their personal need and motivate
them to work productively.
Economic change in the labour market
The economy of UK is service dominant that change the perception of employees and the
organisation. The trend includes the type of economically advanced social order where the
important resource is knowledge and service work has largely replaced manufacturing
employment and knowledge based occupation play a privilege role. The trend occurs economic
complexity and uncertainty (Oates, 2017). It encourages the importance of thinking skill and
person to person skill of employee.
P2. Different legal requirements that should be consider during workforce planning
Workforce planning is the strategy that is used by an employer to anticipate needs of
labour and deploy workers effectively that is done usually with advanced human resource
technology (Oseghale and et. al., 2018). Workforce planning ensuring that organisation have
right people with appropriate skills at the right time. Legal requirement includes various
employment laws, company laws and other policies that is required to consider by Argo while
workforce planning. The steps in workforce planning includes; supply analysis, demand analysis,
gap analysis and strategy development.
Supply forecasting
This method in workforce planning refers to make an estimation of supply of HR should
consider, while supply forecasting HR of the company need to consider the maintenance of
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confidentiality (Sparrow and et. al., 2015). This analysis is based on the data collection regarding
supply and demand of labour. Supply forecasting include; trend analysis, staffing table,
replacement chart, etc. It is essential for the organisation to consider various legal requirement
while forecasting such as; Labour rights and implications for the security. Labour demand and
supply forecasting is essential as Argo doesn't want a surplus of labours who are not being
effectively and fully deployed and they also do not want gaps in their employee pool that result
in reduced productivity, profitability and performance.
Trend analysis
Trend analysis involves collecting and evaluating data to identify pattern of information
that might impact the future of organisation (Tafti and et. al., 2017). By examining the trend of
the past, HR department can predict the effect of the same activity. HR need to consider the basic
laws of the organisation
while workforce planning, that are; employment laws, organisational policies
HR legislation and constraint and requirements
The field of workforce planning in the field of human resource management is greatly
influenced and shaped by various legislation governing employment issue (Velluti, 2016). The
acts and laws are governed all the aspects of human resource management including,
recruitment, development, placement and compensation in workforce planning. The Human
resource legislation made against discrimination against employee and potential recruiters. It
forces employer of Argo to follow the documentation fairness practises related to training,
staffing, hiring, pay, etc.
Employment legislation
This law is based in common law concept of contract of employment (Waheed and Zaim,
2015). HR need to consider this law while workforce planning that covers the separation
payment whenever a labour is being terminated. The employment protection right in UK include;
unfair dismissal, sex and race discrimination, etc.
Industrial relation law
Industrial relations are the relationship between employees and management of Argos
that is represented by union. This law is characterised by the principle of voluntarism (Bratton
and Gold, 2017). It provides legislative framework for recognition, statutory attribution and
industrial dispute resolution. It is essential to consider while workforce planning is done by the
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organisation. The industrial relation law in UK has undergone many changes that is brought by
the European union and by labour governments elected from 1997 onwards. This law was
addressed by labour through the establishment of a partnership within the workplace alongside
recognition procedure.
Equal pay act
The equal pay act of 1970 was an act of parliament of UK that is an amendment to the
fair Labour standards Act, it is covered the compensation and benefits of the employee (Collings
and et. al., 2018). The act prohibits discrimination in the payment of compensation that is based
equal payment system to all the sexes in similar term of skill, effort and responsibility and
working condition.
P3. Anticipated skills required based on current trend and legal requirement
On the basis of current labour market trend and legal requirement in workforce planning
by Argo, following are the required skills that is necessary to compete with the latest trend and
maintaining the employees' loyalty;
Team work skill
Better team work allow employees to work productively as two hands are better than one
hand for effective work. For the issues that are face by Argos are required team work and team
effort to encourage high level of performance and high level of sales. So employees are required
to have team working skills. Team work can effectively handle the trending changes. For
example; Argos have better team work but in compare to its biggest competitor Tesco, they need
to give training to their labour workforce and make them understand to the value of team work
and success to meet the trends. It was analysed that Tesco's past few year success is because they
give proper training to their labour how to work as a team.
Technological skills
The workplace setting and labour market trend is changing because of technology. The
major skill that is requires in the workforce (Collings and et. al., 2018). Technology is important
in flexible work schedule and arrangements that improve productivity for Labours. The
organisation can mention the required skills in their job description that ensure the recruitment is
effective and according to the skills. The technological skills include; machines that is using in
the daily operations, tools and equipments. As the company operates in the physical store as well
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as through online that makes the skill important for effective working and it also helps in
improving productivity (Dale-Olsen, 2016).
