Importance of HRM Practices in Organizational Success

This document discusses the importance of HRM practices in an organization, including the benefits for both employers and employees. It evaluates the effectiveness of different HRM practices in terms of raising organizational profit and productivity. It also analyzes the importance of employee relations in influencing HRM decision making and identifies key elements of employment legislation and their impact on HRM decision making.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2..........................................................................................................................................12
P3 Explain the benefits of different HRM practices within an organization for both employer
and employee........................................................................................................................12
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity..........................................................................................................13
TASK 3..........................................................................................................................................14
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making..................................................................................................................................14
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making....................................................................................................................15
TASK 4..........................................................................................................................................16
P7 Illustrate the application of HRM practices in a work related context, using specific
examples...............................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Human resource management is regarded as a set of organisational practices which is
directed to attract, develop as well as maintain an efficacious personnel (Cascio, 2015).
Moreover, this is a series of decisions which impact the relation among employer and staff which
effects various constituencies as well as in well-intentioned to influence efficaciousness of
employer and workers. The main intent of this is to assure the availability of willing as well as
competent personnel to firm. The organisation undertaken for this report is Marks & Spencer,
which is a well known retailer in UK. It specialises in selling standard quality products such as
home, food and clothes as well as having headquarters is in London, United Kingdom. This
report covers, overview of organisation, functions and purpose of HRM, Its key roles and
responsibilities, strengths and weaknesses of several approaches to recruitment and selection,
effectualness and advantage of several HRM practices. Moreover, significance of staff relation
and key elements of employment legislation are explained. Apart from this, application of HRM
practices in a work related context with the help of certain example are also discussed in this
report.
TASK 1
(Covered in PPT)
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Purpose of human resource management Staffing: This is regarded as the one of vital purpose of HRM. This is considered as the
procedures in which organisations hire as well as choose competent talent for
strengthening its human resource effectualness and maximise its performance of
business. With retail sector, efficacious HRM will permit their entities such as Marks &
Spencer for selecting most effectual personnel for its business. It will aids them in
gaining keen position within marketplace and effectual consumer management.
 Staff relationship an legislation: Human resource management also consider the
development of optimistic as well as efficacious conception of company into the eye of
their staff. This will permit Marks & Spencer to formed healthy relationship with its
staff. This involves developing its contacts as well as managing its problems related to
company, their practices or with subordinates. Moreover, this undertakes several
employee legislation within account to assists organisation within retail sector for
creating ethical work structure.
Functions of human resource management Develop efficacious workers relationship: It is associated with developing harmonious
relations at work place in order to reduce conflicts and allowed open conversation
between workers. The vital purpose of Marks & Spencer HR manager is to decrease
conflicts and enable staff to accomplish its work with full efforts towards attainment of
its goals. Also, by this they can feel comfy as well as work their for long duration.
 Human resource planning: Within this function of human resource management, the
types as well as number of staff required to attain the firms objective which is
ascertained. Moreover, research is an essential part of this particular function,
information is accumulated as well as examined for identifying recent and futuristic
requirements of human and to predict modifying attitudes, behaviours and values of staff
and its effects upon firm. So, by performing this function Marks & Spencer manager can
able to know about their personnel requirements and its changing behaviours.
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 Internal and external recruitment- Internal recruitment refers to the method of recruiting
the employees from within the organisation whereas when recruitment is done from
outside the company premises, it is referred to as external recruitment. External
recruitment can be costly whereas internal recruitment can prove to be a limitation for
more productive people getting hired. Job analysis- Job analysis refers to a method that is used for the collection of information
relating to the roles and responsibilities, skills needed to carry out various activities. It
involves a lot of time and a lot of human effort to be put into it.
 Job description- A written account of all the tasks, responsibilities and duties that will be
required to perform the job is referred to as a JD. A job description is majorly based on
the findings of a job analysis. There can be cases when the structure of the JD is too rigid
and outdated.
