Unit 3 - Human Resource Management

This document discusses the purpose and function of HRM, strengths and weaknesses of different approaches to recruitment and selection, benefits of HRM practices for both employer and employee, and the impact of employment legislation on HRM decision making. It also includes a case study on Tesco and its HRM practices.

Unit 3 - Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
LO1 Purpose and scope of HRM.....................................................................................................3
P1 -Purpose and function of HRM .......................................................................................3
P2- Strengths and weakness of different approaches to recruitment and selection...............4
LO2 Evaluate effectiveness of key elements of HRM.....................................................................5
P3-Benefits of different HRM practices for both employer and employee ..........................5
P4-Evaluate effectiveness of HRM practices........................................................................7
PART 2 ...........................................................................................................................................8
LO3 Analyse internal and external factors that affect HRM decision making................................8
P5- Importance of employee relations in respect to influence HRM decision.......................8
P6- Key elements of employment legislation and impact on HRM.......................................9
LO4 Human Resource Management practices in work related context..........................................9
P7- Job description, person specification and offer letter......................................................9
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Human resource management refers to practise of managing employees in an
organisation to achieve goals of company. It is process of recruiting, selecting, orientation,
training and development (Chai, 2020). Tesco is public limited company founded by Jack Cohen
in year 1919. Its headquarters are in Welwyn Garden City, England, UK. In present report
purpose and function of HRM is discussed, strengths and weakness of different approaches to
recruitment and selection, benefits of HRM practices for both employer and employee.
PART 1
LO1 Purpose and scope of HRM
P1 -Purpose and function of HRM
HRM plays an important role in managing and controlling employees in an organisation.
There are many functions that are performed by human resource department such as, job design,
job analysis, recruitment, selection, training and development, compensation and benefits,
performance management, maintain good relations with customer and resolve conflicts among
employees (Aburumman and et.al., 2020).
JOB DESIGN : Job design helps company in making proper structure which includes
roles, responsibilities and duties of every person.
JOB ANALYSIS : Job analysis is done to describe job requirements like, qualification
and skills that are required at workplace.
RECRUITMENT AND SELECTION : Recruitment and selection is one of the
important function of HRM, appropriate candidate is selected for vacant job. It is responsibility
of management to retain qualified employee to achieve organisational goals. Recruitment helps
in getting new and talented candidate for company.
In Tesco company HR managers follow proper process for recruiting and selecting
employees and they give benefits so that employees feel motivated. For selecting people
interview is conducted and written test are also held so that best candidate can be chosen for
organisation.
TRAINING AND DEVELOPMENT : Training and development process is arranged
by human resource management to improve efficiency of employees and accomplish

organisational gaols. To make new members familiar with environment of company orientation
program is arranged and training is given to them for good outcomes.
HR manager is responsible for deciding payroll and salary of employees, all the records
are been maintained by department. They measure performance of individual employee and
compare it with set standards. Functions of HRM provide talent and skills which is appropriate to
fulfil business objectives because HR manager performs various functions like they provide
training to employees which help in developing skills of workers to improve their performance.
When workers will have proper skills then they will do their work efficiently and effectively, this
will help in achieving business objectives and organisation can generate more revenue.
PERFORMANCE MANAGEMENT : Human resource management analyse
performance so that they can know which employee need training or want to develop some skills
to improve their performance. Performance management focuses on the work done by team not
individual. Purpose of HR department behind measuring performance is to know that if there is
need of training and development programmes (Chelladurai and Kerwin, 2018).
P2- Strengths and weakness of different approaches to recruitment and selection
Recruitment refers to process of identifying, screening, short listing, interviewing and
selecting the best candidate for vacant job. Recruitment is of two types i.e., internal recruitment
and external recruitment.
Different approaches to recruitment are:
Direct advertising – This helps Tesco company in placing advertisement on career sites, job
boards, social networking sites to find appropriate candidate. Strength of direct advertising are it
helps in building relationships with customers and attract new customers. It tests demand of
product in market. It helps in identifying which approach should be used to reach target market
or to focus on target audience. Weakness of direct advertising is that it is costly and sometimes
customers give negative feedback as wrong information is reached to people (Delery and
Roumpi, 2017).
Employee referrals- It refers to recruiting people from reference of employee who is working in
organisation. Strength is that it saves time and money of organisation and new employee know
about culture of company.

