Critical Evaluation of HRM Practices and Business Strategies Report

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This report delves into the critical role of Human Resource Management (HRM) practices in aligning people resourcing activities with business strategies. It explores key HRM practices such as attraction, training and development, motivation, and retention, emphasizing their significance in managing and retaining employees, ultimately enhancing organizational performance. The report examines how companies, including Tesco, implement these practices to achieve their business objectives. It analyzes the importance of aligning business and HR needs, and shaping organizational culture. The report offers a critical evaluation of HRM practices, highlighting the importance of employee relations, retention strategies, and training programs. Recommendations are provided to improve HRM practices and their alignment with business strategies, ultimately contributing to organizational effectiveness and success.
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MANAGEMENT OF
HUMAN RESOURCES
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Role of HRM practices................................................................................................................3
Critical Evaluation.......................................................................................................................7
Recommendations........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Human resource management is the strategic approach that is used by company to
manage large number of people in the common platform. It is important for the organization
because it perform various functions in order to bring profitability in business. The main goal of
the human resource management to manage people effectively so that they work on common
goal through which company enables to meet it’s objectives within timeframe. Human resource
managers perform various roles i.e. recruitment-selection, compensation-rewards, training &
development, punishment and rewards and planning-organizing in the company. So, HRM
practices are considered success factors for the business. Currently most of the companies
emphasizes on HRM practices for maximizing profitability of business as well as raising
goodwill of the company. In this essay will critically evaluate different steps of companies which
they take in order align their people resourcing activities along with different business strategies.
MAINBODY
Role of HRM practices
Human resource management practices play significant role in managing and retaining
company’s employees and increases organization’s performance as well. There are various HRM
practices i.e. workforce planning, assessment of organizational capabilities, organizational
development and structure, diversity and inclusion and change management. These type
practices are practised by all organization’s human resource management because these keeps all
businesses highly competent in their business market (Aklamanu, Degbey and Tarba, 2016).
Steps of aligning people resourcing activities with business strategies
Attraction
Attraction is the primary role of human resource management that supports to recruit
highly talented and skilled candidates in the company. Human resource management of the
different companies includes various privileges in employment policy so that new applicants
become attracted and apply for the job. There is a great example of Tesco plc wherein
management personally analyse needs of organization. According to requirement, human
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resource managers adds different privileges i.e. flexible working hours, sick leaves etc. in the
employment policy that encourages individuals to apply for the job based on the company’s
requirements. However, Tesco’s manager promotes diversity in the workplace so they keep
transparency in recruitment and selection process so that no candidate thinks that they are
discriminated. Diversity in the workplace supports to bring competitive advantage as well as
makes brand well-wisher for the customers. So, Tesco influences diversity in the workplace and
HR managers proactively manage and retain diversity by practising fair business strategies.
That’s why attraction is considered one of the major HRM practice because it supports to recruit
talented people in the company accordingly requirements.
Training and development Program
It is another HRM practice that is organized by human resources to align new candidates
like existing employees. In the training session, managers provide brief information to the
employees about training and development and what is the reason behind this session so that,
individuals take it on serious note and participates in this program promptly. This training
programs always individuals to improve their weak areas and learns new skills which increase
their professional personality in the company. Tesco is the great example which spends mo0re
funds to conduct high professional training and development for the diverse workforce. Human
resource management of Tesco initially organize employee orientation program for the new
joiners (Azeez, 2017). In this program manager personally understand new candidates their roles
and responsibilities which they perform in the workplace and learns them to how to deal with
complex tasks. Then upper management organize training and development for all staff includes
existing and new employees in order to coordinate them with each other so that they work on
common goals in the workplace. Training and development program are not only supported
company to improve individuals working performance but also identifies different talents which
can maximize growth of business in future (Papa and et.al., 2018). Thus, organizations prepare
their new joiners in the company in order to achieve different objectives within defined
timeframes.
Motivation
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It is prime HRM practice that supports to build and perpetuate on a competitive people
advantage. Motivation is considered one of the major factors that is not only retained number of
talented people with the company but also encourages them to give productive performance
through which company enable to gain all proposed goals and objectives over the time period.
