Importance of Human Resource Management

The assignment discusses the importance of human resource management (HRM) in an organization, highlighting its key functions such as recruitment, selection, training, and employee compensation. It also touches upon the role of HRM in managing employee morale and motivation, as well as the impact of legislation on employees' rights and safety.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Purpose and function of human resource management ........................................................3
P2 Strengths and weaknesses of different approaches to recruitment and selection process.....4
P3 Benefits of the HRM practices for employer and employees................................................5
P4 Effectiveness of different HRM practices of organisations profit and productivity..............7
P5 Importance of employee relations in respect to decision making .......................................8
P6 Key elements of employment legislation and its impact on decision making ......................8
Time of work...............................................................................................................................9
P7 application of HR practices with work related context with example ..................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resources' management is the department in an organization which focuses on the
hiring , recruiting selecting the candidates according to the vacancies. This report is about the
Sarte ltd which is of textile industry. This report sheds the light on the purpose and function of
the human Resource management of Sarte Ltd. This report has also examines the strength and
weakness of different approaches of the recruitment and selection process. The report gives the
deeper insight of the benefits of HR practices for employer and employees. Further , this
assignment carried out with the effectiveness of HRM practices in increasing the productivity
and profit of the Sarte ltd. Later report has described about the importance of employee's relation
with respect to HRM. It has also discussed about the applications of the HRM practices with
work related context in it. In addition, several employee legislation has been also explained with
their impact in decision making.
TASK 1
P1 Purpose and function of human resource management
In an organization there exist a many departments. One of them is a human resource
management. The word human resources' management means 'manage the human resource in an
organizations' (Bratton and Gold, 2017). Following are the functions and purpose of the HRM of
Sarte ltd are-
Recruitment and selection
Recruitment is the process of searching the potential candidates for a particular job on the
basis of their qualification, knowledge, skills and experience for Sarte ltd. The main purpose of
recruitment is to provide a fair opportunity for the company.
Selection is the process of choosing correct person, who is more eligible for the required
post. It is interviewing process of candidates by evaluating their qualities.
Orientation
Orientation is the process done for the new employee. It is the important process should
be done for every employee in order to get them feel comfortable in Sarte ltd. Orientation is also
known as induction (Brewster and Hegewisch, 2017). Induction program should consist of lots
of activity which helps organization to make them feel family like or comfortable.
Maintaining the good working conditions

It is the duty of the human resource management to provide good working conditions to
all the employee so that they may love the place of working and the environment.
Managing employee relation
Employers are the key of the organization. All activity in an organization are based on the
employers. To maintain the employee relation is one of the important function of HRM.
Management should organize the various activity to know the employee at his personal level
(Bailey and et.al, 2018).
Training and development
Training and development is the main function of human resource management.
It is the process of improving the knowledge and increasing the ability of an employee to work in
an organization for achieving the goals and objective. Training and development program not
only increases the knowledge of a person but also help employee to be the best performer in an
organization (Brewster, Chung and Sparrow, 2016).
P2 Strengths and weaknesses of different approaches to recruitment and selection process.
Following are the strengths and weaknesses of the approaches of the recruitment and selection of
Sarte ltd-
There are internal and external sources of recruitment and selection. Internal sources are
those sources which includes recruitment from inside the company, whereas external sources are
those which includes the recruitment and selection from the method called outsourcing (outside
the company).
Internal sources
Promotions – It is a process of providing higher position, authority, responsibility , salary
to the employee. So, the vacant position can be filled by giving promotion to the appropriate
candidate in a Sarte ltd. Furthermore, In internal advertisements, company offer a vacancy or
advertised within the organization. The employee working in a company asked to the employee.
Retired managers is another internal recruitment method, sometimes company calls its retired
manager, and hires them for the short period (Albrecht and et.al, 2015). This method of hiring
retired managers by the company is applied mostly when , the company do not find the suitable
candidates for the vacant seat.
Strengths of internal resources
 Time saving method of recruitment , easy to adapt and reliable for Sarte ltd.

