Benefits of HRM Practices for Employer and Employee

This article discusses the benefits of HRM practices for both employers and employees. It explores the impact of compensation and training and development on employee motivation and productivity. It also highlights the significance of employee relations in influencing HRM decision-making. The case study of Zara is used to illustrate these concepts.

Human Resource Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Functions and purpose of HRM which are applicable to workforce planning. .........................3
Strengths and weaknesses by adopting different approaches of recruitment and selection........4
TASK 2............................................................................................................................................7
Benefits of HRM practices in context of both employer and employee.....................................7
Effectiveness of HRM practices in increasing and enhancing the profit and productivity.........7
TASK 3............................................................................................................................................8
Significance of employee relations in influencing the HRM decisions making.........................8
Key elements of employment legislation and its impact on the decision making......................9
TASK 4............................................................................................................................................9
Application of HRM practices in work related context..............................................................9
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12
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INTRODUCTION
Human resource management is a strategic process used by organisation with the primary
objective of effectively manage the employees and business operations. The activities performed
by the human resource department helps in gaining competitive advantage and contributes in
maximizing employee performance (Banwo, and Du 2020). Basically it is the practice of
managing people within organisation in order to accomplish better performance. The
organisation chosen for this report is Zara. The company was established by Amancio Ortega
and Rosalia Mera in year 1974 in Spain. The company is dealing in products which includes
clothing, accessories, shoes, beauty, etc. The topics covered in the report are purpose and scope
of HRM, key elements of HRM in organisation, internal and external factors affecting HRM
decision making and application of HRM practices.
TASK 1
Functions and purpose of HRM which are applicable to workforce planning.
Human resource management play significant role in the organisation as it is distinctive
approach used to manage employees and by formulating effective strategies they would be able
to gain competitive advantage (Booyens, Motala and Ngandu 2020). Zara is one of the
renowned brand operating across the globe and able to maintain its position in marketplace.
Mission of Zara- The mission of the company is to provide quality products to its
potential customers and provide them what they want.
Purpose and Core objectives- The purpose of the company is to support and contribute
to the sustainable development of society and to satisfied its customers. The objective of Zara is
to brining eco-friendly management model and to take measures to recycle its products such as
hangers, etc. Another focus is to support organic farming in order to produce garments out of
organic cotton.
Zara is operating at global level, hence its human resource management should be
capable of effectively manage its large employee force.
Purpose of Human resource management
 The purpose of human resource department in Zara is to effectively manage the needs
and requirements of employees. They have responsibility of hiring employees where they
carry work by identifying the job duties and accordingly taking steps to understand the
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skills and abilities required for the job position. Hence they are responsible for fulfilling
the staffing needs and requirements taking place within the company.
 Another purpose of human resource department working in Zara is to know the
performance of employees working in different departments and according to their
performance provide them appraisal for their good performance (Cheng, and Yi 2018).
Functions of Human resource management
 The function of HR department in Zara is to focus on the participation and
communication of employees as it is important for the growth and development of
employees as individuals and for the company.
 Another function of human resource department is to take measures for the learning and
development of work force as along with the growth if company it is important to take
measures for developing skills and abilities of employees so that they would able to
achieve their future goals and objectives.
 The function of HR is to effectively manage the work and take measure to reduce the
expenses and cost specially in recruitment and retention process. The primary role and
responsibility of human resource department in Zara is to attract the talented and skilled
candidates which has the ability to carry the functions and operations in effective manner.
 They are responsible for providing effective training to employees who are facing
difficulty in performing their job roles and also provide training to skilled employees so
that they would able to enhance their abilities (Issac, and Baral 2018).
 Human resource department play important role in Zara as it has major contribution in
the accomplishment of organisational objectives. By hiring skilled and talented
employees according to the requirements of job role and by proving training to
employees it helps in enhancing the performance of company.
