Benefits of HRM Practices for Employer and Employee

This document discusses the purpose and functions of HRM, applicable to workforce planning and resourcing an organization. It explains the strengths and weaknesses of different approaches to recruitment and selection. It also explores the benefits of different HRM practices within an organization for both the employer and employee, and evaluates their effectiveness in terms of raising organizational profit and productivity.

Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation......................................................................................................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
................................................................................................................................................5
TASK 2............................................................................................................................................7
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee. ........................................................................................................7
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity............................................................................................................8
TASK 3............................................................................................................................................9
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making....................................................................................................................................9
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making. ..................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples...............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Human resource management refer as a process which is helpful in managing staff
member as well as functions of organisation. This is very important function of an organisation
as it helps in recruitment and selection of highly capable employee with in their management
(Albrech, 2011). HRM function focus in motivating employees in order to enhance productivity
of company. Chosen organisation for this report is Sainsbury company. This is one of the leading
company that is providing its offering in retailing industry. Sainsbury company was formed by
John James Sainsbury in 1969 and its headquarter is located in London, United Kingdom. This is
supermarket which is providing its services to different customers. This report includes function
or purpose of HRM and pros or cons of recruitment and selection. It includes different benefits
of HRM for employees and employers. Significance of employee relation is analysed as well as
different employment legislations with impact on HRM decision making.
TASK 1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation.
Human resource management
Human resource management refers to a process which includes hiring, selection,
managing employees of organisation, so that they can full fill requirements of business and help
in accomplishment of desired goals. Human resource department of Sainsbury is responsible for
effective workforce planning in order to direct and manage staff member. This includes different
activities for motivating and encouraging employees to enhance productivity and profitability of
respective company. Human resource management will lead to have significant impact over
organisation as well as its employees.
Introduction of Company
This is one of well-known supermarket chain that is offering its products and services to
different areas. Sainsbury is dealing in retail sector and its headquarter is located in London,
United Kingdom. This was established in 1969 and founder of this company is John James
Sainsbury. Mission- Sainsbury's mission is to become the first choice of customer by delivering
outstanding products.
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 Purpose – It's purpose is to offer food with great quality at right or fair price. Core Objectives – To improve organisational performance and productivity in order to
provide high quality products and services to customers.
Purpose of HRM
HRM department is a formal system that is supportive in managing organisation and its
people. This department is developed with the purpose of maximise the profits of business and
various purpose of human resource management is described below. Staffing needs- Human resource purpose in to meet with the staffing needs of Sainsbury
(Armstrong and Taylor, 2014). This is helpful in managing workforce and planning it in
appropriate manner. Improving performance – This department is crucial for enhancing the performance of
employees by providing proper training. Human resource is focusing on improving
capabilities of employees to perform better.
Functions of HRM
There are different functions of HRM department that is supportive in managing business
task as well as conducting its in better and effective manner. Key functions of HRM department
are mention below.
 Recruitment and selection – This function includes finding or hiring most capable and
appropriate employee for performing different activities of Sainsbury company in correct
manner. Training and development – It lead to improve the quality of work done by employees
by enhancing their skills and knowledge. HRM department is responsible for conducting
different activities in order to train its employees of respective company (Bratton and
Gold, 2012). Performance management – It is function of HRM department to manage overall
performance of employees in order to achieve set goals. By managing employee’s
performance of Sainsbury set targets could be timely achieve.
Roles and responsibility of HRM Compensation – Human resource management is responsible for providing proper
compensation to employees for their work. This is helpful in increasing job satisfaction of
employees and motivating them to perform better.
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 Improving productivity- It is responsibility of HRM department to conduct different
business activities that will lead to improve productivity of employees. HRM role is to
improve skills of employees so that they perform better.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection is major process in resourcing and managing employees. There
are different approaches of recruitment and selection process which are supportive in conducting
task and activities in better manner. Strength or weaknesses of approaches are mention below.
Recruitment
Recruitment refers to the process in which is helpful in attracting as well as stimulating
large number of candidates with in organisation. This is considered as the prospective process as
in this Sainsbury company is searching for capable and prospective candidates to apply for
vacant position of organisation. Recruitment process is helpful in hiring high qualified and
talented with employee (Campbell, Coff and Kryscynski, 2012).
