Importance of Employee Relations in HRM Decision-Making

This article discusses the importance of employee relations in HRM decision-making. It explores how good employee relations can empower employees, improve morale, and enhance employee satisfaction, ultimately influencing HRM decision-making in organizations.

Human Resource
Management

INTRODUCTION
Human Resource Management refers to a strategic approach in which effective
management of people is done within the organizations (Akamani, 2016). It is the task of HR
managers to be able to ensure it in the organizations so that it is able to help them to identify the
problems and issues which are faced by the employees in the companies and solve them. Thus
the use of this approach is crucial if the firms have to gain a competitive edge. It is quite essential
so that the people are managed in an effective manner. The HR managers are required to make
its use so that the organizations are able to attain their goals and objectives. For this report,
Arcadia Group has been chosen. It is a British Company which deals in clothing, accessories and
shoes. In this assignment, specific focus will be made on explaining the purpose of Human
Resource Management, evaluating the effectiveness of its key elements, analysis of internal and
external factors. Additionally, application of HRM practices in a work-related context will be
made as a part of this project.
TASK 1
P1: Purpose and Functions of HRM
Purpose of HRM- The purpose of HRM is to ensure that the organization is able to
identify the employee-related issues in the company (Budhwar and Mellahi, 2018). Thereafter
proper methods have to be used by the HR department so that they are able to solve these issues.
In Arcadia Group, the HR managers have this specific purpose through which decides the
working pattern which they are required to follow to achieve it.
Functions of HRM-
The major functions of HRM are as follows-
Recruitment and Selection- Recruitment refers to a practice of identification of
potential candidates for a potential job. Selection refers to the use of different types of metrics
and parameters so that the candidates are screened in an effective manner before they are hired
for a particular role in the organization. In Arcadia Group, it is the function of the HR
department to be able to perform both Recruitment and Selection to select the best candidates for
different roles.
Orientation- In the firms, the HR department has a function of conducting the
orientation process for the new employees. By this process, the new workers are expected to
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become comfortable in the working culture of the company and thus in this way will be able to
perform better in their respective roles and be valuable to the organization through their
contribution. In Arcadia Group, the HR department has the responsibility to conduct orientation
so that the new employees are comfortable in the organizational set-up.
Maintaining good work conditions- For the organizations' HR department it is crucial
to maintain good work conditions and a hygienic work environment (Clark and et.al., 2016).
Therefore in Arcadia Group the HR department has to ensure that it is able to provide the staff
members with proper work conditions which can increase their motivation and morale and they
can concentrate on their tasks in an effective manner so that the results are achieved.
Managing employee relations- The HR department of the companies have a function of
managing the employee relations (Fee and McGrath-Champ, 2017). In the context of Arcadia
Group it is important that its HR department is able to manage relations with the workers so that
proper coordination and cooperation in the workplace can be ensured.
Training and Development- The HR department of the firms has to perform the
function of training and development (Harzing, Pudelko and Sebastian Reiche, 2016). In Arcadia
Group, the HR department is able to perform this function and ensures that the best training and
development to the employees. This ensures that the workers are able to concentrate better on
their work.
Therefore, the HR department of Arcadia Group has a specific purpose and is able to
perform its different functions in a highly effective manner. This allows the company to be able
to identify and attain its distinct goals as well as objectives without problems and issues.
P2: Strengths and Weaknesses of approaches of recruitment and selection
Approaches of Recruitment-
Internal Sources- In internal sources, the HR department is able to identify talented
people within the organization and promote them to a higher role in the company (Jackson, Gray
and Shuman, 2017). Thus the managers of Arcadia Group can make the use of these sources so
that they are able to save costs on recruitment and can hire skilled workers for their roles.
Strengths-
 The use of internal sources can help in saving of costs for the organization.
 With the use of internal sources an organization is able to get talented people to work for
the organization.
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Weaknesses-
 The use of this approach is not recommended for the organizations because it can create a
biased approach in selecting the candidates for different roles.
 When this approach is used it can create resentment among the workers because the
employees who are not considered for a specific role may feel resentful.
External sources- In the external sources of recruitment, the HR department of the organizations
puts focus on recruiting externally (Jones, Davis and Thomas, 2017). For the HR managers of
Arcadia Group, this offers an opportunity to be able to identify from a large pool of available
candidates and select the best one for different roles.