 They are responsible for strategic management as they support in the corporate decision
making process where the focus is on assessing the current employees and making
predictions for the future needs and requirements on the bases of business demand.
Strengths and weaknesses by adopting different approaches of recruitment and selection.
Recruitment is a core function of the human resource department working in the an
organisation as they are responsible for recruiting skilled and efficient candidates. In Zara the
HR department develop the plan for carrying recruitment process effectively which provide
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support to hiring team to identify the capable candidates faster. The HR department in Zara carry
recruitment process by internal and external sources.
Internal recruitment is define as the process in which according to the performance of
the existing employees the job positions are filled by the human resource department of the
company. In Zara, internal recruitment helps in motiving employees to perform better in order to
maximize the productivity and job satisfaction of employees (Kooij and Boon 2018).
 Strengths- The internal recruitment in Zara helps in saving the time of HR department as
they do not have to spend time in searching for potential candidates. Moreover it also
helps in saving cost which take place in searching and selecting candidates from
marketplace. It also helps in saving the training and development cost as existing
employees already have knowledges about the working process of Zara. They only need
support and guidance for the new job role and able top perform their job role effectively
and efficiently (Yeo and Carter 2018).
 Weaknesses- The internal recruitment has impact on the performance of the employees
as due to changing power and authorities of employees, it lead to situation of conflict
among the employees. Due to this the working environment of the company gets effected
as staff members are not able to concentrated on their work and has effect on productivity
of the company. Moreover, the dispute among employees lead to slow working process
as time is wasted in solving the issues and problems related to the employees (Lei, Cai,
and Hua 2021).
External recruitment is the hiring process used by the human resource department of
the company where they approach people outside the organisation on the basis of their skills and
talent. In Zara, external recruitment helps in hiring fresh and talented candidates who are capable
of making significant changes in the business which help in moving forward in the competition.
 Strengths- Zara is operating at globe level hence required large workforce who is able to
effectively manage the work load. This method is used by the company when they are
planning to open its new stores in different countries. As they required skilled and talents
employees who are able to make significant changes in the existing business which result
in increasing the performance and productivity of the business. In the process of opening
new stores the local skilled people are hired by the HR department as they have
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knowledge about the behaviour and taste of people their which help in taking corrective
steps.
 Weaknesses- The external recruitment process has negative impact on the performance
of company. As candidates hired from external recruitment have no knowledge about the
functioning and operations of Zara hence training need to be provided due to which time
is wasted and involves high expenses.
Selection is an effective process in which work is performed in steps that is with each
step candidates are rejected with the motive to hire right candidate who will able to perform
desire job roles in effective manner (Manzo, and Devine-Wright, 2020).
Types of selection
Zara is using various ways for selecting deserving candidates who contribute in the
growth and development of the company.
Personality test- In Zara HR department conduct the personality test with the primary
objective to test the communication and presentation skills of candidates as they are important as
employees have to deal with the customers.
 Strength- Zara with this approach able to select the most deserving candidate who is best
at these skills and help in providing great customer experience.
 Weakness- The disadvantage of this approach is that some candidates may not be good at
communication or due to pressure they are not able to communicate effectively but may
be good at other activities. Due to this there is loss of skilled and talented employees.
Group discussions and personal interviews- In this approach the knowledge and abilities
of candidates are tested as in personal meeting the HR department able to know and understand
the candidates properly (McDonald, and Hite, 2018).
 Strength- It is the cost effective and time saving method as in group discussion 10-15
candidates are tested at one time.
 Weaknesses- Many people are introvert in nature but are good at other activities. Hence
it will be loss for company as they didn't able to select such talented people for the job
role.
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TASK 2
Benefits of HRM practices in context of both employer and employee.
HRM practice play significant role in the organisation as HR department is responsible
for establishing strong and effective relationship among employees and employers. In Zara, the
HRM practices have positive impact on the workforce as they involve them in various activities
with the aim to motivate them.
