Benefits of HRM Practices for Employer and Employee

This article explains the benefits of different HRM practices within an organisation for both the employer and employee. It covers topics such as learning, development, and training, performance management and rewards, employee engagement, and work-life balance.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1.Explaining the purpose and functions of human resource management applicable to
workforce planning..........................................................................................................................1
P2.Explaining the strengths and weaknesses of different approaches to recruitment and selection
..........................................................................................................................................................3
Task 2...............................................................................................................................................5
P3: Explain the benefits of different HRM practices within an organisation for both the
employer and employee..............................................................................................................5
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................6
Task 3...............................................................................................................................................7
P5: Analyse the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................7
P6: Identify the key elements of employment legislation and the impact it has upon HRM
decision-making..........................................................................................................................8
Task 4...............................................................................................................................................8
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples......................................................................................................................................8
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................11

INTRODUCTION
Human resource management is the term which is used to define appropriate arranging of
manpower within an organisation. Arranging of manpower consist of recruiting skilled
employees, managing performance, handle all issues and grievances, distributing resources on
the basis of requirement of organisation and many others(Macke and Genari, 2019). Sainsbury is
an supermarket chain in UK. It was founded by John James Sainsbury in the year 1969. It is
headquartered in London, UK. The following report cover meaning and functions of HRM,
strength and weaknesses of different approaches to recruitment and selection, benefits of HRM
for employer and employees, role of HRM in raising organisational profit and productivity,
importance of employee relations, employment legislation and their impact upon organisation
and HRM practices in a work related context with the help of examples.
MAIN BODY
Task 1
P1.Explaining the purpose and functions of human resource management applicable to
workforce planning
Human resource management: Human resource management means the process of
hiring ,recruiting and training the individuals who are fit for the organisation and maintaining the
workforce for achieving the goals of the organisation(Zaid, Jaaron and Bon, 2018). Human
resource management is that stage which gives out efficient procurement and fuller utilisation of
people.
Functions and activities of Human resource management:
 Human resource planning: Planning is deciding in advance the future course of actions
and that too in relation with workforce. It is very important for the organisation to analyse
the requirement and the type which is required for achieving the goals of the
organisation. Sainsbury always focus on bringing more manpower for each department
and to plan talented individuals through recruitment and selection process. Recruitment and selection: By recruitment we mean hiring the individuals required for
the organisation and then selecting them on the basis of their talent and locating them on
the basis of their ability to achieve organisation goals and right experience(Järlström,Saru
and Vanhala, 2018) . Sainsbury also performs this procedure similar to other companies
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where they use an application for recruiting staff and finding the individual information
in a structured way.
Best fit approach v/s Best practice:
Best Fit Best Practice
 Best fit approach means the strategies
which are used by the organisation are
suitable for the functioning.
 HR strategy will be more efficient when
it is related with the surrounding
activities of the business (Lin, Li and
Lam,2020).
 Best practice says that some HR
activities exist universally which makes
the organisation to achieve competitive
advantage.
 When best practices are implemented
organisation sees improvement in their
performance.
Hard and soft models of HRM:
 Hard model- This model signifies that the company treats their personnel only as
resource and their focal point is to identify the workforce according to their needs so the
organisation can recruit them in their way(Oluwatayo and Adetoro, 2020). When the
performance of the business lowers down the mangers have the tendency to replace their
employees. Soft model- Soft model identifies employees as an important resource of the organisation
and the manager works according to the needs of the employees. This model has a two
way communication where the manager allows the employees to speak in accordance
with achieving goals of the organisation.
Workforce planning:
Workforce planning means to plan ,identify the needs of the organisation ,and to forecast the
number of employees so that right person is placed at the right time . Sainsbury plans their
workforce according to the needs of the departments which are divided in the store which helps
in governing the personnel(Pegulescu, 2018).
Internal labour market:
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This labour market means the manager looks inside the organisation for filling the vacancy of
higher post rather than giving job to some other person as it helps the organisation to know more
about the existing person his power and weaknesses.
