Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in influencing HRM decision making in Tesco. It highlights the benefits of employee empowerment and effective communication in enhancing organizational productivity and profitability.

Unit 3
(HRM)

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organization.............................................................................................................................................3
P2 Strength and weaknesses of different approaches to recruitment and selection..................................4
LO2.............................................................................................................................................................7
P3 Benefits of different HRM practices within an organization for both the employer and employee....7
P4 Evaluate the effectiveness of different HRM practices in terms of raising organizational profit and
productivity.............................................................................................................................................8
LO3.............................................................................................................................................................9
P5 Importance of employee relations in respect to influencing HRM decision making...........................9
P6 Key elements of employments of employment legislation and the impact it has upon HRM decision
making...................................................................................................................................................10
LO4...........................................................................................................................................................10
P7 Illustrate the application of HRM practices in a work-related context, using specific examples......10
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Human resource management refers to an approach that is based on the strategic
decisions and to effectively manage the organization and its employees so that they will earn and
gain the competitive advantage within the same industry. This determinant is used to maximize
the performance of a workforce in the organization so that every employee gives their best and
achieves the task on time. This report is based on the TESCO that is one of the leading
supermarket stores in the UK. This project includes the purpose and scope of human resource
management with their talent and a skill that helps in fulfills the objectives of business. It also
shows the effectiveness of key elements and their internal and external factors that will affect the
decision making including employment legislation. All this is needed to enhance and explore the
skills and talent of an employees or hiring a new candidates in the enterprise. At last it shows the
human resource practices that help in enhancing the performance and productivity of staff
members in the company(Noe and et. al., 2015).
LO1
P1 Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organization
TESCO
It is a British multinational general and groceries retailer in the UK which has 6800
outlets and more than 40,000 employee’s works in the organization. The mission of firm is to
make what matters better together and for longer sustainability in the market. The core objective
of the TESCO is to helping the customers so that they enjoy the quality product and increase
their living standard. They do business for satisfying the users at their full extent(Armstrong and
Taylor, 2020).
Human resource management
It refers to a strategic framework that is used to maintain the employees performance and
for manages all workforce in the organization to gain the competitive advantage in the market
and sustain for longer life. The main purpose of human resource management is to maintain and

organize the employees relation and performance so that they will give appropriate results of the
doing task. In context of TESCO, there are various types of functions of HRM that can helps in
the company which can describe below(Brewster and et. al., 2016).
Functions of HRM applicable to workforce planning
Workforce planning - It refers to a process of needs and priorities of the company about
the workforce that help in meet the production requirements, regulatory, services and objectives
of a business. There are various functions that is applicable to workforce planning.
 Training and development - It refers to a important functions that defines the systematic
activities in which every employees are instructed and learns a specific knowledge related
to their job positions. And it also shows the overall educational growth and maturity of an
individual person in a managerial position. It is an important in TESCO, to give the
proper training and development session as it is a growing company and every staff
member needs proper skills and knowledge to complete the task and earns profits. It main
purpose is to enhance the knowledge, skills and thinking capacity of the working
employees so that they will give their best(Albrecht and et. al., 2015).
 Recruitment and selection - It refers to an activity of identifying the vacant position and
requirements for the job holders, promoting the blank position and for this selecting and
hiring the suitable candidate for that job position within a organisation. It is a main
function that a HR Manager of a TESCO play to fill the position that is vacant and for
this select the appropriate one so that task can be done in effective manner. The purpose
of the Recruitment and selection is to identify the workforce and where the vacant
position is available fill with this the best and skilled candidates so that it will enhance
the productivity and smoothness in the working(Bailey and et. al., 2018).
P2 Strength and weaknesses of different approaches to recruitment and selection
In recruitment and selection there are various approaches that helps in organizing the workforce
and its working in the TESCO that can be described below.
Recruitment

It refers to the process of searching and attracting the number of applicants and
stimulating them to apply for a job within the organization. It refers to finding the new
candidates for the vacant position in the company and it is also called positive process. In
context of Tesco, recruitment is an essential activity that is done by the HR manager to fill the
vacant jobs. It includes two approaches that can be discussed below(Jabbour and de Sousa
Jabbour, 2016).
Approaches of recruitment
 Internal recruitment - It refers to that recruitment which is conducting within the
organization and fills the vacant positions from existing workforce. In context of Tesco,
manager can use this approach by promoting the job in the organization through intranet
and who are interested in giving the interview can notify it by mail(Ahmad, 2015).
o Strength - The major strength of internal recruitment is that it is very cheap and a
quick process to recruit the employees internally and because of this it will
increase the staff member’s loyalty towards the company. In Tesco, if they recruit
internal employees for the vacant job than it will enhance the productivity and
performance of an workforce also helps in reducing the employee turnover.
o Weakness- The main weakness of internal recruiting is that it can restrict the
entry of new blood that have new and innovative ideas to solve the problems and
tackle the problems that can arise within the firm. In Tesco, if they use this than it
will limits the chance of getting the creative ideas because existing staff will more
comfortable with the ongoing processes and they does not need any change.
 External recruitment – It refers to that process of recruitment where candidates are
search from outside the business firm is called external recruitment. For example-
Websites, casual callers, television, via e-mails etc. In Tesco, manager can use external
recruitment by advertise their vacant position via official website of Tesco, i.e. –
www.tesco-carrers.com or by using vacancy boards in their outlets. Here the interested
candidates can made their applications by using online mode for the managerial
positions(Stone and et. al., 2015).
o Strength - It can benefited the Tesco company as they help in bringing the new
ideas and ways of doing the work and can shake up the organization.

