Advantages of HRM Practices for Employee and Employer

This article discusses the advantages of human resource management practices for both employees and employers. It explores how HRM practices such as recruitment and selection, training and development, and reward systems can enhance productivity, talent acquisition, and revenue growth. The effectiveness of these practices in raising the revenue of a business is also evaluated.

Human resource
management

Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Purposes and various functions of Human resource management applicable to workforce
planning in an organisation....................................................................................................2
M1 Assess how the functions of HRM can provide talent and skills appropriate to fulfil
business objectives.................................................................................................................4
P2 Strengths and weaknesses of different approaches to recruitment & selection................4
TASK 2............................................................................................................................................6
P3 Advantages of human resource management practices for the employee and employer..6
P4 Evaluation of HRM practice effectiveness in raising the revenue of business.................7
M3 Assess different methods used in human resource management practices, provide specific
examples to support evaluation within an organisation context.............................................8
TASK 3............................................................................................................................................9
P5 Significance of employee relations in influencing decision making in human resource
management............................................................................................................................9
P6 Key factors of employment laws & its impact on HRM decision making.....................10
M4 Evaluation of key aspects of employee relations management & employment legislation
that affect human resource decision-making in an organisational context..........................11
Activity 2.......................................................................................................................................11
TASK 4..........................................................................................................................................11
P7. Application of HRM practices.......................................................................................11
M5. Rational for the Specific HRM practice........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Human resource management practices plays vital role in every company as it help in
maintaining positive working environment and aid company to attain its objectives within
stipulated time period. One of the main function of HR department is recruitment and selection,
as they are responsible to hire effective and best candidate for organisation who has such a
capability to implement activities properly and make it reach on growth and success as well
(Armstrong and Taylor, 2020). The other functions are training and development, workforce
planning, providing positive working environment, compensation and benefits and so on. In the
present report, Bird’s a local take away shop in Oldham is taken into consideration. It was
established in the year 2017 and their main objective is to satisfy customers. The company is
getting success in market and for this, it expand workforce in order to manage work in a proper
manner and for this the report is prepared. The report will cover purpose, scope and functions of
human resource management. In addition to this, approaches of recruitment and selection along
with advantages and disadvantages is discussed in report. Moreover, importance of employee-
relation in decision making is describe. Later, HRM applications is explained by the help of few
examples.
TASK 1
P1 Purposes and various functions of Human resource management applicable to workforce
planning in an organisation
Purpose of HRM: One of the major purpose of HRM is to maintain positive working
environment at workplace and to develop good relations with employees so that they can retain
with longer time in company and increase productivity effectively. The another purpose of
human resource management is staffing, making of policies, compensation, law compliance,
providing benefits and many more. All this is important to be fulfilled in order to implement
activities in a smooth and proper manner as well.
Scope of HRM: It is determine that scope of human resource management is wide that
help an entity to achieve its desired goals. It involve lay-off and retrenchment, training and
development, workforce planning, incentives, selection, transfer, hiring and many more. In
addition to this, it involve welfare aspects such as medical assistance, health and safety, training,
recreation services, transport, rest rooms, lunch rooms and so on.
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Functions of HRM -
HR department of an organisation plays a various roles that help in implementing
activities in an effective manner. For hiring new employees, Bird’s are require to perform all
such functions that will help in hiring effective candidate for company. The major functions is
given below:
Recruitment and selection:- One of the major function that is perform by HR department
is recruitment and selection. Recruitment is defined as a process of attracting talented people to
apply for the jobs for particular situations. In addition to this, selection is basically choosing the
right candidate for company that is the person who have skills and capabilities to perform
activities in proper manner (Chelladurai and Kerwin, 2018). For this, various methods is used
such as preliminary screening, interviews, group discussion, online interview and so on. All this
will aid company to get effective and talented employee for organisation that leads to increase in
productivity and profitability level in an effective manner.
