Analysis of HRM Practices and Employment Legislation

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Unit nr + Unit Name
Surein Rheeder
HNC Business (Cohort)

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Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1 – WRITTEN REPORT................................................................................................4
Task 2.......................................................................................................................................11
JOB SPECIFICATION........................................................................................................11
JOB OFFER.........................................................................................................................14
CONCLUSION........................................................................................................................17
REFERENCE LIST.................................................................................................................18
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INTRODUCTION
The report analyses the factors affecting the employment relationship within the business
entity. The function carried on by the HRM department of the company which helps them in
achieving goals and objectives. The importance of the process of training and development
help the management of the HR department in motivating employees which are discussed in
the report. The factors which affect the decision-making process of the company is evaluated
in the report. The different approaches of recruitment and selection are discussed in the report
along with their merits and demerits.
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TASK 1 – WRITTEN REPORT
Human resource management is a business practice which helps the management in
managing the most important resources of business entity which are human resources. This
activity includes different functions of human resource management of the company which
includes hiring, recruiting, training, motivating, managing, and developing human resources
(Rouse, 2019).
The HR manager is responsible for staffing, employee compensation benefits, and designing
work. For staffing, he is responsible for recruiting the right employee for the right job at the
right time. For compensation benefits for employees, he is responsible for organizing the
reward system within the business along with other vacation pay, profit sharing, and bonuses.
Main functions and activities of HRM
The main functions of HRM are described as follows:
Recruitment and Selection – It is an important function of HRM where the employees are
selected according to their skills and qualification for the job. This function involves different
activities such as screening, captivating, staffing, and selection of potential employees.
Employee Relations – It is another important function of HRM which describes the culture
of the company. Employee relation is maintained by HR manager for gaining greater support
of workforce by influencing their behaviour and work performance.
Compensation and Benefits – Compensation and benefits are provided to the employees as
per their work performance within the company. The goals and objectives of the company
can be attained in an effective manner by providing benefits to employees such as extended
vacation, medical insurance, education reimbursement for children, the flexibility of working
hours, etc.
Training and Development – Another function of HRM is training and development which
is provided to the employees with a motive to improve their working skills and performance
in the company. The motivational level of employees is also increased with the help of the
training and development function of HRM.
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Best fit approach v/s best practice
BEST PRACTICE BEST FIT
The best practice approach is used by the
management for gaining a leading position
in the market and to improve the work
performance of the employees.
The main focus of the best-fit approach is to
interlink the strategies of the HR department
with the strategies of the whole organization
which is done with the help of cultural and
organizational process.
The organizational performances are
connected with the HR practices with the
help of strategies made under best practice
approach.
The needs of both the employees and the
organization are fulfilled with the help of
the best-fit approach.
Hard and soft models of Human resource management
Hard HRM is an HRM practice where the employees are considered an asset of the company
for the production and manufacture of goods and services.
Soft HRM is an HRM practice where the employees are taken for their participation in the
decision-making process and they are considered as the most valuable resource of the
company.
Workforce planning
Workforce planning is the method of evaluating the demand for employees within the
company and appointing the right people at the right job at the right time (Rouse, 2017).
Types of Labour Market
The labour market is the place where the supply and demand for labour are analysed where
employees help in providing the supply of market and employer-provided demands for labour
in the market (Business Dictionary, 2019). There are two types of the labour market which
include internal and external labour market.
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The internal labor market is market, where the employees are hired from within for an entry-
level job and wages, are also internally defined. The external market where the workers and
employees are moved between firms and wages are set as per some aggregate process.
Labor market trends and PESTLE
The HR manager should identify the trends of the labor market which include employability,
skills, customer service, economy awareness, degree of turnover, global competitors,
contingency workers, and cost of education, etc.
Political – include the culture of organization, rules and regulation, shareholders views,
services, and infrastructure.
Economic – include the cost of labor, business cycle, rate of growth.
Social – including education, health, diversity, attitudes towards career, income distribution
and other factors (Elmansy, 2019).
Technological – include new technological systems, communication technologies, and HR
software.
Legal – including minimum wage, regional laws, working time, and other court laws.
Environmental – include staff morale, staff engagement, climate change, and availability of
resources.
Analyzing turnover, stability, and retention
Employee turnover is the rate at which the employees leaves the business organization.
Employee stability is the percentage of employees employed in the company for a specified
period.
Employee retention is the percentage of employees present in the company within a specified
period and as per their length of services.
The impact of the legal and regulatory framework.