For example; All the organisation mainly the competitor of Argos i.e. Tesco introduce
online serving of products and services that is required technological skills in the labour and to
proper implementation of laws and legislation as well as collecting information of data of the
workforce. The labour of Argos is not appropriate with technological skills and company is
responsible for providing training to the workforce for adopting future changes.
Communication skill
Company operates multinationally that required labour to have appropriate skill to
communicate with different language in different region effectively (Jennings and et. al., 2017).
So the next skill that is required in the employee according to the current trend is communication
skills that includes; multinational languages, to motivate others in team, etc. A labour should be a
good listener and good speaker that can serve the purpose of the organisation effectively. For
example; The Sainsburry, parent company of Argos have effective labours with communication
skills from HR to low level employees that is helpful in managing resources and it requires in the
labour market of Argos.
For Human resource and organisation
Understanding of proper laws and policies
It is essential for the organisation and for the Human resource of the company to have
proper distribution of wages that is a requirement for the current labour market trend. HR need to
consider the employee profile and monitor employee performance that help them in performance
appraisal (Noe and et. al., 2017). Along with it, the understanding of legal requirement is
essential to manage employee fairness and organisation value in the market. Not just
understanding, they are responsible for the implementation in the organisational policies. Tesco
operating locally and globally as well and the Human resource of the company have proper
understanding of proper laws and policies of the company as well of the country that ensure the
safety of the workforce. HR of Argos is loosing their image in employee safety and security and
the HR should have the skills.
Job analytical skill
Job analysis is the process through that is determined by the organisation the duties of the
position and the characteristics of the people. Human resource needed to have the job analysis
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skills that is required for recruiting and selecting right people at right position with right skills
that help Argos to improve organisational productivity and attract key people with great
capabilities to create competitive advantage (Oates, 2017).
Flexible working practises
This skill is required for employer and organisation to improve staff retention and to
respond government and employment legislation effectively. The skill is needed for following
reason for Argos such as; stay competitive in the market, to encourage diversity, to limit
overtime cost, to encourage employee loyalty, to meet the seasonal fluctuation in the market, etc.
For example; Sainsbury do not provide flexible working hours to their workforce. One
who are selected in specific shifts they have to work under that shift but on the other hand its
subsidiary Argos, provide flexible working hours that is in trend in the current labour market.
P4. Job description and person specification
Job description
Job description is a document that describes the general tasks, responsibility and duties
for a specific position (Oseghale and et. al., 2018). In other words job description is a written
statement that generally describe the work that has to be done by the employee and it also
consists the required skills and knowledge (Recruitment and Selection Process, 2019).
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Job Description
HR Assistant
Argos Limited
Reports to: HR manager and HR Director
Job Purpose: HR Assistant has to provide administration and support to HR team. HR
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Illustration 1: Recruitment and selection process
(Source: Recruitment and Selection Process, 2019) )
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Assistant has to maintain and update records of personnels and provide accurate and
comprehensive information to HR team.
Job Duties and Responsibilities:
ď‚· Maintain and update personnel records of employees
ď‚· Input comprehensive data onto companies integrated hr system and software
ď‚· Draft offer letter and employment contracts
ď‚· Provides assistance to HR manger and HR Director
ď‚· Assist general enquiries of employees
Academic Qualifications:
ď‚· BBA degree in HRM from reputed university.
ď‚· Certificate in personnel practice
Skills and Abilities:
ď‚· Ability to work in team effectively
ď‚· Knowledge of computer and software programs
ď‚· Good management and organisation skills
ď‚· Good communication skills
ď‚· Effective problem-solving skills
Person Specification
HR Assistant
Experience and Attributes:
ď‚· Experience of professional and legal service environment
ď‚· Knowledge of development in key employment legislation
ď‚· Excellent communication skills of both written and verbal
ď‚· Proactive attitude and effective interpersonal skills
Roles and Responsibilities:
ď‚· respond to HR related queries on day-to-day basis
ď‚· Provides support and assistance to HR Manager
ď‚· Undertake ad hoc projects if required
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P5. Different recruitment and selection method for effective talent resourcing and planning
HR manager of Argos can acquire talent in the organisation by creating a pool of
qualified candidates for a particular position. For the process there are kind of recruitment and
selection method;
Recruitment
Recruitment is the process to generate a pool of qualified candidates for a specific job.
Argos must announce the job availability to the market to attract qualified candidates to apply.