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 Application forms and CVs - The first step in the selection process is of filling up of the
application form. Although very lengthy to fill up earlier, now the forms are tailored in
such a manner so as to only address the most important details of candidates and same
information is gained from all the candidates Interviews- They are basically formal conversations between an employer and a
candidate who aspires to get a job from the employer and has the relevant experience.
Interviews provide a judgement for the behaviour of the candidate whether it is verbal or
non verbal. Interviews can be conducted for a particular sample size. Aptitude tests- Both ability and aptitude tests help in knowing about the general
intelligence, spatial and numerical ability of the candidates etc. Besides having various
strengths, the aptitude tests are costly to develop and involve a lot of time and effort.
 Presentations- Presentations are also used as a part of selection process, mainly when
selecting candidates for senior positions. The candidate is generally provided with a topic
and a time-frame in which he/ she has to deliver the presentation. Presentations help in
evaluating the communication as well as various other skills of the candidate. The
evaluation process involves a lot of time.
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TASK 2
P3 Explain the benefits of different HRM practices within an organization for both employer and
employee.
An organization should follow various HRM practices that can be beneficial for both the
employer and the employee. Some HRM practices are explained below-
 Happy and healthy workplace – The employees of a company spent their whole day
everyday at the workplace which makes it necessary for it to have a healthy and happy
environment (Armstrong and Taylor, 2014). Mark and Spencers promotes a healthy and a
safe environment for the employees at the workplace making them feel comfortable and
at home thereby increasing the overall productivity.
 Bonuses linked with performances – Bonuses should be linked with the kind of
performance that is being delivered by the employees. Marks and Spencers follows a
practice of linking it with the employees' performance. This not only helps in keeping
them motivated but also in reducing the costs by the employers.
 Performance management feedback system – The company has implemented a 360
degree performance management system wherein communication at cross functional
level is possible (Cascio, 2015). Employees receive feedback from their peers,
subordinates and seniors and this acts as bridging the gap between the top level
management and the employees. Having a performance management feedback system
has not only helped the firm in spotting employees who tend to be weak but also retain
the ones who deliver excellent work and are highly motivated.
 Knowledge sharing – There is a flow of knowledge between the employers and the
employees through various informal sessions organized by the company. This enables the
employees to share their inputs with the employers and in turn the employers also share
their experiences. Knowledge sharing with the organization makes the decision making
process easy since ideas from both employers, employees and management are
considered which stimulate growth and innovation.
 Rewards and open house discussions – An organization like Mark and Spensers,
identifies and puts new ideas to execution and considers its employees to be the greatest
source of innovative ideas. Open house discussions motivate employees to share their
ideas and that he ideas would be considered (DeCenzo and et.al., 2016). Maintaining a
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suggestion box within the premises can help the company to communicate with the
employees indirectly if not directly.
 Hiring the right people – Marks and Spencers does not hire anybody and everybody, but
candidates that the company thinks will add value. This is helpful for the employer as the
cost involved is less and for employees in the way that right candidates are hired. A new
hire will not only come with new skills and experience but also maximise the overall
productivity of the team. This will also save employer's time as well as energy by saving
time in reviewing the application and conducting interviews again and again. This will
also save the good employees from quitting and leaving the company.
 Providing training at regular times – The company organizes training and development
sessions for the employees as well as employers regularly that leads to their overall
development and hence resulting in improved productivity and developing new skills.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
Employees are the backbone of any organization and this makes their retention in the
company very important (Dries, 2013). Various practices can be evaluated for their effectiveness
and how can they help in raising the profits and the overall productivity of the employees. Marks
and Spencers follows a policy of following the practices that help it in raising its profits and
overall productivity. Evaluation of the same has been described below-
 Learning, development and training – Training refers to the process in which either the
new hires or existing employees get to know about the different processes within the
company or polish their skills. While development is an ongoing process which results in
creating growth and positive changes in the company. This helps in the overall
development of the employees. Marks and Spencers focuses on providing training to its
employees in a timely manner which results in an overall increase in the productivity of
the employees and raising profits. Various kinds of training can be provided like
induction training, job instruction training, quality and skills training etc. Evaluation of
the employees is done by a team specially dedicated to carry out this task. This helps in
knowing the progress of the employees and the areas in which they still lack.