Strengths-
 With the use of this approach, the HR managers are able to reduce the internal politics in
the organization which can occur between the colleagues.
 When this approach is used the HR managers are able to be fair in their policy of
recruiting the staff.
Weaknesses-
 When the HR department recruits using the external sources it leads to greater time
consumption as more time is required to complete the process.
 The HR department of the organization can incur higher costs when these sources are
used and therefore this leads to higher expenditure.
Approaches of selection-
Written Test- The use of this method can be made in which the overall aptitude and the skills of
a candidate are judged (Kloutsiniotis and Mihail, 2017). The HR department of Arcadia Group is
able to make its use so that they are able to judge the potential candidates in an effective manner.
Strengths-
 When this method is used it can help the HR department to analyse the overall aptitude of
the candidate before hiring the candidate for a particular role.
 The use of this method is useful for the HR department so that it can be fair in the process
of hiring the candidates.
Weaknesses-
 The use of this approach is quite time-consuming in nature and therefore increases the
time taken for selecting the candidate.
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 Making the use of this approach is very expensive in nature and thus can increase the
costs for the organization.
Interview- In this method, a face-to-face conversation is conducted between the
interviewer and the candidate (Kryscynski and et.al., 2018). By making its use, the HR
department of Arcadia Group will be able to make sure that they can select the best candidate
through the judgement of personality.
Strengths-
 By making the use of this approach, the HR department of the organizations will be able
to select the correct candidate as a through analysis of personality can be performed by
making its use.
 When this method is used, the HR department in the organizations is able to save time as
it takes comparatively less time as compared to the Written Test method.
Weaknesses-
 When this approach is used some of the interviewers may be biased towards a particular
candidate.
 By making use of this method it is difficult to judge the multiple aspects of a candidate's
personality effectively.
TASK 2
P3: Benefits of HRM practices
When the HR department of the organizations is able to adopt the right HRM practices it
leads to various benefits. These benefits are-
For employers-
 Good impression- The use of HRM practices in the companies can ensure that good
impression of the HR department is created in front of the employees of the organization
(Prayogo, Pranoto and Purba, 2017). Thus adoption of right HRM practices can create a
good impression of the HR department of Arcadia Group in the front of the workers.
 Solving of problems- When the HRM practices are used in the firms identification of
various types of problems can be done. Thus in Arcadia Group the HR department is able
to solve the problems of the employees by making the use of right HRM practices.
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 Helps in motivating workers- The HRM practices are helpful for the organizations to
help them in the motivation of the workers (Renwick and et.al., 2016). In the context of
Arcadia Group, the HR department has a benefit in using them because it can help them
in motivating the employees and deriving the best performance from them.
 Achievement of goals and objectives- When the correct HRM practices are used the HR
department of the organizations has a benefit in achieving the different types of goals as
well as objectives. Thus this is an advantage which is created for the HR managers of
Arcadia Group when they make use of HRM practices.
For employees-
 Better concentration on work- When the right HRM practices are used within the
organizations it enables the employees to concentrate in a better manner on their work.
For the employees of Arcadia Group this is an advantage.
 Sharing of grievances- The use of correct HRM practices in the organizations helps the
workers to be able to share their grievances. In Arcadia Group, this creates an advantage
for the employees so that they can seek resolution for their grievances.
 Development of good relations- It is essential that the right HRM practices are used
within the organizations because this helps the workers to be able to develop good
relations with the HR department. In the context of Arcadia Group, this creates a benefit
for the employees.
 Better satisfaction- When the HR department of an organization makes use of good
HRM practices it can ensure that the satisfaction level of the workers remains higher. In
Arcadia Group, this can be quite beneficial for the employees as it can easily enhance
their level of satisfaction which will not only boost their overall efficiency and
effectiveness but also the level of productivity in performing tasks.
P4: Effectiveness of HRM practices
HRM practices have a certain level of effectiveness. The effectiveness of the following
practices in the terms of raising the organizational profit and productivity is explained as
follows-
Providing security to employees- The HR department in the organizations can aim to
provide security to the employees by ensuring them that their jobs are safe and secured. If the
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HR managers of Arcadia Group adopt this practice then it can be ensured that the workers feel
safe and secured about their job and can perform better.
