Analysis of HRM Practices and their Effectiveness in ASDA

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HUMAN RESOURCE MANAGEMENT
ASDA
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Table of Contents
INTRODUCTION......................................................................................................................... 3
LO1................................................................................................................................................ 4
P1 EXPLAIN THE PURPOSE AND FUNCTIONS OF HRM, APPLICABLE TO
WORKFORCE PLANNING AND RESOURCING AN ORGANIZATION............................4
P2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION.......................................................................................6
LO2................................................................................................................................................ 9
P3 EXPLAIN BENEFITS OF DIFFERENT HRM PRACTICES WITHIN THE
ORGANIZATION FOR EMPLOYER AND EMPLOYEE.......................................................9
P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN TERMS
OF RAISING ORGANIZATIONAL PROFIT AND PRODUCTIVITY.................................10
LO3.............................................................................................................................................. 12
P5 ANALYSE THE IMPORTANCE OF EMPLOYEE RELATIONS IN ASDA IN RESPECT
TO INFLUENCING HRM DECISION MAKING..................................................................12
P6 IDENTIFY THE KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND IMPACT
IT HAS UPON HRM DECISION MAKING..........................................................................13
LO4.............................................................................................................................................. 14
P7 ILLUSTRATE THE APPLICATION OF HRM PRACTICES IN A WORK-RELATED
CONTEXT, USING SPECIFIC EXAMPLES.........................................................................14
IMPORTANCE OF THE REWARD SYSTEM......................................................................14
APPLICATION OF HRM PRACTICES.................................................................................15
CONCLUSION........................................................................................................................... 18
REFERENCES............................................................................................................................ 19
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INTRODUCTION
Human resource management plays a significant role in building an effective team of working
professionals that contributes to the success of the organization. Human resource management is
not limited to manage the workforce of the organization emphasize to manage emotional and
physical capital of employees. This assignment is going to discuss the scope and importance of
human resource management in the context of ASDA. This report includes different key
elements of human resource management and their effectiveness. Along with this report includes
a different kind of approaches that are used by the organization in the selection and recruitment
process. Importance and benefits of different HRM practices for employer and employee of the
organization has been discussed in this report. Analysis of internal and external factors such as
employment legislation and engagement in ASDA that have an impact on human resource
decision making is also discussed. At last, the HRM practices applied in the work-related context
of ASDA.
OVERVIEW OF ASDA
ASDA is one of the largest supermarkets in Britain in term of market share. The organization
was established in 1949. ASDA always make efforts to offer the best value to the customer and
the business of the organization built by listening diverse range need and requirement of the
customer and providing products to the customer according to their need. Walmart is the parent
company of ASDA and other then supermarkets ASDA also involves in providing other services
such as financial services.
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LO1
P1 EXPLAIN THE PURPOSE AND FUNCTIONS OF HRM, APPLICABLE TO
WORKFORCE PLANNING AND RESOURCING AN ORGANIZATION
Human resource management is the core function of the organization that deals with the
selection and development of employees in order to make them more valuable and competent for
the organization. Human resource management includes job analysis, selecting the right kind of
people for a particular job, providing salaries, wages and incentives to employees provide
adequate training to employees, performance evaluation and resolving the grievance of
employees (Rouse, 2019).
PURPOSE OF HRM
If the employees not get the satisfactory working condition, compensation and feel that there is a
lack of career opportunity and job security then they leave the job. Purpose of HRM In ASDA is
to make efforts to prevent these issues and increase productivity and performance of the
organization by selecting the right kind of people.
FUNCTIONS OF HRM
Functions of HRM in ASDA divided into two categories that are managerial and operative
functions.
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Managerial functions include planning, organizing, directing and controlling activities and
performance of employees. Managerial functions help the organization to identify the current as
well as future workforce need. This includes assigning tasks according to skills and qualities of
employees and combine activities in order to achieve the common goal of the organization.
Motivating and guiding employees at a different level so that they are able to contribute towards
the goal of the organization effectively (Mayhew, 2019). Measuring the performance of
employees and if there is any difference between actual performance and standard performance
then appropriate actions are taken.
Operative functions include a selection of the right kind of people for the job and then
providing appropriate training to them to perform their job effectively. Training and
development enable the organization to prepare employees for a high level of responsibilities.
This function includes the pay for different types of job in the manner that it will be satisfactory
for each level employee. Apart from this, operative functions take care of several facilities and
services provided for the welfare of employees (Heathfield, 2019). One of the most important
aspects that are included by this function is research about the opinion of employees on wages,
working condition and promotion and most important keep eye on employee satisfaction.
