Importance of Employee Relations in HRM Decision Making

This article discusses the importance of employee relations in influencing HRM decision making. It explores how positive employee relations can positively impact HRM decisions and benefit both employees and employers.

Human Resource
Management

INTRODUCTION
Human Resource Management (HRM) is a practice in which people are managed to
achieve better performance. This involves procurement, management and performance of the
employees (Azeem and Yasmin, 2016). HRM includes several functions that are recruitment,
selection of people, training and development, compensation and benefits and many other
functions that facilitate working of employees in organisation. This report will discuss purpose
and functions of HRM applicable for workforce planning and resourcing. Followed by this
different approaches of recruitment and selection will also be discussed. Practices of HRM are
undertaken by organisation but they are important for employee as well. This report will also
discuss about benefits of HRM for employee and employer. Effectiveness of different HRM
practices in terms of raising profit and productivity of the organisation. This discussion will
contextualise Marks and Spencer (M&S) British multinational retailer. Organisation was
founded in 1884 and headquartered at London, England, UK operates worldwide at 1463
locations. This report will discuss about human resource management at M&S that will cover
importance of employee relations and elements of employment legislation. Further report will
illustrate application of different HRM practice. Vision of the company is to be the standard
against which others are measured and mission is to make aspirational quality that is accessible
to all.
LO1
P1 Purpose and Functions of HRM applicable to workforce planning and resourcing an
organisation
M&S is a multination organisation and employs around 80000 employees and HRM is
one of the important practice of M&S. HRM in organisation is undertaken with certain purposes
and these purposes of M&S are as follows-
Ensuring effective performance of Employees

Performance of employees that contribute in achievement of organisational objectives is
one of the purposes of HRM. HRM involves several practices which contribute and facilitate
effective performance of employees. These practices mainly are training and development,
performance management (Bos-Nehles, Bondarouk and Labrenz, 2017). Other than this,
equipping employees with resources that help them in completing their task and performance is
also ensured by HRM. Maintenance of workplace in such way that facilitates performance of
employees is also a task of HRM.
Compliance to Employee Legislative
This is another purpose of HRM in which HRM ensures that all the practices of
organisation regarding employees are in accordance with legislation of employees. Compliance
of employee legislation refers to laws and regulations that have been developed to protect rights
and liabilities of employees and employer. For example- maintaining payroll and remuneration
according wages and payroll legislation and maintaining health and safety in organisation
according to health and safety legislations.
Functions of HRM applicable to workforce planning and resourcing an organisation are-
Supply and demand forecasting
Supply and demand forecasting refers to identifying what will be demand for manpower
in future in M&S. This means identifying in advance about demand of employees in
organisation. There are certain techniques that are used for demand forecasting such as
managerial judgement, work-study techniques, ratio trend analysis. Through these techniques
M&S can forecast demand of manpower.
Supply forecasting refers to forecasting and identifying availability of manpower. There
are different techniques through which M&S can identify and forecast manpower availability
(Ayandibu and Kaseeram, 2020). These techniques are succession analysis, Markov analysis.
Internal and external analysis is also done by the company to identify availability within
organisation and from outside organisation.
Selection of candidates

This is another function of HRM to resource organisation. In this function of HRM, M&S
undertake different practices to select employees. This involves interview, test and other
approaches through which M&S can identify suitable employee to fulfil vacant position. This is
an essential practice regarding resourcing an organisation.
On boarding and Induction
On boarding and induction refers to the process in which candidate who is selected after
selection process join organisation to fill the vacant position. Induction is a process in which
candidate is introduced with organisation, and with their job within organisation.
Managing performance
This involves linking organisational objectives with performance of objectives of
individual and ensuring their performance contribute in organisational objective achievement.
Managing rewards
This means ensuring that individuals and teams within M&S are properly and adequately
rewarded. This is also a function of HRM.
Employment relations
Employment relations is another function of HRM, organisation needs to ensure that
employment relations are maintained and valued within organisation for effective performance
of employees and organisation.
P2 Strengths and weaknesses of different approaches of recruitment and selection
Recruitment is a process through which organisation stimulate candidates to apply for the
position within organisation. This means that organisation make advertisement regarding its
vacant post and attracts candidates and application.
Selection is a practice that is subsequent to recruitment, in this applications are screened
to identify and analyse suitability of applicant for the position in organisation. Selection involves
elimination of unsuitable and irrelevant applications. Approaches for recruitment and selection
are-

