HRM Practices for Profit and Productivity

This report discusses the purpose and functions of HRM in Wagamama Restaurant, approaches to recruitment and selection, benefits of HRM practices, and the effectiveness of HRM practices in raising profit and productivity. It also examines the importance of employee relations and the application of HRM in a work-related context.

UNIT 3- HUMAN
RESOURCE
MANAGEMENT
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
P1. Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation..................................................................................................................................4
P2. Approaches to recruitment and selection..............................................................................5
P3. Benefits of various HRM practices.......................................................................................7
P4. Effectiveness of different HRM practices which helps in raising the profit & productivity 9
P5. Importance of Employee Relations.....................................................................................10
P6. Employee legislation...........................................................................................................12
P7. Applications of HRM..........................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
HRM (Human Resource Management) is the process of providing employment to people,
giving them training, paying compensation for their efforts in the organisation, develop policies
related to employees and formulate strategies to retain the talents. HRM today plays a crucial
role in the growth of company as it has undergone many changes from past two decades. Now-a-
days, HRM plays more administrative role in comparison to strategic role because it provides
more success to organisation.
The Wagamama is a British chain of restaurants having its headquarters in London,
United Kingdom and was founded by Alan Yau. The restaurant offers various Asian and
Japanese Cuisine. Wagamama restaurant chains have its operations in different places in the
world.
This report discuss the purpose and scope of HRM in Wagamama Restaurant related to
resource planning and workforce and explains the strengths and weakness of distinct approaches
to recruitment and selection. The report also explains the benefits and effectiveness of HRM
practices and examines the importance of employee relations in the restaurant. Later, it
recognises the key elements of employment legislation and its impact on decision- making and
illustrates the application of HRM practices in a work related context.
P1. Purpose and the functions of HRM, applicable to workforce planning and resourcing an
organisation
Human resource management is a procedure of hiring, recruiting, selecting, educating
employees, providing training and development to the employees to raise their performance as
well as HRM look for salary, compensation, incentives, and benefits of the employees along with
this it makes sure the safety and welfare of the employees. There are some purposes of HRM
such as:
1. The purpose of HRM is to give the job and look forward for the benefits of the existing
employees but before selecting any new employee.
2. Other main reasons of performing several functions by HRM is to fill vacant post of
company by identifying the quality of the candidate. For that HR takes various test of the
candidate to know that the particular candidate is suitable or not for the job.
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3. To increase staff retention rate by providing correct training after selecting the right
candidate it is essential for HRM.
4. Another main important purpose of HRM is to improve work performance of employees
and making sure that employees are performing. They also need to make sure that all
employees are working as per the rules and standards of the company or not according to
that appraisals has been given to the employee (Bhargava, 2020).
Functions of HRM
Recruitment and selection: The first and foremost function of HRM is analysing the job
and as per the requirement HR has to recruit the right candidate. The given organization
Wagamama is a Chinese restaurant so the HR has to look for the candidate who can handle the
front office, because front office has lot of queries and rush and as well as selecting correct
candidate for back office too.
Wages management: HR is responsible for managing wages and maintaining the
attendance records of the employees and have to review the shifts of the employees as well as the
holidays especially on weekends because restaurant make good business on weekends. Many
Restaurant give bar facilities to its customers and serve alcohol to the customers so it is the
responsibility of HR that the employees who are doing duty in the bar area are TIPS certified. It
means that the employees are knowledgeable to check the limit of consumption of alcohol. So
that it doesn't harm the customer.
Managing resources: As Wagamama has a big chain of restaurants in UK so it is the
liability of the HR to plan and manage the resources Hr has to identify how many employees are
required in the company? What should be the pay scale of the new employee? What kind of
employee is needed as it is a Chinese restaurant but it has opened various branches in different
countries so it is important to know the taste of the people of that particular country and as per
that they have to choose the correct candidate as a chef, so it is very important to find the ideal
candidate? To save the money and the resources HR can hire the candidate for that particular
country only. Sourcing of the candidate in an organisation is very crucial for the HR as it is food
industry the candidate should have good command on the language. These are the major role and
functions which have to played by the HRM department (MS, 2020).
