Importance of HRM Practices in Organizational Profitability and Productivity

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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