Importance of Employee Relation in HRM Decision Making

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and Function of Workforce Planning and Resource Organisation: ........................1
P2. Strength and Weakness of different approaches of Recruitment and Selection:...................2
Task 2...............................................................................................................................................3
P3. Benefits of different HRM practices for employer and employee:.......................................3
P4. Evaluation of effectiveness of different practices in HRM in Organisation Profit and
Productivity: ................................................................................................................................4
TASK 3............................................................................................................................................4
P5. Importance of Employee Relation in HRM Decision Making..............................................4
P6. Impact of employment legislation on HRM decision making...............................................5
TASK 4............................................................................................................................................6
P7. Application of HRM practices at work related practices.......................................................6
CONCLUSION................................................................................................................................8
REFRENCES.................................................................................................................................10

INTRODUCTION
Human resource management is a approach that lead to effective management of people
in the organisation in order to achieve business objective (Anderson, 2015). It helps in improving
employees performance to contribute towards the growth of the organisation. HSBC is one of the
largest organisation providing banking and financial services to all over the world. The entity is
serving more than 40 million people globally through business. This report include purpose and
function of workforce planning and resource organisation. It also include different approaches of
selection and recruitment, benefit of HRM practices, impact of employment legislation.
TASK 1
P1. Purpose and Function of Workforce Planning and Resource Organisation:
HSBC is a multinational bank established in the year 1865 and has 3900 offices in
different countries. It is providing different service like commercial banking, investment
banking, retail banking and many more.
HRM ensure proper management of employees at work place so they can contribute
towards attainment of business goals (Armstrong and Taylor, 2020). HRM is important concept
for HSBC bank as it helps to manage performance of employees at work place. The duty of this
department is to ensure availability of employee, training and development, performance and
reward management.
Purpose of Workforce Planning and Resource Management:
Workforce planning ensure that organisation have right people in right place at right time.
It include analysing and planning workforce supply and demand to ensure availability to right
skilled people in the enterprise (Schaufeli, Maslach and Marek, 2017). The purpose of
Workforce planning at HSBC bank is to ensure that there is always availability of skilled
employees in bank.
Workforce planning ensure correct balance of human resource by forecast demand and
supply of employees and utilising them in a effective manner. It helps in effective conflict
management at work place as there are many employees working for a common purpose so there
are higher possibility of conflict.
Functions of Workforce Planning and Resource Management:
1

Planning: Planning refers to deciding in advance about goals, strategy of business and it
helps an organisation to face difficulty (Sharma, Sharma and Agarwal, 2016). It is the first and
important function HRM as it aware them about the need of human resource at work place. It
helps the manager of HSBC bank to ensure about what kind of people organisation needs to for
the available jobs.
Recruitment and Selection: Recruitment is the process of attracting qualified employees
towards organisation whereas selection helps in selecting best among them to achieve
organisation goals of business. Human resource management include the recruitment and
selection of employees at work place. It is the duty of HR of HSBC bank to attract the skilled
employees towards them by offering perks and benefits.
Performance Management: Performance management is the process of managing and
monitoring performance of employee to improve their efficiency. The function of HR is to
ensure proper performance management. It is duty of HR of HSBC bank to ensure that
employees are stay busy and productive for the enterprises.
P2. Strength and Weakness of different approaches of Recruitment and Selection:
Recruitment: Recruitment is the process that include identifying, interviewing,reviewing
suitable people for the enterprise (Torraco, 2016). There are two approaches with which HR of
HSBC bank can hire employees which are as follows:
Internal Approach: This approach include hiring of employee within organisation as it
is cheaper source of recruitment. This method include transfer, promotion, employee referrals
etc. The strength of this approach for HSBC bank is that it saves the time of the organisation to
find suitable candidate for the respective job. It also save cost and efforts of the HR as the
employee is already aware of the terms and policy of the organisation. Weakness of this
approach for HSBC bank is that there is limited choice of employee for the job. It also stops the
fresh blood and thought within enterprises.
Strength of Internal approach  It saves cost of business to provide training and
development to employees as they are already aware
of policies as well as strategies of business.
 It saves time of managers for recruitment of new
candidate as they need to advertise job vacancy to
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