Key Components of HRM

This article discusses the key components of HRM and their effectiveness in managing human resources. It explores the benefits of HRM practices for employers and employees, including effective decision-making, team formulation, and a healthy work environment. The article also highlights the methods used in HRM practices, such as talent management, performance management, rewards, and effective recruitment.

Resource management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
Identify scope and purpose of Richer Sounds.............................................................................1
TASK2 ............................................................................................................................................5
Define key components of HRM................................................................................................5
TASK3.............................................................................................................................................8
Identify internal and external factors that influence decision- making of human resource
management................................................................................................................................8
TASK4...........................................................................................................................................10
Implement HRM practices in context of Richer Sounds..........................................................10
Job description..........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is defined as the significant function of management
which includes hiring employees, give them training and compensation, designing & developing
plans, strategies and policies for them and last directing & controlling them for accomplishment
of business goals. It is apply to define human and work resources of firm or department which is
liable for managing resources consists with employees or staff (What is Human Resource?,
2020).
Richer Sounds is a British retailer that provides home entertainment through its products
including home cinema & TV, headphones, Hi- Fi etc. it is founded in 1978 by Julian Richer
with headquarter situated in London, United Kingdom and number of employees of company are
492.
This report is based on Human resource management of Richer Sounds . Here purpose,
scope and functions of HR are discussed. Further, effectiveness of key elements of human
resource of respective organisation, internal & external forces that affects HRM decisions are
considered. At last human resources practices are explained in context of respective firm.
TASK1
Identify scope and purpose of Richer Sounds.
Purpose of HRM:- The purpose of HR department of Richer Sound is to fulfil
unoccupied positions and places within organisation, developing and enhancing skills,
capabilities, knowledge and expertise of employees & staffs etc. developing and maintaining co-
operation & co-ordination between human resources of business so as to ensure effective &
smooth functioning of organisation, implementing and ensuring efficiency of decisions and
strategies (Analoui, 2018). Thus, the main purpose of human resource department of respective
enterprise is to make their employees independent and formulating effective organisation culture
that has prominent impact on business performance.
Function of HRM:- It is an important task for any organisation in order to gain
effectiveness in organisation. In context of Richer Sounds following are the functions of HR
department:
 Staffing needs: Human resource department is usually known for staffing and
hiring of employees. It is the major function of HR department that has significant
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impact on respective firms performance. As per this function it is the responsibly
of HR department to identify job duties, addressing skills & knowledge required
for a position and selecting a suitable candidate for empty job position.
 Compensation: Another important function performed by respective department
of Richer Sounds is ensuring provision of fair wages and salaries, rewards &
benefits and addressing necessary changes in pay structure of organisation with
aims as to provide employees with industry acceptable pays )(Armstrong and
Taylor, 2020).
 Benefits: Developing employee benefits it effective tool for recruitment and
retention of personnel. In terms of respective organisation human resource
department is responsible for providing variety of benefits to its employees such
as- health and dental insurance, fringe benefits, retirement plans etc. for retaining
of staffs.
 Performance appraisal: It is related to measuring the actual performance of
employees with setting standards that helps in finding out any gap between these
and fulfilling them. HR department of Richer Sounds plays important role in
creating entire performance appraisal process for company. This helps in
enhancing the performance of employees that leads to achievement of end goals
of business.
 Law compliance: Human resource department is also responsible for safety and
equitable treatment of employees for effectiveness in organisation's operation and
achievement of goals and objectives (Armstrong, 2019). Laws exists to protect the
interest of human resource within organisation that helps in long terms retention
of employees and rising their performance through motivating them.
How function of HRM provides talent & skills for fulfilment of business goals:- The
above function of human resource department of respective business helps in several ways for
accomplishment of business objectives. For instance staffing and recruiting function of HRM
helps in identifying and hiring fresh talents, candidates who recently passed and have zeal to
work hard and achieve unique results for business. Compensation programs such as wages &
salary, bonus and incentives attract new commerce to work hard and reach full potential that
helps in rising the performance of business. Performance appraisal function of HRM helps in
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developing and enhancing the skills and expertise of employees that leads to attain independence
of staffs in terms of their work as solo or within teams that helps in achievement of business
without any interruption between organisation's performance.
