Significance of Employee Relations in HRM Decision-Making

This article discusses the significance of employee relations in influencing HRM decision-making. It explores the importance of healthy relations between employees and employers for achieving organizational goals and objectives. The article also highlights the stages of the HRM decision-making process and strategies for developing good employee relations.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Discuss the purpose and functions of HRM ........................................................................1
P2. Explain the strengths and weaknesses of different approaches to recruitment and selection
.....................................................................................................................................................2
TASK 2............................................................................................................................................4
P3. Explain the benefits of different HRM practices within an organization.............................4
P4. Evaluate the effectiveness of different HRM practices in terms of raising organizational
profit and productivity.................................................................................................................5
TASK 3............................................................................................................................................6
P5. Discuss the significance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................6
P6. Assess the prime elements of employment laws and the impact upon HRM decision-
making.........................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management (HRM) is the function of HR department which is the
administration of the employees working in the organization. It involves activities like recruiting,
hiring, deploying and managing the human capital. The role of HRM is the most crucial for the
success of the business as it chooses the best candidates who are eligible to perform the tasks. In
this report, Marks and Spencer has been chosen which is located in London, United Kingdom.
Furthermore, this assignment includes purpose, functions of HRM, strengths and weaknesses of
various approaches, benefits and evaluation of effectiveness of kinds of HRM practices, analysis
of importance of employee relations, identification of key elements of employment legislation
and application of HRM practices (Noe and et. al., 2017).
TASK 1
P1. Discuss the purpose and functions of HRM
Human resource management has been defined by Bratton and Gold as “a strategic
approach to managing employment relations which emphasizes that leveraging people's
capabilities is critical to achieving competitive advantage, this being achieved through a
distinctive set of integrated employment policies, programmers and practices.”
Hard and soft model of HRM
Hard HRM model have been developed to focus on performance management, forming
strategies for achieving organizational goals, cost control and activities like hiring, moving and
terminating. On the other hand, soft HRM model considers employees as the prime resource
which can be used in the organization for gaining competitive advantage. Determination of
expectations of employees, providing training to them, development, commitment, motivation
and many more are included in this (Bratton and Gold, 2017).
Workforce planning
It is the process for making sure that there is adequate pool of talented candidates by
which current as well as future needs of hiring employees can be fulfilled. It is a part of strategic
planning in which is done by considering the overall objectives of the company .
Resources of an organization
Resources are categorised into financial having the characteristics of money or which can
be expressed in money. Non-financial refers to those which does not involve the element of
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money. Human resource belongs to the second category wherein the HRM employ candidates on
the basis of their skills and capabilities and are treated as the lifeblood of the entity.
Purpose of HRM Right people- In this purpose, HRM is responsible in finding the suitable candidate for
the job positions taken place within the organization. With this, the efficiency and
productivity of the business are increased (Mondy and Martocchio, 2016). Right time- There has to be a particular time for choosing the candidates as it involves
huge costs and budget has to be made plus it is a time consuming process. Hence, unless
and until the demand has arose, HRM of Marks & Spencer should not hire employees. Right competencies- The candidates who are being considered for the company should
have required skills and competencies according to job positions. Right place- The chosen employees should be given the job tasks or placed in the job
positions in which they can use their skills, ideas and efficiency to contribute to the
success of Marks & Spencer.
Functions of HRM Recruitment- It is the process of finding the candidates and encourage them to apply for
the jobs in the entity. It is the beginning of the whole activity. Selection- It is related with selecting the right person who is eligible for vacant job
position. Interviews are conducted to know in detail about the capabilities and make
decision accordingly. Training and development- Training is the process of providing information to employees
with a view to educate them. This helps in increasing the skills, attitudes and better co-
ordination within each other (DeCenzo, Robbins and Verhulst, 2016).
 Motivation- It is an element by which HR manager encourage selected individuals to
perform in order to achieve the goals and objectives efficiently and effectively.
P2. Explain the strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection are two activities of HRM which are associated by
identification of job, analysing the requirements of position and giving advertisements regarding
the job vacancy. There are different approaches which are as follows: Competency approach- This approach is about choosing the candidates having the
capacities and capabilities present in them who can perform the tasks given to them for
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achieving the goals and objectives. This involves analysing the behaviour and
characteristics of a person for producing desired results which can help Marks and
Spencer gain profit. The strengths of this approach are potential candidates can be chosen
in the company which are capable of fulfilling the goals and objectives. The possible
weakness can be that it is useful in meeting the needs of current environment.