Importance of recruitment
Significance of recruitment process is explained below.
 This is important in finding talented and well qualified employees with in organisation to
perform different task of organisation. Recruitment process gather large number of employees to full fill vacant position of
organisation.
Approaches of recruitment
There are majorly two approaches of recruitment such as internal and external. This is
helpful in attracting right employees towards respective company.
Internal approach – This includes the method of through which respective company can
influence and attract candidate to fill the vacant organisation position. In this Sainsbury
Company will hire employees who are working with in organisation in order to full fill different
job role. Internal approach of recruitment includes promotion, transfer, employee referral and so
on.
External approach – There are various external methods of recruitment that will support
in stimulating large pool of candidates with in organisation (Collings and Mellahi, 2011).
External approach of recruitment includes consultancy, their party agency, online portal and so
on. Though this method Sainsbury Company is able to find new and best candidates.
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Strength and weakness of recruitment approaches
Internal and external approaches of recruitment have various benefits as well as
disadvantages for Sainsbury company. Strength and weakness of recruitment approaches are
mention below. Strength of internal recruitment – Transfer is considered as very cost effective process
for organisation as Sainsbury company will be able to hire employees in less amount.
This will lead to motivate worker to grab better opportunity and help HR team in finding
better employee for organisation. Weakness of internal recruitment – Hiring employees through internal sources may lead
to impact on moral of employees. When more candidates apply to fill vacant
organisational position will affect moral of not selected employees (Guest, 2011).
Promotion and transfer method includes more favouritism and biasness in selection of
employee for particular position. Strength of external recruitment - Online portal is helpful in attracting more attracting
fresh and new skilled employees with in organisation. External method will lead to
influences highly talented and qualified employees to perform business task. Weaknesses of external recruitment – Walk in recruitment is riskier as well as time
consuming method for find employees. Sainsbury company needs to invest high cost in
order to attract candidates though external methods.
Selection
Selection is a process through company is selecting most appropriate candidate from
large pool of candidates. This is considered as negative process as through this Sainsbury
company will eliminate candidates at each process. Selection is very crucial process as in this
respective company can identity and select best fit for organisation.
Importance of selection
Selection is essential business process as through this Sainsbury company will be able to
place right employee at right place. This is important for filling vacant position in better and
effective manner in order to achieve desired goals. Selection process will support in matching
with business requirement.
Approaches of selection
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 Preliminary screening – This includes method of analysing and determining application
of candidate. HR department will be able to identify qualification and experience of
candidate through screening approach. Interview - In this method interviewer will communicate with candidate in order to
analyse skill and capabilities to perform business task. This approach will help in getting
in depth detail about candidate.
Strength and weakness of selection approaches Strength of preliminary screening – This will help in matching the requirement of
company with the capabilities of candidate (Huselid and Becker, 2011). Recruiter can
reject the application when candidate in not appropriate and save time of organisation. Weakness of preliminary screening – In this recruiter analyse candidate on the basis of
qualification or past experience of candidate. This cane lead to reject the candidate who
has capabilities to perform business task in batter manner. Strength of interview- This is important identifying the information about candidate in
detail. Through this approach Sainsbury is able to select best fit.
 Weakness of interview – Interview is time consuming process and interviewer should
have required skills to conduct this process correctly.
TASK 2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
There are different practices of HRM that is helpful in performing Sainsbury activities in
better manner. HRM practices are beneficial for both employees and employer as this will lead to
accomplishment of desired goals. Various HRM practices includes training and development,
motivation, rewards and flexibility (Wright and McMahan, 2011). All of these are considered as
major practices of HRM and its is helpful for Sainsbury employers and employees.
Training and development– This refers to the process of company which is focusing on
improving capability and potential of employees. Training and development includes various
ways through which company can improve skills and potential of employees. Training and
development will lead to enhance the quality of performance and attaining set goals.
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 Benefit for employee- Training and development will lead to improve the ability or skills
of employees. This is helpful to enhancing personality of employee as well as growth in
professional career of Sainsbury employees.
