Importance of Employee Relations in HRM Decision-Making

This report discusses the importance of employee relations in HRM decision-making and its impact on business performance. It explores the significance of maintaining strong employee relations and how it can enhance the overall functioning of the organization. The report also highlights the key elements of employment legislation and their role in HRM decision-making.

Human resource management

Table of Contents
Human resource management..........................................................................................................1
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Purpose and functions of HRM in planning and resourcing..................................................3
HRM in providing talent and skills to fulfil business objectives...........................................5
Strengths and weaknesses of approaches of recruitment and selection.................................5
LO 2.................................................................................................................................................7
Benefits of HRM practices for both employees and employers.............................................7
Effectiveness of HRM practices to raise profits and productivity in organisation.................7
HRM practices used in organisation.......................................................................................8
LO 3.................................................................................................................................................8
Importance of employee relations and their impact on HRM decision-making....................8
Key elements of employment legislation...............................................................................9
Impact of employee relations and employment legislation in HRM decision making in
organisation..........................................................................................................................10
LO 4...............................................................................................................................................10
Different types of HRM practices........................................................................................10
Rationale of adopting HRM practices within the organisation............................................12
CONCLUSION..............................................................................................................................12

INTRODUCTION
Human resource management is an important factor within the companies used for
managing personnel. There are different people who work within company and it is essential to
manage their effectiveness properly. When employee engagement is more, there are chances of
delivering high quality work and increased customer satisfaction. Workforce within an
organisation has to collaboratively work for managing various job responsibilities. Performance
of employees is increased by developing and enhancing their career growth opportunities. In the
following report, Tesco is considered for completing tasks related to HRM. This report will
discuss about different HRM practices of Tesco. Strength and weakness of Tesco's recruitment
process is discussed and key legislations are used for discussing various internal and external
factors that are affecting decision making process of management.
The mission statement of Tesco is “to provide quality products and goods to customer and
enhance their satisfaction level”.
Main purpose for conducting business operations at Tesco is to adopt new strategies and attain
organisational targets by providing quality products and services.
Core objective of Tesco is to maximise profits of the company and increase number of potential
customers.
LO1
Purpose and functions of HRM in planning and resourcing
Meaning of HRM
the department of human resource within an organisation helps to control and manage the
employees working in company. It is essential for companies to control and handle business
activities so that it is easy to manage behaviour of employees . The business strategies are
aligned in relation to the HR objectives. It is important for developing and controlling the
management activities effectively.
Significance and Purposes of HRM
The human resource management of Tesco is involved in providing strategies and plans
for employees which help in effective functioning of business. The purpose of HRM is basically
linked with benefits and welfare of employees. Purpose of HRM is mentioned below:
 To provide positive work environment and enhance employee engagement

 To implement safety and security measures within Tesco workplace To implement different legal regulations and manage ethical functioning of business.
Functions of HRM
Within Tesco, the human resource department has responsibility of managing employee
relation and management. It is concluded that HRM has the main role of managing functions
within company that are helpful in order to effective functioning of company. There are different
roles and responsibilities of the HR department which provides help in managing employees and
staff working in the company. Some of the HR functions of Tesco are discussed below -
Recruitment & selection: These are known as two important functions of HR
department which are helpful in hiring new talented and skilled employees. There is need to hire
and recruit talented employees who are able to work in the company. There are various job roles
and responsibilities of Tesco managers which has to be managed effectively. There are various
internal recruitment sources including promotion, transferring existing employee to another
place, referral candidates, etc. Role of HR manager – To recruit and hire talented and skilled employees for performing
different job roles.
 Responsibility of HR manager - To manage functions of HR manager effectively for
filling vacant position of company effectively by promoting the job advertisements.
Training & development: It is a function of human resource department which is
associated with managing and developing sessions for employees in order to improve skills and
abilities. Within Tesco, it is seen that different training are provided to employees for enhancing
their growth opportunities. Role of HR manager - To prepare effective training schedule for employees Responsibility of HR manager - To enhance the skill as well as knowledge of workers in
order to perform all the business functions in an appropriate manner.
Workforce Planning
This is defined as the procedure used for managing he employees working in the
company. It is important that all employees are able to work properly within workplace for
managing skills and abilities of employees. Tesco managers provide training to employees for
improving their skills, experience and knowledge.
Significance of Workforce Planning

