HRM's Importance in Gaining Competitive Advantage (Module Report)

This report delves into the significance of Human Resource Management (HRM) in contemporary business environments, particularly within the context of achieving a competitive advantage. The report begins with an introduction defining HRM and its role in organizations, using ASOS plc as a case study. The main body explores the evolution of HRM, from the industrial revolution to the present day, highlighting the strategic, management, system, and reactive approaches. It emphasizes the critical role of HRM in recruitment, training and development, employee satisfaction, and benefits. The report concludes that effective HRM is essential for organizational success. The report references various academic sources to support its claims, providing a comprehensive analysis of HRM's impact on modern businesses. The report explores the application of HRM in the context of ASOS plc and other sectors, underscoring its importance in today's business world.

HRM- Assessment 2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCE ..................................................................................................................................7

INTRODUCTION
Human resource management is defined as important aspects of business organization
that understand the roles and perform all functions accurately. A HR is needed at every place as
it brings new policies and standard in order to operate a business regularly and develop the
business understanding by managing all activities effectively (Ringle and et.al., 2020). In other
words human resource management is defined as important aspects of organisation that
formulates the effective planning and strategies in order to increase the business sales and
profitability. For HR management it is needed to conduct proper analysis and bring new changes
which can help to develop the productivity and brand image. To understand about human
resources and its roles in an organization ASOS plc has been taken that is British online fashion
and cosmetic retailer company in UK. The company is founded in 2000 that sells more than 850
brands as well as its own range of clothing and accessories. The report is considering the
importance, strategies of using HRM, and legislations that helps to operate the business
regularly.
MAIN BODY
The research about human resource and managing a talent that has increases the
knowledge and understanding that how an organization can arrange the all workforce and
complete the task effectively. In an organisation number of people are living where it is
important to conduct the proper analysis, know needs and wants of their staff and make the right
correction that helps to increase the organizational productivity. If all functions and activities are
properly managed then it will be an opportunity to grow the business and increase brand image.
The evolution of HR involves a period in which human being has evolved as how the all
organizational functions can be properly operated (Diaz‐Carrion, López‐Fernández and Romero‐
Fernandez, 2020).
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This evaluation states that society was firstly an agriculture economy with limited production
where number of businesses and crafts were also limited and they are carried out in village and
community with providing training and apprentice. Between the year 1750 to 1850, industrial
revolution marked the conversion of economy from agriculture based where people were facing
the problem in maintaining the clear communication. During this, a department has been setup
for the purpose of looking in to workers, welfare, wages and other related issues that should be
solve and manage the all people properly. It had been seen that people are working in
organisation from a long period where different problems are facing by people and affecting the
organizational performance. In period of industrial evaluation major focus on worker's wages
and salaries, worker's record maintenance, and worker's housing facilities and health care that
can help to make feel safe to employees and managing the task (Evolution of Human resource
management, 2020).
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The post evaluation of industrial revolution which started after 1850, different studies and
experiments were released and research also conducted during this period that have increased the
knowledge and understanding about a person who can manage and arrange the employees at a
workplace. This provide the higher benefits by completing task as people needed to work
collaboratively and manage the functions. By considering different theories and management
approach which have given by Frederick W. Taylor helps to arrange the all people and increase
the performance. This involves worker's training, maintaining wages uniformity, and focuses on
continuous productivity. As technology and working activities of companies are increasing
where it is important to have a person who can maintain the good relation between employer and
employees by formulating all approaches and theories that can help to operate a business
regularly (Stefanović and et.al., 2019). With increasing technology and knowledge of industry,
Human resource management is assumed more critical role in today's time. Thus, a person have
been identified who have ability to recruit, provide training, managing staff and increasing the
performance is known as Human resource management. This helps to decide the long term goals
and classified the roles and responsibilities accordingly which can help to increase organizational
productivity in competitive environment.