Training to employees: After selecting the best candidate within organization HR requires
providing training to all of their employees. |The main reason of providing training and
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performing functions regarding this is to increase their knowledge. By getting training
employees are more likely to reduce their errors and improve their performance.
So from the above discussed all functions that HR plays it can be said that it can improve
overall performance and productivity of the company for which they work.
P2. Approaches to recruitment and selection
Recruitment process is being defined as process of human resource which is being
concerned with identifying, attracting, selecting, hiring and on boarding of employees in the
company. In simple and layman language it can be understood as involvement of everything
from identification of needs of employees to filling of the same
Selection process in human resource refers to short listing of right individuals with the
necessary qualification and skill set to fill the vacancy and position which is being open in the
company. It is the process of selecting individual who can do a job which is being required by
the company and helps in accounting with the valuable contribution being made by the same.
Two approaches of recruitment are internal and external recruitment where internal
recruitment accounts with company looking to fill the position from among the existing
workforce whereas the external recruitment is filling up of vacancy from for the open position
from applicant outside the pool of company and with fresh talent.
Strength of internal recruitment it helps in reduction of cost as well as time to hire
employees as it is hiring from existing workforce where it accounts with the advantage of
employees engagement as it helps in sending the message that company values the efforts being
made by the existing employees and accounts to invest in the same. Weakness of this kind of
recruitment is it account to leave a gap between existing workforce as company promote
individual to fill an open position, where the old position becomes vacant. It accounts with
inflexible culture s it account with stagnant culture as employees becomes too comfortable with
the process of getting things done in prescribed manner. It can also account with conflicts among
various peers as a result one account to get promotion and others does not which as a result
leads to decreased productivity of employees (Tessema,2020)
Strength of external recruitment is it opens the company with larger pool of candidates
which helps in finding right person for the job role which helps in bringing new ideas and
opinions that helps in effective decision making which also helps in getting fresh outlook to stay
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competitive in marketplace. Weakness of this it is time consuming process and costly process of
posting job vacancy on various job portals where it may account to demotivation to current
employees which accounts with not getting chance of promotions at the workplace.
Selection approach accounts with interview which helps in assessment of knowledge,
skills and background of candidates to make decision on the selection of the same where the
strength of this is it helps in building relationship between employer and employee where the
weakness of this approach is it leads to rejection of individual as there are certain other
approaches which helps in assessing skills of individual and accounts to get the selected
(Krylov,2019).
It accounts with approach of presenting on certain topics where its strength is it helps in
knowing communication, subject knowledge and confidence of individual and weakness of this
is some individual fear to speak which as a result leads to their rejection for getting selected.
BEST FIT APPROACH
It is a contingency approach which is being based on the premise that picks up the best
HR practices and policies which depends upon matching with the environment of the company
BEST PRACTICE APPROACH
Is a universal approach which claims the certain bundles of human resource activity
exists which supports universally organisation in getting the competitive advantage regardless of
organisational industry and setting.
P3. Benefits of various HRM practices
Human resource management is a process of managing people at the organization to
improve the performance and efficiency of people and for the achievement of predetermined
goals and objectives of an organization.
The WAGAMAMA uses various Human Resource Management Practices because it
gives the satisfaction to the employees, it increases the employee’s performance, creates feeling
of belongingness among them, reduces employee’s turnover ratio. HRM practices plays a
significant role to achieve the goals of the organization (Shameema, 2020).
Some of the Human Resource Management Practices followed by WAGAMAMA are as
follows: -
Training and Development
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Training is basically an educational activity which helps in enhancing the knowledge and
skill of an employee. It is like teaching a specific skill to employees which is required in
organization. Development is overall growth of the employee and it is a continuous process of
acquiring knowledge. Training and Development benefits both the employee and
WAGAMAMA.
Benefits of Training and Development to WAGAMAMA -
 It helps in increasing the financial gains to the organization. By providing training
and development programs in the organization will work more smoothly and
efficiently and earn more profits.
 It helps in adopting changes in the environment and competition from the
competitive firms.
Benefits of Training and Development to employees –
 It increases the morale and efficiency of the employees; they will get more
motivated by getting training related to their task.
 Employees will feel more secured in relation with their job, means their job
satisfaction level will increase. And they complete their task more accurately.
