Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in influencing HRM decision making. It explains how employee relations create a positive working environment and contribute to employee retention and engagement. It also highlights the key elements of employment legislation and their influence on HRM decision making.

Human Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Purpose and Functions of HRM............................................................................................4
P2. Strengths and weaknesses of different approaches to recruitment and selection.................5
TASK 2............................................................................................................................................7
P3. Benefits of different HRM practices for both employee and employer................................7
P4. Effectiveness of different HRM practices in relation of raising organisational profit and
productivity.................................................................................................................................8
TASK 3............................................................................................................................................9
P5. Importance of employee relations in terms of influencing HRM decision making..............9
P6. Key elements of employment legislation and its influence on HRM decision making......10
TASK 4..........................................................................................................................................11
P7. Application of HRM practices using specific examples.....................................................11
CONCLUSION..............................................................................................................................13

INTRODUCTION
Human Resource Management is the important management activity. It includes the
process of recruiting, selecting, training and development, performance appraisal and employees
relationships (Hull and Nezhad, 2016). It is a continuous process that helps to achieve individual
as well as organisational objectives. It also helps to understand that how human resource
practices can influences the companies productivity and efficiency of TESCO which is a British
multinational grocery retailer founded in 1919, England, UK. TESCO expanded with operations
in 11 other countries in the world, having many subsidiaries and it is the third largest retailer in
the world according to the gross revenues. This report covers the HRM purpose, functions and
applicability in the workforce planning and decision-making process with special reference to
TESCO. This report will include discussion on purpose and Functions of HRM with Strengths
and weaknesses of different approaches to recruitment and selection. There is also
indemnification of Benefits of different HRM practices for both employee and employer. Along
with this, Effectiveness of different HRM practices in relation of raising organisational profit and
productivity
TASK 1
Purpose and Functions of HRM
Mission Statement: To make better products with aims to contribute to continue growth
of TESCO's.
Objectives:
 To be the most recognizable brand that provide best quality of groceries, clothing and
electronics goods.
 To develop the best shopping experience, so they attract the many more customers to
boost their sales and maximize their profits.
Purpose of HRM:
 The first and foremost purpose of human resource management is to ensure their
employees should be willingly do work in an efficient manner.
 HR practices ensures that organisations objectives should be met with proper utilisation
of limited resources in such a way that they gain maximize profits.

 HRM helps to do a proper workforce planning in such a way that employment turnover
ratio should be minimum and if they need the workforce then they have the option to
recruit the correct person.
Functions of HRM:
 Workforce Planning
It is the most important management function that means to appoint a right person at right
designation. It refers to analyse the current workforce and determining future needs and
identifying the gap between present and future, and implementing solutions so that an
organisation can achieve the goal. TESCO does this function very well, they analyse the need of
workforce time to time and on the basis of needs they recruiting the individuals by taking an
interviews and other necessary functions (Budhwar and Mellahi, 2018).
 Training and development
After recruiting the right person, they need proper training and development to improve
their skills and knowledge that helps to achieve organisational objectives. TESCO gives proper
attention to their employees so that they do their jobs in a best way and integrating their
individual goals with organisation goals to achieve the ultimate objectives. This is an import rat
function which is related to performance of employees and achieving goals and objectiveness by
shaping there performance. This is helpfully in achieving business objectives and using function
inappropriate way (Saridakis, Lai and Cooper, 2017).
 Performance appraisal
Only training and development is not the only means to achieve the goals they need
appraisal also from the employer to motivate themselves for their work. TESCO arrange many
rewards and recognition programs and gives to the employees according to their performance
which helps to motivate towards accomplishing organisational objectives.
Strengths and weaknesses of different approaches to recruitment and selection
Recruitment:
Recruitment is the action of enlisting new employees in an organisation. It is the process
of identifying, attracting, screening, short listing and interviewing the suitable candidates for jobs
within an organisation. This function is performed by HR manager of TESCO to recruit the
suitable candidates with required qualifications in an organisation (Bondarouk, and Brewster,
2016).