Motivation factors are communication, health & safety policy, equal opportunity & fair
treatment, family friendliness, job satisfaction, performance management, cooperation and
immediate management that makes company highly competitive globally. Most of the companies
i.e. Asda does not pay high attention on employees’ satisfaction. Due to this, it often faces high
employee retention issue in it’s workplace. It is essential for the company to aware about
employees needs then it can improve it’s business performance, productivity and operation in the
business market. For example, Tesco has aim to build loyal customer base so managers
emphasize on employees needs and provides them extra privilege like profit sharing, incentives
so that they stay motivated in the workplace. Due to these, new joiners get satisfaction from their
job so they put more efforts to coordinate with existing employees and work on common goals in
efficient manner. Thus, management of Tesco stay motivated people in the workplace
(Fuenzalida and Riccucci, 2019).
Retention
It is one of the essential HRM practice that helps company to gain competitive advantage
as well as saves economical expenditure. But in modern era it is quite difficult for the companies
to retail talented staff. The reason behind is that there are lots of companies which wants to
become highly competitive in it’s sector so they always offer different privileges for attracting
highly skilled and talented people (MasumAzad and Beh, 2016). As we know everyone wants to
become career-oriented and high growth in salary annually so when talented peoples are not
satisfied from the job then they seek for other job elsewhere. But there are several companies i.e.
Tesco has high employee retention rate due to effective HRM practices. For example, human
resource management of Tesco plc always takes reviews from the staff by organizing conference
meeting and resolves their conflicts by listening them effectively. Apart from this HR develops
and implement different HR capital strategies or tactics which supports, influence and retain
people in efficient manner. However, HR managers of Tesco recruits only those candidates who
mirror of company’s value or their values can be demonstrated through their behaviour. Then
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company implements retention strategies to retain only those employees who puts more efforts in
the workplace during peak periods and gains wide rewards due to their excellent performance.
From the above discussion has been analysed that human resource managers takes
different HRM practices to align and manage people in the company so that they can achieve
defined goals and objectives within timeframe.
There are other functions of human resource management that improves goodwill of businesses
in it’s sector. Functions are:
Align business and HR needs
It is important function of human resource that helps to align people in respect of
fulfilling company’s needs. Upper management develops business goals on the basis of business
opportunity. On the other hand, human resource managers create objectives so that individuals
follow them in right direction which helps to gain common goal of the company. Initially, HR
managers effectively understand it’s business strategy and goals for gaining these goals within
defined timeframes (MalikBaig and Manzoor, 2020). Then management understand needs and
demands of company that supports to determine weakest areas as well as strong core
competencies. Most of the time organization’s weakness relates with the quality of workforce,
motivation and delivery performance of the organization. Based on the analysis human resource
managers implement effective HRM strategies like performance management, training session
etc. to improve workforce performance in productive manner so that organization enable to gain
competitive advantage in it’s market.
Organization culture
Organization culture is the mirror of company’s value because it describes the way that
company acts, reacts and interacts with others. With the organization culture individuals can
understand that how organization delivers their services to the customers and how people work
in right direction. human resource management give high contribution to build and maintain
organization culture (Glaister and et.al., 2018). For example, Tesco operates in multiple
countries across the world so management has practices different cultural models like hosted
seven-dimension cultures and handy’s cultural model etc. to understand different culture of
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companies before working with them. Apart from this, managers and leaders work together to
take effective decision in the company so that expected outcomes can be received by
organization. Managers flexible with time that brings relaxation individuals in the workplace
during peak period. Profit sharing is another strategy that offers by managers to the employees in
order to better functioning of organization in it’s sector. This opportunity encourages individuals
earn more financial profit except salary and incentives by putting productive efforts to gain
short-term goals within timeframe. Thus, human resources align people for common goals in the
company.
Critical Evaluation
There are organisations conducts lots of activities in their business environment for
aligning people resourcing activities with own business strategies (vom Brocke, Zelt and
Schmiedel, 2016). Basically, managing different people in the workplace is not a small task to a
company or business. Reason is, there are always many employees come together for achieving
organisational target, but these all employees not comes from same background in any
organisation or company. In this situation, top-level management and human resource
management of each organisation always responsible to maintain an effective relationship with
these all employees. Otherwise, there are many conflicts has raised between these all employees
or people within the workplace of an organisation or company.
