Benefits of HRM Practices for Organizational Profit and Productivity

This report discusses the purpose and functions of HRM, strengths and weaknesses of different approaches to recruitment and selection, and the benefits of HRM practices for both the employer and employee. It also evaluates the effectiveness of HRM practices in terms of raising organizational profit and productivity. The case study focuses on Diageo plc, a British multinational alcohol company known for its efficient HR practices.

Human Resource
Management

INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and resourcing an
organization.............................................................................................................................................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection..............5
P3 Explain the benefits of different HRM practices within an organization for both the employer and
employee.................................................................................................................................................7
P4 Evaluate the effectiveness of different HRM practices in terms of raising organizational profit and
productivity.............................................................................................................................................9
P5 Analyze the importance of employee relations in respect to influencing HRM decision making.....10
P6 Identify the key elements of employment legislation and the impact it has upon HRM decision
making...................................................................................................................................................11
P7 Illustrate the application of HRM practices in a work-related context, using specific examples......12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................16

INTRODUCTION
Human resource management refers to that functional unit of an organization which is
engaged itself into managing employees or workers of the company (Ahammad, Glaister and
Gomes, 2020). The main focus point of this department is administrating and managing human
resources of the firm. The main goal of this function is to earn maximized productivity and
profitability from employees. Operation of this unit starts from establishing contacts with
potential candidates, acquiring them for the business and this process will end with only
employee leaving the organization. During this process every matter, issue or challenge related
with managing employees or their stay in the company is handled by this department only. This
report focuses on functions of Human resource department in Diageo plc. It is a British
multinational alcohol company. It is one of leading beverages brands in market. It is best
illustration for understanding Human Resource practices as the company is famous for their
efficient HR practices. In this report, HRM has been discussed in context of practical examples
of Diageo plc. A thorough study has been conducted on overall subject of HRM.
MAIN BODY
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organization.
As discussed in introduction of this report, HRM department in concerned only with the
management of the workforce of the company. To take on this management process, it is
important that managers understand the purpose and functions of this department, so that they
are performing with full efficiency and also direct each and every task towards achieving
organizational goals and objectives. In relation with chosen company, i.e., Diageo plc.,
department of human resource management is always making sure that employees are
empowered and they are working in capacity of their complete potential, so that purpose of
creating a warm working culture is achieved. In addition to this, their main motive is to improve
productivity level of employees (Armstrong and Taylor, 2020).
Purpose of Human Resource Management

This department is always attempting to assist management to formulate policies those
are beneficial for both, workforce of company and company too. As discussed earlier also, the
main motive of this function in to improve productivity level of employees, which will
ultimately reflect in profitability index of company (Armstrong, 2016). In light of above
statement, purpose of human resource department in Diageo plc, is discussed below:
 Workforce planning: This is the way toward anticipating prerequisites of labor force
occupied with association. This implies the board of Diageo plc. recognize prerequisites
of labor force, for instance, when, where and what kind of competitors are required
 Motivation and development: This is one of the essential elements of HRM, as it
includes the reason by which enhanced execution of representative can be created. In
Diageo plc., administrators have seen that representatives who are propelled are more
engaged in their work as similar to the individuals who are less inspired.
Functions of human resource department
To take on any process in an efficient manner, it is important to understand it roles and
responsibilities beforehand. Human resource department is basically working towards
management of employees and is responsible for planning, developing and strategizing about
workforce of the company. In context of Diageo, HR department performs following functions:
 Recruitment and selection: This obligation identifies with foundation of contacts with
possible up-and-comers and further choosing them subsequent to leading reasonable
tests. If there should be an occurrence of Diageo plc., they take this cycle in a genuine
way as they accept that a decent determination measure prompts effective creation
measure.
 Training and development: In an association, there are diverse employment profile, each
having various prerequisites in term of abilities and information. Accordingly, in the
wake of directing determination measure, it gets most extreme critical to give reasonable
preparing to workers to make them acquainted with their jobs (Armstrong, 2019).
Preparing and advancement isn't just for new representatives, existing workers may
likewise require them because of certain adjustments in working example of association.
In setting of Diageo plc., they accept that preparation and improvement is significant to