Analysing turnover, stability and retention:
Sainsbury employee turnover is highest as company spends huge time in recruiting the
employees using old methods of recruitment (Lin, Li and Lam,2020). The company provides
bonus and monetary benefits to its employees which keeps them in the store for longer
terminology. Also, Sainsbury tries to keep the environment of the store good so that retention
rate of employees stays in the store.
The impact that technology have in improving the efficiency of HR practices :
 Employee performance- Employee performance helps to analyse whether the person is
working according to the standards required by the organisation. Technology have helped
to gather data at one place which makes it easier for the top managers.
 Recruitment- Earlier, recruitment procedure was lengthy and takes time.
Now,everything is online and employer now present all the information regarding the job
which made the process effective and increases the prospect of hiring well organized
staff.
M1 Assess how the functions of HRM can provide talent and skills appropriate to fulfil business
objectives
Few functions of HRM which provide talent and skills appropriate to fulfil business
objectives are-
Recruitment and Selection- It is the process of attracting and hiring talented and skilled people
in organisation. Hence, talented and skilled workforce will perform best to complete the task on
time and if all daily tasks are completed with full efficiency than business objective will
automatically fulfilled.
Performance management- Another main function of HRM is to manage the performance of
employees. When performance of employees is managed then each worker work with their full
potential which further help in fulfilling organisational goal successfully.
P2.Explaining the strengths and weaknesses of different approaches to recruitment and selection
Recruitment- Recruitment is a process for searching out new candidates who are capable for
particular position in the organisation(Chung and Colakoglu, 2018). It is very important for the
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organisation to select right candidate otherwise it will be very difficult to go with that process
again.
Types of recruitment
Internal recruitment: Internal recruitment means to fill the vacant posts from its existing
personnel which is considered to be a quick process. Types of internal recruitment are-
 Promotions- Promotion means giving higher position to the employee on the basis of his
work contribution which ultimately aims in increasing the morale of employee. Employee referrals- Employee referral is a process whereby the existing employees are
indirectly engaged in recruitment process as they are allowed to tell the candidate from
their existing networks who will be fit for the required post (Chung and Colakoglu,
2018).
Strengths and weaknesses of Internal recruitment:
Strengths
 This method takes very less time for
hiring a person as the procedure is not
long(Lee,2019).
 Internal recruitment is less costlier
because it provides recruitment within
the organisation.
Weaknesses
 It may create conflicts between the
employees if any individual is placed
on higher position.
 This method may vacant the position
of the existing employee who now
have been posted on other position.
External recruitment- External recruitment means to fill the vacant position in the company
from outside. Types of external recruitment are-
 Advertisements- This method is very common as organisations advertises the vacancies
of the company with detailed specifications and requirements. Employment exchange- It is the department which records details about the job seekers,
their qualifications and provides this information to the employers which helps them in
filling the positions(Singh and El-Kassar, 2019).
Strengths and weaknesses of external recruitment:
Strengths
 It increases the chances of receiving
fresh talent and skills which can help in
Weaknesses
 Outside selection may lead to lesser
understanding about the company
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achieving the organisation goals
effectively.
 Company receives multiple applications
where they gets the chance of having
skilled and equipped individuals.
which can impact in the working of
the company.
 It requires higher cost and more time
as the procedure is detailed and long.
Selection: Selection is a way of choosing right individual who will be fit for the position for
which the company is choosing. Types of selection are-
 Interview- It is the process of face to face interactions where the interviewer gets to
know about the interviewee and his potential to do the task (Farokhi, Nasrisfahani and
Safari, 2018). Online test- Online test is a mechanism where the company tests the capability of
individual and in case that individual passes the exam they will be selected for the posts.
Strengths and weaknesses of selection process:
Strengths
 It reduces the biasses as every individual
gets the chance of showing their
potential.
 As proper screening is done which
ultimately helps in selecting the right
candidate.
Weaknesses
 It is a time consuming process as the
interviewer needs to analyse each
perspective of the individual.
 The selection procedure requires a
person with higher analytical skills
because ultimately they have to
select from number of candidates
who have applied(Pera,2019).