The compliance process applicable to the company include displaying posters, the prohibition
of inappropriate behavior, and report filing. Non-compliance of these laws expose the
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company to legal suits and legal litigations, and concern HRM for the job security of
employees.
The impact that advances in technology has had upon improving the efficiency of HR
practices.
HRM can improve training and development methods by using computer information
technology for giving training to employees in remote areas. The company can reach a large
number of employees for recruiting capable employees.
Strengths and weakness of different approaches to selection and recruitment
METHOD ADVANTAGE DISADVANTAGE
Online job boards and
websites
It has massive reach.
It is a speedy method of
recruiting (Peterson, 2019).
Low cost is required.
Computer knowledge is
essential.
This method may lead to a
technical error.
Recruitment agencies This method ensures
privacy.
Knowledge of experts can
be used.
The company gets a
response at speed.
Sometimes the methods are
not effective for candidates
who require personal
dealing with the employer.
Search consultants This methods does not
involve hiring and thus has
less risk.
The knowledge and
experience of experts are
used.
This method has fewer
candidates.
This method is
comparatively costly.
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BENEFITS OF DIFFERENT HRM PRACTICES
Conflict resolution – the conflicts between the employees and management or between the
employees is resolved by managing employees of different attitudes, behavior, personalities,
and lifestyles (Scott, 2019).
Employee relation – HRM Practices of ALDI will help the company employer in getting the
support of employees by employee relation and help employees in improving work
performance by getting a healthy work environment in ALDI.
Training and Development – The employers of ALDI will be benefitted by training of
employees by reaching the goals effectively and employees will get satisfaction by career
development through training and development.
Different methods used in HR practices
Recruitment and selection – HRM practices of ADLI help in attracting more and more
deserving and capable workforce for the company. The selection process is made easier with
the help of HRM practices of ADLI (Mayhew, 2019).
Development and training – HRM practices employ training and development programs for
the employees which help the employees in improving their performance skills. ADLI
continuously makes efforts for organizing training sessions for their employees.
Reward system – The employees can be effectively motivated by the HR manager with the
help of reward system of HRM practices. ALDI provide retirements saving plans, welfare
benefits, paid holidays, pension, paid sick leaves, etc. to its employees.
The evaluation of different HRM practices in terms of raising profit and productivity
The main focus of the HRM practices within ALDI is to improve the productivity level and
increasing profits of the company.
Healthy and positive work environment are established by the HRM practices in ADLI which
increases the work performance of employees.
Training and development are essential practices of HRM of ADLI which help the company
in achieving its business objectives by improving the working level of the employees along
with motivating them.
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The employee relation is maintained effectively by the HRM practices of the business entity
which promotes productivity and performance level of the workforce (Peters, 2015).
IMPORTANCE OF EMPLOYEE RELATIONS TO INFLUENCE HRM DECISION-
MAKING PROCESS
HRM decision making process is an essential function of human resource management which
help the company in achieving its goals and objectives in an effective manner. When the
employees are included in the decision-making process of the company, the management gets
full support of the employees along with getting innovative ideas for making decisions
(Anderson, 2019).
The positive work environment is maintained by the management with the help of fostering
employee relations within the company. This help as a great motivator for the employees who
work with enthusiasm and work better for the decisions made by the HRM department.
Evaluation of key aspect of employee relationship management and the effect of
employee legislation on HRM decision making
The business objectives are effectively attained with the assistance of employees by
employee relation within ALDI.
The management can promote teamwork and cooperation within the company which helps it
in attaining leading position in the market.
Transparent communication among the departments of the business is ensured by employee
relationship.
HRM decisions are taken by keeping in mind the laws related to the minimum wage rate,
working condition, and fixed working hours for the employees.
Impact of employee legislation that affects HRM decision-making
The legislation made for managing rules and regulation regarding the working conditions for
the employees in the business entity is known as employee legislation. The decisions are
made by the management of the human resource department by keeping in mind laws related
to wages, working hours, and working conditions of the employees. The rights and
obligations of employees should be considered by the company for making decisions
regarding human resources of ADLI. This employee legislation includes age discrimination
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act, Fair Labour Standards Act, Occupational health and safety act, the Civil Rights Act, the
Equal Pay Act, Americans with Disabilities Act, the Family Medical Leave Act, etc.
Key elements of employment legislation and the impact it has on decision making of
HRM
The employee legislation regarding minimum wage payment helps the employee in securing
their rights for wages.
Regulation related to the safety and health of employee ensure safety form hazardous
working conditions of the company.
Employee legislation regarding discrimination laws help the employees in preventing
themselves from discrimination from age, caste, disability, gender, religion, language, etc.
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