Benefits of HRM Practices for Organisational Profit and Productivity

This article explores the benefits of different HRM practices within an organisation for both the employer and employee. It evaluates the effectiveness of recruitment and selection, training and development, and employee motivation in terms of raising organisational profit and productivity. Discover how these practices contribute to organisational success.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. Explain the purpose and functions of HRM, applicable to the workforce planning and
resourcing an organisation..........................................................................................................1
P2 Explain 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.................................................................................................................7
Task 3...............................................................................................................................................8
P5- Analyse the importance of employee relations in respect to influencing HRM decisions. 8
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making..........................................................................................................................9
Task 4.............................................................................................................................................10
P7 Illustrate the application of HRM practices in a work-related context, using specific
example.....................................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES.............................................................................................................................12

INTRODUCTION
Human resource management is an integrated body in an organisation, without whom it is
impossible for organisation to achieve strategical business goals. Moreover, human resource is
the significant resource of an organisation, hence their controlled and coordination is essential.
Human resource management is all about arranging and managing human resource and a team to
achieve business goals. Asda Store, a supermarket stores and renowned name in the UK retail
industry situated at Leeds, UK. Asda have 165K workforce their organisational functioning
across different outlet, hence effectively personnel management and coordination of their activity
would be beneficial for them (Liu, Qingqing and Liu, 2021). This following report throw light on
the concept of the HRM, its functions and role, scope at Asda. Furthermore, there are various
internal and external factor that influences the HR manager decision making like employee
legislation are being also illustrated. At the end, following report is also highlighting the HRM
work concept at the Asda for employing marketing manager.
Task 1
P1. Explain the purpose and functions of HRM, applicable to the workforce planning and
resourcing an organisation.
Asda is a supermarket retail chain in the UK retail industry. Asda company also deals in the
online market through its official website where a user can order certain items from their website
Mission of Asda
Mission statement highlight why a particular organisation exists. Asda has mission to be
raised as the trusted market no only in UK but through the world where they operate.
Purpose and core business objective of Asda
 To provide more customer satisfaction by offering lower and must buy price to customers
with aim to save money live better.
 To be raise as the valuable and quality brand in customer mind
The term Human Resource stands for the “People working in an organisation. The
effective and efficient management of a work force lies under Human Resource Management. It
involves all the functions related with selection, recruitment, staffing and managing a work force
effectively in an organisation for the achievement of common objective. The main functions of a
HRM of Asda are mentioned below: -
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 Job design and analysis :- The work of HR manger at Asda starts with the identifying the
duties and responsibilities an employee needs to perform. Company become aware of set
of skills and capabilities required to perform a specific task, which in turn helps in
identifying and selecting an appropriate candidate for an organisation (Macke and Genari,
2019). At Asda, HR manager has the function in HRM to draft job design and assign job
to respective employee. Selection and Recruitment (Staffing): - This functions of HR manager include all the
managerial task associated with the staffing new employee by screening, selecting and
recruiting a suitable candidate matching all requisites of job duties and responsibilities.
HRM function helps Asda to have an effective work force with the adequate skills and
expertise, required to perform the job. Therefore, it is duty of HR personnel to perform
recruitment and section process to provide adequate workforce in the office.
 Training and Development: - Adequate training and development programmes designed
by the HRM department for harnessing the overall productivity of an employee.
Providing a proper knowledge of skills and expertise associated with the task at ASDA
HR manager helps their employees in performing their task efficiently, thus improving
overall performance of the company. Compensation and Benefits: - Designing and establishing an adequate reward for the
employees’ is consider to be the primary function of the HR manager in HRM planning.
The main objective behind is to provide a fair and equitable remuneration to the
employees. Well described compensation and benefits plans at ASDA provides a
transparency and therefore this function of HRM by the efforts of HR manager works as
a motivational factor (Huemann, Keegan and Turner, 2018).
 Managing employees Relations: - Employees are the important assets of the
organization. Having a policy of “Respect for each and every individual” at ASDA, HR
manager has maintained a good and healthy relations with the employees that leads to a
better work environment, harmony among employees and working towards the common
objective.
Purpose of HRM at Asda
 The main purpose of Human Resource Management is managing a task force in an
efficient manner that contribute to the smooth functioning of an organisation.
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 At ASDA, having defined set of tasks and jobs to be performed, have contributed towards
the clear vision and idea of the roles and responsibilities (Rabenu and et.al, 2018).
 Another purpose of HRM practices at Asda to develop HRM planning. HRM planning is
concerned with the managing a good and healthy relations with employees, providing
them fair and equitable remuneration and heading towards the achievement of a common
objective.
