Benefits of HRM Practices for Employees and Employers

This article discusses the benefits of different HRM practices for both employees and employers within an organization. It explores the importance of job and financial security, safe and healthy work environment, training and development, and employee recognition. These practices contribute to employee motivation and organizational success.

Human Resources
Management
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Explanation of the purpose and the functions of HRM, applicable to workforce planning
and resourcing an organisation....................................................................................................4
P2 Strengths and weaknesses of different approaches to recruitment and selection..................6
TASK 2............................................................................................................................................8
P3 Benefits of different HRM practices for both the employees and the employers within an
organisation..................................................................................................................................8
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity..................................................................................................................................9
TASK 3..........................................................................................................................................11
P5 Analyze the importance of employee relations in respect to influencing HRM decision-
making.......................................................................................................................................11
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision- making........................................................................................................................12
TASK 4..........................................................................................................................................14
P7 Illustration of the application of HRM practices in a workrelated context, using specific
examples....................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Human Resource Management refers to the strategic approach by the management to effectively
control and manage the people of an organisation with an objective of directing their efforts
towards achievement of organisational goals and targets. This project report aims at evaluation of
different function of human resource management with an organisation context of Waitrose Ltd.
Waitrose ltd. is UK based grocery retailer with large supermarket chains across the world. It was
founded in the year 1904 the company has its headquarters at Berkshire, London, UK. It is the
eighth largest grocery retail store in United Kingdom. In this project report, an attempt has been
made to evaluate the different approaches of recruitment used by the management of Waitrose
and further it aims to understand the benefit of HRM practices for both employees and the
employer. It also aims to evaluate the usefulness of HRM practices in improving organisational
profit and productivity (Barratt-Pugh, Bahn and Gakere, 2013). The project report consists of
importance of employee relations in HR decision-making and relevance of employee legislation
laws. The project report aims to understand the implication of HRM practices in a work related
context with the help of using specific examples.
TASK 1
P1 Explanation of the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation.
Human resource management functions aims at maximising the productivity of the
employees of an organisation. The human resource is the most important resource for any
organisation since the effective utilisation of every other resource majorly depends on the human
aspect associated with its use. With such large scale operations, it gets imperative for Waitrose to
manage effectively its human resources to achieve goals and targets. It is related with the people
dimension of the organisation. Effective HRM depends on the skills and knowledge of the
human resource managers of an organisation (Bratton and Gold, 2017). Though there are many
principles identified for assisting human resource managers but all these principles require a
creative application for getting the maximum benefits out of them. The main purpose of human
resource function within any organisation is to recruit the right kind of people and adopt
strategies which help in improving their efficiency so as to meet the organisational goals and
objectives.
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Purpose of Human Resource Management:
Human resource management and its functions help in achievement of organisational
goals and objectives by directing the efforts of individual employees towards these goals
achievement and making sure that employees are performing to the best potential and
organisational productivity is enhanced at every stage of operation. Workforce planning refers to
the objective of hiring the right skills at the right time and place so that the individual and
organisational needs of Waitrose can be fulfilled. It aims at alignment of individual interest with
organisational interest (Brewster and Hegewisch, 2017). The primary objective of Human
resource management for any organisation is to boost the employee productivity in the company
and increase the job satisfaction for employees which helps in increasing employee retention rate
for the company. Purpose of HRM involves maintaining good employee relations, motivating the
workforce, compliance with labour laws, effective selection of candidates best suited for
company’s job and task requirements, ensuring performance management of the employees
etcetera. It can be concluded that fundamental human resource management translates to
managing the most important resources i.e. employees of an organisation which ensures
optimum utilisation of every other resource and dervices a competitive edge for the business
organisation.
