Benefits of HRM Practices for Employer and Employee

This article discusses the benefits of different HRM practices, such as training and development and rewards and benefits, for both employers and employees. It highlights how these practices contribute to organizational success and employee satisfaction.

Human Resource
Management
Table of Contents
INTRODUCTION...........................................................................................................................3

TASK 1............................................................................................................................................3
P1. Explain the Purpose and Functions of Human Resource Management...........................3
P2. Explain the strength as well as weaknesses of various approaches of recruitment &
selection..................................................................................................................................6
TASK 2............................................................................................................................................8
P3 Explain the benefits of different Human resource management practices in an organisation
for both the employer as well as employee............................................................................8
P4 Evaluate the effectiveness of different Human resource management practices in context of
increasing organisational profit & productivity.....................................................................9
TASK 3..........................................................................................................................................10
P5 Analysis of significance of employee relations in context to influencing Human resource
management decision making..............................................................................................10
P6 Key element of employee legislation and impact on decision making by human resource
departments...........................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples...............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
INTRODUCTION
Human resource management is defined as the process of administering, designing as well as
developing programs in order to enhance effectiveness of the organisation. Human resource

management plays an important role in maintaining employee relation and to provide positive
working culture to the staff members. There are various important roles that is performed by
Human resource department of company such as recruitment, selection, training and
development, reward system and so on (Kamoche, 2019). It is determine that the performance
and productivity of a company enhances if all the HR functions is properly function and
implement out. For the present report, Liverpool Victoria is taken into consideration. The
company was founded in year 1843 and is one of the largest insurance companies of United
Kingdom. Liverpool Victoria around 6,000 employees who perform all the activities properly
and enhance the growth of company. The products as well as services offered by company is
insurance, equity releases, savings and so on. The report will discuss about scope, function and
purpose of human resource management. Along with this, techniques of recruitment and
selection with its strength and weakness is described. Moreover, impact of different HRM
practices on profitability as well as productivity of an organisation is elaborated. Later,
Applications of human resource management such as job specification, CV and many more is
discussed in a proper manner.
TASK 1
P1. Explain the Purpose and Functions of Human Resource Management
Overview of the chosen Organisation:
Liverpool Victoria is one of the largest insurance company of UK, which was founded in
year 1843. The company has high market presences as it provide services in around 15 countries
and have more than 6,000 employees. The organisation deals in providing services such as
pension, investment product, equity release, savings and so on. Liverpool Victoria offer quality
and on time service to its customers that help company to attain higher growth and success at
marketplace.
Purpose of Human Resource Management:
 Maximising productivity: It is analysed that human resource management enhance the
efficiency and performance of company by giving positive and health working culture to
the staff members. In relation to Liverpool Victoria, its HR manager focuses on fulfilling
the requirements of customer so they can work with full potential that has positive
influence on profitability of company.

 Recruitment and selection: Another purpose of Human resource management is to hire
and select the best and effective candidate for the company. They select those candidate
who has the capability to perform all the activities in a proper manner that leads to
increase in performance level of respective organisation.
 Deployment of resources: It is analyse that human resource management deploys
resources by providing training session to staff members that improve skills and
knowledge of employees due to which they implement activities in a proper manner. In
context to Liverpool Victoria, it provide training session to both existing and new
employee so that they can optimally utilise the available resources in a proper manner.
Scope of Human Resource Management: The scope of human resource management is wide
or broad in nature. It consist of activities such as recruitment and selection, lay-offs, transfer
training and development, retrenchment and so on (Adrian, 2017). Along with this, it also
includes benefits which is given to employees for their satisfaction and these are health and
safety, recreation service, medical assistance, rest rooms and many more. It is determine that
providing of all such services in a proper manner assist company to enhance its productivity and
profitability level which in turn help in attaining organisational objective within given time
frame.
Functions of Human Resource Management
HRM department of an organisation plays an essential role in enhancing the performance
and productivity of company in an appropriate manner. There are various functions performed by
human resource management that is given below in relation to the respective company:
Human resource development: One of the most essential thing which is required in
every organisation is to enhance the performance level of employees so that they can execute
activities in an effective and proper manner. For this, HR manager of Liverpool Victoria
provides training session to staff members that help in improving skills and enhance their
knowledge level. In addition to this, it help company to give quality services to customers that
develop its brand image at marketplace.
Maintaining relation with Employees: It is significant for an organisation to maintain
good relation with its employees so that they put efforts in attaining objectives and retain with
company for longer time period. In relation to Liverpool Victoria, its human resource manager
emphasis on fulfilling requirements of staff members so that they can work without any mental