Online recruitment ,screening and Shortlisting for recruitment and selection
This is one of the approaches in which internet and online channels are used for the
purpose of recruitment and selection (Krylov and et.al., 2019). This means that there are several
job portals where M&S can post its vacancy and people can apply from these portals. These
portals many times also facilitate screening of application in which only suitable and relevant
applications are then given to organisation. Strengths and weaknesses of this approach are-
Strengths
 Time and cost efficient
 Increasing accuracy
 Reach to more people resulting in availability of numerous choices
Weaknesses
 Every skill cannot be evaluated through online mediums, hence time and efforts are
required
Assessment centres for Selection
This is another approach for selection in which M&S uses assessment centres for the
purpose of selection of employees. In this approach of selection, different tests and methods are
employed through which capability and suitability of candidate for respective job roles are
assessed and identified (Bolander, 2016). These practices and tests are aptitude testing, ability
testing, group exercise and in-tray exercises. Strengths and weaknesses of this approach are-
Strengths
 Helps in determining suitability and capabilities through the practices that will be actually
required in job role of candidate
 Help candidate to identify their own capability and competency as this involves practical
and applied ways that they will be required to perform in their job. this means that
candidate can also make right decision for the job
Weaknesses

 Requires times and efforts
 Incurs significant cost
 In case if activity is not related to the job, it can waste time and efforts along with
financial resources of M&S
Interview for selection
This is another approach for selection in which M&S undertake one to one conversation
with prospective employee. This allows detailed knowledge of qualification and suitability of the
employees.
Strengths
 Detailed knowledge about candidate
 Better decision making
Weaknesses
 Time consuming process
LO2
P3 Benefits of different HRM practices for both the employer and employee
HRM undertake several activities that are beneficial for both employee and employer.
This means that these activities help employees in performing their job effectively at M&S.
M&S ultimately get benefit in form of effective performance of employees. Effective
performance leads to increase in productivity and profit and reduction and cost. Some of the
practices and their benefit to M&S and its employees are as follows-
Training and Development
This is one of the important practice of HRM in which M&S undertakes enhancing
existing skills and competencies of employees (Wamuuru and Jamleck, 2018). Many of the times
this also includes giving training for new skills that employees need to enhance their
performance.
Development is similar to training but this involves learning skills and knowledge that
one might need in their future job roles. Development is also used on context of top managers
and employees of the organisation.

Benefit for Employees
 Contribute in their individual development
 They become more performing and competitive in organisation
 Provide confidence to employees that lead to better decision-making
Benefits for Employer
 Effective performance of employees leads to reduction in cost
 Increase productivity
 Employees become ready for future challenges
Performance Management
This HRM practice is concerned with linking performance of teams and individual to
organisational objectives. Performance management focuses on performance objectives at every
level of organisational hierarchy and ensures that performance objectives of individuals and
department are contributory to organisational objectives of M&S (Presbitero, 2017). This is a
strategic approach that is utilised by M&S, this also involve continuous communication
regarding performance improvement in achievement of individual objectives.
Benefit for Employees
 Provide clarity regarding their performance and job role
 Helps in identifying training requirements
 Enhance their performance measurement
Benefits for Employer
 Reduce duplication of work
 Simplify achievement of organisational objectives with effectiveness
Performance Appraisal
Performance appraisal is a practice in which standard performance and standard
objectives of performance are measured with actual performance and achieved objectives

(Presbitero, 2017). This is done periodically to measure and ensure performance of employees
that they are performing as per the requirement of organisation.
Benefit for Employees
 Help in identifying what are their strengths and weaknesses in context of their job role
 This also become basis for their growth in organisation
Benefit for Employers
 Organisation can identify good performers who can be developed for growth and
succession
 Contribute in decision regarding training and development of employees
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity
Human resource management is an integral practice of organisational management.
Practices of human resource management play important role in organisational productivity and
profit. This is because these practices enable employees to work effectively and their effectively
performance plays important role in maintaining high productivity of M&S and subsequently
M&S becomes able to earn high profits.
Practices and their effectiveness in terms of raising organisational profit and productivity is as
follows-
Performance Management
This is important because performance management link performance of employees with
organisational objectives (Ledin and Machin, 2016). These objectives of M&S include
productivity and profit and are based on increasing productivity and profit, and when such
objectives are achieved by employees this lead to increase in performance and productivity.
Performance management also reduces possibility of work duplication and effectiveness of
employees also remain high because they are well trained and developed. Collectively this result
in effective performance, that leads to increase in productivity and profit. Clarity of work also

