Unit 3 Human Resources Management (Distinction)

This report analyzes the impact of HRM on organizational performance with respect to Rolls- Royce. It also assesses the contribution that HRM makes towards retaining talent within the organization. Lastly, impact of internal and external factors on HRM decision making has been studied.

Pearson BTEC Higher National Diploma in
Business Management
Unit 3 Human Resource Management
The Role of HRM and Organisational
Development (Part 1)
HRM Practices (Part 2)
Name:
ID:
0

Table of Content
Part 1: Report
1.0 Introduction 2
2.0 A comparison of the different HRM areas and their
contribution to organisational performance 2
3.0 An examination of strategic HRM in relation to the changing
effects on organisations and its business environment 3
4.0 A critical evaluation of the role of recruiting and retaining
appropriate employees from the available labour markets 4
5.0 An analysis of the strengths and weaknesses of HRM in terms
of its contribution to business success 5
6.0 An investigation into the internal and external factors that
influence HRM decisions in the workplace 6
7.0 Discussion and evaluation of these factors and how they
support organisational development 7
8.0 Conclusions 8
References 8
1.0 Introduction
1

Human resource management (HRM) is an aspect that is important for every
organization in today’s competitive marked environment (Boon, Den Hartog and Lepak,
2019). It ensures that the business has a balance between right quality and quantity of
personnel. Rolls- Royce is a British automobile manufacturer whole vehicles are renowned
for near silent operation and high quality construction. The present report analyses the
impact of HRM on organizational performance with respect to Rolls- Royce. It also assesses
the contribution that HRM makes towards retaining talent within the organization. Lastly,
impact of internal and external factors on HRM decision making has been studied.
8.0 A comparison of the different HRM areas and their
contribution to organisational performance
The comparison and contribution of different HRM areas can be studied as follows:
Talent management- This area of HRM has the responsibility of recruitment, hiring and
retention of employees (Ahammad, Glaister and Gomes, 2020). Therefore, this area plays
an important role in the development of workforce of Rolls- Royce. Positions are posted on
the job posts by the talent management department of the organization. It also sources
suitable candidates for the company through social media and job fairs. Further, conducting
the initial interviews and developing coordination with the hiring manager regarding the final
selection are other duties which are performed by the talent management department.
Therefore, this area has important contribution towards bringing talent to the organization,
retaining it and maintaining employee relation aspects within the workplace.
Compensation and benefits- This is another area of HRM which has the responsibility of
evaluation of pay practices of competitors and establishing a suitable compensation
structure for the organization at Rolls- Royce, this area also looks after the aspects of
payroll. An important contribution is made by this area in designing a suitable compensation
and benefits plan which plays an important role in motivation the employees as well as
keeping them satisfied. Employee satisfaction and motivation leads to efficient performance
of the organization.
Training and development – At Rolls –Royce, this area of HRM includes personal and
professional development, leadership training, and orientation of new employees. As
compared to other areas, the training and development area is an integral part of the HRM
which cater to the training and developments needs of the workforce. An important
contribution is made by the area in developing the workforce and shaping their skills and
qualities in order to become competitive in the market place (Macke and Genari, 2019).
HR compliance- This is a critical component of the HR department that ensures compliance
with employment and labor laws. It takes care that Rolls- Royce has policies and procedures
in place that comply with the various laws and regulations on the nation. This area has an
important contribution in keeping the organization safe by preventing it from any claims
made by the employees as it ensures that all the laws and regulations are abided by. In this
way, it contributes to the better performance of the organization (Collins, 2021).
Workplace safety- Provision of safe and healthy working environment is a priority for every
organization. Therefore, this area of HRM is important for providing safe place of work to the
employees at Rolls – Royce. Safety training is developed and supported by this area. This
2

