Human Resource Management: Functions, Decisions, and Practices at Rolls-Royce

This report discusses the functions, decisions, and practices of Human Resource Management at Rolls-Royce. It covers the comparison of different functions of HRM, strategic HRM decisions, HRM practices for recruitment and retention, strengths and weaknesses of HRM, and internal and external factors that influence HRM decisions.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
Comparison of different functions of HRM.................................................................................3
Strategic HRM decisions to maintain effects of business environment......................................4
HRM practices for recruitment and retention..............................................................................5
Strengths and weaknesses of HRM..............................................................................................6
Internal and external factors that influences HRM decisions......................................................7
PART-2............................................................................................................................................9
Job description for position of marketing manager.....................................................................9
Person specification...................................................................................................................10
Recruitment and selection process flowchart to be used by Rolls-Royce in future...................11
Performance management and reward system followed by Rolls-Royce.................................11
Review of organization approach and effectiveness of employee relations..............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is the business tool used by management to recruit, hire,
deploy and manages employees of the company. It is usually known as Human resources, this
department is responsible making, implementing and reviewing policies to direct employees and
maintain healthy relationship between employee and the organization (Boon, Den Hartog and
Lepak, 2019).
In order to elaborate this report company is chosen as 'Rolls-Royce.' It is UK based
luxury car manufacturer company which is the most known brand across the globe. Company is
in market from 1906 but it gets more fame between 1998 and 2003 when it is owned by another
multinational company, that is BMW.
Further more this report covers roles and responsibilities of Human resource
management, contribution of HRM in recruiting and retaining talented employees, factors that
are affecting HRM decision-making. Along with that this report will cover HRM practices that
are using to improve sustainability of organization performance.
PART-1
Comparison of different functions of HRM
In an organization Human resource management performs various functions to support
sustainable performance of the company. In the company HRM manages from recruiting and
training of employees to retain and resignation of their employees. HRM different functions
contributes in different areas of the company to grow. So there are comparison of main three
function of human resource management, that is mention below:- Recruiting & Training:- It is the fundamental function of the human resource
management, without human capital company can't be able to performs their operational
activities. Recruiting new employees are essential part of any organization. Management
functions to select proper talented employee which increases overall productivity of the
organization. After recruitment of human capital other remaining function will work,
payroll and retaining other two that are being discuss, that come in exist after recruitment
of employees. Rolls Royce is a brand company, and they have advanced technological
equipments and machinery, so they hire and train skilled and talented candidates . It
plays vital role in organizational performance, efficient employees generates revenue and
profit for their organization (Macke and Genari, 2019).

 Payroll :- Human resource management performs function of payroll processing, salary
details, time and attendance, loans, allowances, and bonuses. Every employee is working
for salary and remuneration which is prepared on the basis of their performance and
punctuality. Salary is decides according to performance of employee and it is based on
their talent, qualities and skills which meet requirement of company. Rolls Royce is one
of the leading luxury car manufacturer pays good competitive salary to their employees
to earn their loyal and trust, to boost employees confidence company give bonus and
rewards which is monitor by management team as well. Loyalty and trust of employees
can increases efficiency of the company (Strohmeier, 2020). Retain Talent :- Every employee want to work in healthy nature, want better salary and
other factors which support in enhancing their performance, so finding in better option
employees start switching and moving towards better. It is function of human resource
management to retain its efficient employees. It works through moulds affecting factors
by which employee is feeling discomfort and barrier in their performance. As in context
of Rolls Royce company believe to retain its employee, because they don't want to
outsource techniques, styles and technologies. Switching of employees leads to
outsourcing of informations. This function of HRM supports sustainable performance
(Ngoc and et.al., 2021).
Strategic HRM decisions to maintain effects of business environment
In this changing world, there are number of things which are changing on daily basis and
that all are effecting business environment. Human resource management takes decision to
maintain organizational performance during that changes as well, there are some strategic HRM
decisions states below:- Training & Development:- Human resource management holds the function of training
& development of company's employee, they know appropriate time and space to
conduct training. Rolls Royce focused on continuous up-gradation in technologies which
affect business nature and its performance. Deal with it human resource management
takes decision to train its employee and enhances their skill through which they adopt
technological advancement and performs effectively (Piwowar‐Sulej, 2021).

