Environmental Factors Impacting HRM Practices

Table of Contents
INTRODUCTION...........................................................................................................................2
Task 3.......................................................................................................................................6
Environmental factors impacting the HRM practices.................................................................6
Recommendation for the organization to help organization address this gap or shortcoming....7
CONCLUSION................................................................................................................................9

INTRODUCTION
Talent management refers to a plan of action that helps to improve employee performance.
This helps in making strategies that will help the company in improving performance of workers
by providing them training. Managers measures performance of workers weekly and make
changes according to the need and requirement. In Aviva insurance training is given to new
employees so that they can work properly and development is also required to increase overall
productivity of the company (Claus, 2019).
Task 1
Business strategy and HR strategy
Business strategy refers to the plans that are made by the company to achieve goals and
objectives and gain competitive advantage. It can be simply defined as long term planing for
accomplishing targets of the organisation. It is about how people are working in the company
and taking decisions, allocating resources for smooth working of the company. Managers of
Aviva insurance are making plans after analysing the market situation and identifying strategy
that is used by competitors (Collings, Mellahi and Cascio, 2017). There are some business
strategy i.e., cost leadership, differentiation, focused differentiation, focused low- cost and
integrated low cost/ differentiation strategy. Aviva insurance company is also making plans
regrading what will be the price and how to capture large area of market.
HR strategy can be defined as making plans regarding compensation that is to be given to
employees, technique that will used for performance appraisal, training and development
programs to be arranged by managers, hiring process that can be used. HR strategy is long term
process which will help company in future growth and building good reputation in the market. In
Aviva insurance company they are using different tools and techniques for measuring the
performance like key performance indicator is used to measure the work and it helps in
comparing the actual performance with the set standards (Crane and Hartwell, 2019). After
monitoring the performance necessary steps are taken by the managers to improve work that is
done by workers. They make changes in plans or strategies to increase overall productivity of
organisation.

Recruitment, including recruitment channels
Recruitment refers to choosing best person for the company. It is the act of attracting,
engaging, assessing good candidates that can contribute in achieving goals and objectives of the
company. Recruitment is the process in which candidates from across the world who are having
essential skills , qualities and knowledge that is required at workplace. HR manager of the
company recruits best candidate for the company. In Aviva insurance recruitment channels are,
online channels which includes, job boards, social and professional networks, online
communities. Aviva insurance company gives advertisement for vacant position through
employee referrals, Facebook, Instagram, linked in, twitter or on websites of the company. This
help them in getting best candidate for the industry (De Boeck, Meyers and Dries, 2018).
Selection methods
Selection refers to choosing the best candidate for the company after passing through
many stages. The method of selection includes, screening, phone interviews, face to face meeting
or interview, and HR functions that helps in determining that whether a candidate is suitable or
not. In Aviva insurance
Performance management
It is important to manage the performance of employees to identify that which worker is
giving their best in achieving goals of the company and in which area improvement is required.
The aim of performance management is to create a good working environment where all the
employees can work properly. It helps employees in giving their best and work effectively. In
Aviva insurance managers measure performance of workers by setting standards and comparing
the performance with the standards that were set. It is important to measure or monitor how
employees are working and what are the goals that they have to achieve. Performance
management helps managers of Aviva company in giving rewards or incentives to workers if
they perform (Gallardo-Gallardo, Thunnissen and Scullion, 2020).
Reward management
Reward management refers to analysing and controlling the remuneration of employees like,
how much compensation should be given. For deciding rewards individual performance is

measured to identify that which worker is contributing in accomplishing goals and objectives of
the organisation. The main aim of giving rewards is to increase the efficiency of employees and
motivate them to work hard and work efficiently. In Aviva insurance company managers give
rewards in the form of incentives, bonus, or any kind of non monetary benefit by which workers
are influenced to complete their work on time. It is a type of strategy that is used by managers to
attract employees and helps in motivating them to achieve targets of industry (Glaister and et.al.,
2018).
Training and development
Training and development is necessary in every company to improve efficiency of
employees and this will also reduce absenteeism. It helps in developing skills and enhance
knowledge of workers as they get to learn new things which will help them in future growth and
get better opportunities. When new employees are recruited in the company then training is
provided to them so that they can learn how to do the work and they will not make any mistake.
The work will be done with perfection and all will complete their work on time (Harsch and
Festing, 2020) . In Aviva insurance company training is given to new employees to make them
comfortable with environment of organisation. From development of employees managers of
Aviva company measure the performance of employees and this will help in identifying that
which employee is not performing well and they need training programs or seminars for
development. This helps company in building good image in the market and more people want to
join the company as organisation provides good training sessions for developing skills.
Equality and diversity policy
It is a policy that is made by the companies to motivate employees and provide them good
working environment so they feel relax and comfortable. It is important that every employee
should be treated equally and there should be no discrimination among employees regarding
race, caste, religion, gender, income or any other issue. All the employees are having equal rights
and should give respect so that culture off the organisation remain good. There should be no
conflict or discrimination between employees on the basis of their position. Equal opportunity