department also carries out its work in close coordination with the benefits specialist so that
the Worker’s Compensation fillings can be managed.
9.0 An examination of strategic HRM in relation to the
changing effects on organisations and its business
environment
Strategic HRM works to develop a link between the people management to long term
goals of the business by providing a suitable framework. The main focus of this aspect of
HRM is on resourcing issues of long term which are linked with the goals and evolving
nature of the business. Furthermore, other HR strategies are also determined by strategic
HRM which include reward and performance (Carnevale and Hatak, 2020.). At Rolls Royce,
a planned framework is provided by the Strategic HRM to hire as well as manage employees
in alignment with the long term objectives of the organization. It lays emphasis on matching
the resources to the future needs of the business, formulating strategies for long term people
issues and is concerned about the structure, culture quality and values of the organization.
The main objectives of strategic HRM are to deliver fair and equitable rewards, streamline
organizational structure and improve employee performance. Through these efforts, it has
significant positive impacts on the business. It impacts the delivery of various organization
strategies and shapes the actions of the business. This is because the organizations in
today’s environment are aware of the fact that people management is fundamental to the
sustainable value creation. The knowledge and skills of the employees are valuable assets
in which every business needs to invest. Therefore, not only the strategic HRM impacts
business strategies, but also vice versa. The business strategy is shaped by the way in
which people management is to be done as well as by the availability of skills and
knowledge. The focus of workforce planning is to bring the business strategy into action.
Strategic HRM has impacts on businesses like Rolls Royce by affecting the performance of
the organization in the areas such as job design and skill development. Strategic HRM
focuses on development of positive relationships between the employees and managers.
This assists the highly skilled employees to generate value in the supportive environment
fostered by strategic HRM. These factors lead to promotion of discretionary behavior and the
individual is encouraged to perform better (Anwar and Abdullah, 2021). In this way, strategic
HRM impacts the organization as well as its environment.
10.0 A critical evaluation of the role of recruiting and
retaining appropriate employees from the available
labour markets
3

Recruiting and retaining appropriate employees plays a critical role in Rolls Royce due to
the following reasons:
Time
It takes time to manage the employees within an organization. However, it can be
critically analysed that dealing with the management of an employee with poor performance
consumes more time as compared to an employee with good performance. It is due to this
reason, that hiring and retaining suitable employees is important as it helps in better time
management and the organization can focus on running the business and its functions rather
than wasting time on tracking whether the task has been done right or not (Trullen, Bos‐
Nehles and Valverde, 2020).
Customer service
Hiring and retaining the right candidate is important as it provides a boost to the customer
service of the organization. The employee with the right skills and behavior will respect
customers as well as co workers. This would eventually lead to cultivation of best experience
of customer service. In this way, it is important to hire and retain the right candidates as they
will help in building the business of Rolls Royce with their excellent interpersonal skills.
Business growth
Recruiting and retaining appropriate employees from the labor markets is essential as they
assist in business growth. Suitable employees possess the right set of skills which not only
assists in better time management but also leads to rise in productivity of the organization.
Both these factors thus result in growth of the business (Chams and García-Blandón,
2019.). These employees also take ownership and accountability of their work which helps
the business to prosper. They also work in a manner that stabilizes the processes and lead
to growth of the company at all the levels.
Reduced costs
Hiring and retaining appropriate employees leads to reduced turnover costs for the
organization. Investments made in the training and development of suitable employees
results in better outcome for the organization. They are able to fully utilize the training
provided to them and implement it within the organization. In this way, these employees
serve as skill pool for the organization and also assist in training and orientation of the new
employees (Peccei and Van De Voorde, 2019). All these factors lead to reduced costs for
the organization.
Team building and morale
Team building and morale are important aspects that every organization including Rolls
Royce needs to focus on for fostering better organizational culture. Hiring and retaining of
appropriate candidates brings string team players within the organization. These not only
boost the culture of the company but also foster harmony at the workplace. Such employees
aid the problem solving process and the conflict management. In this way, they lead to
satisfaction and motivation of co- workers as well.
4

11.0 An analysis of the strengths and weaknesses of HRM
in terms of its contribution to business success
Strengths of HRM
In terms of the contribution to business success, following are the strengths of HRM:
Securing top talent- HRM helps in securing top talent for global businesses like Rolls
Royce. In this way, HRM assists in developing the organization by bringing using talent that
can accomplish the various tasks on time.
Improvement in employee retention- HRM is responsible for developing organizational
culture through various policies and procedures. Also, it keeps clarity and transparency in
the various aspects related to employees as well as organization (Saeed and et.al., 2019).
Both these factors go a long way in retaining the employees within the business. Better
organization culture keeps the employees bonded with the organization. In addition to it,
transparency and clarity inculcates the feeling of trust within the employees which makes
them stay with the company for longer.
Fewer compliance issues- with HRM, organizations such as Rolls Royce have to face
fewer compliance issues. This is because the HRM ensures that the policies and procedures
at workplace are in accordance with the various laws and regulations in the country.
Development of workforce- Another strength of HRM at Rolls Royce is that it helps in the
development of workforce. HRM professionals identify the training needs of the organization,
and formulate training and development sessions and programs for meeting them. In this
way, HRM assists in developing a stringer workforce.
Weaknesses of HRM
Expense- For various HRM processes and practices, finances are required which do not
always yield short term results. In this way, requirement of expense is a weakness of HRM.
Time- The time that is spent on training and orientation of human resources could be used
for other business activities as well which could bring direct revenue to the organization. In
this way, the consumption of excess time by HRM practices and processes is a weakness
which is borne by the organization (Kianto, Sáenz and Aramburu, 2017).
Unpredictability- This is another weakness of HRM as the staff that is trained sometimes
does not stay with the company and leaves it. In this way, there is no guarantee whet5her
the staff on which the company is investing will stay with it for longer. This unpredictability
also acts as a weakness of HRM.
12.0 An investigation into the internal and external factors
that influence HRM decisions in the workplace
Internal factors that influence HRM decisions
5