Workforce planning at Asda
Workforce planning is an HRM practices in which HR manger predict the current and
future labour supply and demand and find out the source from where they get the candidate to fill
the vacant job post. There are two types of labour market in reference to the Asda, internal and
external labour market. However, HR manger should focus on the external labour market to hire
innovative and skilled workers when needed.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection are the primary function of HR department at Asda, this is
because through this method, it allows them to acquire and retain potential talent for achieving
strategical business goals.
Recruitment process
Recruitment is all about attracting and acquiring right candidate to fill up the vacant post.
Recruitment process begins with the identification of the taskforce gap, preparing job description
and selecting the mode of recruitment. In context to Asda, there are adopting two approaches for
their recruitment i.e. internal and external recruitment.
 Internal recruiting
Internal recruitment may also boost worker morale, moreover internal recruitment is an ideal
option for a firm to retain most knowledgeable, skilled and experienced employee. In context to
Asda, internal recruiting can be done by the promotion and transfer to fill up vacant job.
Promotion: Promotion is all about promoting the employee to a superior post to fill up the
vacant job. Usually, promotion is done to motivate employee to extends their productivity.
Promotion is also an ideal technique for retaining most knowledgeable, skilled and experienced
employee (Roslender, Monk and Murray, 2020).
Transfer: Transfer is all about placing the employee in a such job position that would give more
job satisfaction and higher the productivity.
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Strength and weakness of Internal recruitment method
Strength Weakness
 Internal recruiting is a cost friendly method
for Asda for filling up vacant job position
 Internal recruitment enables a firm shorten
the on-boarding time, as the current employee
already familiar about the working culture
and policies.
 The foremost drawback of
internal recruitment is conflict
among the colleagues when an
employee, hence conflict at the
organisation would result in
inflexible work culture.
 Internal recruiting limited the pool of
driving innovative and fresh ideas in
the Asda (Galli, 2018).
 External Recruiting
An external source of recruitment enables Asda to pool and attract fresh talent that have new
ideas and skills that suits the job requirement. It has been criticised that external recruiting is an
ideal option to meet wide range of job demands. Asda mainly used two types of external
recruiting which are-
Campus hiring: Campus hiring an adequate method of recruitment for hiring a skilled and
knowledgeable candidate. Campus hiring is about hiring graduate and recent graduate from the
colleges and universities. Asda visits technical and management colleges to fill up the vacant job.
Employment agencies: Employment agencies act as middleman to give potential and skilled
labour to Asda in accordance to their job demands. Asda pay these agencies a shot of
commission in a form of vendor pay-out.
Strength and weakness of external recruitment method
Strength Weakness
 External recruiting would pool out new
face, new ideas, new skills at the Asda.
 Less conflict as the outsider employee
are unknown to existing employees.
 It is time and money consuming
approach of recruitment in context to
Asda.
 Asda need to spend more time on the
on-boarding process (Martínez‐Garcia
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Sorribes and Celma, 2018).
Selection process
Selection is about picking up right candidate that meets the specific job skills, experience
and knowledge. Selection is the most crucial step in hiring a capable employee that would be
prove as an asset for the firm. Some types of selection approach are-
Interview: It is a form of interpersonal method of selection where interviewer ask the
question to interviewee. In interview, interviewer identifies the key requirement of the job and
frame the questions that would be asked in interview at Asda.
Online Test: Asda would conduct online test in accordance to the personality, rational
and intelligence test. Candidate with higer score would be selected in this method.
Strength and weakness of selection
Strength Weakness
 Direct interaction with the candidate
provides an opportunity to Asda for
accessing the cognitive aspects.
 In online test, it enables Asda to access
the skills so that training cost can be
minimised.
 Selection method would be costly and
resource intensive process
 Increases the risk of bias in selecting
appropriate talent (Shipper, and
Hoffman, 2020).
Task 2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
Human resource management is all about managing human resource at organisation for
their effective utilisation. HRM practices and functions revolves around the employee at the
Asda. But is has been found that these practices are more beneficial for Asda for achieving
strategical goals. An effective HRM practices would provide benefits to both Asda and its
employer in following manner-
HRM Practices Benefits to employer Benefits to employee
Recruitment & Through recruitment and selection Recruitment & selection are
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Selection process, Asda can fill up the vacant job
position so that they can achieve high
degree of productivity with more
taskforce. In internal recruiting, it
supports Asda to retain higher skilled
and talent employee and external
recruitment would drive a new face,
skills and ideas in the organisation.
equally important for employee in
many ways. Promotion and
transfer can be a greater source to
provide job more job satisfaction
as employee are rewarded for
their extreme contribution in
Asda. Furthermore, promotion
would also inspire other
employees to work with more
dignity. External recruitment
provides an opportunity to
outsider talent to show their
capabilities and skills for
acquiring a position at Asda.
