Human Resource Management Practices at Aston Martin

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[HUMAN RESOURCE MANAGEMENT]

Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
LO2........................................................................................................................................... 9
LO3......................................................................................................................................... 11
LO4......................................................................................................................................... 15
CONCLUSION.......................................................................................................................... 19
REFERENCES........................................................................................................................... 20

INTRODUCTION
The purpose of this assignment is to evaluate the scope of human resource management
and appreciate the principles and practices of effective HRM. It is concerned with managing
the people at the organization. Moreover, human resource management covers the
activities of attracting, recruiting and retaining fresh and talented sets of employees. The
report helps us to explore the tools and techniques of effective HRM that helps to maximize
employee's contribution so as to gain a competitive advantage. The report discusses the
aspect of Human Resource Management in context to Aston Martin. Thus, the report
provides a holistic approach towards the functioning of HRM in context to Aston Martin
(Héroux et al., 2017).

LO1
Human resource is all about managing the workforce at the organization and is concerned
with the activities of recruitment, proper selection, training and performance of an
individual at Aston Martin (Guerci et al., 2015).
Background of the organization
Aston Martin is a UK based company that manufactures grand tourers and luxury sports car.
The organization operates independently and is known for iconic production of luxury cars.
The company generated annual revenue of £1,096.5 million in the year 2018 and operates
its business operation effectively by employing more than 3000 people (Foster, 2014).
Vision
The long term vision of the company is to provide the most exceptional customer
experience by simply providing the best in every area of business.
Core Business objectives
Following are the core objectives:
 To provide employees with the best place to work.
 To build a strong and supportive community across the organizational culture.
 To coordinate the individual and collective actions so as to achieve business
objectives.
 To seek innovation and constant growth in the automobile industry (Cascio, 2018).
Our Team
The company fun loving workplace culture so as to bring together the individual actions
towards attainment of common goals. The organization focuses on meeting individual
needs so as to attain larger group objectives. Furthermore, the HRM department at
Aston Martin put their constant efforts to create an unbeatable environment with
respect to internal and external customers as well as differentiating them from the
competition.

Human resource management is the process of planning, organizing, directing,
controlling and development of individual skills so as to achieve the organizational
objectives. The basic goal of HRM is to achieve competitiveness by attracting, recruiting
and retaining the talented employees (Guerci et al., 2015).
Purpose of HRM
The human resource department at Aston Martin focuses on improving productivity by
incorporating high work-life standards across the organizational culture.
 To establish a connection between the top management and employees.
 To design rewards and incentive schemes so as to motivate employees.
 To manage the manpower inventory at Aston Martin and establish rapport
amongst them (Marler and Parry, 2016).
 To enrich the potential talent of the employees by providing appropriate training
and development sessions.
 To incorporate ethical values and principles to be followed by the employer and
employees.
 To keep employees motivated so as to provide their best to the organization.

Scope of HRM
 Labour or Personnel Aspect
 Welfare Aspect
 Industrial Relation Aspect
Functions of HRM
Recruitment and Selection
The human resource manager at Aston Martin required appointing the right people for the
right job. The HRM function is concerned with the advertising of the vacancy through
various sources and screening of the potential talent of the candidate according to the job
specification. This will ultimately contribute to the success of the organization.
Training and development
This function of HRM is concerned with providing appropriate training in order to educate
and enrich the skill of potential employees. Thus, improves learning's of the employees will
help Aston Martin in improving overall productivity. Effective training and development
programs can contribute in terms of reducing costs and fulfilling the career development
objectives of the employees (Phillips, 2012).

Planning and organizing
This function of HRM is concerned with planning the manpower requirement in future. It
also helps in managing the shortage of manpower by means of job rotation. The function of
organizing involves identifying the responsibilities and duties of individual working at Aston
Martin so as to coordinate their efforts in an effective manner.
Staffing and Budgeting
HRM Function ensures placing of the right employees for the right job at the right time.
Moreover, the department is also concerned about taking care of employee’s salary, leaves,
bonuses, taxes and other aspects.
RECRUITMENT AND SELECTION
Recruitment is the process of hiring a suitable and potential candidate for the purpose of
carrying out specific job role (Noe et al., 2014). It requires screening of best fit candidate
amongst the pool of candidate. Selection is defined as the process of placing the right
candidate for the vacant position. Thus, the HRM department at Aston Martin can use
various approaches of selection and recruitment for improving the overall productivity of
the business organization.
Various approaches to recruitment and selection
Internal sourcing Internal sourcing is the method of hiring people within the organization.
Internal recruitment can be done by way of promotion, transfer an
employee referral. This method of recruitment helps to boosts up the
morale of the employees (Li et al., 2016).
Strength
 It increases the confidence level of the employees.
 Less costly
 A most reliable method of selection.
 Improves the effectiveness and efficiency of the work as an
employee is already familiar with the organizational work
culture (Foster, 2014).

Weakness
 Discourage entry of fresh talent in the organization.
 It tends to leave a gap in the existing workforce.
 Put a limit on the pool of talent.
External sourcing External recruitment is the process of hiring the candidate outside the
organization after doing screening amongst the pool of talent.
Strength
 Selection of right person amongst a large pool of candidate.
 Opportunity to a fresh set of talent so as to stay competitive.
 Fulfil the organizational objective by creating multi – diversity
team (Bull et al., 2016).
Weakness
 It is a costly method of recruitment.
 It reduces the morale of the existing employees and tends to
impacts productivity.
Third Party
Sourcing
This is the process of hiring the candidate through recruitment agencies
or counsellors. In this method, the third party is responsible to match
the skills and abilities of a potential candidate with a suitable job.
Strength
 The third party is responsible to ensure the right candidate for
the right job.
 Saving in advertising cost for the company
Weakness
 The high cost of recruitment.
 Lack of control
 Communication issues between management and employees
(Brewster et al., 2016).

