Benefits of HRM Practices in Increasing Organizational Productivity and Profit

This document discusses the purpose and functions of HRM in workforce planning and resourcing a company. It also explores the strengths and weaknesses of different approaches to recruitment and selection. Additionally, it highlights the benefits of various HRM practices for both employees and employers, and evaluates their effectiveness in increasing organizational productivity and profit.

Human Resource
Management

Contents
PART 1.............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
P1 Purpose and functions of HRM which are applicable to the workforce planning and
resourcing a company...................................................................................................................3
P2 Strengths and weaknesses of different approaches to recruitment and selection....................4
P3 Benefits of different HRM practices in a company for both the employee and employer......7
P4 Evaluation of the effectiveness of different HRM practices in terms of increasing
organizational productivity and profit..........................................................................................8
CONCLUSION................................................................................................................................9
PART 2...........................................................................................................................................10
INTRODUCTION.........................................................................................................................10
P5 Analysis of the importance of employee relations in respect to influencing decision-making
of HRM......................................................................................................................................10
P6 Identification of the key elements of employment laws and its impact on HRM decision-
making........................................................................................................................................11
P7 Illustration of the application of HRM practices in the work-related context, using
particular examples....................................................................................................................12
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

PART 1
INTRODUCTION
The Human resource management is defined as a strategic approach which is taken by the
organization in order to manage the people so that it can gain a competitive advantage. This
practice is mainly designed for increasing the performance of workforce in their company. As the
employees are considered as the valuable asset of the company because they are behind the
growth and success of the organization so it is very essential to employ the talented workforce
and then manage them efficiently so that they can contribute in accomplishment of the
organizational objectives and targets (Sweis and et. al., 2020). The organization chosen for this
report is British Airways, leading airline company which is established in the year 1974 and is
headquartered in London. This report is split into 2 parts of which first will cover the functions
and purpose of HRM, different approaches of selection and recruitment, various HRM practices
and its advantages and the effectiveness of these HRM practices.
P1 Purpose and functions of HRM which are applicable to the workforce planning and
resourcing a company.
HRM management is defined as the process of recruiting people, giving adequate
training, motivating them, compensating them and planning such strategies together with policies
so that they can be retained in the organization. In today's time, there has been major changes in
the way the HR works as there has been given ample amount of importance today HRM in the
company (Anh and et. al., 2019).
Workforce planning can be referred to as a process which involves analysation,
forecasting and the planning of employees demand and supply, assessing gaps and then
determining the target talent management so that there can be right people hired in the
organization with the right amount of skills at the right time so that the goals of the organization
are fulfilled.
The purpose of HRM is illustrated thereunder-r
 The main purpose of HRM is to frame and develop the effective programs for employee

benefits so that they can be retained in the organization. This will also help in attracting
the skilled and talented workforce in the company.
 Another aim of HRM is mainly to identify the needs of recruitment which involves
identification of duties of job, skill set required and other requirements relating to that job
position. Another purpose of HRM is to motivate the employees so that they can perform
effectively in order to accomplish the goals of the company which can result in
development and growth of the organization (Obeidat and et. al., 2018).
The function of HRM is discussed below
 The main function of human resource manager is mainly to attract the workforce in the
company and bring out the best of them. This is considered as the most essential function
as the potential and qualified workforce is recruited that can help in accomplishing the
organizational goal in an effective manner.
 Another function of HR is identification of the future needs as to what type of workforce
is required, in what quantity and many others. The HR planning is same as the workforce
planning as this involves adaptation of the systematic procedure in order to recruit the
effective staff.
 The HR manager has also another function which involves giving sufficient amount of
training to the employees so that they can improve their existing skill set and develop
new knowledge so that they can give their best in performing their job roles.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment can be defined as a process that involves identification, short listing,
attracting, screening and interviewing the best employee or candidate for a specific job role in
the organization. There are various approaches of recruitment and the HR manager of British
Airways may adopt the following recruitment approaches so that the potential candidates are
attracted in the company. Various approaches of the recruitment are illustrated below-
Internal approach
This mainly involves filling the job position in the company internally through the existing
workforce. There are different types of internal approaches to recruitment that are discussed
below-

