Importance and Purpose of HR Function in Companies

This report discusses the importance and purpose of HR function in companies. It explores various HR practices such as recruitment, selection, training, and performance appraisal. The report also provides strategies to motivate employees and improve HR management.

Unit 3

Executive summary
Human Resource Management is the strategic approach that is used by the company so
that it will help to gain high competitive advantages . The report main aim is to provide the
importance and purpose of HRM in different companies. Therefore, the current study describe
the ways how HR manage the entire work and also provide different strategies through which the
company motivate their employees as well. The report is based upon the case scenario of
Chocola Fantastica and Microsoft and this study helps to gain knowledge related to HRM.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION 1......................................................................................................................................1
a) Importance and purpose of HR function..................................................................................1
b) Advantages and disadvantages of recruitment........................................................................3
c) Two effective improvements for selection process.................................................................3
SECTION 2......................................................................................................................................4
a) Person specification for Receptionist......................................................................................4
b) Pros and cons of current methods of advertising jobs in Chocola Fantastica.........................5
c) Evaluating where the job advert of Receptionist is placed......................................................6
SECTION 3......................................................................................................................................7
a) Describing benefits of training scheme for Microsoft and employees....................................7
b) Evaluating the benefits of flexible working arrangements for staff to Microsoft and
employees....................................................................................................................................8
c) Describing how employee motivates its workers....................................................................9
SECTION 4....................................................................................................................................10
a) Employee engagement and its importance for a firm............................................................10
b) Evaluating the key approaches to engaging a workers..........................................................11
c) Describing the key element of UK employment legislations................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human Resource Management is the strategic approach that is used by the company so
that it will help to gain high competitive advantages (Saeed and et.al., 2019). This function
involves various practices like recruitment, selection, training, compensation, performance
appraisal etc. The current report's main aim is to provide high knowledge related to HRM
practices and determine the techniques that is used by the firm in order to maximize the
employee contribution with their advantages. The report is based upon the case scenario of
Chocola Fantastica which is the rapidly expanding firm in South Wales who provide handmade
chocolates as well as greetings cards in UK and recently the company faces issues related to not
recruiting the fair candidate for the vacant job profile.
Therefore, the report will describe the purpose and importance of HR function for an
organization. In addition to this, study describe benefits of training to organization and
employees and then evaluate the key approaches for engaging the workers at workplace.
MAIN BODY
SECTION 1
a) Importance and purpose of HR function.
Human Resource Management is the strategic approach that is used by the company so
that it will help to gain high competitive advantages (Saeed and et.al., 2019). This function
involves various practices like recruitment, selection, training, compensation, performance
appraisal etc.
Current problem:
The quoted firm faces the problem related to not recruiting the person in fair method and
as a result, the company did not attract good candidate for the vacant position and as a result, this
creates negative impact upon the business. Chocola Fantastica uses new method of recruitment
such as online interview that helps to attract wide range of public.
Future plan:
on the other side, the company also implement new training and development methods
that helps to enhance their current employees productivity. So that in near future, the firm easily
attain the aim and objectives.
Purpose:
The main purpose of human resource management is to assist the business organization
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to deliver the planned strategies and attain the goals of firm by managing the personnel and their
performance in effective way. The HRM also ensure about the production level of the company
is increases and company attain the defined goals and objectives in better way (Bratton and Gold,
2017). HR performs its functions to manage several and numerous requirements of the
company's staff and employees. Some functions with its significance to Chocola Fantastica are
discussed as under:-
Recruitment of Personnel-
It is the main role of HR manager of the organizations to fulfil the requirements of the
employees. The department of human resource is responsible for performing the staffing
function of management to ensure the steady growth of organization. The purpose behind
performing this HRM function is that the HR manager of Chocola Fantastica create
announcements related to position that helps the employees to identify their roles and the duties
regarding various job roles and further, identifying level of skills posses by an individual and if
they require any training then, this can be attain by providing better training and development
programs to them. This function of HR is significant for the organization as through this
procedure, Chocola Fantastica will get the best fit employees who further contribute in the
growth of the company.