 Recruitment is done within the organization with the existing employee, so there is no
need orientation program because every employee is aware about the rules and
regulations (Bratton and Gold, 2017).
Weaknesses of internal sources
 There is a limited scope of this method because it is not easy to fill up all type of
vacancies in an organization.
 This can create a conflict among the employee because those who have not promoted
they will become unhappy.
External sources
Public advertisements-The vacancies for vacant post were advertised with help of newspapers,
social media, pamphlets etc by the personnel department of Sarte ltd. This advertisement
provides a knowledge about the company, initial qualities of the candidates. Suitable candidates
were selected according to their, knowledge, skills interest etc. further campus and recruitment in
a management institute and engineering colleges, company conduct a campus recruitment
(Brewster and Hegewisch, 2017). In which students of final year participate, interviewed and
selected on the basis of their academic records, communication skills, and intelligence etc.
Strengths of the external sources
 It comes up with new and innovative ideas of youngsters.
 Its scope is much wider, because many students participate in the campus selection
process.
Weakness of the external sources
 External source of recruitment and selection is the time consuming and costly method.
 Existing manager can leave the organization if freshers are being given the higher post
P3 Benefits of the HRM practices for employer and employees
Benefits of the HRM practices are discussed under-
Conflict resolution
Having conflict in an organization between employers and employees is inevitable because of
different personalities, lifestyles, work ethic etc. in human resource practices. HRM practices
taught that how to handle these conflicts (Guest, 2017).
Employee satisfaction

Employees are the keys of an organization to achieve their goals and objectives. To
satisfy the needs and wants of the employee is the essential responsibility of the employers.
HRM practices guides how to satisfy employees needs and wants in order to achieve the goals
and objectives. This provide benefit to both employee and employer which is beneficial for sarte
ltd (Ones, Viswesvaran and Schmidt, 2017).
Improves employees performance
HRM practices improves the employee performance, human resource management
consist of the performance management team (Ruth Mayhew, 2018). For every company there is
a need of HRM professional. If there is no HR team is an organization, candidates easily get job
without having necessary skills and knowledge. To get save from this situation it is very
important for the company to have hr team for the improvement of employees performance. It is
very important for them to improve the employee performance to increase the productivity of an
organization (Eaton, 2017).
Training and development
Human resource department conduct a training and development of an employee in order
to determine the skills and knowledge of the employee. Under hr practices, training and
development program provided to the employee enhance their knowledge and skills and allow
them to increase their performance. Giving them knowledge in training and development
program is beneficial both for employers and employee as employee's have increment in their
knowledge and helps company to reach its goals and objective (Delery and Roumpi, 2017).
Reward good performances
Motivated employee and employers are diamonds for an organization. To motivate
employees in an organization leads the company at top. Employees can be motivated by rewards
and recognition for their work. Reward and recognition are the key to motivate the employee.
HR practices includes the reward good performances to get employee motivate, so that it became
easy to reach their objectives and goals (Bratton and Gold, 2017).
P4 Effectiveness of different HRM practices of organisations profit and productivity.
HRM plays an important role for an organization to increase the profit and productivity.
Since the HRM practices were implicated in Sarte Ltd, it has increased the profit and
productivity by the following perspective -
Innovative and high performance