The major functions of human resource management of Waitrose ltd. related with workforce
planning and resourcing includes:
Recruitment:
One of the most important function of human resource management includes recruitment
and selection of people according to the workforce requirement of the organisation. Human
resource managers have the responsibility of providing the organisation right people with the
right skill set at the right time. The human resource manager of the Waitrose ltd. undertakes the
appointment of staff and employees by making a plan to determine the kind of skills and talents
which are required by the organisation and evaluating the various alternative sources of
recruitment (Cascio, 2014). Effective recruitment helps in achievement of organisational goals
and objectives since every other resource is to be utilised by the human resources of a company
and human resources are the face of the company for the outside world and business
surroundings.
Training & Development:
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Another important role of human resource management is training and development of
the recruited employees. Effective training helps the employee transition into organisational
climate and environment. Without proper training modules and programmes, even the employee
with most relevant skillset will face problems in adapting to work environments. The managers
of Waitrose ltd have designed a training programme for every employee who gets recruited
which helps in development and nurturing of the skills required for executing of the tasks
assigned to him. Generally, training of employees is conducted in a real-world like stimulation.
Training helps the employee to solve problems related to daily work in a better way and increase
their work efficiency which further helps to achieve organisational interest and targets.
Job analysis:
Job analysis is another function of human resource managers of an organisation which
provided two main documents namely job description and job specification. Job analysis refers
to a detailed evaluation of the job in terms of activities and skills required for execution of that
task (Daley, 2012). Job description is a document which helps the employee to be aware of the
tasks and activities which are related with his job and job specification helps the management to
understand the skills and talents which are required for completion of a job which helps in
effective recruitment planning.
Compensation & Benefit:
Designing compensation and pay-models which help in motivation and encouragement of
employees to work with the best productivity and efficiency is another important duty of human
resource managers. Increased employee motivation due to better rewards and compensation
results in overall improvement of organisational efficiency. The employees at Waitrose ltd are
motivated with the help of a reward-linked to performance pay structure. Different pay-structures
and models may work for different organisation as per the organisational culture and climate.
Performance management:
Performance management as a function of HR managers aim at monitoring and
controlling employee performance with respect to the standard performance expected out of
them. Effective performance management helps in maintain productive teams in the organisation
and makes sure that employee efforts and organisational performance is according to the
standards set for achieving company’s goals and objectives (DeCenzo, Robbins and Verhulst,
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2016). Waitrose ltd. has adopted various programme for tracking employee performance which
creates a possibility of identifying errors at the initial beginning stage.
Employee relations:
Human resource managers aim at adopting strategies and policies which help in fostering
better relations at the workplace such as the relation between employees and employer. It is one
of the most important function of human resource managers which helps the employee to feel
more respected and a sense of belongingness is witnessed. Better employee relations also help in
avoiding conflicts which arises due to difference in interests.
It can be analysed that all these functions of human resource management for workforce
planning and resourcing are extremely important and crucial for attainment of organisational
goals and targets as well.
P2 Strengths and weaknesses of different approaches to recruitment and selection.
Recruitment and selection of a workforce according to the needs of the organisation is one
of the most important function of human resource management which helps the organisation to
use the resources for achievement of goals and targets. The human resource managers of
Waitrose ltd. mainly uses two different approaches for recruitment of workforce which is
recruiting from internal sources or recruiting from external sources (Flamholtz, 2012). Both the
approaches have its own merits and demerits. Here is a brief explanation of both the approaches
mentioned here for recruitment and selection used by Waitrose ltd.:
Internal recruitment:
Internal recruitment refers to the system where an opportunity of employment is filled
from within the organisation. Many organisation and human resource managers before looking
externally for an employment try to fill the vacancy from the application from internal candidates
only. This approach is being used by the managers of Waitrose ltd to fill vacancy on middle-
level management positions. Internal recruitment at Waitrose is being done with the help of
intern promotions and transfers. Job enlargement and enrichment is another approach of internal
recruitment being followed by the management of Waitrose.