The aim of recruitment process is to resource and plan talent for the organisation. There are two
types of recruitment method;
Internal- In the internal recruitment, HR of the company is looks at resourcing the talent
in the organisation from within the industry. In this process, the vacancy is fill by existing
workforce and talents that are working in Argos. It includes various methods like; promotion,
transfer, etc. by an announcement or giving the information through notice board or emails.
Advantage and Disadvantage of internal recruitment
ď‚· This method of recruitment is beneficial in talent resourcing because it reduces the cost
and for acquiring talent that can be find easily from within the company.ď‚· The disadvantage of this method is that it limits the talent within the company by not
allowing talent from outside.
External- In External recruitment, HR of the organisation looks to fill the vacancy and
acquire talent from any suitable applicant outside the business. It includes various method for
recruitment such as; Job description, job advertisement, employment agencies, etc.
Advantage and disadvantage of external method
ď‚· The advantage of external method is that it increase the chances that business will be able
to recruit the skills and talent that is need. It gives a better chance of talent resources for
Argos.
ď‚· The disadvantage of this method is it is difficult to select right talent for right job at right
time as it takes time and cost as well. Wrong selection of talent can be a disadvantage for
the company.
Selection
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Talent selection is the process to make a hire or no hire decision about each applicant for
job. This process involves various methods such as; interviewing, online screening, aptitude test,
personality tests, etc.
Advantage and disadvantage
ď‚· It helps to understand the top match talented candidate in depth and it allows the
organisation to understand them the policies and regulation of the company.
ď‚· The disadvantage of this process is that it is time consuming and wrong talent selection
affect the productivity and image of Argos.
Legal and financial aspects of R&S process
The recruitment and selection process of the company require most of the financial
budget in advertising the job vacancy and conducting personal interview. Under legal aspects;
company need to take care of the policies and laws require after selection of the candidate and
R&S should be done in proper way ensuring all the policies are applied.
P6. Stages of HR life-cycle
Like many other areas of the business, Human resource has a unique life-cycle. Instead of
focusing on the biological aspects of development, the life-cycle of HR involves the stages
employee go through and the role of HR takes on. Each stage of the life-cycle has its own
challenges, benefits and opportunities. The stages are;
Recruitment and selection
Hr of Argos is responsible for hiring right people on right time at right position. The right
decision of R&S plays a critical role on turnover and productivity as well as in growth of the
industry. This stage of the life-cycle required many laws and policies to be followed.
For example; HR is required to understand the company laws, employment laws as well
as policies of the company on which pay role is depends and made accordingly. This is a positive
stage that is responsible for acquiring talent in the organisation. For effective selection of
recruitment and selection process and method it is recommended to the company to understand
the skill that is required for the position. Legislation are required in these stages are; employment
law, legal rules of the company, data protection law, criminal record checks etc. and the most
important law i.e. Equality Act 2010 that should be assess by the Hr of Argos.
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It is beneficial in new talent resourcing and promoting the existing workforce that
motivates the employees and the disadvantage of this stage is recording criminal data is tough in
the corrupt world and it affects the cost of the HR as well.
On boarding and orientation
On-boarding is an ongoing procedure of building engagement from the first contact until
the employees becomes established within the company and orientation is a stage of HR life-
cycle where new employees learn about their job responsibilities and about the company. At this
stage, Human resource provide tools and information to the employees to work more efficiently
and to integrate into the company's culture. Employees learn about the company's procedures,
policies and job duties. This stage requires some laws and policies that is under guideline of the
company.
It is beneficial for the employees the most that enhance their skills and knowledge. The
stage improves performance, engagement, retention of employees that are hired by the HR of the
company. On the other hand it has some drawbacks as well. The orientation and on-boarding
stage require developing each and every new employee orientation that is costly for the
company. Another disadvantage of this process is that employee of the company begin their job
duties before learning about the company's practices and philosophies.
Performance management
The second stage of the life-cycle of HR focuses on managing performance of the
employees accordingly. Performance management ensures that the organisations employees
performance is evaluated and understood well. Understanding the performance allows the
organisation to experience the requirements and competencies taking place within the
organisation environment. It helps the organisation to develop such systems which can help it to
evaluate its strategies in making it talent better and effective (Tafti and et. al., 2017). At last, it
helps the organisation to evaluate the core efficiencies occurring within and what impacts it faces
while improving its overall talent management. Performance management needed many legal
requirement that has to consider by the HR such as; Equal pay act, Discrimination law, equality
and human right commission, etc. The advantage of this stage is that it allow HR to identify any
need of improvement in the workforce and the disadvantage is that it de-motivates the labour.
