HRM Report: Strategic HRM Analysis of Enterprise Rent-a-Car (BUS 101)

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This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Enterprise Rent-a-Car. It begins with an introduction to HRM, outlining its functions and purpose, specifically focusing on planning, forecasting, recruitment, selection, monitoring, and training. The report then explores the role of HRM in fulfilling business objectives, emphasizing the importance of employee skills and motivation. It further examines the strengths and weaknesses of internal and external recruitment approaches, followed by a critical evaluation of these approaches. The report also details the benefits of HRM practices, such as learning, development, training, performance, and reward systems, and how they contribute to increased profit and productivity. Employee relations, employee legislation, and their impact on decision-making are also discussed, along with an evaluation of key aspects of employee relation management and the application of HRM practices. The report concludes with a rationale for applying specific HRM practices, providing a well-rounded overview of HRM within the context of Enterprise Rent-a-Car.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The function and purpose of HRM........................................................................................1
M1 Role of HRM in fulfilling the objective of business. ..........................................................3
P2 and M2 Strength nad weaknesses of different approach of recruitment ...............................3
D1 Critically evaluating the strength and weaknesses of different approaches. ........................4
TASK 2............................................................................................................................................5
P3 Benefits of HRM practices within the enterprise ..................................................................5
P4 & D1 Role of HRM practices in raising the profit and productivity of enterprise. ..............6
M3 Different method of evaluation used in HRM practice .......................................................7
TASK 3............................................................................................................................................8
P5 Importance of employee relation and its role in decision making.........................................8
P6 Key element of employee legislation and its impact on decision making.............................8
M4 Evaluating the key aspect of employee relation management and employment legislation.
.....................................................................................................................................................9
D3 Evaluating employee relation and application of HRM practices and its influence on the
decision making. ........................................................................................................................9
TASK 4..........................................................................................................................................10
P7 Application of HRM practices ............................................................................................10
M5 rationale for the application of specific HRM practices.....................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
A diverse and well competent workforce is one of the major reason behind the success of
firm. Human resource management in the firm is the one who is responsible for the proper
management of employees in the company (Abdullah, 2016). It facilitates the firm in order to
utilize the full potential of the workers so that goal of the firm can achieved. In current report
Rent-a-car enterprise has been taken into consideration. It's one of the largest car rental business
firm in America with more than 7000 offices spread all over the nation. The firm is also
operating its business at global level in various countries It has more than 900 stores in Canada,
Puerto Rico UK Germany etc. The firm has more than 65000 of employee with the annual
turnover of £4.5 Billion. The current report will discuss the importance of Human resource
management and its role in maximising the employee contribution. Different recruitment process
along with training and development method will also be mentioned in this analysis.
TASK 1
P1 The function and purpose of HRM
HRM is most important part of any organisation. The main purpose of HRM is acquiring
servicing of people, developing their skills and motivate them. HRM deals with the issues
related to employee such as hiring, training, development and communication etc. The main aim
of HRM is to focuses on employee to increase their performance and efficiency. To filled vacant
position HRM also focuses on recruitment and selection. In this context, following are the roles
and purpose of the HR manager of Enterprise rent-a-car:
Planning and forecasting: In this process the HR manager collect the information about
the vacancies and try to fill these vacancies. To gain the information with respect to number of
vacancies in the mentioned company (Ahmed and Sattar, 2014). It is that HR manager of cited
Company must conduct the planning. This process will help the company to manage its
operation in effectual manner.
Recruitment and selection: The goal of this process to attract the qualified employee.
Before starting this process the HR manager of mentioned company must execute the proper
plans. This process is very important for Enterprise rent-a-car because it reduces the cost of
mistakes and they get the best employee who helps the organisation to get the success.
Mentioned company focuses on both the internal and external recruitment. They select the
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employee according to need of company so that they can manage their operation in desired
manner.
HR manager of Enterprise rent-a-car followed this process to get best and skilled
candidates.
HR manager of mentioned company mainly includes the four factors in this process such as
preliminary interview, written test, HR level interview and final interview with Hod.
By using these four factors HR manager of mentioned company is able to get the best and
qualified employee for the organisation.
Monitoring of employee: To increase the productivity and benefits of company ; HR
must monitor the performance of workers. If employee works at high level than the productivity
of company will increase so it is very important to analyse the performance of workers. In
mentioned company HR manager uses the 360 degree feedback system to increase the
performance of workers (Fossum, 2014). This feedback system also helps to analysis the
behaviour of employee.