Selection refers to hiring or finalising the applicant for vacant job. It is a process in which
candidate is selected for a particular position whose skills and qualities are matching with
requirements of company.
Different approaches to selection are:
Online screening and short listing – This is an approach to selection as this helps in
screening and short listing appropriate candidates from a pool of applicants. Sometimes, HR
manager appoints a person who short list eligible applicants for organisation. In Tesco company
a person is handling all recruitment activities like, give advertisement for vacancy and then short
list appropriate candidate and for screening a software is used. Its strength is that company get
lot of choices and many applicants are available. Weakness of this approach is that it takes too
much time and money (Guest, 2017).
Psychometric test – A psychometric test is conducted to evaluate performance of
candidate and identifies skills, knowledge, abilities, attitudes and behaviour of individual
employee. Strength of this approach is to understand how people behave at workplace, with their
colleagues, seniors. It also helps in identifying leadership qualities in applicants, testing general
knowledge or intelligence of candidates, its acquiring cost is low. Weakness of psychometric test
is it make applicant nervous, incompatible with others, cultural barriers are present (Tang and
et.al., 2018).
LO2 Evaluate effectiveness of key elements of HRM
P3-Benefits of different HRM practices for both employer and employee
Basis Employer Employee
Recruitment and selection Recruitment and selection
process helps in increasing
profitability and performance
of Tesco. New and talented
people are recruited so it helps
in good outcome. It improves
productivity because new
Employee will get job if
selected and will be motivated
if new candidates are selected
in Tesco company. They will
learn new things from them.

candidate will work more
efficiently and effectively.
Employer gets the best
candidate for organisation.
Reward system It helps in making good
relationship between employer
and employee. Rewards such
as benefits, perks or any non
monetary benefit. When
rewards are given it helps in
retaining employees. It
increases overall productivity
of Tesco. Employer get benefit
when overall performance of
organisation is good.
Reward system motivate
employees to work hard so that
they will receive benefits. This
will reduce employee turnover
and absenteeism of workers
will also reduce. It will boost
moral and loyalty of workers.
It increases retention and
people will enjoy working in
Tesco. Employees are
motivated to achieve goals and
targets.
Training and development Profit of organisation will be
increased as employee will
give their best. It will reduce
worker turnover and enhance
promotion. Once training is
provided to employees it will
help the company for long
time (Han and et.al., 2019).
Training and development
increases job satisfaction,
motivation and morale of
employees. It increases
capacity of workers to adopt
new technology and they will
feel comfortable using new
methods.
Performance management This helps in motivating
employees, retaining them,
boosting confidence, improve
performance for better career
opportunities.
Performance management
helps employees in getting
clear directions. It will
encourage learning and
developing skills, less

absenteeism, boost morale of
employee.
P4-Evaluate effectiveness of HRM practices
HRM practices play essential role in raising organisational profit and productivity. There
are different practices that are performed by human resource department such as, providing
security to employees, recruit and select people, reward system, performance management,
training and development. These are some practices that are taken by human resource department
to increase profit of organisation and productivity.
If employee get safe and healthy environment then they will enjoy working their and give
their best to accomplish goals and objectives of organisation. In Tesco company recruitment and
selection is done by following proper criteria and they conduct interview for choosing the best
candidate. They call shortlisted applicants for face to face interview and select best one from
them (Hitka and et.al., 2019).
Recruitment and selection : When new candidates are hired all necessary skills are
required for selection. Training is given to new employees to make them familiar with culture,
rules and regulations of company. This increases confidence among workers and they learn new
things which help in their career. When workers know how to use technology they will work
more efficiently and this will help in generating more revenue. Reward system refers to
providing benefits, gifts or incentives to workers for good work and improvement is required in
performance of employees who are not able to reach set standards.
Training and development: This is way to retain workers and motivate them to focus on
their targets. In Tesco company there is proper strategy for training and development, new
applicants are given training and develop skills. This help organisation in earning profit as
employees understand how to work and complete their work on time.
Reward system: Rewards are given by management to employees to boost confidence
and motivate them to complete their work on time. These practices are performed by HR
department to improve individual performance which will lead to improvement in overall
performance of organisation.

So, HRM practices are important for motivating employees and increase organisational profit
and productivity. Employees enjoy working in the company where they learn new things and get
chance to develop their skills (Santana and Lopez‐Cabrales, 2019). To increase profit and
productivity is to make good plans which will help in generating more revenue. HR manager
should provide training to employees so that they can learn how to do work and they will
complete their work efficiently to increase productivity. When employees will understand how to
use machines or how to make products then they will make goods effectively and this will reduce
waste of resources and help in increasing overall productivity of the organisation.
According to my opinion managers of company should evaluate or measure performance of
every employee to identify that which worker is not performing well. Training programs should
be provided so that workers can improve their performance. Standards should be set for every
employee according to their strengths and it will help organisation in increasing overall
productivity and also help in generating more profit.
PART 2
LO3 Analyse internal and external factors that affect HRM decision making
P5- Importance of employee relations in respect to influence HRM decision
Employee relation means how organisation maintain good relationship between
employers and employees. It is important to maintain good relations as it will help in providing
fair treatment to all employees and they will be loyal to company. For human resource
department it is essential to maintain positive relations with employees so that good decisions
can be taken. If there will be good relations between employer and employee then it will create
good image of company in market, more people will want to join organisation and want to work
with them. It will help HRM in taking good decision making for company and for benefit of
employees. When there is healthy relationship between employer and employees the entire
organisation will be benefited (Sundiman, 2017).
There are some issues or situations in which an individual cannot take decisions alone,
guidance and advice of some other person is required. If employer has good relation with
employees then more ideas and suggestions can be received and better policies can be made and
good decisions will be taken by department (Hoon, Hack and Kellermanns, 2019).