o Weakness – The major weakness is that In TESCO, if they use this approach than
it is very costly and time consuming that will affect the work in the company.
Selection
It defines the process of selecting an appropriate candidate for the vacant position out of
the number of applicants who are applied for the job within the organization. A manager of a
Tesco, can examines all the candidates and then select the best one who can fulfills all the task
properly according to their position(Stone and et. al., 2015).
Approaches of selection
 Screening - It is the first approach that a Tesco manager can use where they carefully go
through every CV and examine their qualification and their previous job history. It helps
in matches the suitable candidates for the jobs.
o Strength - The major trump card of this for the Tesco company is that it helps in
knowing the skills and experience of the candidates who are applying for the jobs
and whether it is suitable or not.
o Weakness – Sometimes it is very time consuming process and manager of Tesco,
cannot focus on the other activities in the organization.
 Assessment centers - After passing the screening test manager of a TESCO, can take a
assessment test for a selected candidates in their outlets in this they give different task
like team work, problem solving task so that manager can easily indentify who is suitable
for the job(Stone and Deadrick, 2015).
o Strength – It helps the manager of Tesco, to identify the person ability and
capability of attending and completing the task on time.
o Weakness – It has a weakness for Tesco as this approach need more time and
money.

LO2
P3 Benefits of different HRM practices within an organization for both the employer and
employee
There are different types of HRM practices that will benefited the employer and employee of the
organization which can be described below.
HRM practices
It refers to a systematic process of retaining, motivating, attracting and developing the
workforce for longer survival of firms and gaining the competitive market. It includes benefits
that is related to the employee and the employer of the company. In Tesco, it helps the manager
to retain, motivates and develops the performance of employees and also the employer so that
form will earn more profits(Shen and Benson, 2016).
Benefits of HRM practices for employee and employer
 Training and development - It is one of the best practices of the human resource
management practices that designs the employees skills and knowledge for the best
working and achieve the goals on time. In context of Tesco, it is a best practice that is
done by the HR manager for their employees so that they will get the knowledgeable and
creative workers who can accomplish the task on time. It can be benefitted to both in the
company(Delery and Gupta, 2016).
o Benefits for employee and employer – For Tesco employees it gives the proper
knowledge that will enhance the working productivity in a best way, and for
employers of Tesco it gives the suitable skilled and knowledgeable employees
who work according the task allotted in a given time.
 Reward system- It is an systematic process, strategies and policies that helps in examine
the value and contribution of employees to achieve the goals and recognized and
rewarded for their best work within the business firm. manager of a Tesco, can used this
method in this they will awarded the employees for their good work and recognize in
front of all the working people so that they also get motivated(Longoni, Luzzini and
Guerci, 2018).

o Benefits for employer and employee – for employers in the Tesco it helps to
reduce the cost of recruiting for the vacant jobs because of rewarding the good
work no staff member can retain the organization. For employees it helps in
motivating them and helps them for giving the best and productive results so that
they will rewarded.
 Performance appraisal - This is a practice of HRM that helps the manager of Tesco to
examine and analyze the performance of employees and their contribution of work for the
company. it is very important to analyse the overall performance so that they work
according to that and achieves the task on time(Bröckermann, 2016).
o Benefits for employee and employer – this create a advantage for the workers in
TESCO as they helps in motivating for good works so that they will be appraised
in front of whole business. For employers this will help in knowing the best
candidate and so that they will promote them in new position.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organizational profit
and productivity
 Training and development is a very effective process of HRM practice as it will helps in
enhancing the knowledge and skills of the employees in their working that helps in
accomplish the task on time. In context of Tesco, this practice is very beneficial for the
business because it will gives them skills and valuable staff members this will effectively
and efficiently do their work and because of this it helps in increasing the productivity of
working and performance of employees and all this helps in earning more and more
profits to the firm(Gallardo-Gallardo and et. al., 2015).
 To raise the profits and productivity in the Tesco, manager use performance appraisal
technique and applying and using this technique helps in motivating and encouraging the
employees to give their best and increase their performance. This process helps in
increasing the revenues and profits of the organization and also enhances the productivity
so that firm can sustain for a long term.
 Reward system is an effective and very efficient practice that is used by the Tesco
manager in their company. Use of this helps in motivating and encouraging the staff

