Unit 3 Human Resources Management (Distinction)

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)
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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
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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
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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
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