What is HRM?

Human Resources
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
What is Human Resource Management ?..............................................................................1
Strategic Human Resource Management ..............................................................................3
What is Hard and Soft HRM ?...............................................................................................6
Global context .......................................................................................................................7
What is recruitment and selection ?........................................................................................8
Internal and external recruitment..........................................................................................10
TASK 2 .........................................................................................................................................12
P3 Benefits of various HRM practices within organisation for both employers and employees
..............................................................................................................................................12
P4 Effectiveness of HRM practices in terms of raising organisational profits and productivity
..............................................................................................................................................12
TASK 3..........................................................................................................................................13
P 5 Importance of employee relation in respect to influence HRM decision making .........13
P6 Key elements of employment legislation and its impact upon HRM decision making. .14
TASK 4..........................................................................................................................................16
P7 Application of HRM practices in a work related context using specific examples........16
CONCLUSION .............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Human resource management can be simply defined as the procedure of selecting, hiring,
inducting workforces within an organisation. In broad terms, it is commonly used for describing
formal systems which is devised to manage people effectively. Thus, it can be said that HRM
plays an important role in running a venture. This can be referred as strategic approach to the
efficient administration of company's personnel in order to accomplish competitive edge of firm
(Krot and Lewicka, 2012). Therefore, the human resource manager is initially associated with
administration of company;s people within firm that highlight on system and policies.
Responsibility of HR mainly fall into three categories such as: Employees compensation,
staffing, benefits and designing work. Major purpose of HRM is to maximize productivity of
company by optimizing the effectiveness of their staff members. This report is based on JP
Morgan Firm which is an investment and commercial bank founded in 1871. This assessment
will emphasise HRM and strategic HRM along with distinct human resource management
approaches such as HARD and SOFT HRM etc. It will also assess distinct recruitment and
selection procedure along with their strengths and weaknesses.
TASK 1
What is Human Resource Management ?
HRM is referred as practice of recruitment and selection of staff members, providing
orientation and induction, education and training, performance of appraisal, compensation and
benefits to personnel within JP Morgan Firm in order to manage workforce efficiently. Apart
from this, major role of the same is about managing people in the company and work culture.
Purpose of HRM
The domain of human resource manager generally falls under three main areas that is
recruitment, worker recompenses & benefits and defining or designing work. Basically, the
primary purpose of HRM is to upgrade the existing level of production of an enterprise by
optimising the performance of its personnels (Hendry, 2012). Apart from this, some of the other
essential purposes of human resource management are described below : Utilisation of resource : The HR professional of JP Morgan is liable for taking care of
issues regrading usage of assets within venture. Employers is liable for examine whether
appropriate resources are used for carrying out jobs or not. In case of any
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mismanagement in the company, HR will rearrange different framework of workplace
and provide assurance that each resource are being utilised in effectual way. Maintaining employee relation : This is very important to create healthy relationship
with staff members since they are the only one who help in completing regular chores of
a venture. If employees remain unhappy by the terms and conditions of enterprise, then
overall work may get hampered badly (Benabou and Tirole, 2011). Therefore, employer
of JP Morgan should also focus on generating good relations with personnels so that they
can retain them for a long time period. Staffing : This is nothing but employing worker under an organisation on the ground of
some criteria. HR used to carry on identical task of hiring according to the requirement
of venture. The major motive of doing so is to build strong as well as skilled work-
forces. JP Morgan require to concentrate on this area as without employees a single task
can not be performed. Thereby, Human resource manger of this venture ought to focus
on duty of staffing in order to perform their work appropriately.
 Acting as advisers : HR also acts as an adviser for a company. They generally are having
ideas about what should be implemented within association for its upliftment. Ideas
associated with wages, professional functions, leave management and many more are
presented by them.
Function of HRM
There are few essential functions of human resource management system which are :
 Training and development : HR department used to arrange training and improvement
sessions for entire workers who are performing within in venture. Those employees may
be newly recruited or are already a part of organisation. The primary motto of offering
preparation classes to new individual is to make them learn all concepts affiliated with
their official task (Bagnoli and Megali, 2011). At the similar time period, old personnels
is also being trained so as to improve their current skills and qualifications. This bring a
positive environment since people show interest in learning new things because it is
beneficial for their personal as well as professional life.
 Recruitment and selection : These are two significant functioning of HR division.
Managers generally recruit as well as select right individual for particular post. In first
process of recruiting, they contribute in determining and making the expected participants
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to apply for vacant positions. On the other hand, while selecting employers basically
choose eligible candidate for that designation.
 Assignment of jobs : HR also play the role of in – charging suitable duty to specific
member on the basis of their past records, experiences, skills, educational qualifications,
abilities & so on. It is to be noted that if designation of job is not done accurately, then it
may negatively impact on productivity of association (Bloom and Van Reenen, 2011).
Therefore, this is considered as most complicating task which is being provided by HR
management only.
 Orientation : This is treated as one of the vital functioning of human resource
department. Employer used to create a perfect surrounding for freshly employed
personnels as it is difficult for them to adjust in a new environment. So, for feeling them
stress free, supervisor try to make arrangement of attracting orientation programmes
wherein introduction from rest members is being done. The main aim of carrying out this
is to settle workers in appropriate manner so that working would be started afterwards.
Strategic Human Resource Management
Strategic human resource management can be outlined as linkage of human resources
with strategical aims and objectives. This is generally done for improving the business
performances and developing better organisational culture that helps in fostering innovation,
flexibility and competitive benefits. In an enterprise, SHRM means including and accepting
functions of HR as a strategic partner in the creation and execution of firm's strategies via several
activities like employing, selecting, grooming and rewarding workers (Boxall and Purcell, 2011).
JP Morgan should also introduce similar concept in their business action as this will assist
them in gaining predetermined goals. By the implementation of this practice, management of JP
Morgan should focus on rewarding, developing, attracting and retaining staff members for the
benefits of both personnels and organisation overall. Human resource department which practice
Strategic HRM don't work independently they interact with other divisions also for
understanding their ambitions and objectives. Hence, this can be proclaimed that strategic HRM
of JP Morgan firm include typical personnel determinants such as discipline, recruitment and
payroll along with performing with worker in adequate and collaborative manner in order to
emphasise retention, improvise work experience and quality as well as enlarge the employment
benefits for both employer and worker of company.
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