Compensation- The HRM department within Zara is responsible for carrying true and
fair activities related to compensation with the objective to meet the industry challenges and
standards. It is one of the motivating factor as employees get recognition for the work they
performance (Moutinho, and Vargas-Sanchez 2018).
Benefit to the employer- It is one of the beneficial technique which is beneficial and
helpful for the growth of company as this act as attracting factor for the people who are working
in different organisation at hire position. Moreover it also helps in developing trust among
employees as they have better growth opportunities with Zara.
Benefit to the employee- Zara have developed effective policies according to the rules
and regulation of government and for the betterment of the employees. Moreover company do
not discriminate among employees and provide them appraisal on the bases of their performance.
Training and Development- It is one of the significant and crucial method which help in
developing and enhancing the skills and abilities of workforce within Zara.
Benefit to employer- Zara is suing both online and offline training method according to
the requirements in the business with the motive to develop and enhance the skills of its
workforce. This will result in increasing the productivity and sales volume of the company.
Benefit to employee- As Zara provides effective training as it has experience and
excellent trainer which is beneficial for employee growth and development as they come to
enhance their skills (Riccucci, Naff, and Hamidullah 2019).
Effectiveness of HRM practices in increasing and enhancing the profit and productivity.
Human resource department is responsible for performing various different activities and
tasks with the motive to focus on the welfare of workforce. The primary function of HRM within
Zara is to build the layout of appraisal, incentives, activities for employee engagement, training
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approach, etc. The HRM practices of Zara are carried in the manner with the aim to increase the
profits and productivity of the business.
 Potential maximization- The HRM department in Zara is taking measures to increase
the potential of employees so that in the peak season the employees would able to carry
their job role effectively and efficiently. Many time due to increase in the demand for
products in the market place the employees have to barrier extra load ad have to work
under pressure. Hence, the focus of HRM in Zara is to provide effective training to its
employees with the motive to maximise their potential level (Sarvaiya, Arrowsmith and
Eweje 2019).
 Stress management- For better and effective performance it is important to have fresh
mind that is stress free mind. In Zara, the HRM department organise various activities
with the motive to make it workforce relax and not to take excessive load of work.
Furthermore, they have developed strong relationship with its employees so that if they
are in problem or have any other issue, in those cases they feel free to communicate with
members of department. As stress free employees will able to carry their work effectively
and able to contribute in enhancing the performance of company.
 Coaching and mentoring- The main focus of the HRM department in Zara is to focus on
the activities of the mangers and the leaders that they are providing right directions to
their team members so that they able to improve their performance and contribute in the
growth and development of the company (Sarvaiya, Arrowsmith, and Eweje 2019).
TASK 3
Significance of employee relations in influencing the HRM decisions making
Human resource are the most important and valuable asset of the business as they do hard
work in accomplishing the goals and objectives of the company. Zara has all resources at their
specific place with competition but in order to achieve success they have to make its workforce
competing.
 Recognition and Appreciation- The leaders and managers within Zara appreciate the
efforts of the individuals in the group tasks and activities which act as the motivating
factors and contribute in improving and enhancing the performance of employees. The
individual efforts of employees are considered by the HR department and according
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rewards are given to best performing employees. Hence, employees feel free to
communicate with the HR department member and provide them suggestion for the
improving in work place environment if they face any problem or difficulties.
 Communication- It is one of the major factor which help in the growth and development
of the company. The HRM department in Zara, focus on establishing friendly relation
with the employees so that they feel free to communicate with members effectively and
efficiently. Moreover the HR department in Zara, when face any major issue or difficulty
then they also take suggestion from employees for making improvements in its existing
system (Song, Yu, and Qu 2018).
Key elements of employment legislation and its impact on the decision making.
Employment legislation in this current changing business environment has become
important as it determines the behaviour of employees at workplace. The HRM department in
Zara is following various acts with the motive to protect the employees and their rights.