 Promotion- This is considered as an upward movement of the employee from its present
job position to the higher job role that involves more pay and responsibilities. This can be
considered as a type of recognition and reward for the knowledge, efficiency and talent
which the employee has shown to the organization.
Strength: This approach motivates the workforce to give its best to the company as promotion
involves recognition for the knowledge and talent.
Weakness: In some circumstances promotion may damage the morale of other employees as
they were not able to get promotion due to their short period of service in the company.
 Transfer- This approach involves shifting the workforce from its present job role to the
similar other job role. It does not involve any kind of change in the salary, responsibility
and rank.
Strength: This recruitment approach helps in giving opportunity to the employees so that they
can gain wider and broader knowledge and experience in the company.
Weakness: This approach requires a lot of learning and adjustment on the part of employee and
the organization has to spend a lot of efforts and funds on giving training to the workforce for
their new job role (Brewster, 2017).
External approach
This recruitment approach involves hiring, recruiting and attracting the potential employee
from outside the company. There are different approaches of the external recruitment that are
illustrated below-
 Referrals- This is considered as a best way of recruitment. In this, the existing employees
make the reference of a candidate which they think are efficient for the company.
Strength- This approach of recruitment helps in attracting that candidate which is already being
made familiar with the working environment of the company by the employee which already
works so there is less chances that the new candidate will face any issues due to adjustment in
the organization.
Weakness- There may be instance when the recruitment through referral may result in loss of
skilled and talented workforce which may be attracted by any other method such as job
advertisement, campus recruitment, etc.
 Job advertisement- This external approach of recruitment mainly involves giving an
advertisement in the newspaper or other medium which includes the job description for a

particular position, skills required, qualities of the required employee and other aspects.
Strength- This approach may help in finding a potential candidate in an easy manner as there are
pools of applications that are attracted for a particular job advertisement.
Weakness- Sometimes this external approach is not favorable for the company as non-worthy or
the irrelevant candidate may be attracted for a particular job position (Roldán and Cabrales,
2019).
Selection
It can be defined as a process of recruiting and identifying a candidate in order to fill a
vacancy in the company. This mainly involves the process in which the requirements of
organization are matched with the skill set and qualification of the candidate. British Airways can
use any of the following selection approach so that it can select, recruit and hire the best
candidate for its organization. Different approaches of selection are discussed below-
 Personality test- This selection approach involves measuring the personality features or
characteristics of a person that relates to the future performance of the job role. It
involves taking a test of the candidate relating to its personalities so that the inner
strength and weakness of the candidate can be identified.
Strength- This approach helps in recruiting the suitable employee based on its personality
assessment result. This also helps in identification of the interpersonal characteristics of the
workforce.
Weakness- This approach of selection may be time consuming and expensive for the
organization and may result in delayed hiring due to conducting the test.
 Interview- It is that approach of selection which is conducted in the company and is used
in determining as to whether the employee is fit for the job position or not. It involves a
face to face interaction between the employer and the candidate so that the employer can
identify the needs and requirements of candidate and match it with its job role that is
being offered.
Strength- This approach helps in getting the response rate in a better way than any mail question
as the practical knowledge is tested with the face to face interaction.
Weakness- This approach is also time consuming which may result in the delayed selection of
the workforce (Abernethy and et. al., 2020).