Currently employee relations play very effective role in achieving organisational targets
on time, in which maintain very productive relations is also one of key task to the HRM (human
resource management) of a company. According to different business experts, when company is
able to maintain effective employee relations, then it will automatically able to able manage its
human resource or employees also in very effective manner. Reason is, most employees always
like to take orders from those managers and leaders which believes in maintaining effective
employee relations. Maintaining great employee relations is good step of a company for
managing its various employees or human resource.
In the series of organisations’ steps towards managing different human resource, there are
providing employee retention is also very appropriate step for a company (Daniels and et.al.,
2017). Currently top-level management within each company or business have to take steps
towards retaining its talented and skilled employees. Many times, companies not able to retain
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their employees just because of very poor work culture and environment, in which formulating
effective work culture is very necessary task to a company for retaining different talented and
skilled employees for the long time period. Nowadays, most successful businesses or ventures
within market has taken many productive and useful steps towards retaining their employees. For
example; top-level management within many companies interact perfectly with different
employees, in which this step of company’s management increases the dignity of employees, and
then they no thinks about giving resignation.
Proper training and development sessions also gives their great contribution in the terms
of managing people or human resource within workplace. That’s why different organisations or
companies within market need to take steps towards perfectly managing employees within
workplace. By providing effective training and development sessions, a company able to gain
effective workforce as well, because these sessions give chance to employees of a company for
improving their various skills and abilities (Georgios Frixou and George Charalambous, 2016).
Currently Marks and Spencer invest very much fund for giving training sessions to its various
employees, and that’s why upper management of this retail company is fully able to
systematically manage different employees in the workplace. Top-level management of each
company or business have to understand this basic thing that, currently competition within each
industry is increasing day by day, in which they need to understand the seriousness of the
management of human resources. Reason is, no business can achieve its different targets and
goals on time without managing human resources in effective manner.
The human resource management within an organisation have to make strict policies for
those people or employees who has very negative motivation and mindset. Basically, employees
with negative motivation and mindset always very badly or negatively affects to the processes of
a company. Background verification of each employee is very mandatory for the HRM of an
organisation, because this task helps to the organisation for gaining a very effective workforce.
Top-level management of a venture has required to remove different negative elements and
factors also from its workplace, like; discrimination, abuse, harm, politics. Basically, these all are
key element or components which currently exists in many companies, so that these elements
always become very big barriers for the upper management of the venture in managing human
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resource. In this modern world, no person like to work in that organisation where existing
management promotes these types of negative components or elements.
On the other side, there are motivation also plays an effective role in the terms of
systematically managing human resources in the workplace (Sikora and et.al., 2016). There are
human resources is one of keys to an organisation which provides huge success in the market
place. In this situation, upper management of a company have to take different productive steps
towards highly motivating their employees in the workplace. Reason is, a highly motivated
employee always gives higher contribution in the organisational success in the comparison of
unmotivated or ordinary employees. So that, the management need to motivate its employees for
working hard in the workplace, and try to maintain effective relations with various other
employees of the workplace. By considering these all factors, upper management of a company
can simply achieve effective results by managing human resources.
Recommendations
The upper management of an organisation has always required manage its human
resources in very effective manner, because employees are key resources to it for achieving its
different goals in market place. There are human resources enable to a company or venture for
gaining huge success in the market place. Of course, there are other functions also plays an
effective to achieve huge success but not as human resource management. The main of a
company behind managing human resources is to take very productive work force different
employees in the workplace. Currently there are lots of innovative ways or methods easily
available to a company for managing its human resources (Momeni and Martinsuo, 2018).
According to Maslow’s motivational theory, the management first have to fulfil prime needs and
requirements of different employees, like; accommodations, clothes foods etc. By taking this
step, the management can simply manage its different employees in workplace.
On the other side, the management of a company have to provide proper security also to
its various employees, because according to Maslow’s motivational theory, there are safety and
security also key needs of people or employees. Basically, no employee like to work in that
workplace which can negatively affect their health aspect. That’s why when any company fulfils
all safety measures of customers, then it can manage its human resources within workplace. For
example; currently the Tesco’s upper management has provided very effective safety and
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security to its employees which 27*7 works within its supermarkets and stores. That’s why many
of employees within this retail company are very satisfied with this step of the upper
management. According to different business specialists, the management in an organisation
have to respect and value its employees, because they put their huge efforts in the workplace for
achieving organisational objectives. Respecting and valuing employees can help to upper
management of the company for effectively managing human resources in own business
environment.