 Contingency approach- This approach is based on projects that are taken by the
companies. The employees are appointed as per the requirements of the project. There is
no regular requirement of hiring the candidates and is limited to certain occasion of
choosing the employees (Chelladurai and Kerwin, 2018). The main strength of this
approach is that best employees can be selected for the project who are able to perform
the tasks allotted to them. On the other hand, weakness could possibly be that amount of
costs involves in this are huge which ca affect the business.
Recruitment can be done by considering different sources which are as follows:
 Internal recruitment- It is that type of recruitment in which the business search for
candidates within the organization. The employees are promoted to senior positions in
order to fill the vacancies.
 External recruitment- It is completely opposite to internal as the employees are selected
outside the organization. It is useful in getting fresh talent who have innovative and
creative ideas which can be used in the organization.
 Job analysis- It refers to the process of collecting the information regarding the
requirements of the employees and analysing them for the job positions.
 Job descriptions- It means a document which consists of duties and responsibilities that
are expected to be carried by the candidates who are applying for the jobs.
 Personal specification- It describes the qualifications, skills, experience and knowledge
that must be possessed by candidates in order to perform the duties. Competency frameworks- It is a model which comprises of the values and behaviours
that should be there in the employees (Brewster, 2017).
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TASK 2
P3. Explain the benefits of different HRM practices within an organization
HRM practices are the actions taken by the HR department for the management of the
employees in an effective way. One of the main tasks is that, human resources are utilised
optimally for achieving the goals and objectives of the company. Its benefits are as follows:
Benefits for employees
Productivity- HRM practices are helpful in making the employees use their skills, ideas
and knowledge in such as way by which goals and objectives can be achieved efficiently. Also,
workforce is able to do the work with reduced errors and mistakes.
Profitability- HRM practices help the employees in following the strategies formulated
by HR manager in order to make them perform well. With this, people working in the
organization can get development opportunities by providing training and development to them
to motivate them to work well to make profit (Sparrow, Brewster and Chung, 2016).
Learning- Employees are required to keep updated about the changes that are taking
place outside the organization and have impact on the people working in the organization. This is
a continuous activity which is done through effective HRM practices helping the employees
learn more.
Development and training- HRM practices provide the right guidance to employees
through training by which people working in the organization can be developed professionally.
Workforce get adequate opportunities for growing in the profession they are currently working
in. In this way, goals and objectives can be achieved efficiently.
Benefits for employer
Productivity- With the use of HRM practices, employers can make the workforce
complete their work within the time limit allotted for each tasks. In this way, Marks & Spencer
can increase the productivity for making the production double and increase sales.
Profitability- Employers use the HRM practices for motivating the working people to
contribute to the overall goals and objectives of the company. This is done through rewarding
them with monetary as well as non-monetary benefits.
Learning- HRM practices comprise of different approaches which can be followed by the
employer so that employees can learn new things. In this way, workforce is made to try new
things in the existing working pattern.
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Training and development- The HR manager can provide training to employees for
incorporating changes. Also, it helps in improving the available knowledge which can be applied
in the working for attaining the objectives.
Flexible working options refer to switching the working hours which are non-traditional
according to job requirements, structures and locations. Every employee should be given this
choice to in order to retain them in the organization for a long time. The likely benefit of the
same for the employer is that staff feel encouraged to come and work at the workplace. In the
context of employees, it helps the having a secured future by changing the jobs which have
greater chances of professional growth (Brewster and et. al., 2016).
P4. Evaluate the effectiveness of different HRM practices in terms of raising organizational
profit and productivity
HRM practices comprises of number of practices which have been discussed below along
with their evaluation of the effectiveness:
Performance appraisal- It is the process which involves reviewing of the output given by
employees in the overall contribution to a company. It is alternatively known as annual review,
performance review or evaluation. The performance of each individual is measured on the basis
of feedback and rewards are given accordingly. It is effective in keeping the members motivated
for doing their work efficiently.
Career management- It is about planning the activities and involvement in the jobs for
providing them better opportunities so that they can fulfil their needs and goals. HRM practices
are used within the organization for helping the workforce study new course by which their
personal skills can be utilised for achieving the goals. The contribution it make is that employees
are given the guidance for choosing the appropriate career which can be explored further.
Training- It is essential for the development of employees by imparting them the required
information in order to make them more efficient. This practice of HRM helps in educating the
staff for improving their skills and competencies. It is effective in making the employees have
the required capabilities by which work can be performed with increased efficiency. With this,
Marks & Spencer can increase the skills of its workforce.