The human resource management of the sarte ltd emphasizes the innovative high
performance of an employee, they motivate them to work with innovation and facilitate high
performance. All these attempts helps to increase the productivity and profit of the company.
Innovation in the work leads the organization at the top (Brewster and Hegewisch, 2017).
Effective directions setting and execution
It is an important role of managers and leaders to set the direction, goals, purposes of the
workforce. Human resource management helps Sarte Ltd to recruit the eligible managers for the
right workplace. They lead the Sarte Ltd. To the top place in profitability and productivity. If
managers and leader provide effective direction to their subordinates it enhances the working of
an employee and also increases the productivity
Team and personal goals with effective communication
Human resource management of the Sarte ltd helps in achieving both the goals. As
change in technology changes the entire scenario of communication (Bailey and et.al, 2018).
HRM provides with better way of communication so that company could have high productivity
and profitability. For employers it is very important to fulfill the personal and team goals of an
organization.
Rewards to enhance the performance
When the rewards are given to the employee for their performance it motivates the
employ automatically. This process of reward enhances their performance and tends employee to
work more seriously. This will help in attaining the Sarte's ltd goal I,e profit and productivity. If
the employee get motivated they will work more with full dedication and enthusiasm , which will
help them to make their good image and provide good support to the organisation.
Collaboration and sharing
One of the important practices which helps in improving profit and productivity of the Sarte's ltd.
As the employees collaborate with each other and shares their ideas this will give rise to the
innovation, which magically increases the productivity of employees (Bailey and et.al, 2018). It
is said employ learn more when they work in team and share their ideas. By sharing and
colllaborating with each other overcomes the workload also and provide ability to work with new
ideas.
Maintaining productivity and updating employee skills

In today's era there is a cut throat competition. To fight with competition and maintain the
productivity it is very important of HRM of Sarte ltd to keep updating the skills of their
employees according to the situation and external environment by providing them with good
training (Ones, Viswesvaran and Schmidt, 2017).
P5 Importance of employee relations in respect to decision making
Every employee in an organization have relation with his or her fellow members. To
maintain good relation with the employees in an organization helps each other in increasing their
work load. They need to communicate with others in the perspective of decision making. Some
importance of employee relation is discussed as under-
Work became easy if it is shared among workers.
Healthy relations in an organization eases the work and overcome the burden. In Sarte ltd good
relation among workers eases the work and increases the chance of productivity (Delery and
Roumpi, 2017). In an organization there are lots of work which cannot done by single person
alone. Work must be divided among the team members to accomplish the task.
Discouraging the conflict among member
Maintaining good relation in between each other reduces the chances of conflict and fight
of Sarte ltd. The employee of Sarte ltd believes that their co workers are their collegues not the
competitor to their places, they trust each other and help to fulfill the personal as well as
organizational goals. As a result profitability increases which helps the human resources'
management to take better decision for company (Bratton and Gold, 20170.
Loyalty among employees
Good and supporting environment of the Sarte ltd leads the employees to work with full loyality
and dedication. They feel motivated and excited for every next task given to them. They
contribute more productivity in an organization. They do their work with more effort which leads
the greater productivity and return to the company (Bailey and et.al, 2018).
P6 Key elements of employment legislation and its impact on decision making
Key elements of employment legislation are discussed under-
Defining position
When the recruitment is done, the human resources' manager or HR executive defines employees
about their job profile, position in the organizations. They also illustrate what will be their future
rights ad responsibility in the Sarte ltd with respect to decision making.

Proper compensation
It is the responsibility of human resource management to define their employee regarding
the compensation for the employee at time of recruitment. They have to tell all the information
regarding their wages, working hours, timing, leaves etc. the employee should be selected after
the proper agreement of each and every policy of the Sarte ltd (Guest, 2017).
Ensuring equality
At the time of joining of the employee the HRM of the company must ensures about
equality in every perspective. They must ensure that there will be equality in wages, sex,
working hours, health facilities etc. If any sort of discrimination fell by an employee, they can
ask help by legislation to full fill their needs and demands (Brewster, Chung and Sparrow, 2016).
Time of work
`Employ must aware of the timings of an organization ie. Daily or weekly working hours
to perform task. Employees are free to do overtime if they want but it is a responsibility of HRM
to give proper compensation for their work. Company should allow the sufficient leave and leave
on particular occasion (Guest, 2017). This time management done by company helps HRM to
make better decision.
P7 application of HR practices with work related context with example
Following are the applications of the HR practices -
Human resource practice are formulated method used for measuring and analyzing the effects of
a employee. They are the guidance principle which directs and coordinates us towards the
business plan. The best practice is the one which drives the person towards the achievement of
organizational plan with given resources in efficient and effective manner (Ones, Viswesvaran
and Schmidt, 2017). The most common practices are managing the people at work by regular
coaching and training them, and placing of the right man at the right job by proper manpower
planning, enhancing the staff for better performance.
Applications of HRM practices:-
Recruitment and selection
HR practices are usually based on mission and vision of the organization with the
workplace environment. They offer training programs to people to develop the skills of mission,
vision and values. The organization should have an effective communication program to train
their employees towards the goal. Example: Employers of Sarte Ltd recognizes the value of its