make worker acquainted with their jobs and furthermore for making them proficient for
playing out their allotted assignments.
 Managing employee relations: An association can't prevail until and except if its
representatives don't perform effectively. Execution of workers relies on number of
elements. One of the huge factors is connection between workers. On the off chance that
they don't share great condition it will put terrible effect on their presentation also.
Diageo plc utilizes different instruments to improve relations, for example, financial
prize, advancements, and so on (Brewster, 2017).
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and Selection are fundamental capacities performed by human asset division
for an association and it is identified with acquisition of qualified representatives for empty
positions.
Recruitment It is a cycle which starts with, recognizable proof of requirements of
association related with a work and it closes with meeting of imminent worker to organization. It
very well may be characterized as the activity of looking of likely representative and animating
them to go after the empty job in the association.
Type of recruitment: There are fundamentally two sources which can be utilized for
recruiting individuals
Internal recruitment- It is the way toward searching for satisfying necessity for empty
situation inside the current arrangement of representatives. In connection with Diageo, HR office
utilize this wellspring of enrolment to spare time and cost that was expected to put resources into
instance of outer enlistment. This interior enlistment is done through a few different ways like
advancements, moves, and so forth
 Strength- Internal approach is valuable for Diageo in various manners, as, in the event
that they select outside recruiting, they would need to happen a great deal of costs and
furthermore that cycle will likewise be tedious. This time spared while doing internal
enrolment of employees can be utilized somewhere else, which will contribute in
improving productivity of association.

 Weakness- This source can make sensation of disappointment both colleagues just as
group pioneer. In the event of colleagues, they can feel angry if any individual partner
gets advancement, they likewise wanted for and if there should be an occurrence of group
pioneer, they feel awkward if some great part is moved or advanced from their group.
External recruitment- This is a cycle only inverse to what exactly is done in inside
wellspring of enrolment, this implies, here, representatives are looked outside the association.
These potential applicants are animated for going after the empty job. From that point, different
tests are led to choose most ideal fit for the work.
 Strength- In setting of Diageo, there are different instruments of outside enlistment.
They have faith in broad utilization of this source, as they see different advantages of this
source. Outer approach is a source that centres on bringing new gifts and new capacity
workers to the organization.
 Weakness- Diageo is an assembling unit, consequently, it additionally has a complex
authoritative culture, and accordingly, a newcomer will set aside effort to get comfortable
the climate, thus these increments on loading up time, which can be possibly decreased in
inside enlistment.
Selection: It alludes to taking a ultimate choice of employing after conduction reasonable
tests and different strategies. It assesses and screens the choices that are in the pool of applicants
arranged at the hour of enlistment
Approaches of selection There are different procedures that can be utilized in choice; some
of them are explained underneath, alongside their qualities and shortcomings:
Preliminary screening- This is a screening activity did on applications got for empty
position. This screening is done on different bases, for example, least schooling capability, least
age measure, and so on Representatives who don't coordinate with the necessary basis, they are
dismissed at this stage as it were.
 Strengths- This methodology presents HR administrators of Diageo with an away from
of basic necessities that a newcomer ought to have, additionally it spares time that would