Strength:
The main advantages and strength of internal approach of recruitment is that it boost
employee morale and motivation with the help of promotion opportunities. It helps the Waitrose
to improve their employee retention and reduce staff turnover. Also, internal method of
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recruitment is very cost-effective and decisions are taken rapidly under this approach (Gopalia,
2012). Cost-effectiveness of internal methods of recruitment increases its favourability among
the management of Waitrose Ltd.
Weakness:
Although, some of the major points of weakness of internal method of recruitment
includes the limitation on the number of potential candidates and a chance that organisation may
miss out on the fresh talents and external candidates with innovative skills. Internal method of
recruitment may also arise conflicts at the workplace over promotions and transfers. It also
results into negative image of the organisation since the company extensively follows the
internal methods of recruitment.
External recruitment:
External recruitment is the process which involves assessment and evaluation of the
outside pool of candidates to fill the desired positions of vacancies within the organisation. It
involves looking for more talented and skilful candidates to bring in fresh and creative mindsets.
Major sources of external recruitment being used by Waitrose ltd includes recruitment agencies,
campus placements, online employment websites, social media, applications on career section in
company website and employment advertisement in print and electronic media.
Strength:
External employment provide the opportunity for the company to hire fresh talent and
skilful employees which can help in achievement of organisational goals and targets. It provides
a pool of candidates from which the Waitrose ltd. can choose the best resources. Having fresh
talent and innovative mindset helps in providing a new creative and innovative work
environment for the company which is essential for deriving a competitive edge in the business
environment.
Weakness:
However, the problem with external sources of recruitment or the disadvantage is that
these methods are really time consuming (Islam, 2012). Also, various recruitment agencies and
media channels charge a high amount for rendering their services to the organisation which
makes these methods costly. Excessive use of external recruitment sources also lead to
discouragement and demotivation of existing employees of the company as it might create a
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restriction on the opportunities for existing employees within the company and might also
increase the internal competition for them significantly.
Hence, it is advisable for the human resource managers of Waitrose to use the right mix
of both the resources for recruitment and selection of employees. The top-management positions
can be filled internally whereas for lower-level and middle-level positions, the company can
choose external sources of recruitment.
Hard & Soft-models of HRM:
These are two different type of approaches which are being used by the management of
Waitrose to determine importance of employee as a resource. Under the hard model of human
resource management, employees are only treated just like any other resource of the organisation
whereas under soft model of human resource management, employees are considered as the most
important resource of the organisation which can help the company to gain competitive edge in
the business environment and all the needs of workforce are kept in mind to motivate the
employees and increase the employee productivity.
TASK 2
P3 Benefits of different HRM practices for both the employees and the employers within an
organisation.
A large number of HRM practices such as recruiting, training and development,
compensation models, employee relations etcetera takes place within every organisation
irrespective of its industrial environment. The management of Waitrose ltd also undertakes a
large number of HRM practices since employee motivation and productivity is one of the key
element in ensuring the company’s performance and success. These practices are beneficial for
both the organisation and employees. Some of the practices used by HR department of
WAITROSE are being discussed below with an analysis of benefits involved for both employer
and employees:
Job & financial security to employees:
This is arguably the best human resource management practice being followed by
Waitrose ltd to improve the employee performance and motivation. Waitrose has adopted
various policies which ensure financial as well as health security to its employees by offering
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medical and life insurance policies (Jackson, Schuler and Jiang, 2014). This practice is very
beneficial for both the employers and the employees.
When security is offered to the employees, they are more motivated and committed to
perform their task to the best of their potential in the organisational interest. This leads to better
organisational performance which is beneficial and desirable for the employer. At the same time
when this practice helps employees to feel good about their work, it helps the employer to
improve employee retention in the company and reduce staff turnover.