Training and development: - It is important for companies to provide training to its staff
members whether it is new and existing as it help in enhancing skills and knowledge of
employees in an effective manner. It is the responsibility of human resource manager to identify
what type of training is required to provide and who actually need to be trained. One of the
objective of training is to provide employees up-to-date information about new technologies,
processes, systems and many more. Moreover, it help company to decline the level of
shortcomings of employees and improve their efficiency level. For providing effective service to
customer, it is important for Bird’s to give training to its new staff members that help not only in
enhancing their skills but also help in gaining trust of customers.
Workforce planning:- It is consider as an continuous process that is associated with the
requirements of employees. In addition to this, it is significant for companies to manage all its
employees so that they can take interest in working and increase productivity of company. For
this, Bird’s is require to develop policies and plans that will help in placing right person at right
position in an appropriate manner.
Performance management:- HR managers evaluate performance of staff members with
the expected performance that help in getting insight about efficiency of employees. After the
evaluation, they provide feedback to employees and provide guidance in order to improve their
productivity level. In context to Bird’s, this function will help in gaining knowledge about
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abilities of staff members and also aid in improving them which in turn has positive impact on its
productivity as well as profitability level.
Reward systems:- One of the function that aid in motivating employees to work with
their full potential in order to meet with the targets and objectives on time period. The human
resource department analyse performance of employees and then provide them compensation
and benefits (Berman, 2019). Sometimes companies are giving rewards to employees in front of
all members that make them feel valued at workplace and encourage them to be more productive.
Performing such function by Bird’s will help in increasing productivity and attaining objectives
within given time period.
M1 Assess how the functions of HRM can provide talent and skills appropriate to fulfil business
objectives
Human resource department plays an important role in attaining business objectives. One
of the major function that is performed by his department is recruitment and selection. HR
manger make use of appropriate recruitment methods in order to attract talent for applying for
vacant position. In addition to this, it adopt selection methods such as interview, psychometric
test and so on in order to gain knowledge and skills about candidate. It will help company to put
right people at right place so that activities is implemented effectively that leads to attainment of
objectives within given time frame.
P2 Strengths and weaknesses of different approaches to recruitment & selection
Recruitment and selection is one of the important function performed by human resource
manager. It help an entity to gain talented and skilled staff members that directly leads to
increase in productivity and profitability of organisation. Recruitment is defined as a process to
gather all job seekers by providing them information about vacant position and make them apply
for it whereas selection is choosing the best candidates among the people applied for job by
using different methods. In today’s world, the level of competition increases and companies are
hiring those candidate who have effective skills and talent. For recruitment and selection,
manager of Bird’s can make use of different methods of recruitment and selection that is
described below:
For recruitment:
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External agencies: Herein, companies make use of third part in order to fill vacant position in
an effective manner. There are various agencies nowadays providing such services and aim to
give best solution to companies.
Advantages: It is determine that external agencies have large number of candidates that arise an
opportunity for Bird’s to attract talent. In addition to this, external agencies comes with new
innovations and ideas of recruitment that aid in gaining attention of people and make them
applied for vacant position.
Disadvantages: One of the limitation of external agencies is they did not have knowledge about
working environment of company. in addition to this, it occur more cost to company that may
decline revenue level of Bird’s.
Direct advertising: Nowadays, most of the companies prefer to adopt this option as they directly
put information about vacant position on various applications such as LinkedIn, Facebook,
Indeed and many more (Banfield, Kay and Royles, 2018). It is determine that there are millions
of job seekers using such applications to find jobs and putting advertisement by Bird’s will help
in gaining attention of large number of people effectively.
Advantages: This method aid in attracting large number of people towards company which in
turn help in gaining talent for company.
Disadvantages: Nowadays, there are many fake jobs is advertise on such applications due to
which people did no trust and applied on them.
For selection:
Interviews: one of the most effective method that help in gaining insight bout knowledge and
skills of candidate in an effective and best manner as well. This method can be used by Bird’s in
order to get best and suitable candidate for company.
Advantages: It aid an entity to develop a set of questions according and ask it to candidate,
which help in gaining knowledge and skills about particular job position of candidate effectively.