 Benefit for employer- By providing training to employees and developing their skills it is
easier for employer to guide or direct employees (Vaiman, Scullion and Collings, 2012).
This is important for employer as through this Sainsbury will be able to improve quality
of work and achieve set objective.
Motivation- Motivation is one of the basic practice of HRM as this support in
performing organisational task in better. This will lead to encourage employees for enhancing
capabilities of employees. It is very important for Sainsbury to motivate its staff member as this
is beneficial for employees and employers as well. Benefit for employee- Motivation is helpful for employees as it improves the overall
efficiency of worker to conduct organisational task. This will lead to encourage employee
to improve productivity. Employee will be able to meet with their requirements and goals
through effective motivation.
 Benefit for employer- This is helpful in developing better and strong relationship
between employees and organisation. Motivation will enhance environment of
organisation and resolve issues in effective way. This will support employees to correctly
manage employees and attain set targets.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity.
HRM practices includes motivation, performance management, training and development
of employees, health and safety of employees and so on. All of these practices of HRM is very
supportive in improve profitability as well as productivity of Sainsbury company. Effectiveness
of several HRM practices is mention below in detail. Motivation- Motivation is crucial activity of organisation as it helpful in encouraging
employees to perform task in better manner (Schalk, Timmerman and Van den Heuvel,
2013). Motivated employees can conduct organisational task in effective manner. This
company is motivating employees by providing rewards, recognition, appreciation to the
great work done by employees. Whereas other company motivate employees by offering
monetary benefits on target achievement.
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 Performance management- Performance management practice of company is supportive
accomplishment of set objective by providing proper direction to employees. Sainsbury
company is managing performance twice in a year in order to provide appraisal according
to the performance of employees. Other organisation manages performance of employees
on quarterly basis. Health and safety- HRM department is focusing of provide healthy environment to its
employees as this practice will support in improve the quality of employees work
(Renwick, Redman and Maguire, 2013). This company is following all rules and
regulation set by government to maintain health and safety of employees. Work force planning- This function of HRM department will help in forecasting the
need and wants of employee workforce. Respective company will be able to conduct
different task with proper and appropriate manner.
 Reward system- This HRM practice will lead to motivate employees as well as help in
encouraging their performance. Respective company will be able to improve performance
and productivity of employees by provide rewards.
TASK 3
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making.
Employee relations refers to the efforts that is taken by organisation in order to develop
better relations with employees. This is beneficial for organisation to enhance employees and
employer relationship in order to increase performance and productivity of company. Employee
relations will lead to have direct impact on decision taken by HRM department. It is very
essential for Sainsbury company to have strong employee relation in order to take effective
decision for HRM practices.
Enhancing trust – Employee relationship is helpful in enhancing trust in organisation as
well as better decision making. Respective company is providing flexible working time to its
employees. This is very supporting in enhance trust between employees and organisation.
Employee relationship will lead to increase trust of employee on the decision taken by HRM
department.
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Willingness to co-operate – It has been analysed that employee relations will lead to
increase the willingness of employees to co-operate (Ployhart and Moliterno, 2011). When
employee is contributing their skills and qualities in business decision making they will conduct
task more willingly. Employer of choice will support employees to take better decision and
perform task accordingly.
Resolving workplace conflicts – Employee relationship is very supportive in enhancing
work place relationships as well as resolving conflicts. It is significant for Sainsbury company in
engage employees with human resource decision making as this will aid in managing various
business issues properly. Sainsbury is flexible organisation that is considering the contribution of
employees in decision making. This will lead to decrease conflicts in respective organisation.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making.
There are different employment legislations have been made such as Equality Act 2020,
for improving position of labours in an organisation, therefore, it has highly affected the
decision-making process. Employment legislation includes different rules and regulation such
fair pay, wages and salary act, overtime act, that is developed for benefits of employees. It is
crucial for organisation to follow all rules and regulation that is developed by government in
order to smooth functioning of organisation. Different employment legislation and its influence
of decision making of HRM is mention below in detail.
 Anti- discrimination act, 1991 – This employment legislation focuses on right and fair
opportunity to employees irrespective to their age, colour, region, background and so on.