pressure. In addition to this, the company develops good relation with employees that help in
implementation of activities in a proper manner.
Reward System: Another function which is performed by human resource departments
is to give appreciation, rewards to the employees according to their performance level. It is
determine that organisation give rewards to employees in order to motivate them towards work
that directly impact on performance and profitability of company. With reference to Liverpool
Victoria, it provide monetary and non-monetary rewards to its employees such as holiday
packages, pension schemes, family insurance, bonus, retirement benefits and many more. This
satisfy employees due to which they give their full potential in meeting with the targets of
company in an effective and timely manner.
Performance Management: Managing performance plays an important role in every
organisation as it assist company to enhance profitability and revenue level of company. It is
determine that human resource manager evaluate performance of staff members with the set
standards that help in making improvements and also develop confidence in employees
effectively (Armstrong and Taylor, 2020). In context to Liverpool Victoria, its HR manage
analyse performance of staff members on continuous manner and then give review accordingly
which leads to improvement in productivity level of company. This also assist company to
develop good relationship with its employees and retain them for longer time frame.
Best Fit approach vs Best practice
The concept of best fit approach is mainly based on setting and developing policies of
HRM according to the overall business strategy as well as tactics. In addition to this, it argues
that Liverpool Victoria must accept its human resource strategies in relation with business
strategy & wider environment. On the other hand, best practice is consider as a universal aspect
which is associated to premises that select most effective policies and practices in order to
manage staff members according to companies environment. Moreover, it implies close
connection between practices of human resource management and performance of organisation
as well.
Hard & soft models of Human Resource Management
Hard models of human resource management puts emphasis towards quantitative
elements in order to manager people as well as economic production factor as well. According to
this model, staff members are viewpoint as resources and companies fain benefits by adopting it

in an effective manner. In relation to Liverpool Victoria, implementation of hard model assist to
develop and deploys staff members in an effective manner.
Soft model of human resource management focuses on communication, motivation and
leadership as well. By the assistance of soft model, higher authorities of organisation involve
employees in a team collectively and decide the manner in which activities are performed,
Moreover, it give necessary information to the people prevailing at workplace.
P2. Explain the strength as well as weaknesses of various approaches of recruitment & selection
Recruitment and selection are one of the major function performed by human resource
department with an aim to hire and select suitable as well as effective candidate for the
company that reaches company towards growth and success as well. The approaches of
recruitment as well as selection used by respective organisation is given below along with its
strength and weaknesses as well:
RECRUITMENT
It is defined as the procedure of attracting people to apply for the job vacant position in a
proper manner. In addition to this, it is consider as a method which assist HR manager to fid and
attract fresh talent for the organisation (Bratton and Gold, 2017). Furthermore, it is basically
choosing the appropriate candidate from the overall pool of individuals according to the
requirements of company. There are different approaches adopt by HR manager of Liverpool
Victoria, which are as follows:
Approaches of Recruitment
Internal Approach: In this approach of recruitment, the company place those candidates
who are already the part of organisation and who are being suggested by its staff members with a
motive to fill job position. In addition to this, it is determine that companies using such approach
when they are hiring for vacant position. The pros and cons of such approaches is given below:
Strength: One of the major strength of using internal approach of recruitment is its saves
time as well as cost of an organisation as people who are going to hire are familiar with norms,
policies and culture of the company.
Weaknesses: It is determine that such approach decline the level of fresh talent coming
in the organisation. in addition to this, there is lack of creative and unique idea that impact
directly on performance of company in an negative manner.

