Importance of HRM Practices in Organizational Profitability and Productivity

This document discusses the purpose and functions of HRM applicable to workforce planning and resourcing an organization. It also evaluates the strengths and weaknesses of different approaches to recruitment and selection. Furthermore, it explores the benefits of different HRM practices for both employees and employers, and evaluates their effectiveness in raising organizational profits and productivity. Additionally, it highlights the importance of employee relations in influencing HRM decision making and discusses the key elements of employment legislation and their impact on HRM decision making.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Purpose and functions of HRM applicable to workforce planning and resourcing an
organisation ................................................................................................................................1
P2 strength and weaknesses of different approaches to recruitment and selection ....................2
LO2..................................................................................................................................................4
P3 Benefits of different HRM practices within organisation for employee and employer ........4
P4 Evaluate effectiveness of different HRM practices in raising organisational profits and
productivity ................................................................................................................................5
LO3..................................................................................................................................................6
P5 Importance of employee relation in respect to influencing HRM decision making .............6
P6 Key elements of employment legislation and impact it on HRM decision making .............7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management defines the strategic tool that is very helpful to manage and
organize the workforce of an organisation so that task can be achieved with the full potential of
the employees. It includes various terms like performance appraisal, compensation, training and
development, employment legislation etc. this report is based on the John Lewis and partners .
That is the largest departmental store in Britain and deals in varieties of products like home and
garden wares, handbags and purses, shoes, boots etc. It inculcates the various terms that shows
functions and purpose of HRM that is used for workforce planning and also includes strength
and weaknesses of approaches of recruitment and selection. It also involves importance of HRM
practices and their evaluation. It inculcates benefits of employee relation and key elements of
employment legislation that could helps in decision making. At last used application of HRM
practice with suitable example that helps in earning profits(Albrecht and et. al., 2015).
LO1
P1 Purpose and functions of HRM applicable to workforce planning and resourcing an
organisation
Human resource management refers to an essential practice that can showcase the
varieties of activities like appraising employees, recruiting, selecting, compensation etc. The
main purpose of HRM is to attracts number of candidates retain existing ones. It includes various
functions and purpose that can elaborated below.
Workforce planning- It defines the activities that is helpful in analysing and forecasting
the demand and supply of workforce that can helpful in attaining the goals on the specified time
period(Bailey and et. al., 2018).
Functions of HRM
There are various functions of HRM that is attractive for John Lewis and partners HR
managers so that they can encourage their staff members for effective work. It can be shown
below.
 Managerial function- The major function of Human resource manager of company is
that they can they deal with all the activities related to planning, organising, controlling
and directing the staff member for achieving the goal. In case of John Lewis & Partners,
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HR manager can perform the function in which they plan, directs and control the task so
that employees work effectively and gives the best results(Bratton and Gold, 2017).
◦ Purpose- In John Lewis & Partners managerial function main purpose is to focusing
on fulfilling the needs of company by evaluating and examine the performance of
workforce as per given task. This helps in earning profits and sustainability.
 Operative function- This function of HRM helping the development of employees, their
personal growth, integration etc. In case of John Lewis & Partners, HR manger can
focusing on enhancing the performance of employees by providing proper training so that
task can be reached within time period(Brewster and Hegewisch, 2017).
◦ Purpose- In this major purpose of manager in John Lewis & Partners is that they can
directly focused on the performance and productivity of employees this helps in
maintaining the relat6ion with staff members that helps in earning more profits.
P2 strength and weaknesses of different approaches to recruitment and selection
Recruitment- It refers to an attractive process of HRM that helps in attracting the large number
of candidates for the vacant position within organisation. In case of John Lewis & Partners, HR
manager can advertise the vacant position so that they can attracts the skilled applicant towards
the organisation. It includes two approaches that can be shown underneath(Brewster and et. al.,
2016).
Approaches
 Internal approach- This term defines the process of attracting candidates within the
organisation itself. It involves employment referrals, promotion, transfer etc. so that
workers are also encouraged. In case of John Lewis & Partners, HR manager can attracts
the varieties of employees within company by using intranet so that they can select the
best out of many.
◦ Strength- The major strength of this approach in John Lewis & Partners is that it is
less time consuming and also cost effective. It also encourage workforce for do their
best while performing the particular task.
◦ Weaknesses- The key weakness of this approach is that it restrict the entry of new
talent that have a full knowledge about the market and business environment on the
basis of current trend and it also create conflicts because of biased judgement in John
Lewis & Partners
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 External approach- In this approach business venture may attracts the candidates form
outside the company premise. In case of John Lewis and Partners for external recruitment
HR manager can adopts casual callers, campus recruitment, advertisement on television
etc. (Chelladurai and Kerwin, 2018).