Fair Payments-
It is a foremost concern of personnel to get fair remuneration for the work done. HR
department is responsible to make correct evaluation of the employees and pay them according
to their potential (Bratton and Gold, 2017). This function has its own importance in Chocola
Fantastica, as because through this, the company will resolve the problems of their employees
and as a result, they remain happy and on the other side, if the employees are treated well then it
will raise the goodwill of Chocola Fantastica.
Performance Appraisal-
It is a effective and systematic method that helps to determine the level of job
performance of the employee and their productivity in relation with certain standards or criteria
and objectives of the company (Noe and et.al., 2017). This process is also known as annual
review or employee appraisal. It helps to evaluate growth, achievements and skills of the
employee.
To appraise and evaluate the performances of employees in regular time interval for
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providing benefits or incentives on the basis of results of the evaluation will motivate the
personnel of Chocola Fantastica. This leads the employees to improve their performance and
increase their potential as well. It is significant for the firm as it assist Chocola Fantastica in
retention of the staff members in organization for long term.
b) Advantages and disadvantages of recruitment
The process which is currently preferred by the HR managers of Chocola Fantastica have
some merits and demerits as well, which hinders the growth of company. Advantages and
disadvantages of current selection methods are discussed as under:- Informal Chat as a
recruitment method: It is the informal method in which a casual conversation between the
hiring manager and an interested job candidate . Further it did not have any typical structure.
Advantages/Disadvantages of Informal chat as a recruitment method
Advantages of using this method is such that as the company's manager make casual
conversation between hiring a manager and some interested candidate. Moreover, they prefer
those candidates for interview, who have references of current employees of the firm, this is
beneficial for the company as they don't need to make extra efforts for background verification
of that candidate In Chocola Fantastica the HR follows the informal chat as a recruitment method
for the candidates, which has its own disadvantages (Saeed and et.al., 2019).. In this kind of
recruitment method, there are huge chances of candidates to get distracted from the interview.
Informal chats during the interview creates negative impression of the business concern in the
minds of candidates. The demerits of this informal chat might include the risk of revealing some
confidential information of the candidates and of the company as well (Saeed and et.al., 2019).
c) Two effective improvements for selection process.
Follow formal interview-
To improve the selection process Chocola Fantastica is suggested to make selection of
applicants on the basis of formal interview. The managers must pre-design the questionnaire
related to the vacant job so that most competent candidate can be the part of the company. To get
the best candidates for the announced positions, HR must use a well-structured interview to
make unbiased judgements among the applicants (Cascio, 2015). By this process, it becomes
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easy for HR mangers of Chocola Fantastica to make correct assessment of every individual,
lessen the chances of being biased in the process of selection. It is analysed that through formal
interview, the managers can analyse the presence of mind of candidates, another advantages of
following this way of interview is that managers can impose the positive image of the business
concern. That further help to analyse them which employee is best suitable for the vacant seat
Include another subjects in selection test method-
To make overall judgement of applicants the manager must include some other subjects
in assessment test. By testing only two subjects i.e; English and Maths, can't make fair selection,
and company can't decide the eligibility of applicants. Managers of Chocola Fantastica must
include subjects like; logical reasoning, general awareness and policy etc. by which they will be
able to make thorough assessment of the candidates. This process will allow the most eligible
candidate to be part of the organization. This allows the managers to assess vast range of talent
or skills of the applicants. Further, it will benefit the company to increase its performance with
the help of productive personnel and employees. So it is analysed that the Human resource
managers can plough the opportunities in candidates for business concern. By include more
subjects in assessment test, HR will be able to determine the skills of employees and helps them
to take better decision regarding assigning the applicants, the filling the vacant job position
(Stewart and Brown, 2019).
SECTION 2
a) Person specification for Receptionist
Person specification -
It refers to the description of experience, skills, qualification, other attributes and
knowledge that should be possess by the candidate to perform specific job role. Job specification
is derived from the description of job as it is the basis for the process of recruitment.