Approaches: TESCO used mainly two approaches:
Internal: It refers to the process of selection of a candidate from the existing workforce
that means to recruit a existing employee in a new position with same organisation. It has two
methods:
 Promotions
TESCO used this method to recruit a person for a higher designation. It helps to reducing
stress on maintaining employee relations because they know the process and they can easily
adapt the working environment of an organisation.
 Transfer
It is as process where employees are transferred from one place to other place in a same
organisation. TESCO used this method when the company wants to give new experiences to the
employees. Under this, firm use to transfer employee from one job to other with changes in
responsibilities and providing better authority that previous job (Boxall, Guthrie and Paauwe,
2016).
STRENGTHS: It can boost the knowledge through new experiences and reduce the cost
of training and development, made healthy employee relationships.
WEAKNESSES: Lack of new knowledge and experiences that can be reduce the
productivity and efficiency of an organisation.
External: It refers to the process of recruiting candidates from outside the organisation.
TESCO generally used this method to fill the vacancies to gain new knowledge and experiences.
It can be done through following methods:
Advantages:
This helps organization in manager external talent in firm so that it can achieve business
objectives. This also helps in attracting talent employees which helps in performing function and
managing function in accordance with current environment.
Disadvantage:
This factor also acts as disadvantages for firm as they impact on motivation of existing
employees.
 Advertisement:

It is the costly and best approach to attract the candidates that used by the companies to
reach to the public. Maximum candidates can be attracted through this approach. TESCO is
using this method to recruit the knowledgable candidates.
 Campus Recruitment:
It is the another type of recruitment approach that generally used by institutes and
colleges. In today's scenario almost all companies are using this method because it gives a large
number of recruiters which gives many options to the HR manager of TESCO to recruit the right
candidate (Tochaee, Hosseini and Reihani, 2016).
STRENGTHS: It gives true talent, new achievements and ideas to the company.
WEAKNESSES: New employees may be face the problem of adaptability of working
environment.
Selection:
Selection is the procedure of selecting the most suitable candidate to fill the vacancy of
job. TESCO selection procedure includes application, screening, interview, and decision-making
for selecting employees.
There are four approaches:
 Online screening:
It simply refers to the applications sent through electronically to the candidate regarding
the availability of jobs with job description and designation. TESCO can do this function at very
initial point, they done through emails.
 Interviews:
It is the most important stage for every candidate because at this time company try to
know the exact knowledge, interests, experiences and skills of candidates which helps to the
company to match their knowledge with the job designation (Shen, Dumont and Deng, 2018).
 Ability and aptitude test:
Now this test gains the popularity, TESCO used this step to know the theoretical as well
as practical knowledge of particular subject such as Maths, Critical Reasoning, English as well as
other subjects.
 Personality profiling:
To analyse the behaviour of candidates towards work and company so that's why it can
be used by TESCO.

STRENGTHS: Online test can be considered by many companies, it is time and cost saving.
WEAKNESSES: These procedure could become tough at sometimes when some candidates
don't know the use of computer.
This is evaluated that there are number of recruitment methods which can be use by
organotin in order to perform function and manage thee function according to needs so that it can
achieve business objectives and performing function in appropriate way.
TASK 2
Benefits of different HRM practices for both employee and employer
Recruitment and Selection:
This function gives the human resource to the company so that it is very important for TESCO. It
refers to identify and select the most suitable candidate to fill the vacancy of job at right place
according to their qualifications for an organisation. It includes many stages and all are vary to
vary at different organisations.
 Benefits to employees:
Recruitment in a reputational firm like TESCO, is the proud feeling for employees that they earn
a nice salary, perks, and other benefits (Dundon, and Rafferty, 2018).
 Benefits to employers:
With the help of recruitment and selection procedure they get strong pool of applicants so that
they select suitable candidates for the job. Employer gets new knowledgable and skilful
candidates to accomplish the organisation objectives.
Training and development:
Training and development is one of the crucial management function done by HR department of
TESCO, it refers to a systematic setup where employees are instructed and taught matters of
technical knowledge related to their jobs. It includes all educational activities that
 Benefits to employee
TESCO's employees take many benefits through training and development, they improve
their personality, practical and technical knowledge and skills that maintains the companies
productivity.
 Benefits to employer