P3 Benefits of different HRM practices in a company for both the employee and employer.
The human resource management consists of those practices which help in establishment
of the framework which is required in managing the people. These practices include everything
from recruiting the workforce to ensuring that its performance is managed in an effective manner
and they are being provided with a healthy and positive environment of working. British Airways
uses different HRM practices in its working so that the employees are managed in an effective
and efficient manner. Some of the practices of HRM are illustrated thereunder-
 Training and development- This practice of HRM mainly requires giving sufficient off
the job and on the job training to the workforce so that they are being given an
opportunity to make improvement in their existing knowledge and skills and help them in
developing new set of skills that may help in performance of job roles. As development is
considered as a lifelong process and is not only specific to the job role rather it helps in
the overall personal and professional development of the workforce (Mohamed Imhmed
Abuazoom, Hanafi and Bin Ahmad, 2019).
Benefit to employees
This practice helps in enhancing the job
satisfaction and morale of the employees so
that they can contribute in an efficient manner
for achieving the organizational goal.
Benefit to employees
This practice helps in enhancing the
productivity level of workforce which may
result in less errors and quality work in order to
bring a positive outcome from them.
 Performance management- This human resource management practice helps in keeping
a check and monitoring the working of workforce so that their productivity and efficiency
level is enhanced. This practice includes providing regular feedbacks to the employees in
respect of their performance so that they can make timely improvements in it. Moreover
it encourages the communication channel between the employer and employees so that
the workforce can ask any issues or doubts in respect of their work so that their efficiency
is increased. British Airways make sure that its HR manager managers the working of
every workforce so that they can move towards right direction in accomplishing the
predetermined goals (Greer and et. al., 2017).
Benefit to employees
It mainly helps in making a clarification of the
Benefit to employers
It helps in reducing the conflicts among

expectations of the employees and also
encourages job satisfaction among them.
employer and employees and ensures that there
is efficiency and consistency in the
performance of employees.
 Reward management- This practice of HRM involves implementing such strategies and
policies which can help in providing rewards to the employees of the organization in a
fair and consistent manner. Providing rewards to the employees helps in making them
feel valued and also motivates them to perform effectively. Giving rewards and
recognition to the employees boost their morale and enhance their productivity so that
they success rate is increased and the business can flourish. British Airways ensure that
they provide rewards to the workforce by way of recognition, bonus and other modes so
that they can give their best (Benny and Abraham, 2020).
Benefit to employees
It mainly helps in boosting the confidence of
workforce to give their best.
Benefit to employers
It helps in enhancing efficiency and
productivity of employees.
P4 Evaluation of the effectiveness of different HRM practices in terms of increasing
organizational productivity and profit.
It is very essential for the organization to ensure that its HRM practices are aligned
towards business and its goals. Moreover it is also important to make sure that these HRM
practices are effective enough to contribute in fulfilling the purpose of the organization. British
Airways uses the HRM practices in its workplace so that the employees are managed effectively
and their productivity is enhanced. The effectiveness of different HRM practices are discussed
there under Training and development- It is that practice of HRM which helps in making the
performance of every workforce better as it focuses on inculcating such abilities and
building such skills that can help in working and completing the task in easy and quicker
manner. Training and development ensures that there is improvement in the skills which
will help the workforce to work in an efficient manner so that the goals of the
organisations are achieved as the employee has become capable in performing its job
role. When there is timely and regular training being provided to the workforce in British
Airways, it helps in enhancement of overall productivity of the organization which results

in accomplishing the organizational goals well on time and also results in decreasing the
employee turnover rate. Performance management- When there is an effective system for the performance
management, it helps in making sure that the objectives at individual level are aligned
with the overall goals of the firm so that the individual, team and the company’s
performance is enhanced. This practice enables the workforce to grow and develop their
talent and ensures that there is an improved channel of communication among them. This
not only helps in enhancement of organizational profitability and productivity but also
helps in accomplishing the targets of the business. The HR manager of British Airways
monitors continuously every employees performance and set their short term goals so that
they can become challenging. Further the regular feedback from the employer helps in
improving the working of employees that contribute in raising organizational productivity
(Lansbury and et. al., 2020).
 Reward management- This is considered as an important aspect for raising the
organizational profitability and productivity as it helps in motivating the workforce to
give their best. Giving rewards not only boost the confidence and morale of employees
but also contributes in increasing their productivity level which helps in achieving the
overall business objectives. The HR manager of British Airways develop and implement
such strategies and policies which are aimed to provide equitable and fair rewards to its
people so that their performance is enhanced and they feel recognised and valued. This
not only helps in raising the productivity of overall business but also helps in increasing
the profitability of the company.
CONCLUSION
HRM is the important practice in every workplace at it helps in management of
workforce in an effective manner. There are various approaches of recruitment which includes
internal and external and many selection approaches which can help in hiring the talented and
potential candidates in the workplace. There are different practices of HRM which includes
recruitment and selection, training and development, performance management, reward
management and many others.

