Benefits of HRM Practices for Organizational Profit and Productivity

Human Resource
Management
Table of Contents

INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation..........................................................................................................3
Explain the strengths and weaknesses of different approaches to recruitment and selection.....5
LO 2 ................................................................................................................................................7
Explain the benefits of different HRM practices within an organisation for both the employer
and employee..............................................................................................................................7
Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity..........................................................................................................................8
LO 3.................................................................................................................................................9
Analyse the importance of employee relations in respect to influencing HRM decision-making
.....................................................................................................................................................9
Identify the key elements of employment legislation and the impact it has upon HRM
decision-making........................................................................................................................10
LO 4...............................................................................................................................................10
Illustrate the application of HRM practices in a work-related context, using specific examples
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human Resource Management is an important aspect within an organisation and can be
defined as the practice of managing people in order to ensure better performance. The process
involves recruitment, selection, motivating the employees and providing training and
development to the employees (Ashton, 2018). Organisation chosen for this report is Marks and
Spencer, which is a British multinational retailer of household and clothing products. The
company was founded in the year 1884 by Michael Marks and Thomas Spencer and is
headquartered in London, United Kingdom. The respective report explains the purpose and the
different functions of HRM. Lastly, an analysis of the employee relations in respect to
influencing HRM decision-making is also included in the report.
LO 1
Explain the purpose and the functions of HRM, applicable to workforce planning and resourcing
an organisation
The strategic process of managing the people within an organization so that they can help
it attain its goals and objectives is referred to as human resource management. As per the
viewpoint of Erik van Vulpen, human resource management involves managing the people in
order to attain an improved business performance (7 Human Resource Management Basics Every
HR Professional Should Know, 2020). Marks and Spencer is a leading organization that offers a
variety of products and services to its customers.
Vision
“The vision of the company is to become a standard against which other brands in the
market are compared.”
Mission
“The mission of Marks and Spencer is to make high quality products accessible to
everyone.”
The company constantly takes various measures in order to work towards attaining vision
and mission.
Core Values
The respective brand is built on the core values of quality, innovation, service as well as
trust. The main purpose of the HR function within the organization is to ensure that right people

are hired for carrying out the right jobs. Besides this, the HR function also looks after the
training and development of the employees within the workplace. The main functions of human
resource management include job analysis, recruitment and selection, compensation and
benefits, performance management etc. The HRM function has different roles as well as
responsibilities within an organization (Calabrese and et.al., 2018). The main roles of the HRM
function include staffing, development of different workplace policies, administration of
compensation, training and development and benefits as well as retention of employees. The
same are explained below -
Staffing – Staffing involves the complete process of posting a job to negotiating for a
salary package. The HRM function ensures the development of an effective staffing plan as well
as recruitment and selection. Marks and Spencer analyses its workforce and then determines the
different steps to prepare for staffing needs in the future.
Development of different workplace policies – Marks and Spencer has different
policies in order to ensure fairness at the workplace (Collings, Mellahi and Cascio, 2019). The
HRM function ensures that all employees within the company are aware of the different
workplace policies. Also, the company takes into account its various policies while planning for
workforce.
Administration of Compensation – The HR manager in Marks and Spencer makes sure
that employee compensation is fair and encourages potential candidates to join the company.
Compensation needs keep changing as per different roles, therefore, they should be taken into
account during the process of workforce planning.
On the other hand, the responsibilities of HRM function include analysis of jobs,
appraisal as well as performance of the employees, providing rewards as well as overall
professional development of the workforce.
Job Analysis – This is one of the responsibilities of HR function at the workplace as it
allows the HR professionals to identify and determine the responsibilities as well as
specifications of a particular job (Dhanpat and et.al., 2018). The respective company conducts
workforce planning and resourcing based on the job analysis.
Appraisal and Employee Performance – Another responsibility of the HRM function is
to evaluate the performance of employees against their job requirements. During the process of
workforce planning, a company should define the expected performance levels.