It helps to the employer of TESCO in such a way that they get better performance results
and utilise the available scarce resources in a effective and efficient manner.
Effectiveness of different HRM practices in relation of raising organisational profit and
productivity
HRM practices of TESCO helps to attain their first and foremost objectives i.e.
organisational profits and productivity. Following are the points that elaborate these main two
objectives:
 Increasing Profit: This is the most important and primary objectives any company to
increase the profits. Profits are the core heart of any company it helps to run the business
in efficient way (Wikhamn, 2019). Without profits companies like TESCO can not
survive and run their business in the market. It can increase profits by workforce
optimization initiatives, preferring humans to machine that motivate employees toward
organisational objectives.
 Increasing productivity: HRM practices of TESCO raising the productivity through
supporting flexible working conditions. They can also do investment in employees
happiness, boosting morale, providing the right technology and their applicability in
organisation. To analyse the level of productivity anyone can go to search for profits and
continue growth of TESCO.
With the above explanation, it is analysed that company give cut throat competition to the
market. It has enough competitive power to maintain their position and brand name in the
market. To attainment of organisational goals and targets company needs to strategies policies
and apply tools and techniques.
TASK 3
Importance of employee relations in terms of influencing HRM decision making
Employees relation plays a crucial role in the company as it provides a positive working
environment to the employees. It create and maintain positive relationships among employees
and top level management. It coordinate and harmonies the functions of the company. It gives
importance to employees that they are essential for companies growth. TESCO provides positive
attitude to employees that they are part of success of their company. It very well shows in their
mission statement that they grow in the market with contribution of all people. In the process of

decision-making employees relations plays important role, employees feel that they are the part
of company. Taking decision of increasing production , it can be done only when the employees
are agree (Guerci, Longoni and Luzzini, 2016). So that's why employee relations are important in
the decision-making process. Following are some points that explain better importance of
employees relations in decision making process:
 Employees Retention:
One of the biggest problem of any company is high employee turnover ratio. That means
the employees are not satisfied with company's structure or working environment. Employees
may be feel frustrated, isolated and insecure so they try to consider a new job. TESCO always try
to focus on the employees retention through positive employees relations. It reduces cost of
employee leaving.
 Employees engagement:
According to research, 90% of leaders tries to engage people in the important matters of
the company. It encourages employees morale and motivate towards their duties that helps to
perform work effectively and efficiently. Employees of the TESCO feels better when company
allows to participate in the important decisions. They feel that they are important for companies
targets and goals. The managerial team of TESCO always focus on employees behaviour
towards working environment of the company.
This can be evaluated from above stated information that threw are number of function
which are related to performer of organization objectives and achieving business results. These
above states in function can be used to achieve HRM objectives and performing function in
appropriate way.
Key elements of employment legislation and its influence on HRM decision making
Every company is essential to follow employment laws and labour laws after the
commencement of their business. Employment legislation influences the HRM decision-making
process. When HR decide to recruit the candidates then the company should be know about rules
and regulation related to the employment legislation. Employment legislation includes general
employment issues as well as protection issues. General employment issues includes recruitment,
working hours, contracts, employment status such as part time or full time and payment &
entitlements. Protection issues includes health and safety, anti- discrimination laws, bullying and
harassment and data protection. TESCO follow all rules and regulations related to employment