Workforce planning is known as an important role of HRM which is used for managing
the organisation functions. There are various ways for implementing workforce planning -
 Workforce planning is used for managing the profitability of company
 It is easy to manage the employees if proper strategies are used for managing workforce.
Role of human resource in Workforce Planning
The concept of workforce planning is defined as process of HRM which is used for
providing help to management of company for working well. It is concluded that all employees
working in Tesco are satisfied and their skills and abilities are enhanced. Recruitment and
selection method is used for hiring talented and skilled employees.
HRM in providing talent and skills to fulfil business objectives
The human resource management of company has to manage the business objectives and
strategies in such a way that employees are provided benefits. The organisational mission and
vision is aligned with business strategy for enhancing performance of company. There are
several skills and abilities of employees which are increased by providing effective training. This
is concluded that all employees are managing their work effectively and their satisfaction level is
increased. HR department of Tesco is involved in meeting the needs and requirements of all
staff members. This is helpful in accomplishing organisational goals and objective within
specified time frame.
Strengths and weaknesses of approaches of recruitment and selection
Recruitment is the process of hiring new employees in company. The different
recruitment startegies used within Tesco are mentioned below -
Promotion – This is a method in which employees are promoted to higher position. Existing
employees within the company are given more responsibility and higher designation. Advantages: It enhances employee motivation and encouragement as they are pormoted
to higher positions.
 Disadvantages: There are some employees who are promoted and few are not then, this
creates problem among employees.
External agencies - This is known as recruitment method used by organisations where it is
important to fill job positions by advertising them by using external agencies. This method is
used for providing advertisements of different job positions on job portals.

 Advantages: This provides help to Tesco in order to hire new talented and skilled
employees in the company. There are several external agencies present within business
environment which are used for hiring new employees.
 Disadvantages: The biggest disadvantage of using external agencies for recruitment is
that company has to pay higher amount of money to provide advertisements. This is an
expensive method used for recruiting employees.
Selection is the process by which companies select the best candidate who can handle and
manage the business activities. It is ensured that all employees selected in the company are
skilled and capable for conducting business operations in right manner. Some of the selection
methods used in Tesco are mentioned below -
Interviews: It is the way by which HR managers analyse overall personality of individual By
talking to the candidates, HR managers are able to know whether the person can adopt the work
culture or not. Advantages: This minimises operational cost of company as right employees are hired in
less time.
 Disadvantages: It is a lengthy process and the main disadvantage of using this method
for selection is that the waiting time of getting skilled candidate is more as compared to
other selection processes.
Online screening and shortlist: This is process which includes job application, formal job
interview and telephonic interview and Tesco HR managers uses for selecting employees on the
basis of overall performance. Advantages: It filters employees on the basis of requirements of job role. This provides
help in managing and handling various applications properly.
 Disadvantages: This is a lengthy process and it is used for re-evaluating the candidate
and checking his intellectual level. There is need of managing the business operations
effectively and making the employees work properly.
In context of Tesco, best recruitment and selection strategy is through advertising job
vacancies on online portals. There is need to manage and develop effective way of recruiting
employees so that company can have skilled individuals who are able to manage different
functions properly.

LO 2
HRM practices used in organisation
Tesco uses different HRM practices for effective functioning of business (Read. and
Leland, 2019). When employees are satisfied, it is seen that employees and employers are able to
manage their work properly. When new innovation is done in the companies, there is need to
have employee engagement that will lead to attain the goals in less time.
Effectiveness of HRM practices to raise profits and productivity in organisation
HRM practices are essential to be examined so that decision making process is carried
out I proper manner. Personnel training & development implies a program in which specific
knowledge, abilities are imparted to the employees, with purpose of raising their performance
level, in their existing roles, as well as providing them learning opportunities, to further their
growth. Moreover, it is important for an organisation top provide these both in most efficient
way. In relevance with TESCO, they use these HRM practices with proper considerations so that
it is easier for them to achieve objectives within a period of time.
Training and development: It is one of the most effective human resource
management approach used by management team in order to improve the
performance and skills of the individual person for maintaining sustainability
at the competitive marketplace. In this method training are usually provided
by higher authorities to the workers related to new technology or
modifications arise at workplace. This practices of training & development is highly
effective because it enhances empl0oyees working efficiency at larger scale. The training as well
as development is provided by managers, leaders & HR. Main drawback of this T and d is that it
is an cost expensive approach to implement.
Benefits of Training as well as Development: It is said that there are various
benefits gain by the managers where the biggest advantage is that it helps in order to
improve the effectiveness and productivity of employees by providing them training
and development session. Along with this, employees skills are improved with the
assistance of which they easily grab opportunities from the competitive market place.
Reward system: It is very necessary to motivate the staff members about
their work on a regular period of time in order to gain more profitability at