LO2
The effective management of people is based on the integration of HRM practices at Aston
Martin. A plan needs to be devised for the purpose of fulfilling business objectives and goals
in context to Aston Martin (Bull et al., 2016).
Human resource management is responsible to improve the potentiality of employees for
the achievement of strategic goals and targets. Thus, the effective practices of HRM provide
benefit to both the employer and employee in context to Aston Martin (Cascio, 2018).
Benefits for Employer
 Help in reducing operational and fixed costs.
 Better allocation and distribution of resources.
 The function of HRM enables Aston Martin to explore new opportunities in the
market (Farouk et al., 2016).
 Help in the stimulation of the business process as well as streamlining of the
business process in an effective manner (Foster, 2014).
 Help to maintain the balance between demand and supply of labour force in context
to meet organizational requirements.
 Better use of the potential talent of employees can create additional revenues.
 Reducing the rate of absenteeism (Fu et al., 2015).
 Help in raising overall organizational profitability and productivity.
Benefits for Employees
 Helps to solve the unemployment problem.
 Better opportunities to the employees so as to realize their potential talent.
 Opportunity with respect to good training sessions and development programs.
 Enable employees to manage work-life balance and fulfil their responsibilities and
duties.
 HRM function tends to fulfil individual needs that keep them motivated and
satisfied.
The innovative practices can really provide a potential benefit to Aston Martin in driving the
profitability of the company.

High performance of
the employees &
Innovative practices
The integration of effective HRM practices at Aston Martin can
encourage and motivates employees to come up with unique
ideas of producing car and thereby providing exceptional
customer experience (Marler and Parry, 2016).
Reduced Turnover The effectiveness of HRM Practices helps in reducing the rate of
employee's turnover. The function of HRM is concerned with
selecting the right talent for the right job. This will help the
individual in carrying the job role effectively through the
application of hard and soft skills. Furthermore, Aston Martin
provides fun-loving workplace culture to the employees that help
in keeping them motivated and providing their best to the
organization.
Minimizing the threat
of litigation
The effective HRM practices are based on compliance of
employment legislation and other regulatory framework
associated with employment. This will make employees feel safe
and secure within the organization and acts as a driving force to
boosts up the profitability of the company (Noe et al., 2014).
Rewards drive
performance
Effective HRM practices must consider the aspect of linking
rewards with individual performance. This will help Aston Martin
to make effective utilization of the human resource and improve
profitability.
Execution of plan and
effective direction
The human resource manager at Aston Martin requires to set out
the responsibilities and roles of an individual and also provides the
right direction towards the achievement of common goals
(Phillips, 2012).

LO3
Employee Relations at Aston Martin
Employee relations management is an important aspect of effective HRM. It’s an integral
part of the confidence and trust of employees on the management of the organisation (Bal
et al., 2012). Effective employee relations management contributes towards the success of
an organisation like Aston Martin since its influences aspects like compliance, employee
motivation, loyalty, as well as the commitment to the organisation, etc. The HR at Aston
Martin comprehends the importance of employee relations and focuses on creating a work
environment that promotes a productive association between the organisation and its
employees (Van De Voorde et al., 2012).
Figure 1: The Components of Good Employee Relations
Source: Croucher et al., 2012
Employee relations are important for an organisation like Aston Martin due to its influence
on various aspects on the work culture of the organisation. Good employee relations allow

effective working with the easy and transparent distribution of the work. It also helps in the
reduction and quick resolution of workplace conflicts thereby allowing an uninterrupted
flow of work. Another influence of effective employment relation management has
enhanced the loyalty of the employee towards the organisation while incorporating a
disciplined atmosphere that promotes work efficiency (Bal et al., 2012).
Effective employment relation management also works positively towards the reduction of
absenteeism due to the understanding of employees regarding the importance of their work
and themselves within the organisational framework and the achievement of organisational
goals and objectives. It also helps in enhancing the motivation levels and the job satisfaction
levels of the employees that in itself improves their performance levels thereby positively
influencing the performance of Aston Martin (Van De Voorde et al., 2012).
Aston Martin is specially focused on maintaining good employee relations within the
organisation and the HR at Aston Martin spearheads these efforts. The reason behind this
focus on employee relation is the role it plays in ensuring the effectiveness and smooth
operation of organisational functions (Van De Voorde et al., 2012). The HR at Aston Martin
being the representative of the employee and the management alike bears the
responsibility of enhancing employee engagement and maintaining employee relations. The
function of Aston Martin HR is to ensure that the management and employees are open,
trustful, cooperative, and amenable towards each other. These are basic aspects of
developing and maintaining good employee relations (Bal et al., 2012).
The HR works towards ensuring the fulfilment of the Psychological contract or the mutual
expectation of both employees and the company (Van De Voorde et al., 2012). It also
ensures the compliance and provision of basic employee rights such as time off, guaranteed
wages, availability of flexible working on need, regulation of work time, leaves, training and
development activities, etc. Some of the practices being employed by the HR at Aston
Martin and the organisation to promote good employee relation include the provision of
paternity and maternity leaves, maternity and paternity pay, flexible work s, Antenatal care,
conflict and contradiction resolution in a manner that doesn’t affect the innovation a by-
product of contradiction, etc. (Bal et al., 2012).