Disadvantages: It is determine that interview is a time consuming process and it sometimes
develop negative mind set of candidate if the waiting line is long.
Online screening & shortlist: This method involve job application, telephonic interview, online
job interview and many more. It will help company to shortlist effective candidate and enhance
their productivity of organisation.
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Advantages: It aid in filtering candidate as per job requirement and help in selecting right
candidate at right position in a proper manner.
Disadvantages: It is determine that it is a time consuming process & involve number of
employers for evaluate as well as examine criteria fulfilled for the vacant position in an effective
manner.
M2 Evaluation of strengths & weaknesses of various approaches of recruitment as well as
selection
When taking Bird’s into consideration, Direct advertising of applications and interview is
an appropriate methods for recruitment and selection. It help company to attract talent and gain
knowledge about selected candidate skills and competencies in an effective manner (Boella and
Goss-Turner, 2019). The weaknesses of such methods is, it is time consuming process and
increasing rate of fake jobs on applications may not attract talented and skilled candidate.
TASK 2
P3 Advantages of human resource management practices for the employee and employer
In every organisation, Human resource manager make use of various practices in order to
strengthen companies and activities as well. In addition to this, their main objective is to
provide a good platform to staff members that help in showcasing talent of employees t
workplace. There are several advantages of using HRM practices by Bird’s that is give
below in context to both employee and employer as well.
Benefits for employer
Recruitment & selection
 It help employer to gain knowledge about skills and capabilities of candidate that leads to
increase in productivity of an organisation.
 It allow employers to place the right person on right position in order to attain desired
objectives timely and effectively. For instance, if an appropriate recruitment & selection method will be used by Bird’s,
then it decline turnover rate and help in meeting with targets in a timely manner.
Training & development
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 It aid company to enhance skills and competencies of staff members which in turn help in
providing quality service to customers. In addition to this, it help in developing positive
mindset of customers towards brand and engage them for longer time.
 For example, if staff members of Bird’s is aware about how to deal with customer and
how to resolve their issues, then it enhance profitability and market position of company
in a proper manner.
` Reward systems
 One of the major benefit of such HRM practice is it help in motivating staff members in
order to attain objectives. Moreover, it develop interest in employees towards their work
that leads to increase in productivity and profitability.
 For example, It help in engaging employees for longer time and decline cost of hiring
new candidate foe company.
Benefits for Employee
Recruitment & selection
 It is determine that internal recruitment help an employee to gain opportunity to learn,
grow and attain success in an effective manner.
 It give chance to employees to showcase their talent and skills that leads to attainment of
opportunities for better position.
 For instance, it increase morale of employees & strengthen their relationship with others
at workplace.
Training & development
 It help employees to improve their weaknesses and enhance their skills which in turn help
in giving good service to customer and gain appreciation from higher authorities.
 It help in carrying out creativity level due to which an employee get both personal as well
as professional development.
P4 Evaluation of HRM practice effectiveness in raising the revenue of business
It is analyse that implementation of various human resource management practices such as
training and development, performance management, recruitment and selection and many more
help Bird’s takeaway to enhance their revenue level in an effective manner. In addition to this, it
also aid in meeting with targets and achieve objectives within given time frame.
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Training & development- By providing training to employees occur cost to Bird’s but it
will help more in raising profitability level. It is determine that training and development session
increase skills such as communication, time management, customer service and so on of
employees that will help in giving quality and on time service to customers. In addition to this, it
help in satisfying requirements of customer and turn them in loyal customers that directly leads
to increase in profitability and revenue level of Bird’s in an effective manner.
Recruitment & selection- By the assistance of this practice, Bird’s is able to attract talent
and select right candidate for company who is capable of performing activities that directly leads
to attainment of growth and success as well. It is determine that selection of talented candidate
will help company to provide good service to customers and to develop effective relationship
with them, which results in increasing in sales of Bird’s in a proper manner. In addition to this, it
will help entity to enhance their profit margins that has positive impact on revenue level of
company.