 Equality Act 2010- According to this act the employees within the organisation should
be treated equally without any discrimination. Zara is employee-centric organisation
where all the employees are consider equal that is rewards and appraisals are provided on
the bases of the performance of employees. This also helps in motivating them to make
their performance better and contributes in the accomplishment of the goals and
objectives.
 Fix working hours Act 1998- It is important for the company to have fix working hours
for its employees with the aim to provide them space in personal life. Zara is following
this act as it has fixed working timing for its employees with one day of in a week.
Furthermore, for providing flexibility to its employees they allow rotational shift of
working to its employees.
 Wages and Salaries Act 1996- Zara is following wages and salary act and providing
salaries to its employees on one specifies day of month. Basically employees do not face
any issues or problems due to salary (Su, Wright, and lrich 2018).
TASK 4
Application of HRM practices in work related context.
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With the help of HRM practices, management can hire right candidate at right time for
desired vacant job position. HRM practices create an impact on the efficiency of employees by
enhancing their skills, knowledge and competencies through which they can improve
organisational productivity. The HR Manager of Zara is looking to recruit a desirable candidate
for job role of Marketing Manager.
Job Description
Job description is an layout of job roles and responsibilities that need to be performed by
an marketing manger. Zara is looking for an talented and specialized Marketing Manager who
will be responsible for carrying out all the activities that are required to perform by the manager.
For the vacant job position, Zara have stated various specifications which highlights all roles and
responsibilities that are must be carried out by potent candidate. The job specification provided
by Zara is stated below:
JOB SPECIFICATION
Organisation: ZARA
Job Designation: Marketing Manager
Department: Marketing
Job purpose: The purpose of marketing manager is to make decision through which a business
can accomplish organisational goals effectively. Marketing manager of Zara must form
strategies through which business can use online and media platforms and enhance their
engagement.
Roles and responsibilities:
 To manage online promotions
 Manage team and different functions related to SEO, SMM, Google Analytics an other
related functions.
 Management of products using social media platforms through which organisation can
gain competitive advantage.
Required skills:
 MBA or post-graduation in Marketing
 2 years minimum experience
 Good communication skills
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 Effective team management
Personal Specification
Job Position: Marketing Manger
Service area: HOD
Criteria
Required skills
Essential
 Communication Skills
 Team management
skills
 Time management
skills
Desirable
 Observing skills
 Planning and strategy
formulation skills
Qualification Specialisation in Marketing Special marketing analyst and
research course
Required Knowledge  Information on
trending marketing
tools and techniques
 Formulation and
implementation of
Marketing strategies
 Effective coordination
among employees and
other marketing
activities
Experience required Minimum of 2 years
Offer letter
Offer letter is an document which also acts an evidence. This document is given to the
selected candidate by organisation which states all necessary information and details about job
role and responsibility and all rules of the company.
OFFER LETTER
ZARA
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B-24, F-block
South West side,
London, 87213
Date: 01/03/2021
Dear XYZ,
We are glad to offer you the position of marketing manager in our organisation, Zara. We are
sure your innovative approach, skills and knowledge will be valuable for the organisation.
The joining date for the job position will be 26/03/2021 and the timings will be 7: 30 a.m.
Please bring the below stated documents with you:
 Marksheet
 Id proof
If you will accept the offer letter, please sign it and share it with us by 26/03/2021.
Thank You,
Steffy Sam
(Marketing Manager, Zara UK)
CONCLUSION
From the above study it has been concluded that in this changing business world where
advancement in technology is taking place the HRM play significant role in the business
activities. Human resource department is responsible for managing the employees within the
organisation effectively and efficiently. The main function of the human resource department
within company is to motive the workforce and handle their issues effectively with the motive to
provide them safe and healthy working environment. They are one who provides roles and
responsibilities to the workforce according to their skills and capabilities in order to accomplish
the goals and objectives of organisation.
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