 Engagement of employees:- In company there are many employees which are not
satisfied with their work, which leads less productivity rate of the firm. In Rolls-Royce
HRM monitor employees skills and performance, so they take decision to allocate work
of their interest. This decision plays a vital role in increasing productivity rate of the
company. It also boosts self-esteem of workers and enhances their skills both are
beneficial for the company, this decision engages employees more effectively.
 Flexible and Transparent policies:- As Rolls-Royce is multinational company, and they
believe that policies are made by HRM maintain positive work-culture and avoid
employee's exploitation. Company believes in transparent policies which are
communicated by management to employees make them aware about policies, it builds
trust of its employees. It is also important to make flexible structure which is change
according to business nature and its affects. For example: At the time of inflation
company should increase salary of their employees or giving some monetary rewards on
the basis of their performance (Amrutha and Geetha, 2020).
HRM practices for recruitment and retention
Recruitment and retention both are functions of HRM, both are challenging for the
management. Company always seek to talented candidate on the vacant post which plays
important role in growth and success of organization. Retention of employee is takes place on
their performance and knowledge, otherwise they are just loss making entity for the company
(Longoni, Luzzini and Guerci, 2018). There are some practices which are performed by Human
resource management to recruit and retain employees:- Promotes performance of employees:- As the Rolls-Royce is one of the leading
company, they monitor employee's performance and then promotes their action. This
practice takes place by Human resource management to generate loyalty. They earn
goodwill even amongst candidates too, they get better retention rate through promoting
actions and activities of their employees (Alzoubi, 2022). Focus on Talent:- It is important for HRM to focus on their talented employees, due to
them company achieves their organizational goals effectively and efficiently. Rolls-
Royce pays attention on their talented employees, they aggressively focus on their talent
management either on recruiting or in retention. Talented work force leads more
productivity and higher revenue.

 Open communication:- Communication between management and employees builds
relationship amongst them, which make positive work-culture for employees. This
practice leads higher productivity and satisfied employees. In Rolls-Royce, they focused
on clear communication ways which makes easy to under their vision, mission and
objective and better work-culture. New candidates easily get policies and rules,
experienced ones are get comfort to discuss their views or opinions.
Strengths and weaknesses of HRM
Human resources management performs various activities, they focused on development
and training of employees, maintaining retention rate, make clear policies or rules etc. HRM is
important for organization, but it has limitations too. They have limited budget, figuring out
talented labour, data privacy etc. So, strengths and weaknesses of HRM are being discussed
below:-
Strengths Development of workers:- HRM focused on to development of their workforce, which
gives effective results. They provide different training and upgrading programmes to
enhance skills of their employees. Rolls-Royce runs different activities to make skilled
labour, make aware them about new technologies and updated equipments or machinery.
They make employee capable to achieve personal goal which motivates employees to
achieve company's goal.
 Communication bridge:- Human resource management perform as bridge between
management and employees. Management makes policies and rules for employees, so
HRM convey that policies to its employees. There are some time when employees are not
satisfied or like policies, they communicate their issues and confusion to HRM and then
HRM forward it, to make some changes in it. Rolls-Royce motivates its employees to
communicate through channel, which leads less confusion amongst employees.
Weaknesses Limited Budget:- HRM's functions covers some cost, as they want candidates, so they
want to spend on advertisement, for training and development of employees HRM wants
again some revenue, but they have limited budget through which they have to run their