Sometimes, employees face different conflicts and errors within the workplace just
because of unimproved communication skills, so that upper management of a company have to
develop communication skills or competencies of its employees. This step also will defiantly
contribute in managing different people or employees. Existing management at a venture always
need to try for removing those all components from its workplace which can badly affect to the
performance of different employees (Gattiker and Larwood, 2019). Basically, managing
excellent performance of employees is also a major task to the management of company under
the management of human resources. A business grows in the market in that condition, when its
employees give great performance in the workplace. That’s why by managing human resources,
the administration of company enables to boost performance aspects also of its employees.
There are happy and health work culture always highly contributes in managing human
resources effectively. In this situation, top-level management of a company have to choose some
appropriate steps towards developing or creating a happy and healthy work culture. Basically,
when a company very healthy work culture, then it will enable to positively affects its different
employees. On the other side, employees also feel valued by the management when provides this
type of work cultures, and then these employees get motivated to put their huge efforts in the
workplace. After having motivated employees, top-level management of a company has not
required to put own very high efforts in the terms of managing human resources.
CONCLUSION
On the basis of above findings, it can be concluded that there are many steps has taken by
top-level management of different organisations for aligning their employees resourcing
activities with strategies of business (Oelberger, Fechter and McWha-Hermann, 2017).
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Generally, the management of a business has too deeply understood the actual implications of
proper management of human resources. There are proper human resources management always
very positively affects to employees’ productivity, workability and performance in workplace. It
also can be concluded that, when any company employees with effective performance, then that
company can simply achieve its different goals in market place in decided time period.
REFERENCES
Books & Journals
Aklamanu, A., Degbey, W.Y. and Tarba, S.Y., 2016. The role of HRM and social capital
configuration for knowledge sharing in post-M&A integration: a framework for future
empirical investigation. The International Journal of Human Resource
Management, 27(22), pp.2790-2822.
Azeez, S.A., 2017. Human resource management practices and employee retention: A review of
literature. Journal of Economics, Management and Trade, pp.1-10.
Daniels, S. R., and et.al., 2017. Collective assessment of the human resources management field:
Meta-analytic needs and theory development prospects for the future. Human Resource
Management Review. 27(1). pp.8-25.
Fuenzalida, J. and Riccucci, N.M., 2019. The effects of politicization on performance: the
mediating role of HRM practices. Review of Public Personnel Administration, 39(4),
pp.544-569.
Gattiker, U. E. and Larwood, L. eds., 2019. Managing technological development: strategic and
human resources issues. (Vol. 1). Walter de Gruyter GmbH & Co KG.
Georgios Frixou, R. N. and George Charalambous, M. D., 2016. Human resources assessment as
a component of effective management-implications for the health sector. International
Journal of caring sciences. 9(1). p.358.
Glaister, A.J and et.al., 2018. HRM and performance—The role of talent management as a
transmission mechanism in an emerging market context. Human Resource Management
Journal, 28(1), pp.148-166.
Malik, E., Baig, S.A. and Manzoor, U., 2020. Effect of HR Practices on Employee Retention:
The Role of Perceived Supervisor Support. Journal of Public Value and Administrative
Insights, 3(1), pp.1-7.
Masum, A.K.M., Azad, M.A.K. and Beh, L.S., 2016. The role of human resource management
practices in bank performance. Total Quality Management & Business Excellence, 27(3-
4), pp.382-397.
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Momeni, K. and Martinsuo, M. M., 2018. Allocating human resources to projects and services in
dynamic project environments. International Journal of Managing Projects in Business.
Oelberger, C. R., Fechter, A. M. and McWha-Hermann, I., 2017. Managing human resources in
international NGOs. The Nonprofit Human Resource Management Handbook: From
Theory to Practice. pp.285-303.
Papa, A and et.al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management
practices. Journal of Knowledge Management.
Sikora, D. M., and et.al., 2016. Reimagining overqualified human resources to promote
organizational effectiveness and competitive advantage. Journal of Organizational
Effectiveness: People and Performance.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
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