Reward system: It involve compensation, incentives, monetary and non-monetary
benefits that encourage employees to put their efforts in achieving objectives within stipulated
time frame (Järlström, Saru and Vanhala, 2018). In addition to this, it help company to retain
staff members for longer time period and develop a positive mind set of employees as they get
fair compensation. All this will increase the efficiency of employees of Bird’s that directly leads
to increase in profitability of company.
Performance appraisal: By the assistance of such practices, managers of Bird’s can
easily evaluate performance of staff members with their expected performance. It will help in
making improvements and decline shortcomings of staff members. Moreover, it help company to
support employees and instruct them in order to improve their efficiency level. It will leads to
increase in productivity and profitability level of Bird’s in an appropriate and best manner.
M3 Assess different methods used in human resource management practices, provide specific
examples to support evaluation within an organisation context
It is determine that Bird’s can make use of various human resource management practices
in order to achieve objectives. By the assistance of performance evaluation, involvement of
employees, taking feedback, group activities, its HR manager can enhance the productivity of
staff members. In addition to this, it will help company to increase its profitability level and
develop brand image at marketplace in an effective manner.
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TASK 3
P5 Significance of employee relations in influencing decision making in human resource
management
Employee relation is defined as an interaction among higher authorities or employer,
employees and trade unions that is prevailing in organisation. One of the main role of HR
manager is to maintain good relation with employees as it help in enhancing productivity and
achieve in attaining objectives within given time frame. The importance of employee relation in
influencing overall decision making is given below:
Importance of employee relations -
Employee satisfaction:- It is determine that employee relation help an entity to satisfy
employees and engage them for longer time period. In addition to this, it help in building morale
of staff members and develop confidence at the time of implementing activities. In context to
Bird’s, it can formulate or develop action plan by taking reviews or feedback from employees in
order to fulfil their requirements in an effective manner.
Performance management: It is determine that better employer- employee relationship
increase performance of employees (Analoui, 2018). This relationship help organisation in
applying performance management practices that is performance appraisal programs that help in
improving productivity and fulfilling employee requirements. For instance, Birds’s can take
better decision of enhancing productivity by undertaking current performance of staff members.
Deals with Workplace issues- One of the importance of employee relation is it help in
dealing with employees issues in a proper manner. In addition to this, it help in declining level of
grievances and complaints as well. For instance, Bird’s takeaway can focus on opinions of staff
members in order to take decision associated with labour management and to decline issues at
workplace.
Strengths of employee relations Weaknesses of employee relations
 It is determine that effective employee
relationship assist in developing mutual
understanding at workplace that leads
to decline in the number of conflicts.
 Ineffective relation influence on team
work in a negative manner and also
decline productivity level of staff
members.
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 In addition to this, it help in enhancing
productivity of employees that has
positive influence on profitability of
company.
 It is determine that ineffective relations
between top management and
employees develop negative
atmosphere at workplace.
P6 Key factors of employment laws & its impact on HRM decision making
Employment laws are developed by local, state or federal government in order to protect
employee. Human resource management of Bird’s can follow employment legislations in order
to make them feel secure and protect at workplace. In addition to this, it help company to
develop trust by providing equal opportunity to them in an effective manner. The human
resource employment acts involve various laws such as employee discrimination, minimum
wage, health and safety and many more.
Important employment laws are provided as follows:-
Employment and labour law- It involve various terms and conditions of employment
such as workers representation, industrial relations, maternity leaves, discrimination and so on.
In relation to Bird’s, it is undertaken all this law in taking decisions such as training and
development, promoting, discipline etc.
Equality law- This law sates that it is important for companies to provide fair & equal
treatment to staff members prevailing at workplace. The employee have the right to report in
case of unfair practices due to religion, culture, race and so on. In context to Bird’s, it can
consider this law for taking decisions regarding employee benefits and compensation system as
well.