process. As Rolls-Royce holds reputation in market and their goodwill work as the
advertisement for their products, but for talented work-force company spends to attract
employees. Shortage of budget leads to chaos in other operations of HR that are
appraisals, rewards and other monetary benefits, it creates dissatisfaction in employees
(Barrena-Martinez, López-Fernández and Romero-Fernandez, 2018).
 Talent management:- Company always focused on their talented employees, it is basic
duty of HRM to manages talent. It is very tough task to manage talent, on context of
recruiting there are number of candidates are applied on vacant post it is being tough for
the HRM to select talented one. For Rolls-Royce as leading MNC, they get applications
of talented candidates and it is tough for the HRM to figure out appropriate candidates
(Bos‐Nehles, Conway and Fox, 2021).
Internal and external factors that influences HRM decisions
Internal factors
Internal factors that are in control of company and it can be changed by an organization
or company. These factors influence decisions of human resources management internally, it is
also known as organizational factors. So there are some of internal factors that are influencing
decision of HRM are:- Financial strategies:- Company's financial planning is the main internal factor which
affects decision of human resource management, it directly affects budget of HR
department. Decision are made according to budget that is issued by company, due to
HRM operations are cost taking processes. If company decides to outsource training and
development programmes for their employees it directly influences training decisions of
human resource management. In context of Rolls-Royce, company is having wide
number of departments and processes where they need proper allocation of resources.
Finance that is allots for departments will be fluctuated, it effects HR department as well. Advancement of technology:- Every company in each sector desire for advanced
technology for their operational process, and Rolls-Royce is dealing in auto mobile
industry, so they want advanced technology to grow their production. It is the key
internal factors which influences human resource management. HRM should make new
training plans and strategies to guide their work-force, add new qualification skills and

seek to skill employees. As company want to change in their recruiting plans and
strategies (Hamadamin and Atan, 2019).
External factors
External factors are those factors which are out of control from organisation, they
influence decisions of human resource management and company can not able to change them.
Some of external factors which influences decisions of HRM are mention below:-
 Economic factors:- This is the key external factors which influences whole operational
decisions of human resource management. Economic factors covers labour cost, inflation
or deflation pressure, market forces etc. These all are affects strategies and decisions of
HRM, they should make new planning with new salary offers for candidates, more
appraisals and bonuses are required to holds experienced employee or maintain retention
rate. Rolls-Royce company should increase wages of their employees, their supply and
demand is stagnant it can not be affected due to economic factors. Their targeted segment
are upper middle class and elite class, so they are out from price pool and company not
have space to increases or decreases prices in inflation or deflation (Hewett and et.al.,
2018).
 Political and legal factors:- Government changes policies and rules on regular basis, they
make new rights to protect employees from their exploitation. Laws and policies that are
changing with regular intervals are like minimum labour cost, working hours, other
employee rights. These laws and policies are changing by state and central authorities,
that are directly affects decisions of human resource management. Company make
policies and rights according to new policies and rules, it effects organizational culture.
Rolls-Royce is global brand, policies and laws by different countries effect HRM
decision, as there are difference between labour pricing , working hours and other
policies. Government in many countries make policies to make backward group of
society as skilled and talented workforce, but it generates burden over brand to conduct
their training and development programmes, these programmes are cost taking factors.
PART-2
Job description for position of marketing manager
ROLLCE ROYCE ORGANIZATION

Job Description for Marketing Manager
Candidate Post
 Marketing manager
Essential Qualifications
 Bachelor's degree in marketing and business management
 Master's degree in business management and marketing
Minimum Experience
 2-5 years
Working hours for the job
 Flexible- 24 hours per week
Daily Reporting will be done to
 Managing director
Responsible for
 Marketing assistant
Expected Salary
 £40,000 to £50,000
Working necessarily to be done with
 Managing director and all other departmental heads
Main Purpose of Job
 To effectively evolve and implement Market as well as PR strategy
 To Formulate suitable PR collateral.
 Managing daily task of the marketing assistant
 To determine and arrange the market information
Skills required
 Effective Communication skills
 Leadership skills
 Time management skills
 Problem-solving skills
 Analytical skills