Approaches of Recruitment:- Recruitment is the refers as the process of identifying,
screening, selecting and interviewing of suitable candidates for empty job positions within
organisation (Banfield, Kay and Royles, 2018). It is important for hiring well skilled and
capable employee for required place. In terms of Richer Sounds recruitment approaches are
considered as under:
 Job Analysis: It is an prominent tool for recruiting human resources which
involves examine and analyse a job completely in detailed way. In terms of
respective business HR department ensures direct observation that has significant
importance in identifying repetitive manual jobs, discussing with current job
holder & supervisor is also significant way of getting information. Thus, it
provides suitable information and data required for the purpose of recruitment.
Following are the strengths and weaknesses of job analysis explained in context
of respective organisation:
Strengths: Job analysis is helpful for provide first hand information about roles,
responsibilities, risks and hazards involved in job designation, helps in placing right candidate at
right place within organisation so as to gain business objectives in effective and efficient manner.
Weaknesses: There are some barriers in context of job analysis approach of recruiting
right candidate at right place. It is time consuming and requires lots of human efforts that,
engaged in personal biasses (Bailey and et. al., 2018). Another weakness of this approach in
terms of respective business is related to it is not effective for finding mental abilities of a
person, not providing appropriate skills and abilities of employees that creates barrier in
organisation in terms of wasting the time and efforts of business.
 Competency framework: It is another significant tool for recruiter that provides
recruiters a framework for what is role of it in success, allowing them to map
employees towards behaviour rather than looking for generic profile. In terms of
respective organisation it plays important role in speeding up recruitment process
that helps in matching behaviour and personalities of candidates.
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Strength: One of the major strength of using this approach for Richer Sounds is
transferring of skills and behaviours regardless career background, it clearing ways of carrying
out jobs. It also helps in measuring the performance and behaviours of employees across
organisational boundaries.
Weaknesses: It leads to failing organisation to keep up to date with rapid changes in
environment. Doesn't give accurate results in terms of improvement in employees performance
due to development of competence framework are not user friendly and difficult at the same
time.
Thus, job analysis approach of recruitment is better approach as compared to competence
framework for Richer Sounds. It helps in providing suitable information required for recruiting
of skilled candidates.
Approaches of Selection:- It is the process of hiring candidates for filling and vacancies
in organisation for matching needs of firm with skilled and qualified employees. In terms of
respective business these are defined as under:
 Interview: It is an important method of selection in which formal questions are
asked from candidates so as to matching the skills, qualifications and knowledge
of them with requirement of job.
Strength: In terms of respective organisation interview is and significant tool for
employee selection that helps in finding best fit candidate for a job or position, simple and most
used technique.
Weaknesses: The major weakness of interview is it not an effective approach in terms of
attention and efficiency. It is time consuming and not suitable for personal matter.
 Group exercise: It is also and significant method of selecting right candidate for
vacant position. It provides prominent comparison between candidates about their
knowledge, communication skills, confidence etc.
Strength:In context of respective company it is beneficial approach that provides more
information about employees, encourages participation of people greater accessibility of
decisions. This makes enable firm towards selection of right people (Boon and et. al., 2018).
Weaknesses: The major weakness of group discussion is it is time consuming approach
that creates chances for individual dominated and compromised decisions that creates biases
behaviours within organisation.
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TASK2
Define key components of HRM.
Human resources management allows organisation to automate various aspects with dual
advantages of minimising the work load of HR department as well as rising the efficiency of
other departments through standardising human resource process of business.
Benefits of Employer in HRM practices:- Human resource practices plays significant
role on employer are defined in context of respective organisation:
 Enable effective decision-making: Human resource practices and applications are
beneficial for employers of respective business as it makes employers enable to
take better and effective decisions. This leads to successful operation and
functioning of business.
 Formulating effective teams and groups: Another benefit for employer is to help
in making and formulating effective teams and groups for solving business
problems (Chelladurai and Kerwin, 2018). These teams creates co-ordination
towards achievements of common objectives and increase the productivity and
environment of business.