Corporate objectives- The short as well as long term objectives of Rolls Royce
influence the decisions of human resource management. Decisions such as
restructuring, cost minimization etc. all need to be aligned with the objectives
of the company.
Operational strategies- The strategies of the organization are important to be
framed in order to remain competitive in the business environment. These
strategies require employees with special set of skills to achieve them (Amrutha
and Geetha, 2020). Therefore, HRM decisions are influenced by the operations
strategies of the organization.
Financial resources- This is another factor that influences the HRM decisions.
The financial resources available with the organization will have to be
considered by the HR department before taking any decision concerning the
business.
External factors influencing HRM decisions
Market changes- Labor market experiences a number of changes of varied
nature which impacts all the businesses operating there. These changes need
to be considered by HRM before taking any decision concerning the
organization.
Economic changes- These include changes in the level of unemployment
which significantly impacts the decisions taken by HRM. The HR department
has to formulate suitable strategies for bringing talent to the organization
(Wilkinson and Dundon, 2021).
Social changes- These include the changes in the behavior and preferences
of people such as increased demand for flexible working and work from home.
As a result, this factor has to be taken into consideration by the HR
department before taking decisions regarding work practices.
13.0 Discussion and evaluation of these factors and how
they support organisational development
6

Corporate objectives
This factor supports the development of organization by providing it the
required direction and pace of growth. It can be evaluated that corporate
objective is an important factor that forms the basis of all the strategies and
decisions of organization including HR department.
Operational strategies
It can be evaluated that this factor comprises of assessing the needs of
the organization and taking actions to meet them. In order to develop, the
organizations like Rolls Royce continually need to update their operational
strategies to bring efficiency within the work processes. In this way, this factor
supports organizational development to a great extent (Kim and et.al., 2019).
Financial resources
This is another factor that includes the finances available with the
organization. It determines the funds that will be available for running the
organization and for conducting various other supporting activities. Financial
resources directly and indirectly support the organizational development. Rolls
Royce is able to undertake various tasks and implement strategies by utilizing
the financial resources available with the business.
Market changes
This is the factor that is concerned with the variations and fluctuations
that occur in the labor market. Favorable labor market laws and regulations
support the growth of the organization. However, stringent labor laws hinder
the growth as organizations have to devote time and resource to abide by the
laws.
Economic changes
These include the changes that occur in the economy that impact the
organizations such as Rolls Royce. Changes in the level of employment have
direct impact on growth of Rolls Royce. This is because it affects the supply of
people as well as the pay rates. Favorable changes in the economy foster the
growth of the firm (Troth and Guest, 2020).
Social changes
Social changes include the prevailing trends and the preferences of the
society. Changes such as preference for flexible working compel the
organizations to make changes in their working practices. In this way, it leads
to innovation in the workplace thus leading to the growth of the business.
7

8.0 Conclusions
From the report, it can be concluded that different areas of HRM such as talent
management, compensation and benefits etc. have different contribution to the performance
of Rolls Royce. Strategic HRM provides a systematic framework which aligns people
management with the strategies of the organization. Various internal and external factors
influence HRM decision making at Rolls Royce.
References
Journals and Books
Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human
resource management systems and their measurement. Journal of
management. 45(6). pp.2498-2537.
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human
resource management. Human Resource Management Review. 30(1).
p.100700.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human
resource management. Journal of cleaner production. 208. pp.806-815.
Collins, C.J., 2021. Expanding the resource based view model of strategic human
resource management. The International Journal of Human Resource
Management. 32(2). pp.331-358.
Carnevale, J.B. and Hatak, I., 2020. Employee adjustment and well-being in the era
of COVID-19: Implications for human resource management. Journal of
Business Research. 116. pp.183-187.
Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management
practice on Organizational performance. International journal of
Engineering, Business and Management (IJEBM). 5.
Trullen, J., Bos‐Nehles, A. and Valverde, M., 2020. From intended to actual and
beyond: A cross‐disciplinary view of (human resource management)
implementation. International journal of management reviews. 22(2).
pp.150-176.
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human
resource management for the adoption of sustainable development
goals. Resources, Conservation and Recycling. 141. pp.109-122.
Peccei, R. and Van De Voorde, K., 2019. Human resource management–well‐
being–performance research revisited: Past, present, and future. Human
Resource Management Journal. 29(4). pp.539-563.
8