Selective hiring- In the organizations, the HR department can ensure that they can
selectively hire the people in the organization by assessing their skills (Ringle and et.al., 2020).
In Arcadia Group, the HR department should hire the best employees which can be useful for the
organization.
Self-managed and effective teams- For the firms, the HR department has to make sure
that it can create self-managed and effective teams. HR department of Arcadia Group can benefit
from this as the workers will be able to achieve their distinct goals and objectives.
Fair and performance based compensation- In the organizations, it is the role of HR
department to be fair and offer performance based compensation to the employees. This can
ensure that the HR department in Arcadia Group is able to ensure the payment of right
compensation to the workers.
Training in relevant skills- In the companies, there is an importance of training in
relevant skills for its staff members (Saridakis, Lai and Cooper, 2017). By ensuring this training,
the HR department of Arcadia Group is able to make sure that the skills of its workers are
developed.
Creating a flat organization- The HR department of companies should aim to create a
flat organization in which each employee is considered valuable. In Arcadia Group, the HR
department must aim for it to be able to promote a better work culture within the organization
which is positive in nature.
Accessibility of information- In the HR department of the organizations, there should be
efforts to ensure that the information is easily available and accessible. In the context of Arcadia
Group, the HR department is required to make the information accessible to the workers.
TASK 3
P5: Analysis of importance of employee relations
Employee relation is a term which is used to describe the relations between the employers
and employees (What are Employee Relations and Why Are They Important, 2019). Employee
relations are important for the organization because it helps the organizations to be able to form
good relations with their workers and make sure that they work in a proper manner to be able to
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attain the goals and objectives. Its importance in the terms of influencing of HRM decision-
making is as follows-
Empowerment of employees- When good relations are formed with the employees in
the organizations they are automatically empowered to be a part of the decision-making process
(Shin and Konrad, 2017). Thus it can lead to an influence in the HRM decision-making in
Arcadia Group as the HR managers can empower the workers to take decisions.
Improvement in morale- Forming of good relations with the employees is quite helpful
in the improvement of morale of the workers. Thus with an improved morale the workers can
provide better inputs for taking of several decisions. Thus HRM decision-making in Arcadia
Group can be influenced due to the improved morale of the workers as with an enhanced morale
the employees will be in a better position to work according to the expectations of the HR
department.
Employee satisfaction- Forming of good relations with the workers is crucial from the
point of view of the organizations to enhance the employee satisfaction. This can lead to
influencing of HRM decision-making in Arcadia Group as the HR department will be able to
ensure that satisfied employees are able to provide their ideas towards the decision-making
process.
Employee productivity- When good relations are formed with the employees in the
organization this can lead to an enhancement in the employee productivity level. In the context
of Arcadia Group, this influences HRM decision-making because more productive employees
help in achieving the goals and objectives which are set for them which can help the HR
department in better implementation of the decisions which they have taken.
Reduction of conflicts- With good relations between the workers and the HR department
the conflicts between them are also reduced (Van Wingerden, Derks and Bakker, 2017).
Therefore for Arcadia Group, this can ensure that HRM decision-making is influenced because
less conflicts will mean that the HR managers will be in a better position to take decisions after
the consultation with the employees of the organization.
Thus, from the above discussion it can be said that forming of good relations with the
workers is necessary for the HR department as it allows them to take better decisions.
P6: Employment legislation and its impact on HRM decision-making
Employment Legislation Act 1996-
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This act was passed by the parliament of U.K. in the year 1996. It is one of the most
important acts which determines the various rights of the employees in the organization for
which they are working. The different elements in this act and the influence they put on decision-
making are as follows-
 Employment contracts- According to this act, an organization should be able to provide
employment contracts to its workers (Wiblen, 2016). Thus the HR managers of Arcadia
Group need to take decisions accordingly and provide employment contracts to their
workers.
 Unfair dismissal- This act has strict provisions regarding the unfair dismissal of the
workers in a workplace. Therefore, Arcadia Group's HR managers need to consider this
aspect and therefore make sure that decisions regarding dismissal of an employee is taken
according to the provisions of the law.
 Leave policy- This act has provisions regarding the leave policy of the workers in the
organizations. In the context of Arcadia Group, the HR department needs to ensure that
decisions regarding leaves of the employees are taken according to the law.