 Formulating healthy work environment: HRM practices helps employers to
create healthy and friendly work environment so as to increase performance and
behaviours of employees. This leads to effective co-ordination and achievement
of cooperative results within specified time limits and durations.
Benefits of Employee in HRM practices:- Human resource practices also offer
significant advantages for employees of organisation. In terms of Richer Sounds following are
the benefits of these for employees:
 Support and assistance from top management: Practices of human resource
management helps employees in getting assistance and guidance of seniors when
required in order to fulfil tasks & jobs (Cooke, 2018). This helps in rising
knowledge and skills of employees which added a value in accomplishment of
business objectives.
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 Effective training & development: Another important significant of HRM
practices that it enables effective training and development of employees so as to
make them independent. This enhances the performance and behaviours of
employees towards teams and their work and gains higher productivity by
organisation.
 Engagement in decision-making: Employee has the benefit to take participate in
decision-making process of business that helps in building effective relationship
between management and sub-ordinates (Zaid, Jaaron and Bon, 2018). It is
important for achievement of business goals and motivates employees towards
higher performance and productivity.
Effectiveness of HRM practices:- Human resource plays important role in identify
methods used in HRM practising the suitable candidates for required positions of business that
helps in effective and smooth functioning of business. The main objective of any business is to
gain higher profits and sales so as to manage and control organisation. Recruitment and selection
plays significant role in getting well qualified and skilled employees for organisation that plays
prominent role in accomplishment of business purposes in successful ways. Proper training and
development enables staffs to give productive results from through working hard with full
potential and efficiency (Hewett, and et. al., 2018). This added a value in terms of saving the
time of management in solving employees problems at every stage in their process of fulfilling
jobs and duties. It has an prominent impact on Richer Sounds performance. Following are the
HRM practices described in context of respective business:
 Talent management: Human resource department of respective organisation
build effective business strategies that helps rising skills and knowledge of
business which added a value in scaling up performances of them. Thus, HRM
practices are enable to create effective talent management within organisation
through recruiting fresh and emerging talented candidates that has zeal for
working hard to get successful position within organisation. In terms of Richer
Sounds it helps in making organisation effective through contribution from
talented and skilled employees that plays importation role in increasing business
performance.,
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 Performance management: Another important approach of human resource is
related to managing employees performance through various tools such as-
rewards, compensation and some other benefits. It helps respective organisation in
making effective strategies and plans to manage and guide employees and human
resources of business. It has prominent impact on organisational work
environment that contributes towards effectiveness of business and helps in
building effective behaviours.
 Rewards: In terms of human resource practices it is another important approach
that helps min accomplishment of business goals that creates effective image into
market. Rewards are the ways to motivate and encourage employees for doing
good work and reach effectiveness in their performance. In terms of respective
business influence employees performances through compensation and rewards.
This is significant tool in order to enable firm to manage rewards so as to create
performance standards that leads to generate better employees performance and
creates competences among personnel.
 Effective recruitment: Human resource department plays prominent role in
making recruitment process effective and efficient in order to hire candidates that
can be best matched with standards of a job or position. Effectiveness in
recruitment process is related to hiring good candidate through identifying and
analysing the skills, knowledge, expertise of people. Hire them on the basis of
requirement of job and role designation that create prominent impact on
organisational culture and make higher productivity & business performance.
Methods used in HRM practices:- There are various method that are used in human
resource management practices plays important role in enabling firm to make effectiveness
within organisation (Järlström, Saruand Vanhala, 2018). In terms of Richer Sounds these
methods or techniques are considered as follows:
 Incentive systems: First and most important method which is used in human
resource practices plays significant role in maintaining employees performances
and behaviours. For this purpose respective organisation uses incentive system
approach for encouraging employees for working hard in terms of attaining higher
results. It has prominent impact on organisation's performance such as- enhancing
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the effectiveness of entire process of human resources, rising the profit of firm,
making effective working environment within company.