Criteria Essential Desirable
Educational
Qualification and
knowledge
 High school diploma.
 Knowledge of working in a
reception environment.
 Basic knowledge of IT and
literacy.
 Basic knowledge and
work experience of
electronic booking
system.
 Typing qualification.
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 Knowledge of Microsoft word
and Excel.
 Course in spreadsheet
application or word
processing.
 Experience in working
with computer
software.
Skills Ability to work as a team member. Organization skills.
Excellent communication skills. Decision making skills.
Ability to handle complaints of
customer in effective way.
Interpersonal skills
Attributes Approachable to customers. Desire for further training and
prospects of career
development.
High level of self motivation.
Flexible approach to work.
Others Ability to work in weekends.
Proficiency Must have a knowledge of Excel and
good problem solving skills as well.
Advance knowledge of Excel
and minimum 2-3 year of
experience of receptionist post
b) Pros and cons of current methods of advertising jobs in Chocola Fantastica
Currently, Chocola Fantastica uses internal circulars and noticeboard outside to the
external wall of main site of entrance for posting job advertisement of Receptionist. Therefore,
the advantages and disadvantages of these method are as mention below:
External wall
Pros: Using external wall as a method of job advertisement is consider as a time effective and
cost effective method and also helps to identify the right audience for the vacant position. Such
that if the company is a customer oriented company then it helps to determine the right
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candidate. Moreover, it is the legal document with the designation of an authority that helps to
determine the exact vacant position. Through this method, anyone may apply for the vacant seats
Cons: disadvantage of this method is such that written communication is prefer to oral
communication and even it is consider one of the old form of communication with such a basic
form of structure that generally people did not review. That is why, most of the people get
distorted as well. In addition to this, using external wall as a method of job advertising has
another disadvantage such that it did not describe entire information which sometimes may leads
to wrong information and creates negative impact as well.
Notice board:
Pros: Using this method, the quoted firm will easily find a right candidate for the right
job and it can be easily assess by 24 hours to other candidates. Moreover this method is not so
expensive affair to opt for (Noe and et.al., 2017). Such that the HR manager of the company will
easily search the candidate who want to connect with the firm.
Cons: Using noticeboard as an external advertisement method also have disadvantages
such that company receive limited number of potential aspirants and applicants for the
receptionist job position. Further, using Notice board as a job advertisement consumes time in
order to connect with other candidates. Though this, job positing method is a sensitive method
and many other organization also uses the same method as a external method of recruitment, so
that the new candidate may join the company so that they assist to attain the defined aim and
objectives. That is why, it is also consider the suitable method to attract new candidate within
the working place.
c) Evaluating where the job advert of Receptionist is placed
It is to be recommended to the Chocola Fantastica to place the Job advertisement for a
Receptionist in below mentioned place:
Social Media: It is another tool that may be used by Chocola Fantastica because most of
the person uses social media such as Facebook, Twitter. In these social sites will help them to
reach wide range of public (Bratton and Gold, 2017). These sites also boost the visibility and
also consider the biggest attraction factor for the interested candidates. Another benefit of
posting the job advertisement in social media is such that it shorten the hiring time and reduce
the cost of hiring as well. Not only this, the social media also helpful to create better employer
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brand awareness so that the company gets the higher candidates in order to fill the vacant
positing i.e. Receptionist.
Job posting sites: It is further recommended to the firm that they may also use free job
posting sites such as Indeed, jora, seek etc It is so because these did not take any cost in order to
post the jobs into sites. For that, company only needs to use dynamic content so that it will easily
attract wide range of audience towards them. In the same way, Chocola Fantastica also post this
job advertisement into different job posting sites in order to select the best candidate for the job.
Using these two method, the company attract wide range of people towards them and
even it is free of cost, further, in this era, most of the people uses these sites for finding job. That
is why, it is recommended to the firm to use these advance technology for post vacant jobs.