Safe and healthy work-environment:
A healthy work environment helps the management to ensure that no hindrance in being
created in the operations of the organisation because of unhealthy and unsound working
environment. Employees feel more satisfied while working at a place which is healthy and safe
for their personal interest and it leads to an increase in the efficiency of the employee which is
always desirable by the employer. Waitrose has build a very good reputation in the industry
when it comes to the safety of the employees and the work-environment due to which more and
more individuals are willing to get associated with the company.
Career management:
The human resource manager of Waitrose ltd has adopted various programme for career
management of its workforce which shows that the company doesn’t intend to get benefits out of
the workforce for short-term and actually cares about the employees’ career (Renwick, Redman
and Maguire, 2013). It helps the employees to feel more dedicated towards their work and
improves the sense of belonginess and for the employer it helps the company to improve
employee retention and staff turnover which also results in a fostering of positive workplace
relations.
Performance linked bonuses:
Designing a reward system where bonuses are offered according to the employee
performance is another HRM practice which is being used the management of Waitrose ltd to
motivate the employees and encourage them to induce high-performance working teams which
also helps the organisation in achievement of its goals and targets. This is a great strategy which
helps any organisation to motivate its workforce.
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P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.
HRM practices help an organisation in improving the productivity of the operations and as
a result profit. Some of the HRM practices used by Waitrose to improve company’s productivity
and profit are as follows:
Selective hiring:
Hiring the right people with the desired skillset for execution and completion of a task
helps the Waitrose to gain a competitive edge in the industry. Selective hiring goes a long way in
determining an organisation’s success and efficiency of the workforce (Samantara and Sharma,
2015). It improves the organisational productivity because of better execution of tasks by right
people with right skills. Recruitment involves a lot of cost and selective hiring ensures that
organisation doesn’t need to recruit new people quite frequently and the right people are
employed at the very first instance which helps in reducing the costs related to recruitment and
also improves the organisational profit.
Training and development:
Waitrose has adopted a very specialised training programme which helps the company to
get the best out of the employees which are recruited during the first stage. Training sessions are
very effective in increasing the performance of the employees and improving the overall
organisational productivity and profit. During the training, an employee faces similar business
problems which he might face during execution of tasks assigned to him which helps him to
react to business situation in a better way and increase his efficiency along with operational
efficiency of the organisation.
Performance management:
Performance management as an HRM practive involves monitoring of employee
performance and comparing the actual performance of the employees with the standard
performance to identify any variation and take corrective actions. Performance measurement and
management helps in increasing the organisation efficiency as it helps the management to
analyse that whether an employee is performing to the best of his ability and if not, identify and
eliminate the reasons hindering his productivity and efficiency. Better employee performance
helps in better financial performance of the organisation as well.
Development of better relations:
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The human resource manager of Waitrose provides various spaces for the members and
employees to interact with the top-management and senior executives which helps in fostering
better relations between the employee and the employer. This helps the company to avoid
conflicts and create a positive organisational culture. Better workplace relations and conflict
management help in improving the employee retention and organisational productivity since the
employees are more committed towards achievement of individual as well as organisational
objectives (Smith, 2016). Better employee retention as a result of employer-employee relations
helps in improving organisational profit as well due to decrease in costs related to recruitment
and training of employees.
TASK 3
P5 Analyze the importance of employee relations in respect to influencing HRM decision-
making.
HRM decision making is necessitate in finding the best possible and effective ways of investing
in human resource. HRM decision making include deciding in advance that where to use
resource and money of the organization in order to enhance the performance of employees and
business. Human resource decision making process have positive impact on an organization.
HRM decision making includes creating and developing strategies, policies and rules which
provide competitive advantage to the organization. Human resource decision making consist
process such as planning and developing, performance management of the human resource
within the organization. It involves making decision about the workforce who operates the
business (Lasserre, 2017). HR decision making start with the choosing right person for the job
and manage the employees it’s a never-ending process of the organization. Waitrose use
effective way of decision making to manage and maintain their employees performance in order
to create competition in the retail market. Waitrose also focus in developing effective policies
and strategies to influence and enhance the performance of the employees and they also maintain
good relation with their employees by making fair decisions. Waitrose hire talented and
experienced people for HRM decision making.