Recruitment and selection
Recruitment and selection is the process of hiring right people in the organization at the
right place. It is the most important task in the process of Human Resource Management. The
organization must hire or select those individual who adds value to their organization
(Kerdpitak, 2020).
Benefits of Recruitment and Selection to WAGAMAMA –
 The recruitment and selection process helps in finding the right or qualitied
candidates for the vacant job available at WAGAMAMA.
 It saves time in further training and development programs. The WAGAMAMA
follows strict recruitment and selection process which involves various skills tests
that determine if the candidate is suitable for that position or not. And this
eliminates the risk of selecting wrong candidate.
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Benefits of Recruitment and selection to employees –
 It increases the confidence among employees, as they go through various
selection processes, tests and interviews which improves their confidence level.
Performance appraisal
It is also known as evaluation or assessment of performance of an employee. It is the
most important tool or practice to increase the productivity and performance of the employees
WAGAMAMA uses certain performance appraisal policies to increase the self-esteem,
efficiency, productivity of the employees (Zhang, 2020).
Benefits of Performance appraisal to WAGAMAMA –
 It gives a blueprint of what an employee is lacking and in which task he is
performing well. And with that WAGAMAMA focuses on improvement of
employees.
Benefits of Performance appraisal to employees –
 Performance appraisal policies helps in rewarding top performers which includes
promotions of employees.
P4. Effectiveness of different HRM practices which helps in raising the profit & productivity
Discussed below are the effectiveness of distinct HRM practices in terms of raising the
profit and productivity of Wagamama –
Safe, healthy and positive workplace – Wagamama with the help of its HR professional tries to
provide secure, healthy and happy workplace to its employees, so that they are comfortable while
working in the company and can contribute their best by being focused and dedicated towards
their work (Bos-Nehles and et.al., 2020). By providing such positive working environment,
employees stay in the organization for longer period. HRM conducts surveys to know the
thoughts about the organizational culture and environment and regularly try to improve them.
360 degree performance management feedback – This HRM practice evaluates the every
employee from all possible aspects and the team, peers, managers, and subordinates give their
valuable and constructive feedback. This is the best method for collecting the performance
feedback by receiving this employee gets aware about the areas where he need to work and his
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strengths and gets motivated. This method improves the overall productivity of all team members
(Vanhala and Ritala, 2016).
Training of Relevant skills – Wagamama’s HRM provides the compulsory training to all the
new joinees before they work with the actual work so that there is no impact on the
organisation’s overall productivity. Training makes them confident and nourishes their existing
skills, this also reduces their chances of errors. By monitoring all the employees performance,
HRM also provides the re-training to employees whose performance is not upto marks so that
Wagamama’s productivity is increased and reduction is cost of errors which will improve the
overall profitability of the business.
Performance based rewards – Restaurant awards bonuses in the employee’s compensation as
incentives. This information is previously communicated to the entire employee so that they
work with their best and when the performance evaluation is done, employees who have excelled
their part are given rewards and bonuses which motivate them to perform more good next time
and also motivates their co-workers to give their best (Hassan, 2016). Team performance is also
evaluated and same goes with them. The basic criterion behind this HRM practice is to improve
the efficiency and productivity of employees which ultimately turns into profits for the
Wagamama.
Highlighting the Performers – Wagamama creates the competitive environment within its
workplace so that the employees give their best and are motivated to perform high. Restaurant
highlights its high performers on every quarterly basis on its websites, display boards so that
other are also motivated to perform and contribute in organisation’s profitability.
Delighting Employees with unexpected – Wagamama not only rewards the high performers but
also does something that is unexpected as their HR practice is that HR managers with the help of
team leaders and senior department managers, identifies the potential talents who have the
capabilities to attain the best results (Rogozińska-Pawełczyk, 2019). Organisation rewards them
also to motivate them to improve their efficiency and productivity which can turn into team’s
success. By doing so they are also able to retain the talents and maximise their productivity and
profitability.
From the above analysis it can be critically evaluated that different HR practices has both
positive and negative impact on organization productivity and profitability. Such as safe and
friendly environment helps employee's to enhance their overall performance so that company can
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gain competitive advantages, While at the same time, company needs to arrange sufficient fund
in order to develop better culture so that individual are ready to make their optimum utilization
of their capabilities. Likewise, performance based rewards is also effective method to enhance
performance and productivity of individual as it inspired individual to give their best so that
company can gained competitive advantages. But at the same time more efforts has to be made
by manager in order to decide appropriate rewards that could be used to motivate employee's.