◦ Strength- For John Lewis and Partners, this approach create a major benefits as it
attracts the fresh talent that helps in achieving the target on time with effectively.
◦ Weaknesses- This term contain drawback in John Lewis & Partners as it contains
more cost and also very time consuming process.
Selection- It defines the process of selecting the best one out of number of applicant who are
applying for filling the job position in the organisation. In case of John Lewis & Partners, HR
manager can select the suitable candidate that is attractive to complete the task and gain more
and more profits. It includes some approaches that can be discussed below(Delery and Roumpi,
2017).
Approaches
 Ability test- This term is an essential term for evaluating the performance of a person for
their related task on the giving situation. In case of John Lewis and Partners, HR manager
can evaluate their employee performance by analysing their past and current performance
so that it is easy for manager to promote or transfer the candidate as per their skills.
◦ Strength- It helps John Lewis & partners manager for evaluating the performance of
employees so that they can give their best and earns a high amount of profits.
◦ Weaknesses- Using this approach in John Lewis and Partners is very time consuming
due to this manager cannot focus on other essential task properly.
 Screening- In this manager of John Lewis and Partners can screening the applications of
candidates for vacant position so that they can select few of them as per their skills and
qualification that gives the major benefits to organisation(Guest, 2017).
◦ Strength- Following this approach is effective in John Lewis and Partners because it
gives the skills and experiences application of the person that is very useful for the
vacant position.
◦ Weaknesses- Due to this approach manager of John Lewis and Partners cannot
manages and focuses on their effective task this will results the major dissatisfaction
in earning profits.
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LO2
P3 Benefits of different HRM practices within organisation for employee and employer
Human resource management is defines as a best policies that is useful to perform a
regular activities and managing the staff members by using various terms like encouraging
employees, involvement in making decisions, performance appraisal etc. in case of John Lewis
and Partners managers can involve in various types of practices that can benefited the employer
and employee within organisation it can be shown below.
Benefits Employer Employee
Training and development Due to training and
development practice of HRM
in John Lewis and Partners
employer can majorly
benefited as they get the
skilled and experienced
candidate who contains lots of
knowledge related to their
particular task so that they give
the best results and company
enjoy large amount of profits.
Training and development
practice of HRM helps the
workers of John Lewis and
Partners by enhancing their
personal growth that is helpful
in developing their
career(Jabbour and de Sousa
Jabbour, 2016).
Recruitment and selection In this practice of HRM
manager of John Lewis and
Partners can recruit and select
the best candidate for the
vacant position that helps the
employer to stress free and
take essential decisions.
Recruitment and selection
benefited the employees of
John Lewis and Partners by
enhancing their standard of
living and improves their
performance that is further
developed their personal skills
also.
Performance appraisal By using this term employer of
John Lewis and Partners, can
make coordination between the
Performance appraisal is
majorly benefited the
employees of John Lewis and
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employees and retain them
within the company so that
recruiting cost should be
minimised(Jamali El Dirani
and Harwood, 2015).
Partners because it helps in
enahcning the productivity and
t6hier living standard so that
they can enjoy their
professional and personal life
very effectively. It also helps
in satisfying the needs of
workers this will retain them
within company.
P4 Evaluate effectiveness of different HRM practices in raising organisational profits and
productivity
By using the above analysis it is to be evaluated that practices of HRM is an essential
term term that helps the organisation to gain more profits and competitive advantage within the
marketplace. It also plays a significant role in enhancing the productivity of both employees and
employers. This evaluation can be shown underneath.
 Training and development- It is the process of enhancing the performance of individual
person within organisation. In case of John Lewis and Partners, HR manager can provide
proper training and development session to the employees as per their skills and
knowledge so that they can give their best in achieving the task within a specified time
period. By giving the proper training and development to the staff members it helps in
giving the profits and revenues that can helpful in longer sustainability of business.
Training also increase the productivity of employees in completion the task because they
can enough knowledge to complete the goal and gives the effective and efficient
results(Jamali, El Dirani and Harwood, 2015).
 Recruitment and selection- This is an essential term in in enhancing the profits and
productivity within organisation because manager of John Lewis and Partners can use
this HRM practice that that helps in selecting the suitable candidate for the vacant
position that can handle the task related to their position very effectively and organisation
may earn more profits and beat the competition within marketplace.
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 Performance appraisal- By analysing this term by manager of John Lewis and Partners
it is to be evaluated that apprising and analysing the performance of employees is very
effective as it helps in maximising the profits and returns of the business enterprise.
Whereas it also enhance the performance level of employees due to this task can be
completed within time and company may enjoy large base of customers and longer
sustainability.