PART 2
INTRODUCTION
Every organization has the human resource department which is entrusted with the task
of managing the personnel in order to make them motivated so that they can give their 100%.
The main role of HR is mainly to recruit and hire the efficient employees, reward them for their
performance, provide sufficient training and development and managing their performance so
that their productivity is enhanced. There are many legislations being formed to protect the rights
of employees from any exploitation. Every legislation framed helps in motivating the employees
and enhancing their efficiency so that they can contribute to achievement of organizational goals.
This part shall cover the importance of workforce relations, employment laws and application of
HRM practices.
P5 Analysis of the importance of employee relations in respect to influencing decision-making of
HRM.
When there is a healthy and positive relationship between the employer and employee,
the organization gets many advantages from it. It is proved that the workforce which have the
respectable relationship with its managers are tend to be more productive, loyal and happy. As
the businesses are striving to become more transparent, agile and faster and for this reason they
are focusing on building the effective communication channels. The main aim of good employee
relation is to improve the relationship and collaboration at the workplace (Flubacher, Duchêne
and Coray, 2017). There are many advantages being attached with the employee relations that
British Airways can also enjoy when it makes effort in building the good employment
relationships. The importance of employee relations for British Airways is discussed below Reduced workplace conflict- The organizations which has less conflicts and more peace
are more likely to get benefited from strong and positive relationship of employer
employee as it results in decreasing the conflicts which in turn helps in productivity
enhancement and is aimed to bring harmony at the workplace. Whenever any conflict
arises in the business between employer and employee, the HR manager of British
Airways must take such decisions that are beneficial for both the employee and company
and their relationship is enhanced in order to bring positive environment at the
workplace.

 Loyal employee retention- As a business cannot afford to lose its valuable workforce so it
is important that the employer has amicable relation with the employees so that they do
not leave the company. There must be continuous efforts from the side of employer to
make its employees feel appreciated and comfortable so that healthy relationship is
encouraged. Moreover there must be such policies being made by the HR manager so that
there is clear communication among employer and employee so that the staff turnover is
decreased by creating healthy relationship.
 Increased productivity- The business that has healthy relationship between employee and
employer are more likely to be profitable and productive as it results in enhanced revenue
generation. The workforce feels more happy and energetic while working in such
environment and put there more efforts in order to achieve the business goals. The HR
manager of British Airways must appreciate the employer and employees efforts so that a
good relationship is built between them (Guest, 2017).
Hence it can be said that it is very essential for the organization to have a good employee
relation as it will result in less conflict and more of the positivity that can contribute in
motivating the workforce. Moreover this will help in enhancing the profitability and productivity
of the organization.
P6 Identification of the key elements of employment laws and its impact on HRM decision-
making.
As the employees are considered as the asset of the organization so it is very important to
provide them with many rights so that they are not exploited. There are various legislations being
made for protecting the employees so that they can get protection from any kind of exploitations.
These laws influence the decision making of the human resource management in British Airways
(Bhowal and Saini, 2019). These are narrated below Employment rights Act, 1996- This statute is framed to give the workforce several rights
against wrongful dismissal, unfair dismissal, redundancy, and many others. HR manager
of British Airways must make sure that there are such policies and procedures at the
workplace that are aligned with this statute so that no employee is dismissed wrongfully
or unfairly. This law mainly influences decision making of HR as every decision made by
HR manager that relates to conflict or other things must be aligned with this law so that
the rights provided by the legislations are enjoyed by the workforce.