Training and development: This process is used by the HR manager to increase the skills and
performance of employee. Enterprise rent-a-car offers the development training to the employee
so that employee can able to learn new skills and techniques to achieve the task. Mentioned
company offers the trainings to their workers on the regular basis so the employee can improve
their performance. This process improves the benefits of company and motivate the employee.
Illustration 1: Human resource management practices
(Source: HRM practice. 2017)
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M1 Role of HRM in fulfilling the objective of business.
The functions of HRM can provide talents and skills appropriate to fulfil Enterprise
business objectives. All the factor such as planning and forecasting, recruitment and selection
and training and development are very necessary for the organisation to achieve the success. As
employees are backbone of any organisation. By the planning and forecasting process Enterprise
rent-a-car can able to gain the best employee. By using this process employee can also get
his/her interested field where he/she can give the best performance (Fulmer and Ployhart, 2014).
When employee perform at high level it will increase the brand image of company in the market.
By the recruitment and selection process the mentioned organisation is able to gain the qualified
employee. High qualified workers will increase the productivity of the business.
Motivation is very important for the workers because if employee is not satisfied with
his job condition than he will not able to achieve the task. And this will reduce the productivity
of company. So by using the training and development process the employee get satisfy with
his/her jobs and try to perform at best level. To motivate the employee mentioned company
provides the reward system. HR manager of citied company offers the reward on the basis of
employee's performance and extra efforts.
P2 and M2 Strength nad weaknesses of different approach of recruitment
There are several methods through which organisation can select the best candidate at
their workplace who can contribute in the success of firm. Some of these methods are mentioned
as below:
Internal recruitment approach
In this method, Rent-a-car firm can recruit potential candidates required for the job from
within organisation. In this approach, the HR manager of Rent-a-car will fill the vacant place
from existing members of entity. They use various informal and formal ways through which the
best candidate can get selected (Jiang and et.al., 2012). Rent-a-Car use this method in their
working to fill the high post. Promotion is one of the ways through which firm can implement
this approach in their working.
Strengths
It is one of the most cost efficient and effective recruitment approaches. With the help of
this, Rent-a-Car can easily fill the vacant place at a fast rate.
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By using the method of promoting, firm can motivate their employees for performing
better that will also enhance their commitment and loyalty towards the entity. Rent-a-Car is already aware of the potential of existing employee they can select the best
candidate for the job, this will help firm in maintaining the competency in firm and it will
also enhance the performance level of whole firm.
Weaknesses
Firm has limited choice as they have to select from the few available people who have
potential.
It creates an environment of competition which affects the behaviour of other staff.
There is no chance of innovation or creativity firm work with same old ideas.
External recruitment approach:
There are many ways through which firm can recruit the staff from outside environment,
job description, website advertisement, etc. There are several tools that are used in order to
attract potential candidates towards the firm.
Strength:
New people bring creative ideas in Rent-a-Car. It can help in enhancing the performance
of firm.
Vast option to select from, cited firm can choose the best experienced candidate that can
contribute in the success of firm. Fairness it provides opportunity to all prospective candidates tht has applied for the
vacant position (Karunanithy and Sivesan, 2013).
Weaknesses
External recruitment is quite expensive which require extra cost and time.
It can also lead to dissatisfaction among the existing employees.
Ineffective selection process are unable to reveal the best candidates.
D1 Critically evaluating the strength and weaknesses of different approaches.
Rent-a-Car has policy to promote the manager someone that is from within the
workforce. It helps them in maintaining the performance of firm. It not only reduces the time and
money invested in recruitment process but also decreases the time wasted in providing necessary
training (Li and et. al., 2013). The firm also recruits potential candidates every year. The entity
believes in recruiting potential candidates and then train them for higher position. This not only
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helps them in bringing new ideas and creativity in firm but also helps them in maintaining the
performance of corporate.
TASK 2
P3 Benefits of HRM practices within the enterprise
There are different practices of HRM that help firm in achieving its objective and also,
aids in enhancing the performance of company. It also provides Rent-a-car with competitive
advantage that assists entity in finding stability in this ever-changing market. Some of the HRM
practices with its benefits are mentioned as below:
development and training
Performance and reward
Learning, development and training
It is one of the important functions of HR department. The HR manager of firm is
responsible to arrange various training and development programmes for new and existing staff
so that they can improve their knowledge and develop new skills that can help them in
enhancing the performance (Wilson, Nielsen and Degnbol, 2013).