Importance of HRM decision making –
 Human resource decision making is important in order to achieve the goals and
objectives of the organization within the available time and budget. HRM decision
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making consist choosing best alternatives, properly utilize the resources and satisfying
the employees to attain the goals of the organization. Waitrose make effective decisions
and take care of the employees needs in order to achieve the organizational as well as
individual goals.
 Effective HRM decision making encourage and motivates the employees within the
organization. Decision making provide overall framework, guidelines and polices to
operate and encourage the workforce. If the companies police satisfy the employees then
they work hard with motivation. Waitrose encourages and motivates their employees by
taking decisions in their favor and also make proper or effective strategies which satisfy
employees.
 An organization need to utilize their various resources like human, money, material,
machine etc. and for this they need to take effective decision. Human resource decision
making is choosing right person at right place, provide proper training and manage
employees performance (Thornton, 2015). Waitrose hire right and talented people in their
organization and provide them effective training, enhance employee performance because
they take effective decisions.
 In the organization employees has many problems or issues but there are multiple
solutions available to solve those problems. Human resource decision making is
necessary to select or choose the best alternative among various alternatives to solve the
problems of employees. Waitrose choose best alternative by analyzing the various
alternatives by using some statistical and financial tools in order to manage and satisfy
their employees.
 Human resource decision making is the pervasive function of managers aimed to satisfy
the employees of the organization. Human resource manager take decision in all
managerial functions like organizing, controlling, directing and motivating the
employees. Waitrose’s manager take decision in order to organize the right people at
right palace, control their activities and direct them towards the goals and motivate the
employees to work hard.
 HRM decision making is also important to analyze and evaluate the performance of the
employees. HR managers decide how to manage the performance of employees in order
to increase the level of performance and achieve the goal of the organization. Waitrose
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take care of their employees and their performance. Manager of Waitrose use various
performance appraisal techniques to enhance the performance of employees and the
manager make decisions in advance for the employees.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision- making.
Some key elements of the employment norms and legislation that affect the HRM decision
making are –
• Providing safe and healthy workplace – The prior human resource procedure is employee
security; every organization try to provide safe and secure working environment to their
employees in order to achieve competitive advantage in global market. This also affect the
decision-making process if the organization provide good and healthy working environment then
it helps in proper decision making (Moutinho and Vargas-Sanchez, 2018). This also helps in the
employee’s retention if employee feel safe and secure, they can do hard work and retain for long
time with the organization. Waitrose provide happy, safe and familiar working environment to
the employees.
 Fair and performance-based compensation – Compensation is also the best human
resource practice, if company recruit skillful and talented people then they have to
compensate more than average. Fair compensation attracts the effective decision-making
process. These are the people that will add the most value to the company so company
want to retain them and compensate them fairly. Waitrose pay fair renumeration to their
employees according to the ability, knowledge and capability of the employees and this
helps Waitrose in employee’s retention.
 Working time regulations – Every organization have to adopt the fixed working time
regulations. There are some working time regulations which companies can adopt
according to their type like fixed schedule, rotation shifts, extended hours, weekly off. If
company have fixed working hours then their employees take their decisions according to
that time, working time regulations provide proper working environment to the
employees as well as organization.
 Creating equitable organization – Each and every employee are the valuable asset of
the organization and should be treated equally. In every organization there is equal
chance of every employees in taking decision related to the business. In the organization
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every employee deserves equal respect. Waitrose create equitable and fair working
environment; they treat their employees equally and also involve each and every
employee in decision making. They always take care that employees never feel unfair
and bias in the organization, and this influence their proper and effective decision-making
process.