the competitive environment. For this reward system help in appreciating
workers so that they feel motivated and encouraged while working within the
business entity. Motivation play important role at workplace without which it is not possible
for individual to complete the assigned task on time period. So, reward system is an approach in
which perks, benefits or rewards are being provided to high performing subordinates. Through
this TESCO is able to achieve their organisational targets & it also leads to reduce of employee
turnover rate.
Benefits of Reward System: Every organisation adopt rewards system which provides
them benefits to their staff members which develop positive impact over the
performance of the business entity and its effectiveness. Along with this, biggest
advantage is that workers feel motivated while working within the organisation which
enhance their performance in an effective manner.
Therefore, it is essential for an entity to adopt these HRM practices so that employees
and other activities are well organised & managed. As, it assist in development and higher
growth.
Benefits of HRM practices for both employees and employers
There is need of adopting effective HRM strategies that are used for attaining
organisational goals. It is necessity for the employers to adopt HRM practices so that employee
engagement is increased. It is important for the employees to manage the effectiveness of
company's functioning and meeting organisational goals. Some of the benefits HRM practices
are explained below:
Training and development
Benefits of HRM practices for employer
HRM practices like training and development provides help to employers in managing
company's performance. When employees are skilled and have effective abilities then it is easy
to control different business activities and tasks. This makes easy for employers to know what is
the kind of employee who can work in Tesco properly.
Benefits of HRM practices for employees

Employee performance is increased by adopting effective HRM practices. This leads to maintain
business sustainability. Employees are benefited by getting training and development sessions.
This is done in order to manage the work in proper manner.
Reward management
Benefits of HRM practices for employer
Reward management is helpful for the employer as when management knows the right
way for rewarding employees, it is easy to increase employee satisfaction. This is helpful in
enhancing overall business performance.
Benefits of HRM practices for employees
When employees get attractive incentives and rewards then they are benefited as their
satisfaction level increases. This is very important for employees to be happy so that they can
work properly.
LO 3
Importance of employee relations and their impact on HRM decision-making
Employee relation and it's importnace - Employees relation is known as the management of
companies for employees so that they share strong bond. There is need for employees to share
good relation as they have to work in effective manner for managing the tasks and activities.
Tesco is a supermarket chain that is involved in managing and controlling strategies as well as
policies which will be helpful in maintaining strong relationship with workers. Some of the
strategies involved in the decision making are mentioned below -
Collective agreement: This explains that contracts are present within an organisation
that leads to manage trade union and employers. These are related to various norms and values
for both the employer and employees. Tesco HR department has to manage such employee
agreements in order to reduce any conflicts and fights at workplace. Trade union will provide
information about development of good relation and bond. Tesco's staff and employees provide
their employees a good and positive environment which helps in managing various fights and
conflicts. This is considered that positive relation is present among employees so that they feel
connected and manage to accomplish organisational objectives and goals.
Grievance: This is a formal method used by various organisations for handling
employee problems. Grievance strategy helps company to handle and manage different problems

shared by individuals. This is helpful for management to control the strategies and policies in
effective manner and provide positive environment for employees to work. The grievance
strategy helps the HR manager of Tesco to provide employees freedom for sharing their thoughts
and viewpoint in front of others. According to various queries and issues given by HR managers,
it is concluded that decisions are taken for managing future business activities.
Role of trade unions – There is major role of trade union within company operations.
There is need for the management to have trade union in order to manage fights and conflicts.
Trade union is association of different workers and employees of the company. These association
have some rights given by government in order to control the business conflicts and fights.
From the above data and information, it is concluded that HR strategies of different
companies help in managing and developing employee retention. Within Tesco, there are two
strategies including grievance and collective agreement which are used for maintaining positive
relation with employees. It enhances the collaboration and bond among employees.
Key elements of employment legislation
There are different policies and legal regulations adopted within organisation for
maintaining positive environment at workplace. There are different companies involved in
maintaining the working of company by implementing various legislations. In reference to
Tesco, there are different regulations adopted for controlling and handling employee welfare:
Sex Discrimination act 1975: According to this legal regulation, it is concluded that no
employee can be discriminated on the basis of gender. All employees working in Tesco are
treated equally and there is no gender bias. HR managers of Tesco provides equal treatment to all
employees and staff members.
Health & Safety act 1974: This is a legal act provided by HR managers of Tesco and
according to this it is duty of Tesco management to take care of employee's health. There are
different safety and security measures provided to employees for maintaining positive
environment. It helps in increasing employee involvement and employee retention. This helps in
enhancing employee's health and safety at workplace.
Equality Act 2010: It is defined as a legal regulation which states that staff must be
provided with equal rights at workplace. This legal act is adopted by Tesco that protects
employees and staff people from various discrimination at workplace. The HR managers of