External Approach: It is termed as the process of finding as well as attracting individuals
from outside the organisation in a proper manner. In addition to this, it is when outside people
are applying for vacant job position prevailing in the company. The strength and weaknesses if
using such approach is given below:
Strength: One of the major strength of using external approach of recruitment is it beings
creative ideas, fresh talent as well as unique idea in a company that help in achieving growth as
well as development in an effective manner. In addition to this, acquisition of dynamic
environment creates feasibility in company because of which there is increase in productivity
and profitability of the organisation.
Weaknesses: It is analyse that using external approach is a time consuming as well as
cost effective procedure that decline profitability level of an organisation.
SELECTION
It is defined as the method of selecting talented, skilful and effective person for the
company from the overall number of applicants who are apply for the vacant job position. In
addition to this, HR manager and higher authorities select those candidates who met with the
requirements and have the capability to perform task of company in an appropriate manner.
Approaches of Selection
Telephonic Interview: Herein, the interview is implemented on the telephone and some
questions were asked to the selected candidate who met with the criteria. The advantages as well
as disadvantages of telephonic interview approach is given below:
Strength: It is determine that it is an cost effective procedure and also covers broad area.
For example a telephonic interview of 15 minutes arise less cost to a business entity as compare
to another selection approaches.
Weaknesses: It is determined that such approach sometimes did not result out an
appropriate information of a selected individual. In addition to this, it is not simple to judge
attitude as well as behaviour of candidate via telephonic interview.
Face to Face Interview: In this type of approach, a face to face interaction and
communication take place among the selected candidate and employer as well. In addition to
this, it help in gaining insight about the tone, gesture, communication skills of the selected
candidate in a proper manner.

Strength: This approach of selection help employer to analyse the attitude behaviour,
tone of the selected candidate. In addition to this, it also help in gaining understanding about how
a candidate deal with the situation in the present time period.
Weaknesses: It is analysed that face to face interview approach consumes more tone if it
is compare to other methods of selection.
TASK 2
P3 Explain the benefits of different Human resource management practices in an organisation for
both the employer as well as employee
HRM practices is termed as a system which develop, attract, encourage as well as retain
staff members of the organisation. In addition to this, it emphasis on execution of task and
survival of company ay market. The human resource management practices used by Liverpool
Victoria is given below along with its benefits to employer as well as employee:
Training & Development: It is consider as an effective human resource management
practices that help company to increase the performance and profitability of the organisation. one
of the main motive of providing training and development session to staff members is to improve
their skills, competencies and knowledge level of employees so that they can implement
activities in a proper and effective manner as well. With reference to Liverpool Victoria, it is
analysed that company provide training to new as well as existing employees in order to make
them familiar with policies, norms and working conditions of the organisation in a proper
manner.
Benefits to Employer: Providing training and development session to staff members help an
entity to give quality and on time service to customer, which has positive influence on brand
image of the company. In context to Liverpool Victoria, it help company to strengthen its market
position and increase its revenue level in a proper manner.
Benefits to Employees: It is analysed that improvement in knowledge level, competencies and
skills assist an employee to perform best in an organisation and gain rewards. In addition to this,
it help employee to gain achievement in both personal and professional life.
Reward and Benefits: It is significant for a business entity to give rewards and extra
benefits to its employees in order to motivate and retain them for longer time period. In relation
to Liverpool Victoria, it is determine that company provide both monetary as well as non-

monetary rewards to its employees such as holiday packages, bonus, family insurance and many
more (Brewster, 2017). It encourage staff members to take interest in activities of the activities
of company and attain organisational objectives within stipulated time period.
Benefits to Employer: It is analysed that encouraging and motivating staff members develop zeal
in employees to perform activities in proper and meet with the targets of company that leads to
improvement in performance of the organisation.
Benefits to Employees: It is determine that providing rewards & benefits to staff members
develop a confidence level and fulfil their requirements as well. In addition to this, it improve the
living standard as well as status of employee in the society.
P4 Evaluate the effectiveness of different Human resource management practices in context of
increasing organisational profit & productivity
One of the main objective of a business entity is to sustain in market for longer time and
earn higher profits as well. It is determined that if all the human resource management practices
are implemented properly then it help an organisation to enhance productivity and profitability
level. With reference to Liverpool Victoria, the effectiveness of HRM practices that enhance
profitability are as follows:
Training & Development: The major aim of providing training to employees is to
improve the skills, competencies and knowledge level of staff members performing in the
organisation. If it is talking about Liverpool Victoria, its higher authorities is decided to use
advanced technologies and to function such technology company provide training to its staff
members. It help company to cut down their cost of operation that leads to raise in profit level of
respective organisation.
Rewards and benefits: The companies give rewards and recognition to its staff members so
that they can motivate and influence towards working. In context to Liverpool Victoria, its HR
manger evaluate performance of employees and then give employees rewards, appraisals,
recognition in front of all the members of company. It encourage employees and develop a
positive mind set towards meeting with the targets in an effective and timely which has positive
impact on performance of an organisation.