 Sexual harassment prevention – It is the responsibility of every organization prevent
their company from sexual harassment. There are same laws that prohibit gender
discrimination prohibit sexual harassment. Sexual harassment creates offensive working
environment and which affects the functions and decisions of the business. Waitrose take
care of their employees and provide protection from any kind of harassment.
TASK 4
P7 Illustration of the application of HRM practices in a workrelated context, using specific
examples.
One of the most important practice of Human resource management involves recruitment,
selection, training and development of people (Kim, 2012). Waitrose ltd. uses a job description
to specify the requirement of the job so that the people with the relevant skills can apply for their
candidature. This helps the company in hiring a workforce according to the requirement of the
organisation. Here is an example of application of this HRM practice in the context of Waitrose
ltd.
JOB DESCRIPTION
JOB DESCRIPTION
Organisation Name: WAITROSE LTD.
Job Details: Senior finance manager
Job title: Financial Assistant
Job Type: Full Time
Salary: £55,000
Location: Hertfordshire, England
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Job Purpose:
 Provide aid and guidance to the finance department
 Candidate should be able to manage and handle large teams
 Cooperation with department of finance for better and smooth organisational
performance
Responsibilities of the selected candidate includes:
 To account for the daily cash flows and cash outflows
 To control and manage the team responsible for accounting and preparing bills
 To report the findings to the head of financial department
 Ensuring compliance with laws and regulations
 To control and monitor the accounts of the company
Interested candidates can forward the resume on [e-mail] or contact at the below
mentioned contact number.
Thanks & Regards
HR Manager
WAITROSE LTD
Contact no. + 44 (0) 1834 843847
Curriculum Vitae
Curriculum Vitae
Name – ABC
Address – England, UK
Contact number – [e-mail]
Working Experience
Senior Finance Manager (2018 - present)
Tesco company, UK
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 Developing report and P&L analysis
 Carry out business analytics practices for supporting in management decision
 Managing team and delegation of task
 Controlling and measuring team activities
Finance Reporting Manger (2013 - 2018)
Logon company
 Analysing and evaluating financial data and reports
 Creating financial report and presenting to senior manager
 Supporting Manager in team management practices
 Annual audit report
 Financial statement analysis
Education background
 Masters in Business Administration from Jonhson & Wales University (2012)
 Bachelor of Business Administration for Jonhson & Wales College (2010)
Other courses or knowledge
 Financial and Data Analysis
 AdHoc Management
 Budgeting & Financial forecast
 GAAP
Job offer letter
Senior Finance Manager Job offer
6 August 2020
Waitrose company
ABC
England, UK
Dear ABC
We are delighted to offer you full time job position of Senior Finance Manager at Waitrose
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company with the starting date of 20th August 2020. Your working location will be Hertfordshire,
England and you will work under Finance Director of Waitrose organisation. In our opinion your
capabilities and experiences perfectly match with company requirements.
In this role you will be responsible for managing finance team and your major responsibility will
be to take account for the daily cash flows and cash outflows. Your role includes to control and
manage the team responsible for accounting and preparing bills.
As employees of Waitrose company you will be eligible for benefit program that consist of
medical insurance and vacation as well as various other benefits.
We are looking forward to have you in our team and if you have any question please feel free to
reach out to us.
Sincerely
HR Manager
CONCLUSION
It can be concluded from the above report that Waitrose ltd. relies heavily on the function of
the human resource management for the operational efficiency and productivity. It can also be
inferred that various appraoches used for recruitment and selection by human resource manager
of the company has merits and demerits as well. Various HRM practices have many advantages
for both the employers and the employees. (Sparrow, Brewster and Chung, 2016). It can also be
concluded that these practices help the organisation in improving its productivity and profit.
Employee relations have a significant influence on the decision-making by the HR of the
company and various legislation laws also affect the decision-making process. At last it can be
concluded with the help of an example that various HR practices are applied and implemented
differently in different organisations. Human resource management can rightly be considered as
the most important function for any organisation on which effective utilisation of every other
resource of the organisation depends.
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