M2: Evaluate the strengths and weaknesses of different approaches to recruitment and selection
Recruitment and selection have their own strengths and weaknesses and these are
mentioned below-
Internal recruitment-
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Strength- It save the time and money because it recruit from inside the company. Internal
recruitment also enhance motivation of employees because when vacant job is fulfilled by
internal employees then they get motivated to perform best and get the higher positions.
Weakness- It cause conflicts within the company due to the selection of one talented
employee.
External recruitment-
Strength- External recruitment allow outsiders to take part in their recruitment process
which is beneficial to attract talented candidates with new and innovative ideas.
Weakness- Lot of time and money is wasted while searching candidate from outside the
company to fulfil vacant job positions.
Selection process-
Strength- Interview is the best type of selection method which help the company to know
personality, communication skills and how a candidate react to a particular problem which
further help to select one best candidate from various number of alternatives.
Weakness- Due to interview many candidates become nervous and because of this
nervousness they did not represent themselves clearly to their employer.
D1 Critically evaluate the strengths and weakness of different approaches to recruitment and
selection, supported by specific example
In context of Sainsbury they are a retailing sector hence, they are required to adopt external
recruitment for their low vacant jobs and they are suggested to use internal recruitment in
the case of higher vacant job position. For their lower jobs they can use employment
agencies so that they already have skilled candidates and for their higher job positions they
can use promotions so that the other employees in the organisation can motivate and work
harder for promotions. Promotion also help in fulfilling vacant job by efficient employee
who can handle the vacant job easily. For selection process, Sainsbury is not an IT company
so they are not supposed to take online test but they have to conduct interviews to know how
their candidate can handle each customer on the basis of their personality and attitude.
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Task 2
P3: Explain the benefits of different HRM practices within an organisation for both the employer
and employee
Learning, development and training- Development is used in sense of growth of an
individual in the field of knowledge which is already known by that person. On the other hand
training is used to provide skills and knowledge which is required to perform a task. Training is
required to increase the productivity of company by providing it in a appropriate way. It is also
beneficial for reducing accidental risks at manufacturing area, less supervision and many others.
There are many types of training like technical training for technical jobs,quality
training,managerial training and etc.
Benefit of development and training for employer-
 Providing training to employees is beneficial for employer as it will make easy for them
to handle trained workforce(Song,Fisher and Kwoh, 2019). Less supervision of employer
is required.
 Providing training and development to workforce creates a good reputation for employer
in employees mind as they think that their employer is working for employees benefits.
Benefit for development and training for employee-
 Training is beneficial for employees to attain at required position and it is also helpful in
gaining promotions. Training is also beneficial for employees to get motivated to complete task on time.
Performance and rewards- Performance management is consist of managing
performance of employees at workplace so they work with full efficiency(Singh and et. al.,
2019). There are many methods of performance management and some of them are explained
below-
360-Degree Feedback- this method consist of collection of feedback of particular employee
from employee's surrounding like their teammates, manager, supervisor, customers and etc.
psychological appraisal- this method of performance management is used to determine hidden
potential of an individual. This method analysis future performance of employees that employees
are capable of performing better in future.
Benefit of performance management for employer-
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 In managing employees performance employer get to know that which employee is good
for which job and then employer assign employees task according to their
performance(Shahreki and et. al., 2020).
 Efficiency of employer increases by managing performance which further help the
employer to get promotions for their good performance management.
Benefit of performance management for employee-
 Performance management help the employee to identify their capabilities and help them
to tell them that for which job position they are perfect.
 Performance management help the employees to gain monetary benefit as many
organisation provide extra wages for good performing employees.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
HRM practices are important to raise organisational profit and overall productivity
(Spivack and Woodside, 2019). Some of the examples are explained below-
Learning, development and training- Providing training to new employees help them to
increase their skills and a skilled workforce always perform better and fully focus to increasing
overall productivity of an organisation. Hence, increase in productivity leads to achieve profit for
company. On the other hand development help the employees to achieve personal goals by
performing better which again leads to increase in productivity and profitability of company.