Reward system- This system is implemented in all the organizations irrespective of the
nature of its business. In this, employees are given rewards based on their performance. These
can be in the form of monetary as well as non-monetary and helpful in keeping them motivated.
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Marks & Spencer can help its staff perform their job with greater productivity (Reiche and et. al.,
2016).
Recruitment- It is the process by which candidates are chosen for the job vacancies in the
organization. It can be internally as well as externally depending on the choice of the
organization. In the context of Marks & Spencer, it can have suitable candidates for the job
position in the entity which can lead the company to make profit and higher sales.
TASK 3
P5. Discuss the significance of employee relations in respect to influencing HRM decision-
making
Employees should have good and healthy relations with the employers in order to form a
co-ordination for achieving the goals and objectives. Furthermore, HRM decision making
process is followed by HR manager in the organization. It comprises of various stages which
have been discussed below:
Stage 1- Identification of the needs of employees- This is associated with determination
of expectations of the staff in order to fulfil them (Stewart and Brown, 2019).
Stage2- Gather relevant information- The information should be gathered about the
problems and issues of the employees which so that appropriate decisions can be taken to resolve
them.
Stage 3- Identify alternatives- Different alternatives should be analysed which is suitable
for all the employees.
Stage 4- Choose alternatives- In this, the best option should be chosen which is
appropriate for all the staff and can help the company gaining the competitive advantage.
Stage5- Review the decisions which have been taken.
These are important in maintaining the healthy relations with the employer which help
them being in the company for a long time. This make them feel as if they belong to the
company and make their equal participation in the process.
Apart from this, there are strategies for developing good relations with the employees.
The same are as follows:
Involve team members- Employees are at better position to understand the things
happening within the organization. They are familiar with the policies, plans and strategies
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applied in the company. It becomes imperative to motivate and encourage employees for
participating in decision making and have two way communication. This helps in understanding
the expectations, needs and demands of the workforce in order to fulfil them. Furthermore, it
also helps in mitigating any misunderstandings and promote co-operation among all the team
members. Also, it should be direct, clear and relevant. Staff should be made to use written
medium for communicating with each other as there might be some things which the workforce
may feel hesitant to share. In this way, it can give outcomes which can be used within the
organizations. With this, increased transparency and accountability can be achieved. Apart from
this, the employer should provide different ways to the people working within the entity to
provide their views and ideas.
Recognition- It is one of the elements which motivates the employees to perform well in
organizational activities. Each one of the working people should be encouraged to complete tasks
which can meet the expectations and standards of the organization. If an employee perform abive
the expectations, should be praised and rewarded. This helps in retaining them for a long time.
P6. Assess the prime elements of employment laws and the impact upon HRM decision-making
Sex determination- in general term this law protects any individual in case such person is
brief discriminated on the grounds of them being a male or a female, generally in this male
domination society females where generally categorised to be uninformed. Now after certain
laws and this provisions women and men are considered same in eyes of law and discrimination
of any gender is non acceptable (Brewster, Mayrhofer and Morley, 2016).
Equal pay: the term is well explainable in itself . People are not discriminated here on
what case or gender they belong from this law says every two individuals working at the same
post shall be provided the same salary on the grounds of their work and shall not be judged on
any other grounds.
Disability discrimination: there are several people who have to suffer due to their
inability and causing damage in their body. These people are discriminated & eliminated on this
ground. The government has realised the fact that any person shall only be discriminated on the
matter of minds. Any physically challenged person might turn out to be very sharp in minds. On
such basis one shall not provide any discrimination or eliminate them from any cause.
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employment tribunals: these were created on the treaties which were created in old eras and were
formulated for the fact that keeping relation between two countries. These treaties are modified
with time and shall be described for correct employment in countries plus they will be
discriminated on any fact. In every government change these treaties are not closed or questioned
they can be modified but not revoked (Berman and et. al., 2019).
Data protection act: these were created so that people can save their internal and external
data either be on terotechnological levels or on written paper work. Technology these days is
used to corrupt and irrigate things on several terms and this law helps them in seeking the correct
evaluation and protect all their data.
TASK 4
P7. Illustrate the application of HRM practice in a work related context
Some of the practices of HRM which can be seen in the organisation are as follows:
Designing & placing of job advertisements: There are some aspects which h ave to be taken
care while a job advertisement is being prepared in company such as using a proper job title,
impressive introduction, repeat why a candidate should apply. Every job advertisement should
have a positive impact on any prospective candidates who is reading it. All the benefit and perks
of job must be clearly mentioned in that job Advertisement. This will help in inviting
applications from lot of competent candidates.