SECTION 3
a) Describing benefits of training scheme for Microsoft and employees
Microsoft provide training scheme such that online Training programs and Internship
programs such that Microsoft Early Careers Intern Program and there are different benefits of
using the same for the firm as well as employees, which are as mention below:
For organization:
 Providing internship programs to employees will generate community footprints and
brand recognition, through which the company may easily sustain the brand image in
market.
 Having an Internship programs also reduce the overall employee workload and
increases the productivity as well as retention, that directly creates positive impact upon
the firm (Benefits of Internship programs in company, 2018).
 On the other side, providing effective training programs will helps the firm to increase
job satisfaction as well as morale among employees. That helps to retain them in the
working place for long term.
 Graduate Training scheme also help an organization to generate new and advance ideas
that helps to stay company competitive in the market. by providing effective training
programs to their employees will help to enhance Microsoft's image that helps to attract
other candidate as well.
For Employee:
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 Through an internship programs, an employee will explore the career path in which
they can acquaint themselves in which they are interested.
 Internship and training experience also develop and refine skills that will further help
them in their future and it also help to receive Financial compensation as well (Cascio,
2015).
 Using effective Graduate Training scheme, employee can start a good level of support
to start their career. Further, it also provide an opportunity to study for the professional
qualification as well. Therefore, Training programs improve the efficiency to the
employees so that it will help to attain the outcomes. So that well trained employees
directly increase the overall performance that further raise the production level of
company.
 On the other side, through training programs, an employee develop confidence which
assist to increase innovation in strategies and products that directly help to gain financial
outcomes.
b) Evaluating the benefits of flexible working arrangements for staff to Microsoft and employees
Flexible working programs are provided by Microsoft in which they provide greater
scheduling freedom to their employees. This arrangement includes Flexible time, compressed
work week arrangement, work sharing, expanded leave, phased retirement, work and family
programs and last telecomputing with the employees. So that the employees, feel stress free
working environment and also enhance their productivity level which directly creates positive
impact upon firm. There are different benefits of providing flexible working arrangements for
staff which are as mention below:
For organization: Flexible working arrangement helps to save extra expenses which directly
enhance the financial position of Microsoft. Further, through this, company increase employee
morale as well as engagement so that they directly meet the defined goals in specified deadlines.
On the other hand, it also helps in employee retention that is one of the important key element
and as a result, it also enhance the production level of the firm as well as creates brand
recognition within a market (Advantages of flexible working arrangement in company, 2018).
That is why, it is further evaluated that it is quite necessary for Microsoft to offer the flexible
working arrangement to their employees. Further, through this, company's management system
will be easy and the entire workforce will work without any stress.
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For employees: flexible working arrangement helps the employees to work when they
accomplish the most so that they will enjoy the same. Further, it is also evaluated that the
employees also gets an increased feeling of personal control over the prescribe schedule and
working environment. As a result, these flexibility also help to stay employees happy and as a
result, absenteeism also decreases that directly affect the performance of an organization in
positive way (Noe and et.al., 2015). Moreover, it also builds mutual trust and respect with each
other and generate further development option, even the employers are also able to get benefit
from the loyal employees.
c) Describing how employee motivates its workers
Microsoft is regarded as one of the most motivating environment as compared to their
competitors such that it regularly provide training and development session to their employees in
order to provide different opportunities on Microsoft Learning.
Job rotation: It is the technique in which the employees rotate between the job in the
same business. Therefore, in this, the employee take new task at different period of time. The
quoted firm mainly focus to increase the morale of their employees and that is why, it offer
online and offline training session to their workers and also set deadlines and offer the rewards
system in the form of monetary and non- monetary rewards. Advantages of using this method is
such that it boost the satisfaction and also keep away all fraud practices. On the other side, it is
evaluated that it leads to encourage job generalization rather than speciality.
Job enlargement: It is another motivating strategy that Microsoft uses such that in this,
the company increases the scope of job by extending range of job duties and responsibilities. On
the other side, Microsoft also redesigning their jobs by applying some motivational theories
which further help them to improve the productivity and increases the satisfaction level as well.