Work become easy if work is divided among people, when employer has good relation
with employees then they can give some responsibilities and duties to them and work will be
managed. Sometimes, employees give good ideas or strategies for benefit of company. The
environment of organisations becomes healthy and happy place when people are interacting with
each other politely and there are no conflicts or fights. Healthy working culture of company
reduces the problem of absenteeism at workplace as members will enjoy working in
organisation.
In Tesco company, employer maintain good relations with employees so that good
decisions can be taken by human resource management. In organisation all the employees are
having good relation with each other and the environment of company is healthy and safe.
People enjoy working their and company has good image in the market and also maintain good
relations with consumers. When employees will have good relation with managers then quick
decisions can be taken. When there is work load managers can divide work and also take
suggestions from employees for future growth of company. If they will not maintain good
relationship with workers then employee will not work properly and they will feel demotivated.
This will reduce absenteeism in the organisation and also decreases productivity.
P6- Key elements of employment legislation and impact on HRM
Employment legislation refers to laws that are applicable to organisation which are for
the benefit of employer as well as employees.
Health And Safety Act,1974: This act covers health and safety of employees in the
organisation. It sometimes refers to as HSW Act, 1974 or HASAWA. This act defines duties of
employers, employees, suppliers towards workplace and environment of company should be
good so that workers feel comfortable. The act helps HR manager of Tesco company in making
policies and procedures for company. It is the function of management team to ensure that
employees are safe and comfortable in organisation (Kehoe and Collins, 2017).
Equality Act, 2010 : This act prohibit discrimination among employees on the basis of
gender, caste, religion, race, education, income, housing, disability. According to this act all
employees should be treated equally and with respect. This act protect people from
discrimination based on nationality of employee or citizenship. This act helps HR manager of

Tesco company in treating all the employees equally and at the time of selection there is no
discrimination.
Employment Act, 1996 : This act covers working conditions of Tesco company,
working hours, leave entitlements, public holidays, termination and benefits. In this act all the
terms and conditions are explained by manager. Employment act helps managers of organisation
in making rules and regulations, policies and procedures according to laws and organisation have
flexible working hours.
These are some acts which should be applied by every organisation because it helps in creating
good environment in company. When rules and laws are applied by company then employees
feel motivated and it also help in building good relation among management and worker. If laws
are applied then it help HR managers to take decision because if something happen wrong then
they can take help of laws which is made and take decisions.
LO4 Human Resource Management practices in work related context
P7- Job description, person specification and offer letter
Company Tesco company
Post Marketing manager
Location United Kingdom
Report to CEO
Qualification MBA In field of marketing, knowledge of
digital marketing, having work experience of
2-3 years.
Responsibilities Responsible for managing promotional
activities, attract customers, make new
strategies to increase sales, prepare and
control budget.

Title of the job Marketing manager
Qualification
required
Essential Desirable Met
MBA in marketing
and knowledge of
marketing strategies
and methods,
innovative and
creative idea.
Yes
Need of Experience
Required 2 to 3 years
experience and has
good review from
company.
Yes
Personal
characteristics &
conduct
 Organise all
stores and
distribute
responsibilities
among
employees.
 Create
business
strategy and
make new
plans to
generate more
revenue.
YES