TASK 3
P5 Analysis of significance of employee relations in context to influencing Human resource
management decision making.
The concept of employee relation is termed as efforts a company did for managing good
relationship among an employee and employer as well. It is important for the higher authorities
of Liverpool Victoria to focus on maintaining employee relations as they are they asset that help
company to gain success and development as well. The importance of employee relation in
context to influencing HRM decision making is mentioned below:
Significance of employee relations in organisation
Helps in successful functioning of HR functions: It is determine that an effective and
good employee relation assist company to implement activities in an effective manner. In
addition to this, it also help in assigning tasks according to their interest level that has positive
impact on the decision making of human resource management.
Elimination of conflicts: Employee relations plays an important role in declining the
level of conflicts arise at workplace as it help company to develop a sense of coordination as
well as cooperation in employees in an effective manner. In relation to Liverpool Victoria, its
HR manager develop effective strategies and emphasis on fulfilling requirements of employees.
Moreover, it also focuses on building good relation with employees so that no issues and
conflicts is arise that has impact on performance of company in a positive manner.
Along with this, there are also other benefits of effective employees relation such as
improve in productivity level, development of brand image, increase in profitability and revenue
level and so on.
P6 Key element of employee legislation and impact on decision making by human resource
departments
Health & safety laws: It is important for an organisation to give priority to health and
safety of its employees that is significant for developing value of employees and satisfy them as
well. In context to Liverpool Victoria, it follow such law so that its employees feel safe at
workplace and work without any mental pressure within the organisation.
Discrimination act: This law is mainly proposed by UK government in order to handle
issues such as disabilities, gender, racism ,age and many more (Chowhan, Pries and Mann,

2017). With reference to Liverpool Victoria, following of such act assist company to develop a
positive mind set of employees and enhance its brand image at marketplace.
Equality Law: It is significant for an organisation to equally and fairly treat every
employees of the company. In addition to this, providing them salary and incentives as per their
input is important for an organisation. It help Liverpool Victoria to gain the trust of employees
and improve its productivity level in an effective manner.
TASK 4
P7 Illustrate the application of HRM practices in a work-related context, using specific examples
By analysing the present requirement of the organisation it is determine that in Liverpool
Victoria, there is requirement of post of receptionist and for this some application of human
resource management practices is given below:
JOB SPECIFICATION
Job title: Receptionist
Reported to: Administrative Manager
Job summary: The receptionist of Liverpool Victoria is able for managing paperwork and
handling customers of the company.
Responsibilities:
 Dealing with customer queries properly
 Answer phone calls Maintain records of customers that have checked in & out
Qualifications:
 Ability to handle various tasks at a time
 Effective customer service skills
 Good interpersonal and managerial skills
JOB ADVERTISEMENT
We're HIRING !!
Receptionist (Full-Time)
We are giving the opportunity for people to join us and to be part of Liverpool Victoria family.

We are now hiring for the post of receptionist in our office.
A total of 42 hours a week along with additional benefits. Training session and facilities are
provided. The last date for application is 25th September, 2020.
Pay and Benefits
-London Living Wage
-26 Days Annual Leave
-Benevolent Pension Scheme
Contact us today
If you are curious to work with our company or have any
other contact who are interested, please contact us on given
mail id and number:
 email it to [e-mail]
Preparatory notes of interview:
Q1. How you are going to keep daily schedule managed?
Q2. What are the major role does a receptionist perform in developing impression in front of
customers about organisation?
Q3. Describe your previous responsibilities as a receptionist?
Q4. What are your strengths and how you implied them?
OFFER LETTER
Liverpool Victoria.
September 30th, 2020
XYZ
Dear XYZ,
We are grateful to inform you that you are selected for the job as a receptionist in our company
by clearing all the procedure of recruitment. We have conduct a procedure to analysed your
knowledge, qualification, skills & background and result is that you are valuable for our
orgnisation.
According to our discussion, you are hired for the post of receptionist and your joining

date will be October 5th,2020. If you are interested then contact us via email. For further queries,
you can contact to our phone.
Sincerely,
HR Manager
CONCLUSION
From the above discussion, it has been said that HRM plays a significant role in order to
enhance the performance and profitability of the organisation. There are various functions
performed by Human resource department of a company such as manpower planning, training
and development, performance management, rewards and benefits and many more. It is
important for HR manager to maintain a good relationship with staff members so that they can
retain with company for longer time period. Moreover, various legislation are followed by an
entity in order to systematically implement activities and maintain positive working environment
such as health and safety, equality act and many more.

REFERENCES
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