be squandered in additional means on non qualified candidates. This cycle likewise
debilitate those applicants who are attempting to conceal basic data under some cloak.
 Weaknesses- Now and then, those potential applicants are dismissed which are more
competent than the individuals who are chosen for additional means in choice cycle. This
methodology is totally needy upon Diageo's supervisors individual decisions, that can
turn out badly too.
Personal interview This methodology assesses level of information and relational abilities
of applicant. This cycle is done by questioner who poses inquiries identified with up-and-comers
range of abilities and to pass judgment on personal conduct standard too.
 Strengths- It is an assembling unit, accordingly, here representatives need to build up
direct connection with other staff individuals, and subsequently, they don't take risk of
employing any unfit individual. Accordingly beware of correspondence aptitude is
fundamental.
 Weakness- A classification of contemplative person individuals do not have this aptitude
of correspondence, yet they do have a few abilities which improves them entertainers
than the individuals who can convey well, and this quality can't be decided during a
limited capacity to focus meet, subsequently, it might prompt some well able up-and-
comer.
P3 Explain the benefits of different HRM practices within an organization for both the employer
and employee.
Human Resource practice alludes to those cycles and activities that are received all
around and aid smooth activity of human asset the board. Probably the best Human asset
rehearses are clarified beneath alongside their advantages to employees and employers:
 Training and development: It is one of the fundamental HR rehearses that is followed
generally by all the organizations. In Diageo, it alludes to an arrangement where workers
are being told about their jobs and duties and furthermore the best approach to play out
these errands. It is an exceptionally valuable errand that helps in accomplishing
authoritative objectives and destinations in an effective way.

Benefit to employee: This is an extremely helpful practice for workers. This cycle helps in
improving position fulfilment and confidence. This gives them an inclination that they are
likewise a significant part of organization. With this strategy they additionally will in general
improve their range of abilities which causes them to improve their future prospects in expert
life.
Benefit to employer: This training ends up being valuable for business as it expands work
fulfilment inside representatives which propels them to act in a more effective issue. This
prompts expanded productivity of organization (Chams and García-Blandón, 2019). Giving
feeling of significance to workers likewise help in diminishing work turnover rate, which thusly,
brings about sparing of cost that will be acquired in directing cycle of choice and enrollment?
 Reward strategies: This training alludes to paying a representative as indicated by their
commitment in business tasks. This is a valuable practice embraced by the executives to
hold great workers. This approach alludes to definition of compelling remuneration
arrangements that will lead pulling in great workers and their expanded efficiency.
Benefit to employee: This training prompts expanded fulfilment among representatives which
make them spurred to work with more commitment (DeCenzo, Robbins and Verhulst, 2016).
This prompts expanded productivity of association.
Benefit to employer: Through this training, business can hold great workers also to pull in new
and skilled representatives. This prompts better connection among representative and business.
 Motivation: This is a valuable practice that is received any Human Resource chiefs to
pick up greatest efficiency from workers. Under this framework, Diageo's HR
administrator endeavours to propel his representatives by different methods like prizes,
grants, acknowledgment or a few exercises. These can be monetary just as non monetary
both.
Benefit to employee: Through this cycle, a worker is totally siphoned up to work with full
devotion and gives his total profitability. This drove him to pick up acknowledgment in
organization.

Benefit to employer: Under this framework, a business can pick up greatest profitability is a cost
productive way and furthermore sets up great worker relations
P4 Evaluate the effectiveness of different HRM practices in terms of raising organizational profit
and productivity.
Behind each fruitful business, one important condition is powerful human asset the board.
On the off chance that Human assets are not overseen appropriately, than it might prompt
wastage of cost and time both. It is important that effective HRM rehearses are embraced by
administrators so that upgraded execution of workers can be accomplished (Delery and Gupta,
2016). These practices may identify with administration improvement, execution the executives
and prizes proportionate to their presentation. The executives of Diageo has confidence being
developed of every single worker as they advocate for the point that each representative
contribute in achievement of business. In this specific circumstance, viability of Human
Resource Management rehearses is examined underneath:
Training and development: Training is the way toward making representatives well acquainted
with innovations and working framework that are needed to play out their employment job. This
aids a person in playing out their occupation in a more palatable way (Delery and Roumpi,
2017). Diageo encourages their representatives to work in a more proficient way by giving them
reasonable preparing programs. This cycle additionally gives an edge to organization to present
another innovation or framework to serve their client better. This likewise prompted increment in
productivity level of association.
 Strengths: This cycle causes the executives to take improved efficiency from
representatives and help workers to improve their potential for future profession tries too.
 Weaknesses: This cycle can end up being exorbitant for managers.
Incentives and Rewards: Incentive alludes to remuneration that is paid to workers in
connection with their exhibition. This is an ideal instrument to inspire workers and to get
expanded profitability. Diageo utilizes different projects which help to acquire laborers
dependability towards them. Representatives who are persuaded through monetary factor
perform better through this technique. Prize administration assumes a significant function in
viable administration as they give a base to which workers are persuaded to so a work. In this