 Job and workplace design – Employees can be offered various extrinsic and intrinsic
rewards in order to motivate the employees that can have impact on the overall
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productivity of the company (Jackson and et.al., 2014). Extrinsic rewards are usually
financial rewards such as rise in the pay of the employees, bonuses etc. Whereas intrinsic
rewards are psychological rewards that the employees receive when they perform a task
well. Marks and Spencers constantly works for the betterment of the workplace by
offering bonuses when someone performs a task well.
 Flexibility – The Handy's model of organisational culture is a 4 variable model
explaining the 4 types of cultures that organizations follow namely- Power, Task, Persona
and Role culture. Since Marks and Spencers follows this model, the organization is able
to respond quickly to unexpected events and it is tolerant. Being a flexible organization,
the company has been able to cut down unnecessary costs with an ease of management
and being able to retain its staff.
 Performance and reward – Marks and Spencers ensures that the activities in the
company are carried out effectively and efficiently. The company has also given access
of self monitoring tools to its employees which can help them in tracking their progress
(Kehoe and Wright, 2013). Employees are provided with various kinds of extrinsic and
extrinsic rewards and bonuses which make the employees more motivated towards their
work which in turn will help the organization increase its overall profits. By encouraging
friendly and healthy competition, positive communication and rewarding the employees
will not only create a career path for the but also help them grow and result in overall
increase in their productivity.
TASK 3
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making.
Marks and Spensers attempts to look after the relationship between the employer and the
employees is known as employee relationship to ensure that all the employees are committed
towards their work as well as the company. Having healthy employee relations in a company are
important as this will help the company in making sound decisions.
Healthy employee relations improves the overall workplace relationships with the
employees feeling involved in the decision making process since their inputs and suggestions are
considered by the management. It also serves as a way to get a better understanding of the
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employees regarding how do they work in a team and all of this leads to the overall increase in
the productivity and effectiveness of the employees.
Work when shared among the employees becomes easy to complete and there is a sense
of togetherness among the employees (Kramar, 2014). The company has committed employees
who put in their efforts in order to get the tasks done as there is active participation and
willingness to work and learn. This in turn enlarges their learning and skill sets and preparing
them to handle tasks that involve more responsibility in the future.
Having good employee relations is beneficial in increasing the overall morale of the
company and has reduced the gap between the workers and the management. There is no
problem of absenteeism as the employees are committed to their work and enjoy their work.
People are willing to help and guide new hires and the subordinates whenever there is a need
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making
 Equal employment - Equal employment opportunities should be provided to everyone
and this helps in attracting new employees and retaining the best quality ones (Mondy
and Martocchio, 2016). This not only helps in creating positive work relationships but
also increased performance and greater productivity among the employees.
 Actions and decisions favouring everyone – Implementing laws of employment has not
only helped Marks and Spencers to build a brand image it has today, but also take actions
and make decision that favour everyone in the company and are not bias. These decisions
help in creating a path that is not hampered by discrimination or disadvantages.
 Working time regulations – Marks and Spencers has set its working hours keeping in
mind the amount of effort the employees can put in. The employees are even given
chance to work from their homes when a sudden situation pops up or when the employee
is not well. The management works with various rules and regulations in mind and try to
avoid expensive lawsuits.
 Working conditions – The company has a hygienic, safe and healthy environment
wherein the employees are provided with a lot of benefits. The workload unlike many
other companies is not too much and the work schedule is flexible, predictable and easy
and the intensity of working hours is less.
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 Ethical and social responsibilities – The company follows a policy of social
responsibility towards the environment as well as the society and carries out various CSR
activities from time to time in order to be sustainable and have a positive brand image in
the minds of people (Paillé and et.al., 2014).
TASK 4
P7 Illustrate the application of HRM practices in a work related context, using specific examples
All companies make sure that they follow and implement the best HRM practices within
the organization so as to promote a healthy environment and maintain a healthy relationship
among the employees. Application of some practices is explained below-
 Promotion of positive behaviour – Any organization that wants to be successful should
create a work environment that is positive and favourable towards the employees and
there are no undesirable behaviours followed. This way the employees are willing to put
in extra efforts in order to earn different rewards and bonuses that are beneficial to them
as well as the company through increased profits and an improved brand name.
