Importance of Employee Relations in HRM Decision Making

This article analyzes the importance of employee relations in influencing HRM decision making and its impact on organizational performance. It discusses the benefits of fostering positive employee relations and creating a conducive work environment. The case study focuses on Rio Tinto, a multinational metals and mining corporation.

Human resource
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation..........................................................................................................1
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................3
TASK 2............................................................................................................................................4
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................4
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................5
TASK 3............................................................................................................................................6
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making.........................................................................................................................................6
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making..........................................................................................................................7
TASK 4............................................................................................................................................9
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples......................................................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is refers to the practising people's better management so
that company can achieve effective performance. It helps the company to know about how the
work force is working and how it can effectively meet goals and objectives of the organization.
In this report the company Rio Tinto (Stewart, and Brown, 2019) group selected, company is
multinational and worlds second largest metals and mining corporation. The organisation was
founded in 1873. the company produce iron ore, copper, diamonds, gold and uranium. In this
report the main functions and purpose of HRM is included, also strength and weakness of
different approaches to requirement and selection. Also explained importance of different human
resource practices in the organisation to both employee and employer, evaluation of different
HRM practices in the terms of rising profit and productivity. Furthermore, it also explain the
importance of employees relation in respect to influencing the decision making of HRM, key
elements of employment legislation and its impact on HRM. In the last various applications of
HRM practices is included.
TASK 1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation.
Human resource management performs various functions like job design, hiring right candidates,
providing proper training and so on. In the context of Rio Tinto (Nankervis, and et. al., 2019)The
main purpose of human resource management is to achieve organizational goals with the help of
proper hiring of right candidates who can perform well in the organization as well as proper
interaction within the organization and between all employees. The functions and purpose of
human resource management is explained below:- Job design and analysis:- It means describing all the responsibilities that must be
followed and all the duties of the job. While selecting the candidates it is necessary for
the organization to first identify the candidate who can perfectly do the job and then
selecting the employee. Job analysis means telling full information to candidates of the
job like whether any experience is required or which skills are necessary so that only
those candidates apply for the respective job and it also becomes easy for the Rio Tinto
to hiring people.
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 Employee hiring and selection:- There are many candidates who applies for the job and
among those people right candidate is chosen. In the context of Rio Tinto before the
process of selection, recruitment is done which means among all the people who has
applied, right one is hired. Compensation:- Attracting employees is very much important for the Rio Tinto and the
best way to attract them is by providing benefits to employees so that they work with
more efficiency and don't think of switching to another job. The management should give
fair salary to all employees and certain benefits to them regarding the work they are
doing. Relation between employees:- In an organization, there should be proper relation
between all employees so that it becomes easy for Rio Tinto (Armstrong, and Taylor,
2020) to achieve goals. In an organization, work environment should be good and
everyone should cooperate with each other. Employee satisfaction:- The main purpose of team is to provide satisfaction to all
employees. If an employee would not be satisfied by the Rio Tinto then they will not
work properly and will not like to stay for a longer period of time. In an Rio Tinto, it is
necessary that employees should feel like they are working in an organization where all
of them are treated as a family and at the same time they are also getting a satisfaction
from the work they are doing for the company. Performance appraisal:- It means evaluating the whole performance of employees and
according to that particular performance the company decides whether the employee
should get promotion, termination and so on but the management team has to evaluate it
properly and in a legal manner. Law compliance:- It is the main responsibility of the team to ensure that employees are
getting a safe treatment from the company. Rio Tinto (Collings,and et. al., 2018) makes
all the rules according to the laws and ensures that everything is done in a legal manner.
 Staffing needs:- Human resource department of Rio Tinto certain responsibilities while
recruiting the candidates. There are many needs which are required while assigning jobs
to candidates. The team is also responsible to provide promotion to employees by
evaluating their performance. Staffing needs are considered for existing employees as
well as for new candidates who are hired.