manner, it is basic that a successful and proficient prize framework is planned in the
organization.
 Strengths: This cycle causes the executives to set up solid worker connection with
representatives which at last reflects in improved execution of workers and furthermore
representative maintenance is improved.
 Weaknesses: This cycle is intricate because of assorted labour force having various
aptitudes set (Figueiredo and et.al., 2016).
P5 Analyze the importance of employee relations in respect to influencing HRM decision
making.
Employee retention alludes to connection between associations with its workers. This
relationship is set up because of endeavors made by manager to make a positive relationship.
Powerful worker connection guarantee work fulfillment in representatives and association
acquire their steadfastness which make them remain for a more extended timeframe (John and
Taylor, 2016). Diageo is working in a profoundly serious climate; hence, it gets fundamental for
administrators to not keep up relations with clients however with representatives additionally, so
they don't move to different rivals in market. While detailing choices or techniques for HR,
worker connection is a huge highlight consider because of following reasons:
 Increases commitment: At the point when the board put their work in building up sound
connection with their representatives than last feel submitted towards association Diageo
the executives’ weights on a solid workplace because of the way that representatives need
to feel participative in organization. As indicated by this, representatives will see an
inclination that their feelings do make a difference and this will spur them to additionally
partake with more eagerness. This entire cycle will likewise prompt expansion in benefit
of organization. At the point when representatives feel fulfilled, they can give some
pivotal contributions to dynamic cycle which makes it more successful.
 Empowering employees boost their morale: Because of solid representative connection
status, it becomes simple to receive participative or free downpour the executives’ style.

This implies, in this style, representative is engaged to place their sentiment forward in
dynamic issues. These information sources come straightforwardly from chief level, in
this manner, they ends up being urgent in dynamic cycle. Diageo gives different projects
to workers which make them more effective in giving their data sources.
 Enhance work culture: It is a regularly scene when representative and the executives are
at inverse sides of shaft. With the assistance of representative connection, they can come
at same page. This improves correspondence all through entire channels of progression.
This smooth correspondence likewise encourage quicker dynamic (Markoulli and et.al.,
2017). Diageo is consistently welcoming workers to give their proposals. The
organization have likewise settled a complaint cell where workers can go and
straightforwardly converse with related specialists about any issue looked by them. Open
entryway the board additionally helps in better dynamic.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making.
Business enactments are the standards and guidelines that planned for the upliftment of
HR working in an association. There are different laws, for example, security, work, business
relations, sexual orientation separation and some more (Mondy and Martocchio, 2016). These
laws are set up to guarantee smooth working of different business exercises and to establish a
positive climate at work place. These enactments put an extraordinary effect on the dynamic
cycle of HRM. Diageo, applies a few laws characterized by government to establish a sound
workplace inside the organization. That is given beneath:
Employment Right Act, 1996: It guarantees that all the representatives working in association
get the rights identified with various perspectives, for example, leave strategy, unreasonable lay-
off, sex hole, paternity and maternity leaves and some more. Human asset administrators of
Diageo, give a composed business record to its representatives so they get mindful with the work
arrangements of organization.
Health and safety at work place Act, 1974: It comprises the guidelines identified with
wellbeing and assurance of staff inside the association. It is the obligation of HR trough to
guarantee a free from any danger climate at work place. Diageo is explicit for the assurance and