laws and provides healthy environment to the employees. Some of the act are explain in the
following points:
 Employment Rights Act 1996:
It covers the basic right of employees which includes variety of topics such as
employment contracts, unfair dismissal, family-friendly leave and redundancy. TESCO gives all
necessary rights to the employees that ensures that company follows all important laws.
TESCO's employees have the right to check the companies transparency. They can also check
that company should not be working in the banned and wrong products such as dealings in drugs
and human trafficking (O'Donohue and Torugsa, 2016).
 Equality Act 2010:
This act protects people from the discrimination in the workforce. It is the anti-
discrimination law which ensures that organisation should not make difference between the
employees. Employees of TESCO feel secured that they are safe from gender and age
discrimination. They know that company could not consider the differences between male and
female. Company give equal chances to employees career either it is male or female. In some
organisations, the company do difference between the ability of female and male employees.
Other organisations consider that male employees are more efficient than female employees.
Sometimes firms may differ through caste and religion also, they didn't consider talent. These
issues may be reduce the productivity and efficiency of work. The HR team of TESCO tries to
cope up with these issues so that they increase their productivity and profits. These acts are used
by organisation. In order to address number of issues and manage function according to needs
are requirements. This is also analysed that these functions are used to achieve business
objectives and managing function. In this organotin is require to follow those function which
helps in performing all these function and using them in accordance with needs and
requirements. It can also see that these laws will help ion boosting productivity as employee will
feel motivated while working on these respective job due to sense of security.

TASK 4
Application of HRM practices using specific examples
According to present scenario of TESCO's, there is a requirement for receptionist
position all related information such as job specifications and person specification mentioned are
as under:
JOB SPECIFICATION
Job title: Receptionist
Reported to: Branch Manager
Job summary: TESCO needs a receptionist who performs all necessary functions like handling
customers, managing paperwork and daily mails.
Responsibilities:
 Greet and welcome guests
 Answering incoming phone calls
 Attending visitors and give answers to their questions Maintaining the records of visitors and employees
Qualifications:
 Minimum academic qualification i.e. 12th
 Excellent customer service skills
 Good communication skills Ability to handling task at same time
PERSON SPECIFICATION
Essential Skill:
 Listening Skills
 Proficiency in Microsoft Office Suite
 Verbal and Written skills Effective administrative skills

Desired skills: Willingness to do overtime work
 Must be initiative and flexible
 Attitude should be positive and caring
JOB ADVERTISEMENT
JOBS OPENINGS!
Receptionist (Full Time)
TESCO's HR team is currently looking for receptionist who is creative and self starting
candidates to fill the position. We are looking a receptionist for full time job.
Total working hours of receptionist is 45 a week and take many other benefits. Training and
development programs are provided by company. Applications for this post will end up by 10th
November, 2020.
PAY AND BENEFITS
 London wage rate
 Pension scheme
 Cover insurance 24 annual leave
CONTACT US TODAY
If you, your friend and relatives would like to
join the organisation for this post then send
your CV and contact on:
Contact number- 8574961230
Address- 52, Muffin lane, W45 WXC
Preparatory notes of interview:
Interview is the main part of the recruitment and selection process. It is the conversation
between participants and the HR team who recruit the candidates. HR team of TESCO takes
many rounds to recruit the candidates. Before the interview process they try to make necessary
preparatory notes that are mentioned in the following questions:
Q1. How do you manage the work load for the role of receptionist?

Q2. What do you think about receptionist post?
Q3. Describe your duties that you were done in previous organisation?
Q4. How do you keep yourself organised for the job of receptionist?
OFFER LETTER
TESCO Plc.
November 20th, 2020
LMN
Dear LMN,
As discussed we are happy to promote you as receptionist and joining date is December
1st, 2020 in TESCO. You are clearing all rounds of recruitment and selection procedure. This is
a full time job of 45 hours a week.
As a full time employee, you are also entitled for other benefits. Please plan to work in
TESCO from December 1st, 2020. If you accept this offer then please contact with our HR. If
you face any problems and queries then please don't hesitate to contact with us.
Sincerely,
HR Manager
CONCLUSION
Finally, from the above research it is concluded that HRM practices plays an vital role in
the organisation. As discussed in the above research report various important points are
considered to show the impact of HRM practices in the company. It includes all crucial functions
of HR such as recruitment-and-selection procedure, training and development program,
performance appraisal and employer-employee relationships. HRM shows that the HR practices
are linked to each other i.e. they are inseparable in nature. HR practices gives benefits to
employees as well as employer. It shows that how much employee is important for company
that's why they try to make good employee relations to increase the productivity. This report also
covers the employees legislations because they impact on the decision making process.

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