Benefits for employer
It helps in brining efficiency and effectiveness in working that enhances the overall
performance of firm.
Increases the productivity of firm
Reduces errors and accidents
Helps in boosting the potential of candidates Increases the brand image of firm
Benefits for employee
Provides development opportunities that help them in their professional career
Increases job satisfaction level
Helps workers in adapting to the new changes in technology and method
Helps in increasing the motivation of employees
Performance and reward
It is another function of HR where manager of Rent-a-Car is responsible for the
motivation of employees. They provide people with recognition and reward so that they could
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motivate the employees and put their best efforts in job. It also helps in the management of
performance.
Benefits for employees
It helps Rent-a-Car in ensuring their employees that they are aware of the contribution in
the firm.
It also helps in increasing the productivity of Rent-a-car as motivated employees perform
better (Wu, 2013). Helps in retaining good employees and enhancing their loyalty towards Rent a Car.
Benefits for employer
Job satisfaction
Reward lead to inner satisfaction and happiness
P4 & D1 Role of HRM practices in raising the profit and productivity of enterprise.
AS employees are the key of success for any organisation so that it is very important for
any company to have the high qualified and motivated workers. Enterprise rent-a-car offers the
different HRM practise that used to improve the performance of employee to achieve the goal of
organisation.
Learning, Development and Training: trainings are offer by the enterprise rent-car to
their workers to improve their skills and performance. Because employee with high skills are
very useful for organisation to achieve the task quickly and more efficiency.
Improved performance: employee who receive the trainings on regular basis are better
to perform their job. Mentioned company make workers able to understand the purpose and
responsibilities of their industry (Klašnja-Milićević, and et. al., 2011). Employee get more
confident and sure about the task. They learn new skills and techniques so that they can take
organisation on the high level.
Increased standards of productivity and quality: enterprise rent-car's reputation is
based on both the productivity and quality;to get more customers it is very important for
organisation to provide the best quality product and services to the customers. So by the training
and development employee is able to provide the est services to the customers.
Innovation strategies and products: by offering the development and learning traings
employee gets the new ideas that can helps to launch the new product.
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Performance and Reward: HR manager of cited company offers the reward and
recognition to their employee so that they can feel motivated. The main advantageous of this
process are as follows:
Reduce turnover: employee are base of any administration. If employee feel satisfy with
their job conditions they will get more loyal with their corporations. Reward system help to
make them motivate and satisfy with their work and corporations. This process reduces the
turnover frome the enterprise rent- car.
Better profile and reputations of the corporations: motivated employee helps to create
organisation as brand. High performance of employee make the corporations safe from the
competitors. When employee is happy with his job he will satisfy the customers from his
services. Customers are very important for any organisation. Customer's satisfaction is the key of
success. It increases the benefits and brand image of corporations in the market. It reduces the
risk of competition with the other companies.
M3 Different method of evaluation used in HRM practice
Human resources' selection techniques based on the company's staff and resources. To
determine that the candidates is suitable for job or not they use methods such as preliminary
screening, phone interview, meetings and hr function.
Preliminary screening:to determine which applicant to contact for the preliminary
screening interview recruiter starts screening the resume. In this process the manager
screen the resume and try to offer the employee a suitable post.
Telephone interview: after the Preliminary step this process save the time of
conducting the face to face meetings. A telephone interview also helps to know that
employee has a good communication skill or not. Because a good communication skill is
very necessary to satisfy the customers. So HR manager must use this technique.
In person interview:
Organisational cultural: this is third round of selection technique. In this process the hr
manager get to know that which candidate fits the organisational culture. In this process
the hr manager focus on the personal skills of employee.
Vetting candidates: in this process after the hiring manager's decision the hr manager
gives the offer letter to the employee.
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TASK 3
P5 Importance of employee relation and its role in decision making.
Employee relation refers to efforts put by the firm in order to manage healthy
relationship between employers and employees. Employee relation helps the firm in providing
fair and consistent treatment to all their employees so that they can perform better. It also helps
in building trust among employees and winning their loyalty.