The human resources are needed at different stages and sectors as it understand the needs
of organization that are operating business in different sector such as retailing, transportation,
sports, administration, technology, product selling and others that can help to manage the all
workings and develop the business performance. Somewhere, it is needed to arrange employees
at right place so they can work by using their skills and capabilities optimally, needed to
formulation of new policies and standard that can help to manage the all workings, recruiting the
staff and getting the work done by providing training which supports to develop the
organizational productivity and profitability (Romero and Carnero, 2019). The different
approaches of human resource management in relation to ASOS Plc and other sectors are defined
as:
Strategic approach – This is main approach which is required almost every place as
strategies are required to manage the all functions and activities that supports to increase the
business performance. It has evaluated that people are strategic assets of business industry as
they have core competencies and abilities to handle the task and increase the workings. In
relation to ASOS Plc that relates to fashion and cosmetics is needed human resources which is
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the combination of skills and talent in changing trend that can help to introduce the new products
and services that influences number of customers and increase business performance. This HRM
strategic approach mainly focuses on people management, programmes and long term solution
that supports to operate the business and attain the competitive advantages (Sobral and et.al.,
2019).
Management approach – Human resource is considered as part of management wherein
people are managing at workplace that can help to complete the task and develop the business
organization. In relation to Auto mobile sector, management is nothing but managing people at
workplace is important thing as managers of such organization are responsible for managing
staff and its subordinates that develop the understanding that how the activities are going on and
functions should be operated properly (Kulichyova, Moffett and McKnight, 2019).
System approach – This approach is related to elements and part of working together for
a common goal that can help to operate the business and manage the productivity. In this, HRM
is a system that have parts such as procurement, training, performance appraisal and rewards that
can help to arrange the people and develop the business activities. In relation to ASOS Plc,
system human resource management approach is being used by human resource management in
order to provide training to their staff, performance appraisals and other activities which
increases performance and attain the competitive advantages.
Reactive approach – The another approach in relation to human resource management is
reactive that occurs when decision maker responds the problem. It has been seen that if efforts
are reactive only, problems may be compounded, and opportunities may be missed where
organization has to suffer the loss. Whenever, there is any changes occurs it is important to
respond properly or positively as it can help to bring the new technology and innovation in
organization for the purpose of increasing performance and productivity effectively. In relation
to ASOS Plc that is fashion brand is bring changes time to time because needs and wants of
customers also changing. In this, reactive approach is uses by human resource management as
employees accepts the changes properly and training is also provided to staff which can help to
develop the business performance (JAbbas and Wu, 2019).
The importance of today’s HRM in the context of management
Management is defined as administration and coordination of task which is required to
complete on time for the purpose of achieving business goals. The administration activities
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involves setting the organizational strategy and proper communication between employer and
employees that can help to increase the sales. At all places management is important as it
increase understand what needs to be done, how and why so that activities and functions of
organization properly managed. Management is a person who have ability to make plans,
organise, directing and controlling the company functions which can help to operate a business
and attaining business goals. In relation to ASOS Plc, management is focusing on different
functions and activities such as setting objectives, formulation of plans, organising, motivating
the team, devising system of measurement and developing the people which can help to
complete the task and attain the business goals effectively. Herein, HR management has various
roles and responsibilities that should be properly perform so that all activities can be manage and
attain the competitive advantages (de Oliveira, and et.al., 2019).
The importance of HR in today's environment are as explained:
Recruiting and on boarding – This core and foremost thing for organization is to fill the
vacancy by recruiting right people at right place. HR profession is important for managing and
completing such function as it conduct interviews round without any hassle and select the right
people by performing functions efficiently that increases productivity. In relation to ASOS Plc,
HR management is important as it find out the vacancy and make efforts to fill the vacant
position by selecting the right people. On the other side, on boarding is becoming a vital step in
which new staff is leading to understand goals and objectives that has impacted positively. The
HR management provide proper training and recognising from their role which is required to
complete on time that can help to increase the sales and profitability.