Training &
Development
If the employees are giving adequate
training it will helps in strengthen the
relationship with employees. Moreover,
when employee has certain skills they
are more productive, thus more revenue
(Stewart and Brown, 2019). Training &
development would be being an ideal
option for Asda for employee retention.
Providing training is the primary
duty of a HR personnel in Asda.
Training would provide an
opportunity to employee to
explore their hidden skills and
learn various skills that would be
last forever. Moreover, through
training & development,
employees ensure that total
growth both as professionally and
personally.
Employee
motivation
Motivating employees will be called as
the strategical decision to achieve more
from the employees. Employee
motivation aids Asda many ways by
minimising the cost of recruitment
Employee motivation can
leverage positive impact on the
employee's performance. A high
degree of motivation would
provide more job satisfaction,
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because of low labour turnover ratio. A
motivates employee work with more
dignity as compared to less motivated
one.
therefore it will enhances the
employee productivity.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity.
It has been analysed that HRM practices in Asda has leveraged to attain the strategical
purpose i.e. to reach the high profitability by harnessing the performance of an employee to a
certain level to gain the higher productivity. following are the benefits of HRM practices-
 Organisational profitability
Earning profit are the ultimate aim of every business organisation. Recruitment & selection
process provides an opportunity to Asda to acquire and retain highly skilled candidate that would
contribute more in attaining organisational goals. Training and development are additional HRM
practices provide at Asda that would also extend firm profits. This is because, when employees
have adequate skills and knowledge, they do their job more effectively, thus this will accelerate
firm's profit earning capacity. Employee empowerment is useful HRM practice that impact firm
profitability this is because a highly motivated employee would provide more business growth
then a less motivated one (Zaid, Jaaron and Bon, 2018). HRM practices are useful to earn more
profits by lowering the employee turnover ratio. When labour turnover ratio are low, no extra
money needed to burn in hiring for the vacant post.
 Organisational productivity
Recruiting and selecting a potential candidate would be beneficial for Asda to acquire a new
talent with more ability and capability. This would improves the firm's productivity as the new
candidate are likely to use their all skills and tactics to fix their position at Asda. Motivation and
productivity are interlinked concept in HRM practice, this is because a motivation provides job
satisfaction and develop work dignity in the mind of the employee. Training the employee is an
additional HRM practice that would have pulled out hidden skills of the employees. A highly
trained and motivated employee gives more contribution in firm’s performance. When rewards
are based on performance, employees tends to give their cent percent to achieve the target, hence
Asda would witnessed the high degree of organisational productivity.
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Task 3
P5- Analyse the importance of employee relations in respect to influencing HRM decisions.
In order to maintain healthy working environment in an organisation, employers are
making a continuous efforts on healthy relationships with their colleagues and employees. Good
and strong relation among the employers and employees boost the overall performance of an
organization. An employee spend most of his time at work place, thus healthy relationship
creates a positive environment, and acts as an important motivational factor. Following are some
strategies that affect HRM decision making to employee relationship- Employee Engagement: - Employee engagement is concerned with, active participation
of an employee in decision-making and other aspects of management. Through effective
communication ASDA encourages the sharing of ideas, seeking an advice, expressing
their views freely, which in result increases the employee engagement and gives a sense
that their presence and views are valuable. Flexibility in workplace :- Healthy and good relations among the team members at
ASDA encourages continuous help and assistance, thus HR manager should focous in
developing flexibility in working to provide more job satisfaction to employee.
Moreover, Proper distribution of roles and responsibilities in an organisation reduces the
confusion among the team members. Employees productivity :- Employee engagement and satisfaction results in high
productivity. Maintaining a good relation at ASDA gives an insight a employers what
individual needs are, and how they are motivated. Continuous feedback and appraisal on
their work stimulates them to work hard on the given task within a stipulated time period
(Macke and Genari, 2019). Discourage conflicts :- Better understanding among the team members abstain from
having conflicts and fights among individuals. Strong relations in company can solve the
major problems easily and promotes unity and respect among the team members. So HR
manager should focus on reducing organisational conflict to built more sound and healthy
workplace.
 Career development opportunity:- Empowerment is related with providing an employee
with certain skills and knowledge through training that help them to counter future
challenges. HRM should focus on this approach because a trained employee is more
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engaged and motivated in compare to untrained employee. However, training &
development decision of the HRM can established positive relationship because an
employee ensure future growth while working at Asda.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making.