reduces potential job ambiguity and employees are able to keep their focus on their work and
these are other factors that contribute in increasing productivity and profit.
Performance Appraisal
This is another practice of HRM which contribute in increasing productivity and
performance. In this practice employee’s performance is measured with standard performance
and objectives. This creates fear in employees that their performance is being measured and they
remain aware regarding their job performance. This encourages diligence in work performance
and result in increasing in effectiveness of performance subsequently leading to increase in
productivity. This also makes positive impact on profit of the M&S.
Training and Development
This practice has a significant impact on productivity and profit of employees. Training
and development contributes in enabling effective performance. Training and development also
prepare employees for future challenges and changes. This means that when employees are
trained they are less likely to resist changes and are more likely to adapt to possible changes in
future. This means that in order to enhance productivity and profit M&S can quickly adapt
changes in organisation and training and development facilitates changes for employees reducing
any negative impact that resistance can make on productivity and profit of M&S.
Training and development enables employees to work effectively and better knowledge
of process contribute in increasing productivity of the M&S.
Management of Reward and Recognition
This is concerned with managing rewards within organisation, this practice of HRM is
concerned with encouraging and motivating employees in M&S (Sillak-Riesinger, 2017).
Motivation plays important role in effective performance of employees. Reward management is
a practice in which rewards that are provided to employees are linked with performance. This
means excellent and those performing to par are rewarded and this motivates individuals.
Motivated employees are more likely to perform effectively compared to others. Linking rewards
with performance motivate employees to perform in order to get rewards.

LO3
P5 Importance of employee relations in respect to influencing HRM decision making
Employee relations refer to relations that are there in between employee and employer.
Individual and collective relations are both known as employee relations. Individual relations are
those in which individual employee shares relation with employer. Collective relation on the
other hand refers to relation of all employees as an employee group and their relationship with
employer (Forret, Balachandra and Anand, 2018). Employee relations play important role in
influencing decisions of HRM because one of the important areas of HRM is to manage and
maintain harmonious relations in employee and employer. Employee relations involve employee,
employer, government and other organisation that are aimed at protecting rights of each of the
parties in employee relations. Trade Union also play important role in effective management of
employee relations. Trade Union also ensures effective collective agreement with the
organisation.
Influence of positive employee relations on HRM decision making
This means that when M&S and its employees share harmonious relations that are based
on mutual trust and respect, positively influence decision making of HRM. This is because
positive employee relation is a favourable state for both employee and employer. In a situation
employee when trust management possibility of them trusting and supporting HRM decisions is
high. Another element of this is that when M&S and employees share mutual and trust based
relationship, decision of HRM will include benefit of employees as well. Decision when is for
employee and employer both possibility of employees to resists is low or there is no possibility
that employee will resist decisions of HRM.
Influence of negative employee relations on HRM decision making
This is another aspect of employees when employee and employer do not share mutual
trust based relationship. In such situation decisions of HRM will not be accepted by employees.
They are more likely to resist such decisions (Musundi and Nzulwa, 2018). In this situation
decisions and associated benefits are also one-sided and this is why negative relations of
employees are likely to make negative influence. This situation is also known as a win-loss
situation in which only one party wins through a decision.

Different strategies that are used for employee relations involve-
 Disciplinary practices
 Collective bargaining
 Redundancy practices
P6 Key elements of employment legislation and the impact it has upon HRM decision making
Equality Act, 2010
This employment legislation outlines that any candidate and employee regardless of their
age, gender, culture, race are required to provide equal opportunity to work in M&S. Employees
in M&S are also required to provide equal opportunity in every activity in organisation as per
their respective role and position in the organisation (Nachmias, Ridgway and Caven, 2019).
This act outlines that any kind of discrimination in employees on the basis of gender, age and
race is also illegal and M&S cannot discriminate in employees. Non-compliance to these
regulations and legislation can create legal difficulties for M&S.
This act has significant influence on decision-making of HRM because they need to
ensure neither of the acts of M&S discriminates in employees. They also need to ensure that
employees are not restricted to participate in any event in which they can participate and are
discriminated on the basis of gender and age. They also need to ensure and facilitate participation
of every employee in every activity of the M&S.
Health and Safety at Work etc. Act 1974
This is another important element of employment legislation in which M&S needs to
ensure that they are maintaining health and safety within organisation. This act outlines structure
and different requirements through which organisation is able to eliminate and avoid any kind of
potential risk for the safety of the employees working in organisation. This also outlines different
rights and duties that M&S have regarding maintaining health and safety within organisation.
This influence decision of M&S regarding what actions and functions they need to
undertake in order to ensure proper health and safety in the organisation. Decisions regarding