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P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection is an important part of human resource management, it is a
process by which company identify the needs and wants for an particular job. It also explained
the position and the needs of jog holder. It is an long term planning that helps the company to
understand the future and present needs of employee in organisation. Below are some approaches
of recruitment and selection followed by Rio Tinto.
 Workforce planning: It refers to the analysing the current employees and determined the
future needs of employees in the company. It also helps to the HRM manger of
(Chelladurai, and Kerwin, 2018) Rio Tinto to understand the gap between the current
and future planning of workforce and how employees are needed to fulfil that gap.
 Reward system: This refers to the achievements and rewards gain by the employees by
their effective performance in the company. Human resource management use this
approach to motivate and encourage the employees of the company. The HRM mangers
of Rio Tinto organize reward program to motivated and encourage their employees in the
company.
Recruitment and selection process of HRM in Rio Tinto:
It is an process by which the Rio Tinto company analyse their current and future
requirement of employees. The main motive of this process is to provide the company right
candidates for the right jobs. The strength and weaknesses of this process explained as internal
and external requirements are showing below.
Internal requirement: Is is an process by with the company Rio Tinto understand the
strength and weakness of the company's employees. There are few strengths and weakness are
showing below in the context of Rio Tinto.
Strengths Weaknesses
Its time saving process because the employees
in the organisation already know about the
company. There is expanses in this process
It reduce the innovativeness in the company
because of less probability of new entrance in
organisation. New employees in the company
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because the employees already working in the
company required less training and other
programs in the company.
provide new ideas and information to the
company and it can be reduce because of
internal requirement process in company.
External recruitment: In this process of Rio Tinto (Berman,and et. al., 2019)company
select the candidates form the outside the organisation. They analyse the requirement of job
profile and recruit the new employees accordingly. Below is some strengths and weaknesses of
external recruitment process that business organize according to the information and needs of
candidates in the company.
Strengths weaknesses
The new talented and skilled employees are
selected that helps in the development of
company's productivity and improve the
effectiveness of the company.
The process of selecting new employees in the
company is time consuming and cost effective.
It recruited high level of efforts to attract new
talent in the organisation and retain them with
the company.
TASK 2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
Human resource management practices helps organisation to make the people's work
effective and arrange them in proper manner. It analyse the performance of employees and make
effective changes that can improve the productivity of the company. The main purpose of HRM
practices is to maximise the employee performance and improve the productivity of the
company. In the context of Rio Tinto (Macke, and Genari, 2019) the human resource function of
company helps them to analyse the performance of employees and improve it in order to gain
more profit and increase the efficiency. The main purpose of HRM is oversee the performance
of employees, provide them proper training, requirement of new employees, performance
appraisal, and reward management. Below are some HRM practices that beneficial for both
employer and employees.
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 Selecting and hiring: In this HR of Rio Tinto select the people according to the needs of
company to look for the best individuals that can fit in that position. It is cost effective
process because of research and development program of hiring new employees in the
company.
 Training in relevant talent: This refers to provide best training and development
program for new employees of the company in order to make their skills more effective
according to their position in the company. It is an long term plan to encourage and
develop the performance of employees in Rio Tinto.
Benefits to employees Benefits to employers
Selection of talented employees helps the
individuals to make their skills and capabilities
useful. Training and development program
helps them to (Cooke, 2018.) enhances their
skills and improve the level of productivity. It
also improve the effectiveness of their
performance that help them to achieve the
goals and objective for higher growth in the
company.
It improve the relation between the staff and
employers which could help the organisation in
effective utilization of resources and
improvement in performance of company. The
training programs helps the employees to know
about the abilities and weaknesses of the staff
of company so that it can improve the
performance.
Thus, the human resource practices is beneficial for both company and their staff
members in order to gain effective performance of employees and increase the rate of
profitability in the Rio Tinto.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity.
In the context of Rio Tinto the human resource department of the company helps in
management employee's performance and train them according to the recruitment of the
company. The different practices of HRM helps in better productivity and increasing the profit of
the company. Rio Tinto company provide proper training to their employees in order to make
them train according to the jobs they have to perform. Below are some human resource practices
that helps organisation in raising profit and gain effective productivity.