 Leadership & monitoring: Another significant method or approach for human
resource practice management has prominent impact on organisational
performance and productivity that leads to effectiveness of business. Leadership
and monitoring helps in making management enable in order to direct and
monitor the performance of employees (Stewart and Brown,2019). For which
respective organisation uses effective tools such as- training and development of
business that creates effectiveness within organisation and leads to improve
employees behaviours and performance.
 Internal communication: It is also an tool used for management practices helps
in making effective recruitment and selection process of business that makes firm
enable to built better communication between management and human resources.
This has significant impact on Richer Sounds that leads to effective management
and operation of human resources within organisation that has huge contribution
in business performance (Kim and et. al., 2019).
 Problem-solving and team work: This has significant impact on performance of
respective business that leads to successful management and contribution of them
in human resources. Respective enterprise uses this method for solving the
problems occurs within organisation and helps to reach effective results with
formulating effective teams and groups as per the requirement of situation.
TASK3
Identify internal and external factors that influence decision- making of human resource
management.
Employee Relation is a process which directs proper relationship between employees and
employer by attempt of business. When organisation provides actual effort it leads to positive
relationship by employees. When this type of positivity is there, firm expects to keep their team
members are loyal for company. In context of Richer Sounds, as it handed over its business to
Employee Owned Trust so there is positive employee relation in company (Macke and Genari,
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2019). There are certain points are discussed below which outlines importance of employee
relation in Richer Sounds:
 Positive Culture: For sustain effective working environment a proper
involvement of team members leads to productive culture of enterprise. When
there is positive work environment in company employees become highly
productive, cheerful and happy. In Richer Sounds, it provides proper leave facility
and reward mechanism to their staff members.
 Work as a team: As stated, “happy employees are productive employees”. In
prospective organisation, seniors are attached with their team members and also
offers good training to them (Nankervis and et. al., 2019). In Richer Sounds, as
there are about 500 employees are engaged in this company, so many techniques
or training programmes are made by enterprise to increase profitability from
employees.
 Respect and Trust each other: Employee Relation is defined as a method by
which management people addresses and interacts with their team members. In
regards to company, there is a positive relation between employees and
subordinates, they trust and respect each other. This leads to increase in morale of
employees and also increase in productivity of company.
 Sharing experience and knowledge: Every organisation have ability to share all
information to their members by sharing proper knowledge. In Richer Sounds, as
Employee Owned Trust is organised so they motivate their staff members.
Thus, by having positive and proper employee relations it increases HRM decision
making process and this leads to business to increase productivity and profitability.
Elements of employment legislation:-
There are many employment laws and regulations are undertaken by Richer Sounds, as
Richer handed over business to their staff members (Papa and et. al., 2018). So there are many
laws are made by government of UK which should follow by all members of enterprise:
 Equal Pay Act, 1970: In UK, this law is applied by government to protect
employees against any unfair distribution of money. As Richer Sounds, handed
business to Employee Owned Trust leads to equal remuneration to each employee
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with regards to their skills and knowledge. In addition, company also invented
incentive schemes and reward system which are distributed equally.
 Equality Act, 2020: By this standard it leads major impact on decision making
process of HRM which hold business under law to treat every employee equally
in firm. This results in protection of employees interest and protection of people
from any type of differential practices on basis of creed, religion, sex, cast etc. It
influence HRM practices of Richer Sounds, as recruitment of candidates in
organisation which have capacity to involve in organisation.
 Employment and Training Act, 1973: According to this act, as Richer Sounds
deals in electronic and sound system. So there is proper training and equipment is
provided by superiors to their team members for personal growth of company
(Ren, Tang, and Jackson, 2018). Practising HR in firm leads to proper decision-
making and development of employees. So for this company have to adopt
simulation and latest technologies to ensures trained employees in significant
manner.
 Occupational Safety and Health Act 1970: According to this act, it was designed
to force employers to give healthy and safe environment to employees. In today's
scenario, as many industries are facing many civil and criminal penalties. So this
is a responsibilities of respective company to give all occupational health and
safety conditions.
TASK4
Implement HRM practices in context of Richer Sounds.