 Innovative and
creative ideas
for promotion
of product.
 Ability to
influence or
convince
people to buy
products.
 Adaptability to
changing
environment.
 Ability to think
new ideas for
increasing
sales.
 Good
organisation
and teamwork
skills.
 Focus on small
points or
details.
 Build strategic
relationship
with customers
, agencies and
suppliers.
 Monitor and

analyse
competitor
strategy.
 Measure
performance of
marketing
programmes.
 Focus on
customer
satisfaction.
Roles and
Responsibilities
 Attract more
customers by
making good
promotional
strategy.
 Increase brand
awareness
among people.
 Monitoring
social media
activities.
 Conducting
campaign
management
for marketing
initiatives.
 Producing or
YES

improving
internal
communicatio
ns.
 Conducting
market
research and
competitor
analysis.
 Managing your
brand and
create good
image in
market.
 Achieve
organisational
goals by
planning,
organising,
staffing,
controlling and
evaluating all
activities.
 Ability to take
risk for
increasing
profit.
 Ensures
transportation
of goods and

services.
 Contacting
suppliers for
providing raw
material on
time.
 Make budget
and try to
reduce cost.
Rationale of job description and person specification
Job description is a document which contains information related to scope, duties,
responsibilities, working conditions, policies, procedures of job. It also has details related to
skills, qualification and experience that is required for job. In job description it contains general
task and eligible candidates should apply.
Person specification refers to knowledge, experience, qualities, skills and essential qualification
which candidate should have to get job (Pak and et.al., 2019).
Offer letter
To,
Mr. Ankit Ray
London
Date : 22 February 2021
Sub: Offer Letter
Dear Mr. Ankit Ray,
With reference to your application and interview process we are pleased to offer you
position of “ Marketing Manager” at Tesco company under following terms and conditions.
1. Date of joining will be 1 March 2021.
2. Your place of work will be in UK.

3. Working hours will be 9.30 am to 5.30 pm with a leave for one day in a month.
4. Your contribution as a Marketing Manager subject to your work and assigned duties.
Best regards,
Nick McGlashan
HR Manager
CV
ANKIT RAY
3 A Building, London street . M: 07233568123. email: [e-mail]
Summary
Good marketing manager who drive company growth with creative and innovative ideas.
Experience and knowledge of current market trends to develop marketing campaigns. Focus on
customer satisfaction.
HIGHLIGHTS
 Direct marketing campaigns
 Leadership Skills
 Global marketing
 Enthusiastic team player
ACCOMPLISHMENTS
 Increase sales of company by 20%.
 Attract more customers by effective marketing strategy.
 Develop innovative and creative ideas.
EXPERIENCE

Worked as marketing manager in Jameson advertising for 3 years. Promoted brand awareness
programmes and make strategies and plans for increasing sales which were unique.
EDUCATION
Completed MBA in marketing in year 2020 from University of Cambridge, England.
Interview Questions
1. Tell me about yourself ?
2. Why should we hire you ?
3. What are your strengths and weaknesses ?
4. Why do you want this job ?
CONCLUSION
From the report it can be concluded that, there are various functions performed by HR
department such as recruitment and selection, training and development, performance
management. Strengths and weakness of different approaches to recruitment is discussed.
Benefits of different HRM practices in an organisation for both employer and employee and
evaluation of effectiveness of HR practices in increasing profit and productivity. Laws are
described like, health and safety act, employment act, equality act.

REFERENCES
Books and Journals
Aburumman, O., and et.al., 2020. The impact of human resource management practices and
career satisfaction on employee’s turnover intention. Management Science
Letters. 10(3). pp.641-652.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Guest, D. E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human resource management journal. 27(1). pp.22-38.
Han, J. H., and et.al., 2019. The goldilocks effect of strategic human resource management?
Optimizing the benefits of a high-performance work system through the dual alignment
of vertical and horizontal fit. Academy of Management Journal. 62(5). pp.1388-1412.
Hitka, M., and et.al., 2019. Knowledge and human capital as sustainable competitive advantage
in human resource management. Sustainability. 11(18). p.4985.
Hoon, C., Hack, A. and Kellermanns, F. W., 2019. Advancing knowledge on human resource
management in family firms: An introduction and integrative framework. German
Journal of Human Resource Management. 33(3). pp.147-166.
Kehoe, R. R. and Collins, C. J., 2017. Human resource management and unit performance in
knowledge-intensive work. Journal of Applied Psychology. 102(8). p.1222.
Pak, K., and et.al., 2019. Human Resource Management and the ability, motivation and
opportunity to continue working: A review of quantitative studies. Human Resource
Management Review. 29(3). pp.336-352.
Santana, M. and Lopez‐Cabrales, A., 2019. Sustainable development and human resource
management: A science mapping approach. Corporate Social Responsibility and
Environmental Management. 26(6). pp.1171-1183.
Sundiman, D., 2017. Human resource management in the enhancement processes of knowledge
management. Binus Business Review. 8(3). pp.167-173.
Tang, G., and et.al., 2018. Green human resource management practices: scale development and
validity. Asia Pacific Journal of Human Resources. 56(1). pp.31-55.
Online
Chai,W., 2020. Human Resource Management [Online]. Available
Through:<https://searchhrsoftware.techtarget.com/definition/human-resource-
management-HRM>