Health-and-safety law:- It is important for an entity to follow this law in order to make
employees feel safe at workplace. It develop a positive mind set of employees and help in
retaining them for longer time. This act influence Bird’s decision in order to consider factors
such as regular training for safety of staff members in order to decline number of injuries at
workplace.
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M4 Evaluation of key aspects of employee relations management & employment legislation that
affect human resource decision-making in an organisational context
It is analysed that employment legislations and employee relation management are important
aspect that have the ability to influence decision making of HR manager. It is determine that by
considering factors such as measuring and monitoring results, direct communication, work life
balance, the human resource manager of Bird’s can motivate employees and increase their
productivity level (Kaufman, 2019). If it is talking about employment legislation, it is important
for human resource manager to consider all the laws such as discrimination act, health and safety
while raking decision as it help in raising efficiency of staff members that leads towards growth
and development of an organisation.
Activity 2
TASK 4
P7. Application of HRM practices
Among the most essential human resources management practices includes hiring,
selecting, developing and motivating individuals (Kim, 2012). Bird’s takeaway uses a job
description to define the job specification, such that applicants with the necessary skills could
even apply for respective job. This enables the company to hire the best worker so that actual
goal of expanding business can be achieved in desired time. The below mention is an example of
such a HRM practice being applied in Bird’s takeaway.
JOB DESCRIPTION
Organisation Name: Birds’s Takeaway
Job Details: High-ranking finance director
Job title: Financial Associate
Job Type: Full Time
Salary: £55,000
Location: Hertfordshire, England
Job Purpose:
1. Provide assistance and valuable support to Finance division
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2. The applicant must be capable of managing and managing dedicated numbers
3. Partnership with finance team for greater and cleaner operational efficiency
Responsibilities of the selected candidate includes:
• To compensate for the retained earnings and financing activities per day
• To control and coordinate the group member regarding financial reporting and billing
To publish the results to Chief Financial Officer
• Ensure conformity with accounting regulations and standards;
• Checking and monitoring financial statements as per the IFRS.
Interested and eligible candidates will forward the curriculum vitae to [e-mail] or
communicate directly the contact information mention below.
Thanks & Regards
HR Manager
Bird’s Takeaway
Contact no. + 44 (0) 1864 653879
Review of CV
In order to employ the right and most appropriate applicant for the role of
financial associate bird’s HR manager analyses the CV of 3 applicants who were shortlisted
through online recruiting and screening. Besides the curriculum vitae of three work applicants by
evaluating individual profile along with job description, several basic criteria for the job role
have been defined (Alfes and et. al., 2013). In order to fully satisfy the job position, there are a
few abilities that the HR needs to consider prior to actually choosing the applicant. Such
capabilities are appropriate capabilities in information sharing and management skills, and also
general knowledge of MS-Excel. After reviewing the three CVs and taking into consideration all
the specifications in an acceptable way, the HR finalizes job application two for the work
position. For all of that, the HR manager of Bird's must hold an evaluation session such that they
can quickly evaluate any of the expertise available in a fitting manner. Human resource officer
introduces several queries that can help them in analysing career candidates' abilities in a
comprehensive and more successful manner.
M5. Rational for the Specific HRM practice
The possible explanation for evaluating the specifications of the individual is that there are
certain abilities that HR needs to take into account while evaluating the best feasible person for a
12

position in Bird's takeaway (Sparrow, Brewster and Chung, 2016). In fact, it has been studied
that CV review is very important because it allows in an effective way to clarify the candidate's
abilities and expertise. It can also aid with the evaluation of the person's needed qualifications
and existing abilities so that the strongest and more qualified people are considered for the job
position of financial associate.
CONCLUSION
From the above discussion, it has been analysed that human resource department plays
vital role in attaining objectives within stipulated time frame. There are various performed by
HR department such as recruitment and selection, maintain employee relation, training and
development, providing healthy working environment, performance management and so on. In
addition to this, it is essential for HR managers to consider advantages and disadvantages of
recruitment and selection process before applying it. Moreover, it is important for an entity to
follow all the laws and legislations in order to make employees secure at workplace and develop
trust towards organisation.
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