In terms of Richer Sounds HRM practices are considered as follows with suitable
implementation and application of them:
Job Advertisement
We're Hiring
We are looking a for the post of “CUSTOMER SERVICE MANAGER”
Suitable candidates who are able to perform the roles and duties of customer service manager
with full dedication and zeal. This is the significant opportunity to work in Richer Sounds
10

Contact details
 Send your updated resume with current passport size photo on
[e-mail].
 Last date for sending resume is on November 10, 2020.
Pays and Benefits
London living wage standards rates
Travelling expenses
20 days annual leaves
Job description
Job Title: CUSTOMER SERVICE MANAGER
Department: MARKETING
Job Purpose: To undertake the customer services duties required for expand business in the
area & be liable for customer research and developing strategies for rising customer base.
QUALIFICATIONS:
 Minimum experience of 3 years in related firm.
 Masters degree in management.
 Excellent communication skills.
 Effective team work skills.
RESPONSIBILITIES:
 Determine the demand and expectations of customers.
 Designing and developing strategies, mating the objectives of organisation & customer
services.
Offer Later
Richer Sounds
London, United Kingdom
5 Nov 2020
xyz
11

Customer Service Executive
We are happy to inform you that you are hired for the post of “Customer Service Manager” at
Richer Sounds as a full time employee. It is informed you that we'll provide $5000 annual gross
salary. The working days will be 6 days and working hours will be 7 hours per day. Your
assigned date is expected as 15 Dec 2020.
We are looking forward for your response and if any query you are free to contact as the details
are given below.
Sincerely,
Marketing Manager
Richer Sounds
CONCLUSION
From above discussion it is observed that human resource management is important
function of management that has prominent impact on performance and behaviours of employees
and entire organisation. Different human resource practices are vital for business to manage and
control personnel at work place. In addition benefits of employer and employees are considered
within the report. Further, implementation of HR practices within organisation are considered in
this report so as to make effectiveness within business. In addition explained with respect to
given organisation so as to make effective implementation of human resource practices of
business that leads to accomplishment of business goals and objectives.
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REFERENCES
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practice. Kogan Page Publishers.
Armstrong, M., 2019. Strategic human resource management. pdf drive. Com.
Bailey, C. and et. al., 2018. Strategic human resource management. Oxford University Press.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Boon, C. and et. al., 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management. 29(1).
pp.34-67.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Cooke, F.L., 2018. Concepts, contexts, and mindsets: Putting human resource management
research in perspectives. Human Resource Management Journal. 28(1). pp.1-13.
Hewett, R. and et. al., 2018. Attribution theories in human resource management research: A
review and research agenda. The International Journal of Human Resource
Management. 29(1). pp.87-126.
Järlström, M., Saru, E. and Vanhala, S., 2018. Sustainable human resource management with
salience of stakeholde(Analoui, 2018)(Armstrong and Taylor, 2020)(Armstrong, 2019)
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Saruand Vanhala, 2018)(Kim and et. al., 2019)(Macke and Genari, 2019)(Nankervis
and et. al., 2019)(Papa and et. al., 2018)(Ren, Tang, and Jackson, 2018)(Stewart and
Brown,2019)(Zaid, Jaaron and Bon, 2018)rs: A top management perspective. Journal of
Business Ethics. 152(3). pp.703-724.
Kim, Y.J. and et. al., 2019. The effect of green human resource management on hotel employees’
eco-friendly behavior and environmental performance. International Journal of
Hospitality Management. 76. pp.83-93.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of cleaner production. 208. pp.806-815.
Nankervis, A. and et. al., 2019. Human resource management. Cengage AU.
Papa, A. and et. al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management
practices. Journal of Knowledge Management.
Ren, S., Tang, G. and Jackson, S.E., 2018. Green human resource management research in
emergence: A review and future directions. Asia Pacific Journal of Management. 35(3).
pp.769-803.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Zaid, A.A., Jaaron, A.A. and Bon, A.T., 2018. The impact of green human resource management
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What is Human Resource?. 2020. [Online] Available
<https://www.humanresourcesedu.org/what-is-human-resources/>./
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