 Motivation – Motivation forms an important role in maximizing the employee
performance and hence those candidates should be hired who are willing to learn and
work and are highly motivated (Purce, 2014).
 Flexible workplace – In order to retain employees, organisations these days provide
work environment that is flexible which includes work assignments, schedules,
meetings , location of the workplace etc. Employees in these organizations can work
accordingly to give maximum output.
 Developing Employees – In context of Marks and Spencers, the company creates a
positive environment in order to increase the overall competitive advantage of the
company, generate profits as well as provide resources for its employees' education and
overall development for maximizing the performance and productivity (Shaw and et.al.,
2013). This helps in their improvement also and making them able to share valuable
inputs and suggestions during the decision making process of the company.
 Technology – Companies are gradually implementing modern and latest technologies to
make the work of the employees easier and to generate more and valuable output in a
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short duration of time (Thunnissen, 2013). These new technologies ave helped in
improving the overall process of recruitment and selection easy and simple.
CONCLUSION
As per the above report, it can be concluded that human resource management plays vital
role in any organization as it is helps in maintaining the employees in their overall improvement
and increasing their productivity as well as performance. There are various ways and approaches
that can be implemented in order to build and maintain the brand's image and that the company
works in favour of the employees and vice versa. Effectiveness of these approaches can be seen
when they are carefully evaluated and observed. And there are various types of recruitment and
selection processes that the human resource department of a company can opt for in order for the
proper functioning of the company. Also, the culture of the organization should be employee
friendly as this helps both the employees as well as the organization to grow equally. Different
HRM approaches can be implemented- either hard HRM or soft HRM depending on the type of
culture that the organisation has. Human resource management in a company serves various
functions from hiring the right candidates to ensuring that a positive and healthy environment
and employee relations are maintained within the premises. Therefore, it can be concluded that
human resource serves as an important part for the proper functioning of the company.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Cascio, W.F., 2015. Costing human resources.Wiley Encyclopedia of Management. pp.1-1.
Cascio, W.F., 2015.Managing human resources. McGraw-Hill.
DeCenzo, D.A., and et.al., 2016.Fundamentals of Human Resource Management, Binder Ready
Version. John Wiley & Sons.
Dries, N., 2013. The psychology of talent management: A review and research agenda.Human
Resource Management Review23(4), pp.272-285.
Jackson, S.E., and et.al., 2014. An aspirational framework for strategic human resource
management.The Academy of Management Annals. 8(1). pp.1-56.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors.Journal of management. 39(2), pp.366-391
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?.The International Journal of Human Resource
Management. 25(8). pp.1069-1089.
Mondy, R. and Martocchio, J.J., 2016Human resource management. Pearson.
Paillé, P., and et.al., 2014. The impact of human resource management on environmental
performance: An employee-level study.Journal of Business Ethics. 121(3). pp.451-466.
Purce, J., 2014. The impact of corporate strategy on human resource management.New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Renwick, D.W., and et.al., 2013. Green human resource management: A review and research
agenda.International Journal of Management Reviews. 15(1). pp.1-14.
Shaw, J.D., and et.al., 2013. A resource‐based perspective on human capital losses, HRM
investments, and organizational performance. Strategic management journal,34(5),
pp.572-589.
Thunnissen, M., and et.al., 2013. A review of talent management:‘infancy or adolescence?’.The
international journal of human resource management. 24(9). pp.1744-1761..
Thunnissen, M., and et.al., 2013. Talent management and the relevance of context: Towards a
pluralistic approach. Human Resource Management Review. 23(4). pp.326-336.
Online
About M&S. 2019. [Online]. Available Through:<https://global.marksandspencer.com/about-
ms/>.
Definition of Human Resource Management. 2019. Available
through:<http://hrmpractice.com/definition-of-human-resource-management/>
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