Moreover, the company also create flexible working staff arrangement which further permit the
employees to set as well as control their own work hours (Sparrow, Brewster and Chung, 2016).
Advantages of using this method it generate extra earning opportunities to their employees that
helps to motivate them, On the other side, it is evaluated that it increase workload that lead to
demotivate their employees.
Job empowerment: It is the management strategy that a company uses in which the
company provide tools and resources in order to make them confident decisions at working
place. For example, telecommuting that helps an employee to work outside the office location.
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Therefore, it clearly shows that the quoted firm uses variety of techniques in order to keep
motivating their employees so that they will attain the defined aim and objectives. Pros of using
this method is such that it improve the quality of work and raise productivity and further, it
decrease the morale of old employees.
Delegation: Microsoft also delegate the duties and responsibilities to their employees as
per their skills so that it will help to remain them accountable for the results of the delegated
work. On the other side, the company, provide classroom learning in order to enhance their
employees productivity level. Further, to motivate their employees, Microsoft also promote their
employees so that they will enhance their employees productivity level (Motivational strategies
of Microsoft, 2018). Advantage of using this method is such that it improve the time
management skills that helps to increase the motivation level. On the other side, it is evaluate
that it may leads to create morale issues.
SECTION 4
a) Employee engagement and its importance for a firm
Employee relation is that concept that helps to understand the relationship between
organization and employees. So, it also refers to the company's efforts to manage the
relationship between employees and employers.
Therefore, employee engagement indicates how happy the employees are within the
working area, and by engaging them will increase the level of motivation as well. In this modern
era, every company used effective strategies in order to keep their employee engage. That is
why, Microsoft also expect all the employees to be held accountable in order to deliver the best
results as well as minimize the resistance within the firm (Berman and et.al., 2019.).
Importance of employee engagement:
In this competitive era, employee engagement becomes an important part of an
organisation because engaging employees and understand the purpose and problems will help to
keep engaging them within a working place. Therefore, this leads to better decision making as
well as helps in attracting and retaining top talent as well. On the other side, employee
engagement is key element in Microsoft because it helps to boost the productivity level of the
employees and also leads to increase customer satisfaction as well (Stewart and Brown, 2019).
Benefits of employee engagement:
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Thus, as a result, it also leads to enhance company's culture that helps to stay employees
happy and positive. Further, engagement is the symptom of success and using employee
engagement not only mean that to enhance their productivity but to realize that their work
matters and also they feel valued too. It is so because when their success are recognized,
employees of Microsoft feel that they equally create positive impact upon the company's success.
That is why, company has to develop strategies that helps them to keep satisfying their
employees and also creates positive working environment within working area.
b) Evaluating the key approaches to engaging a workers
There are different approaches to engaging the employees into the working area and these
are as mention below:
Provide effective training: it is the main key approach in which the employers of
Microsoft should provide effective training session to their employees so that they keep raising
their productivity skills (Buckley and et.al., 2019.). On the other side, using the effective training
programs, employees of the company are improving their production skills in order to attain the
success. Therefore, it is mainly used to provide to remove the obstacles and attain the defined
aim and objectives. On the other side, some time training also did not help to make the employee
develop easily and as a result, they did not help to achieve the overall results.
Moreover, this approach also improve communication such that in training session, each
and every doubts are solved which leads to interact with each other. As a result, this approach
leads to have clear communication with each other so that the defined aim is achieved.
Enhance communication: it is another approach of employee engagement in which
when employees are communicated about their roles and responsibilities clearly then they easily
engaged within the working place. On the other side, as per the author argument, when the
employees are not communicate properly then it may lead to pessimistic attitude towards the
work and as a result, they feel frustrated and this affect their productivity level in negative way.
Promote continuous feedback: Through this approach, the managers of Microsoft
promote the sense of transparency within a firm and by taking feedback regularly, employers got
to know strength and weaknesses of every employees so that their performance is reviewed
properly. it is also argued by Lee and et.al., (2019) that if the company did not take effective
feedback fro their employees and customer, then they did not identify best among many.