Tesco provides equal opportunities for employees. This helps in motivating and encouraging
employees working at different circumstances at workplace.
Impact of employee relations and employment legislation in HRM decision making in
organisation
Employee relation is an important factor within companies that protects the bind present
among employees. It is essential for Tesco to manage employee relation so that effective HRM
decisions are made within the company. The HR manager of Tesco has adopted different
legislations such as health and safety act, equality act and discrimination act as it helps to
maintain positive workplace environment. It is very important for the companies to have strong
employee relation in order to manage employee efficiency and development.
LO 4
Different types of HRM practices
Job analysis: It has been analysed that this is the process which examines as well as
determine responsibilities, duties and the specifications for a particular job position. It aid in
establishing the experience level, skills, qualifications and knowledge which are required to
perform the job in a successful manner.
Job description: It define as a broad term which includes written statements of the specific
job which is based on the findings of the job analysis. It consist of purpose, duties, scope,
responsibilities as well as working conditions of the job apart from job title.
(A) Job specification
Title of the Job: HR Assistant
Address of the place: TESCO, (UK) United Kingdom
Overview of the Job: The present job role of HR assistant is responsible for the expansion of
workforce of the company in a systematic manner. Human Resource assistants help in
conducting job interview, recruiting, selecting along with the management of performance of
staff members.

Qualification Required:
 Graduation in the field of Business administration.
 PG degree in HRM.
Experiences & required Knowledge:
 Proper knowledge about the HR payroll system.
 Understanding associated with the implementation of training and development sessions.
 Sufficient knowledge about different types of employment laws as well as legislation.
Skills needed:
 Communication skills.
 Problem-solving skills.
 Decision-making skills.
(B) Curriculum vitae:
Mark David
Address: XYZ Street lane, London, United Kingdom.
Phone no: 00879-98235
Objectives: To work in such a well known and organised business organisation which help me
in getting growth opportunities in an effective manner by executing all my skills as well as
knowledge of different HRM practices in an effective manner.
Work experience:
 Min work experience of 2 years
 Training in Human Resource Department for max 1 year
 Internship in an organisation under a HR manager for around 6 months
Qualification:
 Bachelor degree in the Business administration stream
 Masters in human resource
(C) Interview question:
1) What do you know about the basic function of the company?
2) Tell me about yourself within both personal and professional field.

3) What are your key strengths and the drawbacks?
4) How you going to handle workplace issues among employees?
5) How you manage stress at workplace?
(D) Offer letter:
Dear Mark David
I am very glad and overwhelmed while informing you about your selection for the post of HR
assistant in our organization.
Job roles and responsibilities:
 Examine the requirements of workers in the business organisation.
 Conduct selection and training & development sessions on a regular basis.
Reporting to: HR manager
Basic salary: $250000 per month
Working hours: 10.00AM – 6.30PM
Rationale of adopting HRM practices within the organisation
For maximizing the performance of employees, HR manager of TESCO use Extrinsic as
well as Intrinsic Reward which aid in encouraging employees in order to conduct their work
effectively. Within TESCO, HR manager of the company examine the performance of staff
members on a regular basis so they will be able to know about the requirement of their workers.
If talking about extensive award, managers of TESCO offer some tangible rewards which will
aid them to retain their staff members for a longer period of time within the workplace.
CONCLUSION
According to the information mentioned above, it has been concluded that HRM is one of
the most effective element within a business entity which aid in attaining the goals and targets of
the organisation in an attractive manner. It has also been said that HR manager is the person who
is responsible for conducting all the functions in an effective manner. In addition to this, it is said
that there are various approaches related with selection as well as recruitment which is adopted
by them for attaining organisational goals effectively. At last there are different types of

legislations which is executed by staff members so that they can gain positive results at
competitive marketplace.

REFERENCES
Books and Journals