P5. Importance of Employee Relations
Employee relations refer to the relationship that individual shares at the workplace, this
relation can be between co-workers, manager and employee and between the levels of
management. Every organisation like Wagamama must focus on building healthy relationship
among the employees which helps them in delivering their best performance. The concept is
generally adopted in order to maintain healthy relationships and motivate the employees which
helps in increasing the level of confidence and boost their morale (Brockman, Luo and Xu,
2020). Employees also try their level best to adjust at the workplace and give their best to the
organisation.
Every individual working at Wagamama shares certain relationship with his co-workers
at workplace, people are not machines they share their thoughts ideas, happiness and sorrows, so
the employee cannot just work by himself in an isolated environment and if these happen no
business can be run successfully. It is extremely essential for that the employees working in
Wagamama to be comfortable at each other as they are working as a single unit and for mutual
goal. HRM of the Wagamama understands the effectiveness of the employee relations at
workplace and various significance influences their decision-making. Because of several aspects
employee relations should be focused on by Wagamama –
Decision-Making – Employees cannot take all the decisions by themselves, sometimes the for
some issues they need the advice and suggestions from their colleagues and superior. That’s why
the importance on team decision-making is given, where the various employees comes up with
their best solutions and also evaluates all the pros and cons before implementing the plan. This
process develops the better relations and helps Wagamama in achieving its goal (Kaushik and
Guleria, 2019).
Division of Work – If the work is equally distributed to all the employees it will become easier
to handle and will also result into increased productivity. As one has to focus and concentrate on
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his part and coordinate his work with others through this practice task give n can be
accomplished effectively with the given time frame. When the employees have good relationship
with his/her co-workers he may get assistance from them and that also helps in developing the
healthy relationship at workplace.
Develops positive culture at workplace – Sometimes, employees tends to lose focus and
concentration at work because of the stress and workload. HRM of Wagamama has found that
when they interact and discuss things with each other, it reduces the tensions and stress. This also
develops trust among employees and if some employees do not have talking terms with others it
is extremely difficult for him to survive in the organization.
Motivation – HRM of Wagamama tries to engage employees in some special activities which
develops the motivation among the employees and when their relations are good they can easily
trust the co-workers and management feels secure and delivers their best efforts (Unsal and
Brodmann, 2020). The sense of trust is crucial factor in developing the employee relations.
Decrease conflicts and fights – Human resource management of restaurant tries to develop
healthy working environment which encourages the good employee relations and helps in
reducing the conflicts and fights at workplace. If employees have healthy relations with each
other, in case of any issue they will solve the problem diplomatically and will not waste time in
fights and conflicts rather will focus on their work and strive to get better results.
Decreases the problem of absenteeism and retention – Healthy and good employee relations
also helps in reducing the absenteeism of employees. HRM of Wagamama figure out the reason
behind the absenteeism and take tries to resolve the issues of the employees. Wagamama
provides them sufficient leaves that are required for the rest, so that when they return they can
work with their full potential. If the organization does not have healthy working environment
where people are engaged and work for the betterment of each other have high chances of
retention. Wagamama ensures that it is able to retain their talents by providing them health
employee relationship in their business and HRM of the company implements such practices
which help in developing good employee relationship.
Employees Loyalty: It can be stated that employee's relationship is important as contributed in
employees loyalty and growth of organization in external environment. In other words, strong
employee's relationship has helped company in attaining its objectives by making employee's
happy and satisfied to give their best.
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So, overall it can be understood that employee's relationship is successful as it
contributed in coordinating diverse individual to work as team for achievement of common
goals.
P6. Employee legislation
Employee legislation are the employee rights which are developed by the government in
order to maintain the employee rights in organizational activities and HRM has to make sure that
it is able to develop a effective organizational planning by which it is able to fulfil the employee
rights because if not then Wagamama has to face penalties. Following are the employee rights
which HRM at Wagamama has to fulfil.