Person specification
It refers to the description of the qualification, experience, skills, knowledge and other
factors for selection criteria which must be possessed by the candidate in terms of performing the
job duties the person specification for selecting candidate for marketing manager job involves-
Essential factors Desirable factors
Qualifications  Master’s in business
management and
marketing.
 Higher level of
professional English
 Qualification at the
planetary level.
Experience  Experience acquired in
the correspondent job
role.
 Experience in
maintaining public
relation.
 Experience for
working in a car
manufacturer
organization.
Communication skill  Ability to understand
the customers
preferences.
 High intellectual skill
which can be used for
effective performance.
 Ability to prepare
presentation that can be
given to the employees.
 Experience concerned
with managing public
relation campaign.
Recruitment and selection process flowchart to be used by Rolls-Royce in future
This flowchart helps the organization to maps out the future recruiting process step by step.
The recruiting team can have easy access to track their progress by following the steps in the

flowchart. The recruitment process imply the steps for the right candidates. It will help to
analysis the job requirements, searching for the suitable candidates, interview and negotiation,
identifying the most qualified candidate. The flowchart help to simplify process by the mapping
to each crucial steps which is followed in the recruitment and selection process (Köchling and
Wehner, 2020). Identifying the skill gaps and hiring needs which help the organization to consult
with the various department in the organization and identify the missing skills of the company's
workforce. Formulate the job description for the new job openings which help managers to
understand the skills and qualification needed.
Advertise can attract the job openings to attract the ideal applicants with the newspapers,
career websites and social media job boards are all suitable methods of advertising. That may
decide the use of all This attracts the diverse pool of applicants. They can also use recruitment
process outsourcing for the job advertising. Review the job applications is the next step to the
review and assess the job application. This helps the HRM to manage the better performance of
the employees which help to create their productivity. It increases the level of the management
resources which has a full credibility on the people it helps the organization to make more
effective team.
Performance management and reward system followed by Rolls-Royce
Performance management system is a well-structured course of action, which is taken into
consideration for making the management of performance in an organization. The organization is
abiding with number of such performance management systems in order to be remained
competitive and highly productive. The performance management system of the Rolls-Royce
includes-
Setting goal- The goal is being set as on the basis of the goal performance is being reviewed in
the organization. Therefore, the first step is to set the goal.
Measuring performance- After the completion of the goal the performance is being measured
in which the positive and negative elements have been detected and on the basis of that the final
judgement is being made (Franco‐Santos and Otley, 2018).
Providing feedback- The feedback has been provided to the employees on the basis of their
performance. The feedback has been given in such way that does not demotivate the employees
and helps to make improvements.

Appreciation- Those employees who have performed in effective manner has been appreciated
so, they can feel motivate and through this, other employees get motivation in order to perform
in effective manner.
Incentives- The rewards have been given to the employees who have done effective task and
timely completed the goal. Thus, in this manner the positivity is being created in the organization
that supports the employee’s motivation as well (Helmold and Samara, 2019).
Thus, performance management system of the Rolls-Royce is highly effective in terms of
managing the performance of employees and enhancing the motivation level of employees.
Review of organization approach and effectiveness of employee relations
Organization can form and utilize various strategies to engage employee willingly in
culture to produce more quality outputs. Employee relations are most significant factors which
depicts better work performance of organization as well. So it is essential for Rolls Royce to
encourage professionals to work for specific goals and provide assignments on the basis of skills,
knowledge and background. Work efficiency in company requires major understanding of
employees and roles in business and tactics to enhance abilities and make utilizing of unique
skills.

CONCLUSION
From the above text it has been studied that HRM areas and their overall contribution to
performance of organization has possible outcomes to effectively change and enhance
productivity. It has been identified that role of recruiting and retention of employees from the
source of labour markets forms better quality output. Furthermore, it had been discussed over
strengths and weakness of HRM in terms of contribution towards business growth aspects.
Apart from that in second part it has covered the areas of job description, person
specification and recruitment and selecting process flowchart. Apart from that it had highlighted
over assessment of Rolls Royce and reward systems with the help of suitable examples. At the
end of this report it has been reviewed over organization present approach and effectiveness of
employee relations for better productive outcomes.

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