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 Performance Efficiency: The human resource management of Rio Tinto analyse and
examine the performance of their employee that help them to understand the effective
level of work and provide correct solution according to the level of performance in
the company. Effective performance of employees can improve the profitability of the
company help them to analyse the actual level of productivity of employees.
 Workforce Planning: An effective workforce planning helps the mangers of Rio
Tinto to evaluate and analyse the actual performance of staff members so that they
can start an training program to improve (Tang,.and et. al., 2018) the level of
performance in the company. An effective workforce planning helps in proper
development of talented and skilled employees in organisation. It is beneficial for the
company because of the proper arguments of the resources improve the productivity
and profit of the company.
 Effective working environment: The human resource department of Rio Tinto
ensure that they make their working environment positive and effective so that their
employees does not feel any work pressure. It can help company to make more
efficient performance and develop better understanding between staff members and
employers.
Thus, an effective human resource practices helps in better development of organisation and gain
more profitability rate in the company. This also helps organisation to deal with the external
factors of the company and provide better understanding of competitive environment in the
company. Human resource practices is impotent part of company.
TASK 3
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making.
Employee relation is very important aspect within an Rio Tinto because the good relation
between staff and employer helps company to retain the employee for long period of time. It also
help in effective work environment that build positive mind set of the employees within an
company. Development in relationship also help in gaining the trust of employees in the
company and make them more loyal(Kim,and et. al., 2019.) employee. It is important for the
mangers of human resource to know about the needs and problems within an organization so that
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they can provide better solution to solve those problems. It can motivate employees and provide
better insight about the concern of organisation towards there problems and provide them better
solution of it. Rio Tinto takes various decisions in order to make better relation with the
company and improve their performance in the company.
 Encouraging social interactions: The human resource mangers of Rio Tinto ensure that
they have interaction with every employee in the organization that help them to build
better understanding with their employees and provide them insight of how employee feel
within and organization and how they can make their job satisfaction high. There are
various activities that human resource mangers arrange for better infraction with
employees. It could promote employee engagement and motivation to team members of
the company.
 Conduct surveys: The mangers of HRM conduct survey programs so that they can
effectively know about the feedback of employees and how their work is affecting form
the various factors of the company. Employees get motivated and encouraged when they
can share their problems with the organisation. Various surveys helps organisation to
know where the organisation is lacking and why the performance of employees can not
meet the expected performance. This survey program give insight about what is the
reason the employee are unable to achieve the objectives of the company.
 Transparency and innovation: It is very important for the human resource department
to have transparency between employees and organisation so that they can build their
trust for company. Rio Tinto (Hewett,and et. al., 2018) make their employees more
innovative by providing them different task so that they can learn about innovative ideas
and information within an company. Thus, it is very important for the Rio Tinto to have
transparency and innovation in the company in order to build healthy relation between
staff and employer.
 Healthy working environment: Providing healthy and positive environment is very
important for Rio Tinto to build better relation with workers of the firm. Proving them
more effectively working environment help them to understand how organisation works
and how they manage their working. Thus, the company needs to know how make
healthy and positive environment for employees.
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Thus, Rio Tinto always works for the improvement in performance while making good relation
with the employees.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making.
Employment legislation refers to the all the rules and regulation of the government to
protect the interest of employees. The HR mangers of Rio Tinto ensure that all the employees of
the company know about all the employee legislation terms and mange their decision making
according those legislation. Below is some of those legislation that company's employees should
know:
 Fair Labour Standards Act, 1938: This act was founded in 1938, under this act all the
rules and regulation for the fair wage should be provide by the company to protect the
interest of the employees. The working time for employees should not more than 40
hours an week. The Rio Tinto (Papa,et. al., 2018.) should arrange the salary and working
hours of their employees according to the labour standards act.
 Occupational Health and Safety Act, 1970: The main motive of this act is assure
healthy and safe working condition for the working man and women. This act was
developed in 1970, for providing better working environment to the employees. Rio Tinto
should make working environment of the company healthy and safe for their employees
so that they feel safe in that environment and give extra efforts for the company.