Workforce planning is one of the important functions of HRM that enable the organization to
select the right kind of people who has the right competencies and skills for the right place at the
right time.
SCOPE OF HRM FUNCTIONS
Scope of HRM is extremely wide but for a clear understanding of the subject it is elaborated as
follows
Industrial relation aspect-This is one of the important areas of HRM that includes maintaining
a cordial and healthy relationship with union members, employee-employee and employer-
employee. This ensures the smooth working of the organization by facilitating coordination with
each other (Balle, 2019).
Welfare aspect- Employees start giving preference to health and safety nowadays. This refers to
the working conditions of the organization such as safety and health recreation facilities, canteen,
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transport and medical assistance. There are certain rules and regulations related to the health and
safety of employees that should be followed by the organization.
Personal aspect- This refers to human resource planning as well as recruitment and selection of
candidate. It also deals with providing adequate training to the employees for their development
and growth in the organization (Louch, 2014).
P2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION
Recruitment and selection both are the most important functions of the human resource
management department of the organization.
RECRUITMENT-This considered a positive process that involves searching prospective
candidate or employee for the organization. Recruitment is a positive process because this is
design to attract more applicants so that the organization has more options to choose the best out
of them.
SELECTION- This refers to the process that includes to selector shortlist right kind of people as
per essential skills and qualification. Selection is considered a negative process because it
involves rejecting those people who are not competent and qualified for a specific vacancy in the
organization (Zojceska, 2018).
APPROACHES TO RECRUITMENT AND SELECTION
INTERNAL APPROACH- This refers to hire employees within the organization. In other
words, it can be said that applicant chase for various positions is those who are working in the
same organization. At the time of recruitment preference giving to those employees who are
currently working in the organization. Internal recruitment can be done in different ways such as
 Promotion- This refers to shift employees from lower designation to higher designation by
evaluating their performance.
 Transfer-This refers to the process that includes interchanging employee from one job to
another without making a change in the roles and responsibilities.
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 Internal advertisement-This is the process of posting an advertisement for a job within the
organization. This is kind of open invitation to all employees who are working in the
organization and provide equal opportunities to employees.
 Employee referrals-This refers to the process of selecting a new candidate with the help of
reference provided by employees who are working in the organization.
 Previous applicants-This refers to the process in which the hiring team of the organization
checks the profile of those applicants who have applied for a job in past from organizational
recruitment database.
EXTERNAL APPROACH-This is just the opposite of internal recruitment. This is the process
of recruiting and hiring a candidate for a vacant position from outside of the organization. In
other words, it can be said that applicants chasing in this approach for job opportunities are those
who do not belong to the organization. Organizations can perform external resources in different
ways such as
 Campus recruitment-In this method educational institute like colleges and universities offer
job opportunities to students. Organizations visit technical and management institutes to
recruit students directly for the new positions.
 Employment agencies-This is one of the effective ways to recruit employees externally.
These companies work as an intermediator between the organization and prospective
employees. These companies maintain data of job seeker and job vacancies in various
organizations and try to make a perfect match (Zojceska, 2018).
 Advertisement- This is the most widely used method by the organization to recruit skilled
employees. In this kind of method, the organizations make the announcement of vacancies
through different types of media such as television, internet, newspaper etc.
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Strength and weakness of the competency approach
STRENGTHS WEAKNESSES
 New employees have an innovative and
new idea this will bring positive change in
the organization.
 This method will help the organization to
find out a suitable and potential employee
for a specific position.
 The organization has a wide range of
option to select the best candidate for a
particular designation.
 This approach is time-consuming and
includes a high cost.
 In this method, an organization recruit new
employees and there are chances that new
employees are not able to adjust to the
environment. In this situation, management
may replace that person or a person may
leave the job. This will affect the working
of the organization.
Strength and weakness of the contingency approach
STRENGTHS WEAKNESSES
 This approach is easy, quick, cost-effective
and simple.
 There is no need for training and induction
because candidates are aware of their roles
and responsibilities.
 This encourages employees to work hard
and with a dedication to achieving a higher
position in the organization.
 It helps to increase the loyalty of
employees towards the organization.
 The main weakness of this approach is
that it prevents the hiring of new
potential resources. This, in turn,
prevents new and innovative thinking.
 This can be the reason for disputes
among employees who are promoted or
who are not.
 This approach has limited scope and
results that some position may not feel
and remain vacant.