It is important for Sainsbury company to follow this legislation as it will lead to have
influence of performance of employees as well as affect the decision taken by human
resource management.
 Health and safety act, 2005 – This act is related to provide better and positive
environment to employees so that worker can focus on their performance and accomplish
set objectives. Sainsbury company is focus on maintaining the health of employees as
well as provide equipment to maintain safety of employees (Oechsler, 2011).
 Equality Act, 2010 – It is important for organisation to provide fair opportunity to
employees. This employment legislation will lead to have effect on the productivity of
staff member. It is crucial for respective company to offer right and fair opportunity to
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employees as per their skills and capabilities to conduct business activities. Sainsbury
company needs to offer fair opportunity to its employees in order to develop better
relationship with employees.
TASK 4
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
Job specification - This refers to the document which includes qualification and skills
that is required in potential candidate. It will help in selection of employees from large pool of
candidates.
Job Specification
Company – Sainsbury
Position – Marketing Manager
Qualification
 Masters in Management Administration
 Knowledge about marketing concept
 Online marketing information
Experience
 3 Years’ experience in marketing field
 Working experience in store
 Experience of online marketing
Skills and other requirement
 Effective communication skills
 Employees must be able to manage time and task in correct manner.
 Candidate needs to have delegation skills
 Decision making skills is required in potential employee.
Documentation of preparatory notes for interview, selection criteria
For judging the skills and knowledge of selected applicants from recruitment process,
management of Sainsbury prepare proper documentations. It includes interview questions, rating
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scale and others, for selecting the most suitable and capable candidate for performing business
task.
Interview questions
1. Tell me about yourself.
2. What are the different role and responsibilities of Marketing manager?
3. What are the current marketing trends?
Rating scale
Rating Values Score
Outstanding 9 to 10
Good 6 to 8
Improvement need 4 to 5
Unsatisfactory 0 to 3
Selection criteria
Candidate should at least score at least 8 out of 10 in communication for marketing
manager position. Time management skills is required to get selected and score must be above 6
to fill vancat position.
Job offer
JOB OFFER
Sainsbury PLC
Lever Buildings, 85 Clerkenwell Rd, Holborn, London EC1R 5AR, United Kingdom
February 15, 2020
Mr. Harvey Anderson
23, Baker street, London, UK
Dear Harvey,
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I am happy to inform you that you are selected for the post of Marketing manager in Sainsbury.
Your skills and knowledge are matching our requirements and we hope that you will be
valuable asset for the organisation in forthcoming time. Your date of joining is 15th March, 2020
and you have to report at our headquarters in London at 9 a.m. As per our discussion, you will
be joining at the post of Marketing manager. Human resource department will contact you for
other formalities.
We are waiting to Welcome you as a new employee at Sainsbury.
Sincerely,
Mike Ross
HR Manager
CONCLUSION
From the above report it can be concluded that human resource management is of the
crucial function of organisation. This is very helpful in managing performance of employees as
well as enhancing business profitability. HRM department purpose is to meet workforce
requirement and achieve desired goals of organisation. It includes different functions to improve
the productivity of employees by boosting their moral. This is helpful developing better
employee relationship and this will lead to have impact on human resource decision making.
There are various employment legislations that is helpful in meeting with employee needs as
well as providing them fair opportunity for career development.
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REFERENCES
Books and Journals
Albrech, S. L., 2011. Handbook of employee engagement: Perspectives, issues, research and
practice. Human Resource Management International Digest. 19(7).
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Campbell, B. A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage
from human capital. Academy of Management Review. 37(3). pp.376-395.
Collings. D. G. and Mellahi. K., 2011. Strategic talent management: A review and research
agenda. Human Resource Management Review. 19(4). pp.304-313.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M. A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K., and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Oechsler, W. A., 2011. Personal und Arbeit: Grundlagen des Human Resource Management
und der Arbeitgeber-Arbeitnehmer-Beziehungen. Walter de Gruyter.
Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations
influence decision making on e-HRM applications. Human Resource Management
Review. 23(1). pp.84-92.
Vaiman, V., Scullion, H. and Collings, D., 2012. Talent management decision making.
Management Decision. 50(5). pp.925-941.
Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
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