 Employment Rights Act 1996: In this act there are various rights of the employees are
mentioned such as right to be free from the discrimination and harassment of employer,
right to be in safe working environment without any dangerous condition etc. Rio Tinto
should make the environment of their organization more effective without any negative
impact on the employees.
 The Equality Act of 2010: This act was made to (Järlström, Saru and Vanhala, 2018)
protect the employees form the discrimination in their working environment. It was made
in 2010, it helps the employee to make their working environment more favorable. Rio
Tinto, have to organize the environment of their company according to the employees
benefits so that they can not get any discrimination in the offices.
Effect of employment legislation on decision-making of HRM
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The employee legislation has huge impact on the performance and decision making of the
human resource department that provide better insight to the employees benefits. The mangers of
Rio Tinto needs to follow all the legislation in order to provide them better working environment
and safe future. The decision making process of human resource department have impact of all
employment law. They have to arrange the environment of their work place according to the
these law and regulations. Thus, the employment legislation can affect the performance of
human resource department and decision making process of the company.
TASK 4
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
Application of human resource practices in Rio Tinto
This are the important practices followed by the company to improve the performance of
the employees and gives better insights for development of the efficiency level of the
organization. This applications helps the company to understand about what are the recruitment
of the company for an specific job and what skills and talent candidate needs to have in order to
fulfil that job. The human resource manger of Rio Tinto ensure that employees of the company
should get proper motivation and encouragement in order to stay in the organization for the long
period of time.
In the context of Rio Tinto (Brueller and et. al., 2018) company has make the specific
plan to understand the needs of organization. The mangers of human resource department
ensures that company effectively meets the goals and objectives of company. They analyses the
demands of candidates in the company and give an specific requirement plan to the company. It
is also use for the development of performance level of employees and improve the productivity
in the company. They make an application according to the requirements and demands of the
company and provide best result to the company.
Job Description
Job Details
Post : Human resource Manager
Company : Rio Tinto
Job Purpose
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The human resource manager, manages different roles and responsibility in the HRM
department by making best management planning of work force. The HR manger conduct
training session for the employees and analyse the needs of employees in the company. The
candidate also able to maintain the balance of workforce in the company and arrangement of
required employees in the organization.
Roles & Responsibilities
 To identification of needs candidates in company.
 Create training and development programs.
 To attract more talented and skilled employees in company.
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Job Specification
 Post: Human resource manager
 Department: HR department
 Key: This shows what is required as an evidence:
 (R): Request form, (I): Interview, (R): Role
Attributes Essential Desirable
 Qualification &
Experience
 Qualified from Authorised
university
 Have more than 3 years of
experience in same filed
 Strong communication skills
 Useful knowledge in
human resource
department
 Skills or
knowledge
 Amended emblematic skills
 Strong knowledge of HR
department
 Making good relation
with employees
Creation of structured interview: The human resource department of Rio Tinto, make
structured interview for the position of(Longoni, Luzzini, D. and Guerci, 2018) Human resource
manager in the company. They published the details about the position through digital platforms,
newspapers, various sites and form their own portal. So that candidate can know about the
vacancy. The human resource manger asked various question during the interview session.
 What do you understand by the human resource department and how it works?
 What is the process of requirement and selection and how it helps the organization in
growth?
 How do you fulfill the needs of human resource manger in organization?
 what are the required skills do you have to become an human resource manger?
 why should we hire you for this position?
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CONCLUSION
From the above given information it can be summarise that human resource management
is an important part in the process to make organisation grow. Various human resource practices
helps the organisation in better arrangement of workforce and effective performance
management. In this report the human resource mangers plays their roles and responsibilities in
order to make the company more successful and increase the profit of the company. The
effective relationship between employees and employer is important for better development of
understanding of goals and objectives of the company. In the last the human resource mangers
use different formate to improve the working conditions of the company.
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REFERENCES
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research in perspectives. Human Resource Management Journal, 28 (1), pp.1-13.
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