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LO2
P3 EXPLAIN BENEFITS OF DIFFERENT HRM PRACTICES WITHIN THE
ORGANIZATION FOR EMPLOYER AND EMPLOYEE
Human resource management is a kind of procedure that links different functions of human
resource with the core objective of the organization in order to enhance productivity. The HR
department of the organization has to follow some practices, HRM practices refer to the set of
human resources management actions and process that adopted universally (Galic, 2018). These
practices include providing safety and security, training in a relevant manner, fair compensation,
properly evaluates performance without biasness etc. These HRM practices have benefits to
employee and employer. Following are the benefits of HRM practices to employee and employer
Benefits to employee
 HRM practices help the employee to make efforts to enhance performance and efficiency.
 Create a healthy and positive work environment for the employee.
 Helps to increase job satisfaction and this, in turn, increase productivity.
 It helps employees to enhance their skills as well as the knowledge that in turn help them in
career development.
 HRM practices provide the employee with certain security and safety rights.
Benefits to employer
 HRM practices bring positive changes in the management of the organization by
implementing specific rules and regulations.
 Effective training and development enable the management of the organization to increase
the efficiency and productivity that in turn creates more opportunity for the organization.
 HRM practices involve providing rewards, incentives and performance measurement helps in
a high level of employee satisfaction.
 By implementing HRM practices effectively would help the organization to reduce employee
turnover rate.
 HRM practices enable the organization to resolve conflicts effectively.
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P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN
TERMS OF RAISING ORGANIZATIONAL PROFIT AND PRODUCTIVITY
As competition is increasing day-by-day, effective HRM practices help the organization to
sustain in the market and gain a competitive advantage in the market. HRM practices refer to the
system that helps the organization to attract, motivates, develops a positive relationship with
employees and retain employees to make sure survival and effective functioning of the
organization.
There are different HRM practices used by ASDA
Performance management system-This is one of HRM practices that is implemented by ASDA
to ensures that all employees of the organization have knowledge of individual-level
performance which the organization expecting from them for a specific role. This is used by the
organization to regulate and monitor the performance of employees.
Skills monitoring-
Training and development- Various types of training and development programs conducted by
ASDA to develop skills and knowledge of employees that help the organization to create more
competent and valuable employees. The HR department of ASDA makes sure that there should
be the continuous development of the employees that help the organization to achieve a high
level of productivity and enhance performance.
Providing security to employees-This is one of the best HRM practices ASDA implements.
This practice helps the organization to retain employees and increase the level of employee
satisfaction. This concept of security is very essential for the organization to retain the competent
and best talent.
Fair evaluation system-ASDA implements an evaluation system that directly links the
performance of the individual to the goal of the organization. Evaluation of employees based on
the performance of employees throughout the year this help in the fair evaluation and mitigate
conflicts related to evaluation among employees (Doyle, 2019).
Open house discussion and feedback mechanism- To nurture recognize and execute
innovative and great ideas this HRM practice implemented by ASDA. This helps the
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organization to maintain such a working environment that encourages employees to share their
thoughts and ideas freely.
Rewards- One of the best ways to maintain the morale of employees this can be said that only
recognizing talent is not enough an organization needs to couple it with appreciation. Monetary
rewards important to motivate employees along with this non-monetary reward also play a
significant role to encourage employees to give their best to attain the goal of the organization.
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LO3
P5 ANALYSE THE IMPORTANCE OF EMPLOYEE RELATIONS IN ASDA IN
RESPECT TO INFLUENCING HRM DECISION MAKING
Maintaining a healthy relationship with employees is the key element for the success of the
organization. If the organization succeeds to maintain strong relations with the employee then it
is for sure that productivity of the organization will increase as well as it supports higher
employee satisfaction. Employee relations refer to resolving issues concerning individual or
group that arises due to some reason and can influence the working of an individual and whole
organization. In other words, it can be said that employee relations mean efforts of the
organization to maintain and manage the relationship between employees and employers.
ASDA has established good employee relations program that enables the organization in
consistent and fair treatment to all employees and this, in turn, make employees more committed
and loyal towards their job roles as well as the objective of the organization. ASDA maintain
strong employee relation to enhancing productivity and efficiency (Craig, 2017).
To ensure better and strong employee relations and engagement ASDA can implement the
concept of flexible working and flexible organization. Flexible working and organization refer to
the organization where employees can take decisions when needed, finish their work efficiently,
work flexibly when they want and easily adapt to the requirement of customers. Further ASDA
can implement employer of choice concept that enables the organization to create an effective
work culture and environment to attract new talent as well as retain an existing employee.
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