members to good work and because of this every member give their best and effectively
do their task so that they will rewarded and this will gives the favorable results to the
firm. it will enhancing the profits because every employee give their work effectively and
productively so that business can earn more and more profits(Russell and et. al., 2016).
LO3
P5 Importance of employee relations in respect to influencing HRM decision making
Employee relation - It refers to a term which is used to describe the relation between
employee and an employer’s within the organization. It is very important term that helps in
increasing the productivity and proficiency in Tesco. It also helps the manager of the Tesco to
take decision very quickly and effectively. There are some benefits of employee relation within
Tesco can be explained below.
 Employee empowerment – It is the major importance of the employee relations as they
gives the power to the employee to take decisions related to their specific organizational
task. It provides the lower level decision making to the staff member so that they will
give the unique ideas for the problem and place the firm at next success level. In Tesco,
manager maintains the relation to their staff members so that they feel secured and do
their best. In this manager can give the right to take decisions and involves in important
decisions making so that many innovative ideas can come and from which a superior can
select the best one. It also helps in increasing the productivity because of best decision
making(Nolan and Garavan, 2016).
 Employee satisfaction – It is the main importance in the employee relations in this
company can notify whether the employees need and preferences are fulfilled or not. If
not they take some corrective actions so it will reduce the turnover of employees within
the organization. In Tesco, Hr manager can maintain the relation with their employees
and analyze time to time their problems and issues which they face at the time fo
working. It will positively influence the decision making process as every employee
participate in it and give their ideas and thoughts related to specific task and because of
this they will encourage of good working and feel secured at their jobs(Beer, Boselie and
Brewster, 2015).

P6 Key elements of employments of employment legislation and the impact it has upon HRM
decision making
Employment legislation - It defines all the applicable laws that is used for the employees who
are working in the organization. It involves employment standard, workers compensation, human
rights, pay equity, employment laws, wages laws, health and safety law etc. In context of Tesco,
employment legislation is an important which that will create a impact on the decision making of
human resource management can be given below.
 Workplace safety laws- This act is maintained for the employee safety at the workplace
and for their health within the organization. This safety law impact the decision making
of human resource manager of TESCO, so that they will create a proper and healthy
environment to their staff members in this they spend lots of money and because of this
members are retained within the company and gives the productive results to the firm)
(Mao and et. al., 2016).
 Minimum wage act- This is act which shows the salary that was given to the employees
in respect of their work. This act related to the compensation that a Tesco provide to its
employees. In this it will create a impact of decision making relating to the recruitment as
they recruit those employees who does not want large amount of wage. At this time they
will make their budget related to this and offers according to the minimum wage act.
 Maternity and parental leave regulation act- This employment legislation law shows
the leave and right of employee for time off their work for the paternity leave. This law
affects the decision making of HR manager of Tesco in two ways- first in good way: as
the female staff are very happy with this and work with no worries but at the same time
sometimes it will de-motivates the other worker in their working and because of this
manager can make an effective decision related to this fact so that it will not affect the
working of the staff members.
LO4
P7 Illustrate the application of HRM practices in a work-related context, using specific examples
Design of a job specification

In context of Tesco, company is looking to appoint a HR executive. For this they need a person
who has outstanding communication and administrative skills and this also assists with the day to
day activities of the HR function and helps in decision making process of the HR manager. It
also manages the relations with their team members and effectively manages the
situation(Kavanagh and Johnson, 2017).
Documentation of preparatory notes for interviews and selection criteria.
For effective interview conducting Tesco need to prepare in advance what types of questions
they ask during the interview process so taking it very easy and it will create a good impression
over the candidates about the companies and their working employees. In this hr manager ask
following questions and for this they prepare a proper notes that can be shown below.
 Tell me about yourself?
 What is your strength?
 Why do you want this job?
 Why do you work at this organization?
 What are you passionate about?

XYZ
Email id
Career objective
To pursue the growth oriented career with a progressive company that provides a scope to
increase the knowledge and skills that would contribute my best to the business.
Personal skills
Ability to work in a team or individual
Interested in learning new things and technology with minimum training
High energy work ethic
Work experience
Total experience is 6 years in OBC Company as a human resource executive.
Executive HR key responsibility
Managing consultant
Preliminary screening of profits
Scheduling interview for the candidates
Coordinates with different department for requirements of workforce.
Job offer
Dear xyz

We are glad to offer you employment at our company. we feel that your skills and background will be
valuable assets to our team.
Per our discussion the position is HR executive. Your starting date will be the first week of next month.
If you choose to accept this offer please sign this letter in the space provided and return to it use. We look
forward to welcoming you as a new employee at the company.
Sincerely
XYZ
HR executive
Evaluation
It is very essential to evaluate the process of Human resource management applications to
know their benefits and drawbacks regarding the recruitment and selection process. It is an
effective process to properly use this process and follow it because it gives the Tesco, a suitable
candidate who can fulfills all the duties and responsibility about the HR executive. But at the
same time is is very time consuming and costly process. Firstly manager can promote the vacant
position after that select the suitable one out of number of candidates and then gives the proper
training session all this need large amount of investment and more time.
CONCLUSION
From the above mentioned report it is to be concluded that human resource management
is a process of organizing and managing all the activities related to the workforce in the
company. This report inculcates the various function of HRM that will affect the workforce and
it also studied on the various practices that helps in enhancing the profits, maintain the relations
and increases the performance for staff members in the organization. This show the employment

laws affect the decision making and at last it gives the information which is useful for the
recruiting and selecting the candidates within the business enterprise.

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