Employee relation is an important part of an organisation as it assists in creating a
healthy working environment where each employee would get chance to develop themselves and
present their views. It helps in enhancing the performance and productivity of firm (Mertens,
2014). It also plays the major role in promoting and motivating staff which helps in reducing
problem of absentees.
It also plays the major role in decision making. Any decision made by the firm has its
direct impact on workforce. Employee relation ensures that employees are also involved in this
process so that their views can also be taken into consideration. Involving staff in decision
making and empowering them helps the firm in taking right decision. It also enhances
adaptability among employees and they easily accept various changes occurring in organisation.
There are different ways through which employee relation can be promoted in work
place. Involving team members and empowering them is one of the strategies that Rent-a-Car
can use in order to manage their relationship and increasing the engagement of employees. Firm
can give value and empower their staffs by taking their opinion in consideration while making
different decision of firm (Phillips and Phillips, 2016). Effective and open communication is
another way which can help cited firm in managing a great relationship among workers. By
having great communication in working the firm can achieve the trust of their employees, it
helps them in listening the various problem of staff and finding proper solution for that.
P6 Key element of employee legislation and its impact on decision making.
UK has many laws that he has implemented on the working industry. The major reason
behind the employment law is to ensure that workers of nation are protected against the
wrongdoing of employers. It empowers the employees and ensure that they are treated fairly in
their working place. This legislation play major role in the decision making process of cited
firm. It makes sure that HR manger of firm is conducting its business fairly, legally, and
ethically. There are many laws that Rent-a-car has to follow in order to stay away from any legal
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hassle. Equity act according to this act the cited firm has to ensure that there is no discrimination
in the work place or any of its activity (Pritchard, 2013). For e.g. at the time of recruitment its
necessary of firm to provide equal chance to all candidate disregard of their race, religion, sex
etc. There is another such law that is data protection act under this law entity is restricted to
disclose any of the personal information of an employee to outsider without the permission of
the person. According to the UK labour law corporate entity can be sued for unfair dismissal, it
ensures that business entity treat the candidate with respect and provide them with appropriate
reason for termination if the firm is unable to do so than the person have right to seek the help of
law. This all laws play major role in smoother working of firm. If there are any changes in this
law than it's the role of HR manger to make necessary changes so that this change can also
implement in the working of firm.
M4 Evaluating the key aspect of employee relation management and employment legislation.
Employment legislation and employee relation are interlinked in many ways in order to
maintain healthy relationship with their staff its necessary of Rent-a-car to follow all these laws
in case the cited firm is not able to follow this it may cause riots among staff (Riding and
Rayner, 2013) For e.g. If there is change in the minimum wages' act and government increases
the pay of workers. In case where cited firm refuses to make necessary changes in the wages
may lead to conflicts in firm many of employee may not agree to such changes in such case its
job of HR manger to make them understand why such changes could not be brought in firm and
provide them with alternatives that can satisfy the workers.
D3 Evaluating employee relation and application of HRM practices and its influence on the
decision making.
Employee relation have itrs major impact on the various activity of HRM their is may
advantage of employee relation such as employee involvement, and better communication it also
helps in various role of HRM with good employee relationship, employee can communicate
better with their seniors they can p\help them in coming up with the best development and
training plan that not only help employees in enhancing their skills but also provide firm with
better results.
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TASK 4
P7 Application of HRM practices
Job advertisement is a process through which the firm can make aware people about
vacant position in firm and attract various candidate toward the entity (Schmeck, 2013). There
is vacant place for the sales manger in the Rent-a-car enterprise. The firm required a person who
have great knowledge and experience to carry out various roles as sales manger. The
advertisement will provide with necessary requirement and condition of firm. Their will be basic
information of company along with the description of salary. The location will also be
mentioned where the candidate will get job.
Job specification
Company name Rent-a-car enterprise
Position Sales manager
Place London
Experience Minimum 3 to 4 years of experience of
working in marketing. Should be well aware
of both general and modern trends of market.
Roles and responsibility Require to mange existing setup and make
some new set ups.
Have to lead the sales force of firm.
Have to achieve the concerned target of firm.
Salary range Based on the qualification of candidates
Application date 03/12/17
Interview date 15/12/17
Person specification
Qualification Graduate MBA in sales will be prefered.
Age 29-37 years
Skills and attributes Good communication and interpersonal skills
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