 Redundancy- It refers to a state where an employee is no longer required as is not useful
for an organization. The act has provisions regarding it. Thus if the HR department of
Arcadia Group wants to remove an employee due to redundancy it needs to make sure
that it considers its legal rules and provisions.
Employment Relations Act 1999-
This act has several provisions which are required to be considered by the HR department
of the organizations before taking decisions (Zhong, Wayne and Liden, 2016). Some of the
elements of the act are as follows-
 Trade Union Recognition- This act has recognition for the trade unions (Zhou, Fan and
Son, 2019). Therefore for the HR department of Arcadia Group it is essential to consider
its provisions before they take any decision regarding the trade unions in the company.
 Trade Union Derecognition- According to this act, there are provisions for
derecognition of trade unions also. Thus if the HR department in Arcadia Group is
required to take action regarding the same then they need to consider the law and take the
necessary action.
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 Industrial actions- This act has provisions for industrial actions. In Arcadia Group, the
HR department has to take into consideration the actions which the industry is taking
according to the law.
TASK 4
P7: Application of HRM practices
Job Advertisement-
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Store Manager Required
Arcadia Group, a leading British Company requires store manager for its
different stores across London. Applications are invited from talented individuals
seeking to prove their worth in a highly competitive environment. The details of
the role are as follows-
Position- Store Manager
Desired Experience- At least 5 years of experience in managing a store in the
retail sector
Monthly Remuneration- 60,000 pounds per month + Extra Incentives for good
performance
Location- Multiple stores across London
Educational Qualifications- At least a graduate in any stream.
Eligible candidates are required to appear in the interview with proper
Resume and other documents supporting their candidature for the position. The
Dress Code for Interview will be formalwear.
Senior HR Manager
Arcadia Group

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Job Description-
Store Manager-
Reports to- Store Manager will report to Senior Manager of Operations.
Job Overview- The role of Store Manager will be to ensure the supervision of
the entire store and make sure that the store is able to function in a proper manner
. The responsibility of cooperating and coordinating with the staff members in the
store will also lie with the Store Manager to ensure that the customers visiting the
store do not face any problem.
Responsibilities and Duties-
 To ensure the supervision of the employees working at the store.
 To maintain proper working pattern within the store.
 To prepare time-to-time reports are sent to the higher-level management
 To ensure proper maintenance of accounts of the store
Qualifications-
 Education level- At least a graduate in any stream is desired
 Experience- At least 5 years of experience is desired in handling of a
store.
 Skills- Management and Administration skills are required for the
handling of this role with perfection.
 Personal characteristics- The candidate should have smart personality
and must be able to administrate working of the store by displaying strong
management skills.
Senior HR Manager
Arcadia Group

CONCLUSION
From the above report, it can be concluded that Human Resource Management is a
process through which the employees of a particular organization are managed in a better
manner. Its use is essential for the organizations so that they are able to achieve their distinct
goals and objectives in the future time period by properly motivating the employees to perform
better. HRM has a specific purpose and different types of functions, the different approaches to
recruitment and selection has its own strengths and weaknesses, HRM practices has its own
benefits for employers and employees, these practices are quite effective in terms of raising
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Offer Letter-
Dear XYZ,
We, at Arcadia Group are pleased to inform you of your selection to the post
of Store Manager at 214, Oxford Street. We are sure that you must have put a
strong impression on the minds of those who have interviewed you with the
talent and skills which you have displayed.
You will be taking charge in a position which allows you to display your
management and administration skills in a better manner. We are confident
that you will be able to display your talent in this position and justify
yourself. Some of the details regarding the job role are as follows-
Position- Store Manager
Location- 214, Oxford Street, London, United Kingdom
Work Hours- 10 hours per day
Monthly Compensation- 60,000 pounds per month + Added
incentives.
We hope that other terms and conditions have been communicated to
you by the HR team during your interview process. If you choose to accept
this letter, kindly sign it and provide it to the HR department.
Senior HR Manager
Arcadia Group

organizational profit and productivity. Employee relations are important and can influence HRM
decision-making, employment legislation can create an impact on the HRM decision-making.
Also, the application of HRM practices can be done in a work-related context by making the use
of Job Advertisement, Job Description and Offer Letter.
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REFERENCES
Books and Journals:
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