Advertisement is very important for the company to become popular in the environment and
need correctly provide guidance and collective reformative so that one can easily provide correct
guidelines and motivate themselves as per requirement. The main issue here is to comply as -per
the required details and the legit procedure.
Documentation of preparatory notes for interview notes and interview: Preparatory notes
play a very effective role in conducting interview and having effective results from it. Such as
what questions have to be asked, a laundry list must be prepared which should include various
details such as what all skills should be present in the candidate. Interviewer should be able to
clearly analyse the candidate from all prospects. This will help in ensuring effectiveness and
enhancing productivity in whole organisation.
Job offer to selected candidate: Job offer is the offer which is being made to final selected
candidate which helps in inviting the selected employee. This offer consists of various details
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with regards to overall responsibilities in job, detailed description of obligations of the candidate.
All relevant details are mentioned in this job offer which helps a candidate in understanding all
benefits and a confirmation of selection on behalf of company.
Job Offer Letter
Marks & Spencer
Waterside House, 35 N Wharf Rd,
Paddignton, London W2 1NW, United Kingdom
Dear Mrs. Stein
Marks & Spencer is pleased to extend an offer to you for the position of Finance Manager. We
believe you will be an excellent addition to our team and are very much looking forward to
having you on board.
As we discussed, your salary will be £84,000 per year and will be paid on a bi-weekly basis.
Additionally, we will provide full medical and dental coverage, a £200 per month transit
stipend, and three weeks of paid vacation. Your starting date will be January 5th, 2020,
provided you pass a background check and drug test.
Your employment with Marks & Spencer is at will and either party can terminate the
employment relationship at any time.
If you choose to accept this job offer, please sign this letter and return to us at your earliest
convenience. Please note that this offer will expire on January 1.
Please feel free to give me a call if you have any questions.
We look forward to welcoming you to our team.
Sincerely,
Lindsay Thompson
Vice President, Human Resources
Marks & Spencer
I hereby accept the Finance Manager position.
Signature
Evaluation of process of recruitment and selection: It is very necessary to evaluate whether
recruitment and selection process has been conducted in a fair manner. This is a tool which
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helps in making detailed analysis whether recruiter has selected a candidate according to
required needs of overall profile.
Recruitment and selection process- This is related to choosing the right employees for
the organisation according to the needs of the company. Every department may have some
vacant job positions which should be filled without any delay. Selection is to appoint those
candidates who have fit the eligibility criteria and passed different rounds.
Reward system- This is an useful way to keep the motivation of employees alive. For
example, blue collar workers perform actively after being rewarded with money. On the other
hand, people belonging to white collar are more into rewards such as recognition, promotion etc.
Job description- It is a document which explains scope, tasks, duties and responsibilities
that should be there in a person.
Job Description
Job Title Description: Finance Manager
Department: Finance department
Communications- Every individual should have good communication skills together with
fluency in English language; communicate with peers and supervisors in a respectful and
professional manner; exhibits mature behaviour in dealing with ambiguous situations.
Job summary- Provides advice to supervisors, and employees in respect to financial policies
and procedures along with determination of the aspect behind the formulation of financial
documents. Manage all the financial aspects of the company and produce year end reports of
profit and loss.
Essential duties-
 Formulation of plans, policies and procedures related to funds allocation
 Policies for different department in respect to the use of funds
 To provide assistance to the all departments
Person specification- It defines qualifications, skills, experience and knowledge
possessed by the person applying for interview.
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Person Specification
Qualifications: Post graduate in MBA by specialised in the field of Finance.
Experience: One year working in any UK based organisation as a manager by having exposure
in the aspects of areas of Finance. This includes all finance practice i.e. preparation of financial
documents to allocation of funds
Skills- Communication
Analytical
Problem Solving
Microsoft Word, Outlook and Excel
Leadership skills
Knowledge: Working knowledge of all financial law and legislation and its application in a
broader organisation context, its impact, risks, and application to meet strategic objectives.
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REFERENCES
Books and journals
Berman, E. M. and et. al., 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and et. al., 2016. International human resource management. Kogan Page
Publishers.
Brewster, C., 2017. Policy and practice in european human resource management: The Price
Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European resource
management. Springer.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Mondy, R. and Martocchio, J. J., 2016. Human resource management. Pearson.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Reiche, B. S. and et. al., 2016. Readings and cases in international human resource
management. Taylor & Francis.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Stewart, G. L. and Brown, K. G., 2019. Human resource management. Wiley.
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