LO3
P5 Importance of employee relation in respect to influencing HRM decision making
Employee relation- This term presents as an efforts of human resource manager in managing
relations within company between employees and employers. With background of John Lewis
and Partners, manager can majorly focus on maintaining the relation of employees and managers
by providing fair and equal treatment to all workers so that they are committed towards their
work and loyal for business enterprise due to this manager can focus on decision making
positively and effectively. Some major benefits of employee relation in context of John Lewis
and partners that can impact decision making are as follows(Noe and et. al., 2015).
 Employee satisfaction- The major benefit of employee relation is the satisfaction of
employees with their work and working environment so that HR manager can majorly
focus von taking decision that is helpful in gaining the profits and beating the competition
within organisation. In case of John Lewis and Partners, HR manager can mainly focus
on managing employees relation so that workers are connected with their work and
internal working environment. In this John Lewis and partners manager can work for
satisfying the needs by providing the healthy and clean environment where every staff
members connected in a positive way. This term influence the decision making in an
effective way. In this manager can give the right to their employees to participate in
decision making process and give their suggestion related to task so that task can be
reached and goals can be attained in an efficient way. This will benefited in taking
appropriate decision out of number of alternatives so that firm may enjoy longer
sustainability.
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 Employee empowerment- This term defines in which organisation can provide the right
and power to control and manage the routine activities so that taking decisions would be
easy. In context of John Lewis and Partners, HR manager can give the right to take
decisions to their operational level employee who are highly skilled and well experienced
so that company may enjoy large amount of sales and profits because of positive decision
making. Because of good employee relation, manager can offer power power to their
staff members so that they can take decisions and enjoys the longer sustainability within
the competitive marketplace.
P6 Key elements of employment legislation and impact it on HRM decision making
Employment legislation- It refers to an effective term because it helps in covering the rights of
employees within organisation so that they can feel secured and satisfied with their work. In case
of John Lewis and Partners, HR manager can properly focus on following the employment
legislation policy so that they can safeguard the interest of workers so that they can enjoy their
work and gives the effective and efficient result. This term includes the varieties of employment
laws that is helpful in taking the decisions and some of the laws can be shown underneath(Stone
and et. al., 2015).
 Equality law- It is an effective term that is mainly follow by the company in which
manager can fairly and equally treat their employees so that they are connected towards
their work and gives the effective results towards their desired goals. In case of John
Lewis and Partners, HR manager can focus on adopting the equality law in which they
can fairly gives the salary to their staff members as per their skills and knowledge so that
they will satisfy with their work and manager can focus on taking the decisions
effectively that gives the profits and sustainability in the company. Properly using the
laws for benefits of employees where manager also gives right to their employees to take
participate in decision making process so that they give the efficient result to the
company.
 Health and safety law- It defines that law in which manager can focus on the employees
health and safety in their working environment so that workers are working with in the
precaution taking environment so that their health cannot be affected. In case of John
Lewis and Partners manager can take various corrective measures by providing the
medical insurance policy and clean and ventilation environment so that workers are
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working with their full efforts and human resource manager can focus on taking decisions
that will gives the revenues and growth to the company. If manager cannot properly
adopting the health and safety laws than it will negatively affect the decision making of
the organisation and it also enhances the expenses on employees due to this cost of
operations will be high(Tung, 2016).
CONCLUSION
From the above explained report it is to be concluded that HRM is an essential factor that
helps in managing the workforce so that they can work effectively and efficiently. It inculcates
functions and purpose of HRM that is helpful for enhancing performance of employees so that
they give effective and efficient results. It also suggest the term related top approaches of
recruitment and selection so that organisation can easily identify their impact and resolve it. In
this employee relation plays an essential role so that staff members are feel satisfied and this
enhance their performance. At last it includes application of HRM practices in which manager
can hire a HR executive so that they can handle all the situation and company may face longer
sustainability.
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REFERENCES
Books & Journal
Albrecht, S.L. and et. al., 2015. Employee engagement, human resource management practices
and competitive advantage. Journal of Organizational Effectiveness: People and
Performance.
Bailey, C. and et. al., 2018. Strategic human resource management. Oxford University Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C. and et. al., 2016. International human resource management. Kogan Page
Publishers.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human resource management journal. 27(1). pp.22-38.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production. 112. pp.1824-1833.
Jamali, D.R., El Dirani, A.M. and Harwood, I.A., 2015. Exploring human resource management
roles in corporate social responsibility: The CSR‐HRM co‐creation model. Business
Ethics: A European Review. 24(2). pp.125-143.
Jamali, D.R., El Dirani, A.M. and Harwood, I.A., 2015. Exploring human resource management
roles in corporate social responsibility: The CSR‐HRM co‐creation model. Business
Ethics: A European Review. 24(2). pp.125-143.
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