 National minimum wages Act, 1976- This law is mainly designed to impose a mandate
the employer to give minimum wages to every workforce for which they are entitled.
There has been minimum wage is being fixed by the law for every employee and there
must be compliance of it in British Airways. The HR manager of the organization must
make sure that its decisions relating to the salary and wages of the employees are aligned
with the statutory requirements so that this law can be complied with.
 Health and Safety at Work Act-, 1974- This law ensures that there is healthy and safe
environment provided at the workplace as it imposes a duty on the employers to take
such measures which ensures that there is employee safety being maintained. A proper
training must be given to every employee so that they can protect themselves in case of
any accident or mishappening. The HR manager of British Airways must make sure that
it has such strategies and policies that relates to the legislation and its every decision must
be in favour of maintenance of health and safety of the employees (BHATT and
SHARMA, 2019).
Thus, it may be said that it is very essential for every business to comply with the legislations
relating to employment so that the needs of the employees and the organizational goals are
balanced. All the above mentioned legislations mainly impose or mandate the British Airways to
comply with it and its decision must be aligned with the enforcement of laws. The HR manager
must be under the influence of these statutes so that it can comply with it and do not face any
hardship in the future due to the non-compliance.
P7 Illustration of the application of HRM practices in the work-related context, using particular
examples.
Job description
Details
Job Role - Marketing Manager
Company – British Airways
Purpose of Job
The marketing manager must be required to undertake the preparation of marketing strategy so
that sales volume of the firm is enhanced and more passengers are attracted. The marketing
manager is also needed to identify the needs and requirements of passengers in marketplace.
Roles & Responsibilities
 To develop effective strategies for undertaking marketing activities.
 To carry on sufficient research of marketplace.
 To handle the workforce and the consumer needs.

Personal Specification
Position- Marketing Manager
Company- British Airways
Attributes Essential Desirable
Education & Experience  The candidate should
have been Post
graduated with
specialization in
marketing.
 The candidate must
have the degree of the
bachelors from any
recognized University.
 The applicant must
have minimum 5 years
of experience in same
job position.
Skills and Knowledge  Verbal communication
skills
 Problem solving skills
 Creativity skills
 Information
technology knowledge
 Research skills
CV
Name: Anderson Pieterson
Gender: Male
Date of Birth: 15-07-1995
Qualifications
Master in Business Administration from the London University
Bachelors in Business Management from the Regent College London.
Experience
 2018- Present: Assistant manager in marketing in Tesco.
 2015-2018: Assistant marketing manager in Sainsbury Plc.
 2013-2015: Salesman in Morrison
Skills
 Excellent skills in communication.
 Problem solving skills.
 Decision making skills
Interest and hobbies
 Playing cricket
 Listening music

I hereby declare that the above mentioned information is true to my knowledge.
Date:
Interview Questions
 What are your hobbies and interest?
 What is your past experience in working?
 As per your perception, what are the marketing trends in the field of marketing?
 According to you, what is responsibility and role of marketing manager?
Offer letter
Mr/Ms,
Name
Postal address
City and State Code
Dear Mr Anderson Pieterson,
British Airways is happy to communicate to you that you are selected for a job role of Marketing
Manager in our firm. This will be the full time employment to you so you are obliged to give
your 48 hours/week for the performance of your job role. The salary package offered to you is
€68,000/ year.
You are also been eligible for various other benefits and the joining date will be 1st July, 2021.
For any other assistance and queries, feel free to contact anytime.
Sincerely,
Head,
HR-Department
British Airways

____________
I hereby accept the job position of Marketing Manager.
_____________________________
Signature of the candidate _____________________________
Date ----------------------------
Process of Recruitment and selection
Figure 1Recruitment process, 2020
From the picture above, it can be said that British Airways can opt this process for hiring
the marketing manager. It includes at the initial level to identify need of the job position and then
preparing the job description. Then the HR has to plan recruitment of it and select the type of
approach. Then it will place the advertisement for attracting candidates and the best one will be
called for next step which is interview. Then after this, the offer letter is provided to the final
candidate and finally the worker joins the company (Shenoy and Uchil, 2018).

CONCLUSION
It is concluded from this report that there are many laws enacted for the benefit of
workforce that influences decision making of HRM like health and Safety at Work Act, National
minimum wages Act and many others. Thus every HR manager of the organization must ensure
that there is employee management in an effective manner so that its productivity is increased
and they all are motivated to give their best for the success and growth of the organization. The
employees relations act as a source of enhanced productivity and performance as it create
positive working environment.

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