security of their workers. They give protection approaches, for example, life and medical
coverage to shield work power from vulnerabilities.
Working Times Regulations, 1998: As indicated by this law, there ought to predefine working
hours for staff. For example, there should be strategies identified with break during the working
hours, paid just as unpaid leaves, one paid break during the entire week, additional time
instalment for additional hours worked by representatives. HR trough of Diageo, apply severe
working hour rules. They have predefined working hours, mid-day breaks and occasion
approaches. Aside from this, they additionally roll out fundamental improvements in their
principles according to alterations in government guidelines (Nankervis and et.al., 2019).
The Equality Act, 2010: It accentuation to limit segregation at work put on the premise race,
sex, identity, religion and may more. It expresses that equivalent open doors should be given to
all staff individuals without offering thought to different segregation factors. HR chief of Diageo,
guarantee that all the workers get opportunity to exhibit their latent capacity and abilities. They
urge work power to contribute in organizations development and achievement in any case their
position, status, gender, etc.
Minimum Wagers Act, 1996: This demonstration has been detailed by higher specialists to
guarantee that every single worker pay off for their commitment in the achievement of
association. This law is pertinent on each association in any case their size, type and different
components. HR director of Diageo ensure that every one of their representatives get at any rate
least compensation controlled by government specialists. They accentuation to give different
financial advantages to work power to spur them because of this they can keep up lower standard
for dependability inside the organization (Stewart and Brown, 2019).
It has been dissected that HR branch of association offer thought to different laws while
defining their arrangements and systems. Aside from above expressed guidelines they
additionally embrace different laws, for example, Paternity Act 2008, information security Act,
etc.

P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
Human resource department of Diageo Company is planning to recruit more people,
keeping in view huge potential in markets in coming future. For this purpose, company will
department has produced a job advert with job description. In addition to this, to better
understand the process, offer letter has also been presented.
Job advert:
HR MANAGER
Required Human resource manger
Applications are required for position of HR manger
Essential skills needed for suitable candidates:
 Graduation with 55 % or above
 Work experience of 2-4 years
 Posses management skills as well as exponential communication skills
 Excellent team handling and leadership skill
If interested, kindly connect at:
[e-mail]
Job description:
Name of organisation: Diageo
Department: Human resource management
Designation: HR manager
Location: London, England
Job summery
A capable candidate who have potential to mange all roles and responsibilities assigned by HR
manager. Directing & controlling of team for a specific task. Proper utilisation of leadership
quality to take subordinates of team along with them.
Role :-
 Monitoring and guiding personnel

 Forecasting of employees requirement
 Organize recruitment drives
 Selection of suitable candidate
 Resolve conflicts arises at work place
Offer letter:
Diageo PLC
Lake side,
London, United Kingdom
25 October, 2020
Dear Mr./Ms. Last Name,
we are glad to inform you that you have been selected for the designation of HR manger. You
posses all necessary skills and potential for the vacant post. As per our discussion you need to
join the office from 30th October 2020.Enclosing details regarding to the compensation,
employment policies and other benefits for your considerations.
We are looking forward to onboard you soon.
Role & Responsibilities:
 Designing and planning of recruitment process for different vacancies
 Performing all activities of HR manger
 Support senior HR managers in various task and responsibilities
Regards:
HR department
Diageo
Signature______________________
Date---------------------------------------
CONCLUSION
In the above report different perspectives identified with Human asset the board has been
talked about. It has been screen that representatives are huge piece of association and HR
approaches are important to upgrade their efficiency and result. It has been dissected that it is
basic to keep up great connection between higher specialists and workers of organization. This

will help the supervisors of association to achieve the objectives in predefine timeframe. The
above report gives a diagram about business relations, various laws identified with HR that
impact the general dynamic cycle of Diageo. It expressed all the practices that are being utilized
by supervisors of organization to guarantee a decent climate at work place. Along these lines, it
very well may be reasoned that organization can keep up on a cordial and solid workplace where
the whole staff part can develop and dominate to accomplish the goals.

REFERENCES
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Nankervis, A. and et.al., 2019. Human resource management. Cengage AU.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.