Performance management- managing performance in organisation help to work under
proper guidelines and in proper discipline. Performance management also help in increasing
employees performance by counselling them for their importance in organisation(Song and et.
al., 2018). A well performer employee helps to increase in productivity and good performer
always focused to complete the given task on time which further help in earning more profit for
organisation.
M3 Explore the different methods used in HRM practices, providing specific examples to
support evaluation within an organisational context
There are many HRM practices which supposed to the organisation to grow and achieve the
success like for learning, development and training Sainsbury can opt online job training
which is consist with providing training to their employees while they were performing their
jobs. This method helps in saving time and help the employees to perform practically
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whatever they have learned in training. Another HRM practices is Managing performance of
employees. For this Sainsbury can use many performance management method like 360
degree appraisal under which their manager observe and record the activities done by their
employees to find out what that their employees are doing productive activity or not.
D2 Critically evaluate HRM practices and application within an organisational context, using a
range of specific examples
There are many HRM practices within an organisation which help to achieve organisational
goal and few are explained below-
Learning, development and training- This practice of HRM consist with providing
appropriate training to their employees. In context of Sainsbury, they provide training to
their employees by assigning a experienced worker as a mentor for new comers at the
workplace. This help employees to learn new and innovative way of performing job tasks.
Performance management- Another best practice for Sainsbury is managing the performance
of their employees so that they give their best efforts in performing the job. For the
performance management, Sainsbury mangers assign superiors to their each department who
look the performance of the employees fall under their department and at the end of each
month they give their performance report to the HR manager. This performance
management reports are also cover the reasons for underperformance of employees. So that
manager tries to remove the obstacle.
Task 3
P5: Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employees relations define the relationship between employees within an organisation. It
consist of relationship between employees, employees and management, employees and
supervisor. It is considered that a good relationship in organisation always help the company to
lead the market. Maintaining good relations result in good performance of employees as they are
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satisfied and good relations also enhance motivation level of employees(Kooij and Boon, 2018).
Sainsbury maintain good relationship with their employees by rewarding them for their good
performance and many other activities help to make good relationship.
Strategies of developing and improving employees relations are explained below-
Set the tone from first day- It is compulsory for every manager to maintain good
relationship with new employees from the first day of working of that employee. Manager is not
required to put burden on new comer employee. Giving time to new worker to set in organisation
is good option. Good relations is not made within few day. In context of Sainsbury, they recruit
new employees on the basis of required skills and after selection they allot a mentor for
guidance. Managers allot small and easy tasks to new comer employees at starting level then
increase responsibilities after proper training.
Provide positive feedback- Providing a positive feedback is also good strategy for
maintaining good relations within organisation(Hubner and Baum, 2018). Manager must
appreciate their workers for their good performance, this creates a positive mind set in workers
mind and they respect their managers which further help to create a good relationship within
organisation. In context of Sainsbury, their managers always appreciate employees for good
performance whether by monetary and non- monetary factors and in case of bad performance,
they provide counselling and motivate them to focus on work more.
P6: Identify the key elements of employment legislation and the impact it has upon HRM
decision-making
Employment laws are made to provide benefit to workers. The main purpose of this law
is to take in consideration of all issues and problems faced by employees while working in an
organisation. Some employment laws are explained below-
Equal pay act 1970- This act states that there is equal distribution among workers
working on same job profile. There is no discrimination in payments on the basis of gender wise,
skin colour, religion wise and many other factors(Macke and Genari, 2019). In Sainsbury, this
law impacts much on HRM decision making. Setting a fix salary for employees while
considering this law help the company and HR manager to perform better by satisfying
employees.
Health and safety work act 1974- This act states that every company must focus on
providing health and safety measures to their workers at their work place. In context of
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Sainsbury, they provide appropriate working hours for employees and provide lunch time in
which they feel relax. They also provide compensation in case of any injury happen to any
worker at workplace.
Trade union and their roles- Trade union is an organisation of many workers who come
together to achieve a common goal and their common goal consist improving safety measures at
workplace, providing bonus on time and many others (Zaid, Jaaron and Bon, 2018). Some of the
roles of trade union are mentioned below-
 They stand to provide benefits to workers like appropriate payment, safety measures,
equality and many others.