rights and responsibilities concerned with maintaining health and safety within M&S also gets
influenced by this.
Employment Rights Act 1996
This act outlines different rights that individual have in context of their employment
(Freedland, 2016). This involves different activities and rights that employees have and rights
that employers (M&S) requires providing to employees. This act deals with the rights that
employees can get in their work, this includes unfair dismissal, reasonable notice, time off rights
for parenting, redundancy and more.
Decision-making of HRM gets significantly influenced as organisation and HRM
operating has to create different policies that are ensuring and safeguarding interest and rights of
employees. They also should ensure that M&S is able to get benefit along with following these
legislations.
LO4
P7 Application of HRM practices in a work-related context
HRM includes several practices and this practices undertakes creating different
documents. Recruitment and selection are some of the key practices of human resource
management and they require creating job advertisement, job description and offer latter. There
are different activities that are undertaken for the purpose of recruitment. Firstly organisation
identifies skill gap. This means identifying required employees and manpower and available
manpower in organisation.
Application of this as follows-
Advert for the role
This is a document in which organisations give advertisement for vacancy in the
organisation (Banerjee and Gupta, 2019). This document is used to inform people regarding
vacancy in M&S and how they can, if they are suitable apply for the vacancy.
Job Opportunity

Marks and Spencer (M&S) requires qualified candidate for filing the position of Human
Resource Executive.
Qualification
MBA in Human Resource Management and equivalent qualification
Experience
Minimum 1 years to 2 years, in human resource department
Age
Between 22 to 30 years
Salary
Best in industry
Interested candidates may send their application to official email of Marks and Spencer (M&S)
along with latest CV
Head HR Department
Marks and Spencer (M&S)
Job Description
This document involves detail of a job role (Banerjee and Gupta, 2019). This
outlines key aspects of job including responsibilities, qualification required to inform
employee and potential employee regarding job role.
Marks and Spencer (M&S)
Date 22-09-2020
Job Title Human Resource Executive
Reporting to Human Resource manager
Department Human Resource
Duties and Responsibilities  Assisting human resource manager in
department activities
 Maintaining employee records
 Monitoring leaves of employees
 Assisting in payroll and compensation

 Communicating with employees
regarding grievance and complaints
before further processing
 Preparing training and development
modules
 Assisting in training and development
 Assisting in creation of policies of
HRM
 Designing and developing employee
engagement activities
Qualification Graduation and MBA in human resource or
any qualification equivalent to MBA
Skills  Effective communication skills
 Presentation skills
 Effective interpersonal skills
 Ability to work under stress
 Creativity and innovative approach
 Capability to deal with challenges
 Capability to manage employee
 Ability to work in team
Interview Questions
 What kind of workplace you would like to work in?
 What do you think is most important for being selected in a organisation?
 What do you think about job elimination?
 How are you like to deal with unethical situation?
 Is there any difficult experience that you had in your previous job?

Offer letter
This document is the one which through which individual is offered job role and position
in an organisation.
Date 30-09-2020
MR._____
We are pleased to offer a full-time position of human resource executive in Marks and Spencer
(M&S). You will be required to report to Human Resource Manager on 20-09-2020 at 10:00
AM.
Your compensation and salary will have been discussed in annexure and you will your salary on
1st of every month.
We hope to have a mutually beneficial relationship and further details concerned with your
employment will be provided while your joining.
Best Regards
Head HR
Marks and Spencer (M&S)
CONCLUSION
On the basis of above discussion, it can be concluded that human resource management is
an important activity in organisation. This adds value in organisational performance by
contributing in enhancing and improving performance of employees. Human resource
management includes several activities that are for both employee and employer. It is important
that organisation is adhering to all legislation and regulations for employment, this activity is
also managed by human resource. Further this report discussed and applied some of the practices
that are important and key practices of human resource department of M&S.

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