National minimum wage act:
According to this law HRM has to make sure that organization is able to provide
minimum amount of wages to its employees in such a way that they are able to fulfil their
requirement (Ilea and et.al, 2020). Thus through this minimum wage Wagamama is able to
achieve high level of employee loyalty, but at the same time this will increase organizational
expenditures because of which direct negative impact is made. Thus HRM has to make sure that
high work productivity is achieved from employees by fulfilling all the employee legislation
laws.
Maternity and parental leave, etc:
As per employee legislation HRM has to provide 18 weeks leave to take care of
their new born till their 18th birthday by which sufficient amount of child care can be provided to
the new generation. However this leave is completely unpaid because of which organizational
expenditures are reduced, but on the other hand HRM has to make several changes and recruit
new candidates for the short span of 18 weeks due to which negative impact on employee
motivation is achieved.
Bulling and harassment:
HRM has to develop effective organizational work culture in such a way that effective
employee relation can be achieved and also at the same time has to make sure that employees are
having a safe work areas in which they are not facing bulling and harassment (Žuľová, Švec and
Madleňák, 2018). In order to fulfil this employee legislation HRM has to make sure that
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effective communication is established by which employees are given an authority to showcase
their problems.
Equal pay:
Organizations like Wagamama has to make sure that it is able to provide equal amount of
payment to employee working on same position by which it is make sure that employees are not
facing biasing in which special treatment is provided to some employees. This is important
because if employee feels they are facing biasing and special treatment is provided to other
employees irrespective of their hard work then in that case it will make negative impact on their
motivation and loyalty towards company will be decreased (Rudolf, 2020). Thus HRM has to
make sure that employees are having equal amount of payment on the basis of their performance
by which company can make sure that organizational work productivity is increased.
P7. Applications of HRM
Job description-
Job Title: Human Resource Manager
Qualification:
 Bachelor of Arts in management
 Bachelor in Business Administration
 Master of Science in Human Resource Management
Experience: 1 years of management experience in business environment
Responsibilities:
 Managing and analysing organizational activities.
 Developing organizational structure.
 Analyse changing market trends and improvise working process.
Employee CV-
Name: Tony Brown
Contact Number: 123456789
Email id: [e-mail]
Objective:
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Human Resource Manager looking for a decent which job which can provide a great opportunity
for showcasing my skills and knowledge in various fields by which I can provide high work
productivity to the specific role-played by me.
Areas of interest:
I love to read books by which I can improve my skills and knowledge base by which I can
implement new and creative changes in my work due to which I can increase the work efficiency
of the organization at which I provide my services. With that I also love to take landscape
photography and because of which I also like travel, due to which my command of language has
increased.
Professional Experience:
I have worked as an HR in a retail organization in which my role was to manage employee
workforces and analyse the working capabilities.
I have also worked as a manager for 2 years because of which I am having a efficient amount of
knowledge and a good control over the implementation of theoretical knowledge.
Common Questions-
 Why do you want to join our company
 How can you implement your theoretical knowledge to physical grounds.
 What are your approaches to improve the work productivity.
Joining letter-
Managing Director
Dear Mr. Tony Brown,
Congratulations on your selection in Wagamama as HRM, we would like to you welcome you
on board with us, and we are sure that it will be a pleasure to work with you. As per discussion
your date of joining will be 1st January 2021 at Wagamama London as a Human Resource
Manager.
Once again we would like to congratulate you on your selection and waiting to work with you.
HR
Emily Addison
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CONCLUSION
From the analysis in this report it can be concluded that organizations like Wagamama
have to improvise its working in such a way that it is able to work according to the changing
market trends and customer requirements and because of which it has to make sure that its
employee work force is able to implement these organizational changes on the ground level. This
is important because employees are responsible for implementing organizational working in
from of customers and with that customer's engagement with the company is directly affected by
the employee performance. Due to these factors HRM has to develop planning in such a way that
work productivity can be increased and also with that it has to make that through developed
planning employees are able to fill the weak performance area which was making a direct
negative impact on customer's experience. By this factor HRM can make sure that Wagamama is
able to achieve its organizational sales by which economic condition of the company is improved
by which chances of goal achievement can be increased and also at the same time high work
productivity and creativity is achieved in minimum expenditures.
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