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.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource
management practices, intellectual capital and innovation. Journal of
Business Research. 81. pp.11-20.
Amrutha, V.N. and Geetha, S.N., 2020. A systematic review on green human
resource management: Implications for social sustainability. Journal of
Cleaner Production. 247. p.119131.
Wilkinson, A. and Dundon, T. eds., 2021. Contemporary human resource
management: text and cases. SAGE.
Kim, Y.J. and et.al., 2019. The effect of green human resource management on
hotel employees’ eco-friendly behavior and environmental
performance. International Journal of Hospitality Management. 76. pp.83-
93.
Troth, A.C. and Guest, D.E., 2020. The case for psychology in human resource
management research. Human Resource Management Journal. 30(1).
pp.34-48.
9

Table of Content
Part 2: Portfolio
1.0 A job description for the position of Marketing Manager 11
2.0 A person specification for the position of Marketing Manager 11
3.0 A recruitment and selection process flowchart to be used by this
organization in future 12
4.0 An assessment of your selected company’s performance management
and reward systems with examples 14
5.0 A review of the organisation’s current approach to and effectiveness of
employee relations and employee engagement and how this could be
further strengthened 15
References 16
INTRODUCTION
10

The present report is a portfolio that provides insights about job description and
person specification for the position of marketing manager. It further presents a recruitment
and selection flow chart that can be used by Rolls Royce in future. Lastly, a review has been
provided about the current approach of Rolls Royce to employee relations and engagement.
1.0 A job description for the position of Marketing
Manager
At Rolls Royce, marketing manager promotes the company’s brand and services. This is
the role, where the candidate will be required to optimize the marketing strategies and
manage the budget of the marketing department.
Marketing manager responsibilities
 Evaluation of marketing and pricing strategies and their optimization
 Performing analysis of the prevailing market trends and preparation of
forecasts on the basis of it
 Generation of new business leads
 Taking actions to improve brand awareness and market share
 Coordination of other departments with the marketing strategies
 Development and management of budget of marketing department
 Managing the branding, advertising and promotional campaigns
2.0 A person specification for the position of Marketing
Manager
Person specification for marketing manager
Experience
 Should have experience of working at responsible marketing positions for 10
years preferably in automobile industry
 Should be experienced to manage and supervise a professional staff of 10
Education
 Should have a bachelors degree in marketing specialization
 Preferable masters of Business Administration with specialization in marketing
Required skills, characteristics and knowledge
11

 Strong communication skills
 Able to coordinate the efforts of a team comprising of diverse employees
 Able to increase productivity of the firm
 Ability to bring improvements in methods and approaches of working
 Committed to continuous learning
 Possess expertise in social media strategy
 Demonstration of effectiveness in holding customer conversations
High level overview of job requirements
The marketing manager at Rolls Royce should be able to perform well in the following areas:
 Research and evaluation of opportunities for new products
 Conducting analyses
3.0 A recruitment and selection process flowchart to be
used by this organization in future
Following is the recruitment and selection process Flowchart that can be used by Rolls
Royce in future:
Application- This consists of posting the job opening on relevant platforms and application by
relevant candidates. The way job advert is posted will determine the number of applications
that Rolls Royce would receive.
Screening and pre- selection- In this step, initial screening of the applications is done. This
includes resume screening, phone screening and pre- selection. Pre- selection is an
important step in the recruitment and selection process which helps in weeding out potential
mismatches.
Interview- In this step, the candidate is interviewed by the recruiter (Boon, Den Hartog and
Lepak, 2019). This will help Rolls Royce in selecting the right candidate by offering insight
about the verbal fluency of the candidate and also his sociability. Both structured and
unstructured interviews can be taken by Rolls Royce. However, structured interview is
regarded as more reliable and hence will be more preferable.
Assessment – This would consist of General Mental Ability (GMA) test which is also known
as the IQ test. Another method which can be used in the assessment is Five Factor Model of
Personality. Using this model, the personality of the candidate can be assessed. It can be
analysed that a higher IQ is generally associated with the ability to learn fast. Other
assessment can include integrity tests and job knowledge tests.
12