 They work to improve workers rights and aware their workers about all the rights which
they have at their workplace.
 They also work to provide benefit to their members like strike pay, unemployment pay
and many others.
 The representative of trade union is the link of organisation and workers.
M4/D3 Evaluate the key aspects of employee relations management and employment legislation
that affect HRM decision-making in an organisational context
There are many reasons for having good relationship between employees and management team
because a good relationship between them results in motivating employees that they have
positive attitude that their management team are concern with their employees. This help to
make well-being environment in the company which results in increasing the performance of
employees because a happy employee gave their best efforts to perform the task. Employment
legislation is important to follow by every company because these are the laws and regulations
which is provided by the government. This legislations like employee health and safety act, equal
pay and many other help the workers to protect the rights of employees and help in working
under safe environment. In context of Sainsbury, all these factors affect in decision making
process of their HR manager. While taking any decision manager have to consider all
legislations because of avoiding any legislations results in penalty of organisation.
D3
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Task 4
P7 Illustrate the application of HRM practices in a work-related context, using specific examples
Job advertisements
We are hiring, Apply fast as soon as possible
Finance Manager ( full time job)
We have a vacant job position for marketing manager. Its a good opportunity to get
job in highly reputed company.
Training and all equipments will be provided at work place at the time of induction.
Prove your skills and talents and get the job.
Deadline for application is 26 march (Friday) 2021.
Pays and benefits
 26 days annual leave.
 London living wage will be
provided.
 Good incentives on good
performance and bonus on
occasional days.
Contact us
Interested applicants must send their CV
at 56/3 Allen Street, London or mail it to
[e-mail] website.
job description
Job Title- Finance manager
Reported To- HR Manager
Job Summary- To prepare financial statement and handle all financial activities and to suggest
what all measures should be taken for growth of business.
Responsibilities-
 Finance manager is responsible for preparing financial statement for the company with
full loyalty and dedication to work.
 To take decisions related to their own field.
 To report the HR manager about unwanted expenses.
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 To analysis new opportunities for company to grow and earn more profit.
Qualification and other requirements-
 Diploma in Finance course with minimum 70% marks with true university.
 Minimum 6 year of experience is required in reputed and popular company.
Person Specification
Qualification- Diploma in Finance course is required with minimum 70% marks with true
university.
Experienced- Minimum 6 year of experience is required in reputed and popular company.
Required skills-
 Good decision-maker.
 Analyse financial activities properly.
 Coordinative to other departments. Good communication.
Desired skills-
 Good communication
 Self motivated
 Enhance organisational culture
 Dedicated to work
Interview- It is the selection method in which employer and candidate who is applying for
vacant job has face to face communication(Järlström,Saru and Vanhala, 2018). Employer ask
few questions and candidate has to answer all questions properly to get the job. Some of the
common questions which is asked by employer in interview is mentioned below-
 Introduce yourself.
 What do you know about offered job profile and organisation?
 What are your expectations from this job.
 Discuss something about your experience and your main field of interest.
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Interview is considered as an best approach of selection because in interview, confidence and
communication skills is checked in interviews. Personality is also determined in personal
interviews(Oluwatayo and Adetoro, 2020).
M5 Provide a rationale for the application of specific HRM practices in a work-related context
It is compulsory to apply HRM practices at workplace because it manages the manpower and
allot resources according to that. HRM practices are required manage performance of employees
and HRM plays an important role in showing the directions to their employees under which they
have to work. In context of work-related context, there are many activities which is to be
performed at workplace from all those activities few are related to unproductive activities.
Hence, HRM plays and important role to remove this unproductive activities.
CONCLUSION
From the above information it has been founded that HRM plays an important role in any
organisation and there are many functions or HRM within an organisation which helps in
achieving organisational goal, profit and increases overall productivity. Recruitment and
selection process is an essential function of HRM which has its strengths and weaknesses. HRM
practices is essential for both employee and employer. Employment laws help to make strategies
with reference to employees benefit.
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