Succession planning
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This is an ongoing process that identifies important competencies to develop, assess and
retain a pool of talent to the employees to ensure the continuity of leadership in Argos for all the
critical positions. Effective succession planning is beneficial for employees, organisation and for
the management as well. This process requires identifying the most suitable candidate for the
vacant position. It required for the Human Resource of the company to understand the procedure
that company add in their companies policy and it involves some major training session so the
company is required to follow the health and safety law of the employee.
Exit and Transition
This is the last stage of the cycle in which employees will company through retirement
after a long successful career or may be to grab some other opportunities. The role of HR in this
stage is to manage the transition by ensuring that all the laws, legislations, policies and procedure
are followed properly and go through all the necessary documents to removing the employees
from the system. It is suggested to Human resource team of the Argos to go through all the
necessary policies of the company and remove the employee under the company policy.
P7. Effective organisational HR strategies that integrated to stages of the HR life-cycle
The stages of Human Resource life cycle can be effectively used within the organisation
to achieve its goals and objectives properly (Sparrow and et. al., 2015). These stages include
recruitment and selection where employees while recruitment are understood with their core
competencies and talents. This makes the department able to understand these set of skills and
the employees talents. The exit and transition stage is very important for the organisation as a
number of developments are made when an employee leave the organisation. The developments
make the organisation understand at what places it is lacking growth and what is making it face
troubles in employee turnovers (Velluti, 2016). These understandings are evaluated and found
out later where the organisation prepares its strategic talent management. In this plan, proper
developments are addressed and the employees of the organisation are provided with required
trainings and developments. At last, this ensures that Argos is achieving growth and advantage
within the organisation and there are none of the pitfalls left making the organisation weak and
ineffective. Along with it, these efforts ensure proper employee management and growth of the
organisation. It is important for the organisation to make sure integration of the stages takes
place properly to ensure its growth and development (Waheed and Zaim, 2015). The selection
process of the organisation should integrate properly that makes sure that right employees are
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being selected within the organisation and the entire process of it later helps in the talent
management of these employees. During selection, the human resource department understand
what skills these employees are lacking and at what places they need improvements. If not done
well, it makes it difficult for Argos to later develop required plan in its talent management. These
skills are evaluated and managed well during strategic talent management in order to understand
the important of overall departments and their needs and their employees needs (Sparrow and et.
al., 2015). In the integration of the stage company faces so many issues such as; proper training
is required, a good amount of cost is needed.
It is recommended to the company to develop a written plan before integrating the stages.
They require conducting proper training session for the HR of the company to successful result
of the stages in talent resourcing.
CONCLUSION
From the present study it has been concluded that Human Resource Management plays
important role in the working of organisation. Its main focus is to recruit the best available
candidate in the organisation. Different approaches are used for recruitment and selection of
employees. Different HR practices are used in order to keep employees motivated and
encouraged. HR practices helps in building employee relation that brings benefits to both
employer and employee. HRM of an organisation aims at achieving overall goals and objectives
and also providing satisfaction to employees.
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REFERENCES
Books and Journals
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Collings, D. G. and et. al., 2018. Global talent management. Routledge.
Dale-Olsen, H., 2016. 2. Employee turnover. Research Handbook on Employee Turnover.
Edward Elgar Publishing. 2. pp.5-25.
Jennings, C. and et. al., 2017. Employee Relations Audits. Routledge.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Oates, A., 2017. Industrial Relations and the Environment in the UK 1. In Greening People (pp.
117-140). Routledge.
Oseghale, O. R. and et. al., 2018. Global Talent Management. In Organizational Behaviour and
Human Resource Management. (pp. 139-155). Springer, Cham.
Sparrow, P. and et. al., 2015. Strategic talent management. In Do We Need HR. (pp. 177-212).
Palgrave Macmillan, London.
Tafti, M. M. and et. al., 2017. Critical success factors, challenges and obstacles in talent
management. Industrial and Commercial Training. 49(1). pp.15-21.
Velluti, S., 2016. Employment Policy, Women’s Labour Market Activation and Demographic
Trends. In Gender and the Open Method of Coordination (pp. 49-68). Routledge.
Waheed, S. and Zaim, A. H., 2015. A model for talent management and career
planning. Educational Sciences: Theory and Practice. 15(5). pp.1205-1213.
Online
Recruitment and Selection Process. 2019. [Online]. Available through:
<https://www.topechelon.com/blog/recruiter-training/methods-recruitment-selection-
process-example/>.
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