References and background check- These help in confirming the perception about the
candidate. It also provides additional information about the candidate.
Decision – This is the step where decision is to be made to choose the candidate
(Ahammad, Glaister and Gomes, 2020). Rolls Royce can use a data driven approach for
making the decision. This includes rating the candidate on the basis of a pre – defined
criteria during the process of selection.
Figure 1: Flowchart for recruitment and selection process
4.0 An assessment of your selected company’s
performance management and reward systems with
examples
13
Application
Screening and
pre- selection
Interview
Assessment
References and
background check
Decision

Performance management system at Rolls Royce
At Rolls Royce, the performance management system comprises of a four step process as
follows:
1. Understand performance visual management- In this step, the organization
decides upon the areas that need to be measured with respect to the
performance.
2. Agree targets and set measurement criteria- This is the next step where
the targets are set agreed. The team also sets the measurement criteria at
this step.
3. Establish review process – After measuring the performance on the set
criteria, the performance management team at Rolls Royce establishes a
review process whereby the performance is reviewed against the set criteria.
4. Track performance and improvement activity – Lastly, the organization
keeps a tracking of the performance and improvement activities that are being
undertaken to enhance the performance of employees.
It can be analysed that Rolls Royce has a systematic process for managing the
performance of the employees. It also keeps a track of the level of increase in performance.
Further, various performance improvement activities are also undertaken at the organization.
However, it can be critically analysed that in addition to a review process, Rolls Royce also
needs to implement a monitoring process whereby loop holes can be identified in the
performance (Macke and Genari, 2019). But, the performance management process at
Rolls Royce covers the strategic as well as administrative purpose. For example, it also
aspires to cover the purpose relayed to organizational maintenance and development.
Therefore, the performance management system at the chosen organization is effective.
Reward system
Rolls Royce provides a comprehensive and competitive benefits package to all its
employees so that they are enabled to meet the health care and financial needs of self and
family members. The organization provides easy access to personalized employment
package. It also provides flexibility to the employees to make modifications in their retirement
savings plan as per their needs. For example, the employees are provided extra paid days
off as well as local discounts. The company ensures to power the future of every staff
member by providing a robust benefits package (Rewarding you & empowering your future,
2021). This comprises of the following:
 Medical benefits
 Dental benefits
 Employee assistance program
 Short term and long term disability
 Employee discount program
14

5.0 A review of the organisation’s current approach to
and effectiveness of employee relations and employee
engagement and how this could be further
strengthened
The current approach of Rolls Royce to employee relations and employee engagement
comprises of a holistic way. The organization considers its employees as its power. The
approach is effective as it considers the health and safety of the employees. During the time
of the pandemic the organization ensured to remain in close contact with its employees
residing in the affected areas. Split shift working system was introduced for those employees
who cannot work from home. Also, the people strategy adopted by the organization is
committed to creating an environment in which every employee can reach his or her
potential to the fullest. Rolls Royce does this by encouraging diversity, well being and
development of the employees. The people strategy at Rolls Royce comprises of three code
areas:
 Enabling business transformation
 Building strategic capabilities
 Creating a lean and agile work culture
This approach could be further strengthened by implementing more employee engagement
programs and activities (Carnevale and Hatak, 2020). The employees can be engaged in
the lower levels of the strategy and formulation of procedures. For example, Rolls Royce
could implement an employee engagement program that can comprise of stay interviews.
The company can hold stay interviews as a means to re- engage with those employees who
may be at the risk of leaving the organization. Through these, career needs of the
employees can be discussed and information can be obtained about factors that act as
blockers to the long – term success of the employees.
References
Journals and books
15

Carnevale, J.B. and Hatak, I., 2020. Employee adjustment and well-being in the era
of COVID-19: Implications for human resource management. Journal of
Business Research. 116. pp.183-187.
Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human
resource management systems and their measurement. Journal of
management. 45(6). pp.2498-2537.
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human
resource management. Human Resource Management Review. 30(1).
p.100700.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human
resource management. Journal of cleaner production. 208. pp.806-815.
Online
Rewarding you & empowering your future. 2021. [Online]. Available Through: <
https://careers.rolls-royce.com/usa/what-we-offer/rewards-and-benefits/>
16