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In addition to this, this approach also improve the communication among employees and
did not leads towards misunderstanding. Therefore, this further foster collaborate with dialogues
between the peers and supervisors. Such that by taking feedback from the peers will help to
evaluate in the form of self-evaluating each and every employees performance.
c) Describing the key element of UK employment legislations
Health and Safety Act, 1974: It is under UK employment legislation which specify the
general responsibility of employers, employee and other workers of a company related to
maintaining health and safety within a working area. In the same way, the HR of Microsoft also
follow the laws in which it provide safety equipment, medical insurance to their companies so
that it will help them to stay happy in the working area. By not complying with this act, the
company's HR decision affect in negative way such that the entire working environment may
affected.
Equality Act, 1970: The law state while recruiting any candidate, the employers should
not discriminate them on the basis of age, gender, caste. Even the firm should also pay equal
amount to all the employees whether they are men or women (Saeed and et.al., 2019). In the
same, HR of Microsoft also pay equal wages to their employees and never discriminate among
women and men while recruiting and selecting any employees. Thus, it reflect that it affect the
HR decision in positive way.
Employment law: The law regulates the relationship between employers and employees
such that it governs what the employers are expect from employees. Further, the law also meet
the requirement such that Data protection, holidays, working hours and pay, employment
tribunals etc. In the same way, this law also affect the HR decision making as well. But,
Microsoft comply with such law in which it give extra pay to their employees who work extra
except their working hours (Carter, 2019). In this way, it keep their employees motivated which
will further help to sustain the brand image and creates positive impact upon the HR decision of
the firm.
Minimum wages Act, 1988: As per the act, the company should provide minimum act to
their employees without discriminating their employees on the basis of gender and caste. Further,
if any employee do extra work, it is the responsibility of the company to pay more and for that
HR and manager of the firm needs to meet all the legal requirement and comply with the act too.
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The company should also provide free medical treatment once in a year and as per the
Health and Safety law, the company should also provide basic equipment related to to their
health and safety. Moreover, the HR and leader of the firm should make sure that company
provide basic medical facilities to their employees.
CONCLUSION
By summing up above report, it has been concluded that HRM plays a crucial role in the
success of the a business such that report concluded that HR helps to lead a business toward
success. Further, report concluded that Chocola Fantastica may uses social media as a job
advertising so that it will help the firm to reach with wide range of new candidates in order fill
the vacant job position. The study also concluded some using effective training programs will
help the firm to enhance company's employees performance so that it directly helps to raise
company's financial position.
In addition to this, report also concluded that company may offer monetary and non-
monetary offers to their employees in order to motivate them, so that they attain the defined
objectives in better way. Further, by complying essential key legislation of UK employment will
help to take better decision with regard to HRM.
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REFERENCES
Books and Journals
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Buckley, M. R. and et.al., 2019. Research in personnel and human resources management.
Emerald Publishing Limited.
Carter, S. D., 2019. Increased workforce diversity by race, gender, and age and equal
employment opportunity laws: Implications for human resource development. In Gender
and Diversity: Concepts, Methodologies, Tools, and Applications (pp. 380-405). IGI
Global.
Cascio, W. F., 2015. Managing human resources. McGraw-Hill.
Lee, H. W. and et.al., 2019. Effects of human resource management systems on employee
proactivity and group innovation. Journal of Management.45(2). pp.819-846.
Noe, R. A. and et.al., 2015. Human resources management. Instructor, 2015.
Noe, R. A. and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Saeed, B. B. and et.al., 2019. Promoting employee's proenvironmental behavior through green
human resource management practices. Corporate Social Responsibility and
Environmental Management, 26(2), pp.424-438.
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.
Online
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<https://doylegroup-it.com/internship-program-benefits-company/>.
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<https://www.roberthalf.com.sg/blog/employers/flexible-working-hours-7-benefits-your-
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Motivational strategies of Microsoft. 2018. [Online]. Available through:
<https://stevemcconnell.com/articles/microsoft-a-highly-motivated-environment/>.
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