staff at workplace and attract many people. The company receives many applications at the time
of recruitment (Bratton and Gold, 2017). The company recruits many people by advocating
many fairs in different colleges and universities, giving notices and by advertising. The selection
of people depends on the process of application like filling of application, written and oral
interview, and further letter of selection, if selected is given.
Work-life-balance
Some organization provides flexible working schedules to its employees so that they can
complete the work on time and enjoy the remaining time in relieving the stress. Managing the
transportation, modification and advancement in technology and conducting training and
development programs. These programs help in creation of good working environment and also
helps in increasing the time which employees can devote to their family. Eg:- the workers of
Sarte ltd are given proper training to complete the given task on time and then they can utilise the
remaining time in devotion to their loved ones (Ones, Viswesvaran and Schmidt, 2017).
Training and development
Training programs include on the job, off the job training, leadership training,
professional training and conducting orientation and induction which helps in overall
development of the employees. These programs help in development and improvement of
knowledge, skills and abilities of the employees which helps in efficient and effective work.
Professional development helps in succession planning which helps in preparation of future
leaders who will be suitable for higher level jobs and can handle more responsibility. Eg:- the
worker of Sarte Ltd are trained by creating a program of simulation where the workers are given
training creating the real life situation of the work and creating the environment which they may
face during their work (Delery and Roumpi, 2017).
Compensation
Compensation are reward for the performance and the time contributed by the worker in
the organization. If the workers are provided with appropriate wage and salary according tom
their skills and performance they will feel motivated (Guest, 2017). It helps in enhancing the
performance of the employees but they feel motivated. Employee compensation helps in
enhancing the employees' morale at place. Compensation in form of performance appraisal also
motivates the employees at workplace (Brewster, Chung and Sparrow, 2016). Eg:- Sarte Ltd
distributes bonus minimum of 3% every five year to its employees.

CONCLUSION
With above report, it is concluded that human resource management has played an
important role in Sarte ltd. Assignment has discussed about the importance of human-resource-
management which helps organization in managing the human resource whenever need is
arrived. Report has shed light on the various aspects of the human resources. Human resource
management is the very important department in an organization which leads the company to the
top. They recruit the people, select them and provide them with good training so that employees
can contribute in company in the achievement of goals and objective. Reports ends with lots of
important knowledge about the functions of human resources' management. Every functions of
management is having its own importance which help in attainment of goals and objectives.
Various employees' legislation is has been also discussed in order to get retain employ and make
them feel safe

REFERENCES
Books and Journals
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Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C. and Hegewisch, A., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
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competitive advantage: is the field going in circles?. Human Resource Management
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Eaton, J., 2017. Globalization and human resource management in the airline industry.
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Guest, D. E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal. 27(1). pp.22-38.
Ones, D. S., Viswesvaran, C. and Schmidt, F. L., 2017. Realizing the full potential of
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management. Human Resource Management Review. 27(1). pp.201-215.
Online
Ruth Mayhew, 2018. Functions & Practices of Human Resource Management. [Online].
Available through <https://smallbusiness.chron.com/functions-practices-human-resource-
management-59787.html>