Employment legislation are set rules and regulations that safeguard an individual working
at Asda from discrimination and their exploitation. For a sustainable business performance, it is
necessary for Asda to take employee related decision in accordance with the employee
legislations and regulation. Government of UK have enacted various acts within the employment
legislation that Safeguard the employee in many ways. In case a firm voids these laws, a legal
action are being initiating against them (Chelladurai and Kerwin, 2018). Thus, in order to avoid
any law suits, HR manager of Asda should frame their policies in accordance to the employment
legislation. Following are the key elements of employment legislation in context to Asda-
 Employment Act
Employment Act comes into existence by 2008 to provide the legal treatment of the
employee disputes like full recompense to be given by the Asda in case of underpayment to an
employee. Employment Act also has sub clause act like minimum wages to be paid to the
employees for their services in an organisation. Thus, it is responsibility of HR personnel at Asda
to give adequate and fair wage to every employee. This act influences the HR manager decision-
making in off-boarding process, because they have to make decision regarding the compensation
to be paid to a terminated and resgined employees. In case they void this law, they are in danger
of legal suits by the employer.
 The Civil Right Act
The Civil Right Act had enacted by the government of UK in 1964 with a purpose to safeguard
and protect an individual from getting discriminate based on the gender, sex, colour, racism,
religion and nation of origin. However, Asda have multinational operations in various nations,
hence they have diversified workforce. This is thus, this act affect HRM decision making
regards to planning human resource strategies, because in strategic human resource planning, it
is responsibility of the HR manager to put harmony and equality in the planning agenda.
 Equal Pay Act
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The Equal Pay Act is one of the crucial law in the employee legislation implemented by
the parliament of UK to protect an employee from getting under wage for their services. Under
this act, Asda is accountable for paying equal wages to the same position or level employees. It
will be illegal in the eye of law if Asda discriminate on compensation based on the gender and
age. Therefore, the Equal Pay act influence the HR decision-making in reference to the planning
compensations policy of the worker. It is the duty of HR manager to pay employees based on
their performance not on the age and gender.
Task 4
P7 Illustrate the application of HRM practices in a work-related context, using specific example
Through the identification of the present requirement of the firm, there is vacant post of
the marketing manager within the Asda. The requirement for this post require following steps
begin with drafting job description.
JOB DESCRIPTION
Job Title- Marketing Manager
Reported to whom: Chief Marketing
Job Summary: At Asda, Marketing manager should have innovative approach to promote
company's product and services. The marketing manager should possess with managing the
store and market and develops the strategical and tactical planning for the store.
Responsibilities:
 To generate more revenue from business leads.
 To coordinate with the sales department.
 Do planning and market research.
 To develop successful marketing campaign. To promote strategic relationship with various partners, stakeholder and vendors.
Qualification:
 Bachelor degree in the marketing specialisation
 Master degree in the marketing is an additional advantageous
 Diploma and certificate of digital marketing is an additional advantage.
PERSON SPECIFICATION
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Essential Skills:
 At least 5 years’ experience as a marketing manager in a retail firm
 Strong communication skills
 Experience of branding Analytical and problem solving skills
Desired skills:
 Willingness to travel
 knowledge about social media network for integrated marketing campaign
 Commercially aware and financially literate
Preparatory notes of interview
Interview plays a vital role to examine the ability and capacity of the candidate
(Oluwatayo and et.al, 2019). In order to fill up the vacant post of the marketing manager, HR
manager of Asda prepares some question that would be asked in the interview. They are as
follows:
Q1. How much you are familiar about business targeted market?
Q2. Tell me about the product you had successfully marked in your previous company
and what type of management style do you prefer to manage marketing people?
Q3. What new marketing tactics you have tried recently?
If employees are successful in interview, they are given offer letter.
OFFER LETTER
Asda Pvt. Ltd
February 22, 2020
LMN
Dear ABC,
We are grateful and delighted to present that you are hired as the full time marketing manager
in our firm as you are being outstanding in interview and we are delighted to have on this role.
As per our discussion, we hope that you joined us expected by February 26, 2020. If you are
curious about this role, please revert us back on our email address. Also please attached all your
academic and experience documents in the same mail and brings hard copy for the cross
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verification.
If having any issue please feel free to reach us on our email and contact number
Regards,
HR Manager
XYZ
Evaluation of the process
Although the the recruitment and selection process is quite good in context to ASDA to
appoint marketing manager in the firm. It has been found that following process are up to the
mark to save cost and time in hiring process. Although selection based on the interview have
some bias because sometime interviewee lied or put false information in resume. So it is being
recommanded that the selection method in online test should be made more effectively by using
simulation game, that help HR manager to access the rational and marketing knowledge by
putting some situational based MCQ in the online test.
CONCLUSION
As per the carried out study, it has been analysed that it would be difficult for a firm to
put an effective working team professional without human resource management. Moreover, it
has been concluded that HRM is essential for a firm for achieving sustainable and strategical
employer goals by maximising the employee performance. It has been also concluded that while
managing human resource at a firm, there are certain employee legitimisation such as Equal Pay
act, Employment Act 2008 and Civil Right act that would influences HR decision making.
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