Training and development – For employees who are working in a organization is
required to focus on training and develop as it develop the growth opportunities by providing
training to employees. The HR management understand that what their employees wants from
the organization, opportunities and make efforts to fill the requirements which can help to
operate a business effectively. In relation to ASOS Plc, HR collaborate with other department
and try to achieve the business objectives. This helps employer and employees to enhance their
knowledge and skills to get the better results (Aboramadan, 2020).
Keeping check of employee satisfaction – If employees are not happy and satisfied
from organizational benefits and policies then making all efforts by HR are vain because
employees does not get ready to work properly. It has been analysed that there might be
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numerous factors that hamper the satisfaction levels. For all organization it is important that their
employees should be fully satisfied and happy so that different management theory and appraisal
activities uses to make happy. In relation to ASOS Plc, HR management is focusing on Maslow's
theory, Herzberg motivation theory that make happy to customers by filling their expectation
which increases performance (Wikhamn, 2019).
Employee benefits – In today's HR is highly important as it provides the different
benefits by completing task and providing effective environment. As Pandemic occurred in
whole world where it is important for organization to getting work done from employees by
maintaining proper safety and hygiene. The HR management of ASOS Plc, is maintaining proper
hygiene and safety by providing sanitizer at public place and providing mask that increases
organization productivity.
Thus, from the above discussion it has analysed that HRM has evolved for the purpose of
arranging people and developing the organizational performance by focusing on planning,
organising, directing and controlling the functions. In today's time HR has various role who
conduct interviews round and select the best employees.
CONCLUSION
From the report it can be concluded that Human resource management is the activity of
arranging people, conducing interview round, selecting bes people and getting the work done
from their staff. This helps to increase the organizational productivity and profitability as
resources and funds are managing by human resource which can help to operate the business
continuously.
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REFERENCE
Books and Journal
Ringle, C. M., and et.al., 2020. Partial least squares structural equation modeling in HRM
research. The International Journal of Human Resource Management. 31(12). pp.1617-
1643.
Diaz‐Carrion, R., López‐Fernández, M. and Romero‐Fernandez, P. M., 2020. Sustainable human
resource management and employee engagement: A holistic assessment
instrument. Corporate Social Responsibility and Environmental Management.
Stefanović, V., and et.al., 2019. Multi-criteria ranking of workplaces from the aspect of risk
assessment in the production processes in which women are employed. Safety science.
116. pp.116-126.
Romero, I. and Carnero, M. C., 2019. Environmental assessment in health care
organizations. Environmental Science and Pollution Research. 26(4). pp.3196-3207.
Sobral, F., and et.al., 2019. A psychometric assessment of a human resources practice measure
for temporary agency workers. The Spanish journal of psychology. 22.
Kulichyova, A., Moffett, S. and McKnight, J., 2019, June. The Role of HRM as an Enabler of
Creativity: Initial Research Findings. In 18th European Conference on Research
Methodology for Business and Management Studies (p. 370). Academic Conferences
and Publishing International.
Abbas, W. and Wu, W., 2019. Employee innovativeness, fairness and organizational support: An
empirical assessment. Human Systems Management. 38(2). pp.169-177.
de Oliveira, and et.al., 2019. Open innovation in regional innovation systems: Assessment of
critical success factors for implementation in SMEs. Journal of the Knowledge
Economy. 10(4). pp.1597-1619.
Aboramadan, M., 2020. The effect of green HRM on employee green behaviors in higher
education: the mediating mechanism of green work engagement. International Journal
of Organizational Analysis.
Wikhamn, W., 2019. Innovation, sustainable HRM and customer satisfaction. International
Journal of Hospitality Management. 76. pp.102-110.
Online
Evolution of Human resource management. 2020. [Online]. Available through:
<https://hrdictionaryblog.com/2012/10/28/evolution-of-human-resource-management/>
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