Human Resource Management at LV: Strengths, Weaknesses, and Benefits

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within LV, a major financial services company. It begins with an introduction to HRM, outlining its purpose and functions, and then delves into LV's specific applications. The report examines the strengths and weaknesses of LV's recruitment and selection processes, including both internal and external sources. It explores the benefits of various HRM practices, such as workforce planning and organizational structure. Furthermore, the report evaluates the effectiveness of these practices in terms of raising organizational productivity and profit. It also highlights the significance of employee relations in HRM decision-making and discusses key elements of employment legislation relevant to LV. The report concludes with a job-specific analysis and summarizes the overall findings, providing a detailed overview of LV's HRM strategies and their impact on the company's success. The report covers various aspects of HRM, including recruitment, selection, training and development, workforce planning, organizational structure, and performance management.

HUMAN RESOURCE

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
P1. Purpose and function of HRM in LV....................................................................................3
P2 Strengths and weakness of recruitment and selection............................................................5
P3 Benefits of HRM practises in LVs.........................................................................................7
P4 Evaluating effectiveness of different HRM Practices in terms of raising organizational
productivity and profit.................................................................................................................8
P5 Significance Of Employee Relations In Respect To Human Resources Management
Decision Making........................................................................................................................10
P6 Key Elements of Employment Legislation...........................................................................11
P7 Job Specific..........................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Human Resource Management is the strategic approach of managing people in an
organization. The main functions of Human Resource Management include but are not limited to
recruiting, selecting, inducting new employees, maintaining and motivating skilled workforce,
maintaining amicable relations between organization and trade unions, addressing issues and
grievances faced by current employees, creating a safe and healthy work environment as per the
legal laws etc. This report analyses UK's biggest friendly society LV, a member owned company
which provides various financial services including investment products, life insurances,
pensions etc. to over 5.8 million customers in UK. The purpose of this report is to gauge the
effectiveness and scope of Human Resource Management in regard to supplying LV with talent
and skills required to meet its business objectives, to check the efficiency of vital elements of
Human Resource Management in LV and to evaluate any internal and external factors which can
affect Human Resource Management's decision-making, including employment legislation in
LV.
P1. Purpose and function of HRM in LV
Human resource management refers to managing relation between employees and
management. It focuses on the objective and outcome of HRM functions (Hecklau and et.al.,
2016.). Its main objective is to develop employees as well as organization needs. In other words
it can be said HRM is the process of recruiting, selecting, hiring of the employees in
organization for work. This is known as Human Resource Management.
Nature and Scope of HRM:
Human resource management is the key element for every organization. If there will be
no manpower, work cannot be performed in an organization. HRM helps in achieving
organizational goals and working collectively with the employees where their efforts are
integrated with overall objectives. The HR managers of LV often try to develop a people centric
approach that helps them in integrating their objectives with the employee performance and this
is done continuously.
The main purpose of HRM is to encourage employees to give their best to the organization. It
tries to put employees in different tasks or difficult task to see good outcome (Keegan and et.al.,
2018). LV include to maintain a coordinated relation between employees its different
departments and the organization. It focuses on result rather than on rule.

On the other hand, scope of HRM is more of a personal aspect. Personal aspect, i.e. it is
concerned with manpower planning which are recruitment, selection, transfer, promotion,
training and development etc. LV follows all the manpower planning procedures in their
organization. It also looks after the welfare aspects in which working condition, amenities,
canteen, and health facilities are involved.
Functions of HRM:
For managing human resource, certain criteria or the activities that must be followed i.e.
Recruitment, selection, training and development, performance appraisal, compensation &
benefits, health & Safety etc. (Sanders and Yang, 2016). These all are the major function of
HRM and is being applied in LV. Here are some basic functions which are being discussed
below:-
Recruitment: - Recruitment is the process of choosing the candidates for the job by screening,
by their curriculum vitae and by job portals etc. LV include various sources of recruitment which
are internal and external for searching candidates for organization.
Selection: - Selection is the process of choosing right candidate, at right time, at right job the
candidates which are shortlisted in recruitment process are further transfer in selection process in
which they have to cross from different selection processes which are interview, aptitude test,
physical test etc. LV include various selection process techniques which are interview, physical
examination, etc.
Training and Development: - Training and development is process of guiding the employee to
do work in organization because without training employee cannot perform work. Development
on the other hand signifies improvement or further enhancing the existing skills of the
employees. LV conduct various training & development programmes for its new employees.
Workforce Planning:
Workforce planning refers to the process of identifying needs and wants of the
organization and hiring or developing the existing employees accordingly. LV follows workforce
planning criteria which help them in meeting with organizational objectives. LV give more
emphasis on workforce planning because it is very essential for the organization. Objectives
fulfil by HRM Practises in LV recruiting of the candidates give organization a better and fresh
workforce due to which new ideas are indulged or come forward. Selection process benefits in
choosing right candidate for the right job through interview, physical examination etc. Training

and Development helps in getting best and suitable candidates by developing them with effort.
Workforce planning helps in business in achieving needs and wants of LV . Organisation
facilitate change management it refers to any change occur in organisation certainly so HRM
helps in developing leadership skill and change process which helps employees to be prepare for
the upcoming change.
P2 Strengths and weakness of recruitment and selection
Recruitment, is the process of hiring candidates for job by screening and short listing
them from different internal and external sources. The internal and external sources of
recruitment are as follows:-
Sources of Recruitment
Internal source: - Internal source refers to hiring or searching candidates from the organization
itself. Internal sources can be done on the basis of tools that are promotion, transfer, and present
employees. LV involve various internal sources of recruitment in it which are promotion,
transfer etc. Internal sources are taken into measures when the vacancy arises suddenly.
Strength of Internal recruitment: In internal source of recruitment the strength can be that
individual can be hired from inside the organization itself which can save times as well as
money. It can increase morale of the employees (Onik, Miraz and Kim, 2018). It reduces
employer turnover which make employees motivated to work hard and give their best.
Weakness of Internal recruitment: Internal source weakness can be that the hiring which is
done from organizational itself can limit the number of potential candidates. Due to which fresh
ideas and talent cannot be come out. There will be more chances of conflict between the
employees with each other in the organization.
External source: - External source refers to hiring or searching candidates from outside the
organization. External sources can be done in the basis of tools which are advertisement,
employment exchange, campus recruitment, casual callers and recommendation from existing
employees. LV include various external source of recruitment which are campus recruitment,
advertisement etc. LV give more emphasis on external source rather than internal because in the
search of new talent for organisation.
Strength of External recruitment: External source of recruitment strength can be that its helps in
getting new and fresh talent for the organization. For hiring the candidates through external

source, LV uses various tools which are advertisement, campus recruitment etc. so there will be
fresh ideas and talent employees for the organization.
Weakness of External recruitment: The weakness of the external sources can be that potential
candidates can be replaced by artificial intelligence used by the organization. Now-a-days all the
work is done through artificial intelligence so this can be major weakness for external
recruitment. LV weakness is that only they lose potential candidates by involving artificial
intelligence in the organisation.
Selection:
Selection process refers to choosing right candidates for right job at right time at right
place. It follows a certain process known as selection process (Onik, Miraz and Kim, 2018). The
selection process consists of preliminary interview, physical examination, reference checking,
employment test etc. LV give more emphasis on selection process while searching employees for
the company various tool which is involved are interview, physical examination etc
Interview: - Interview is the process of checking that the candidate which has applied for the
post is suitable or not. LV involve various interview process in it which is preliminary interview,
telephonic interview etc. Strength of interview: Preliminary interview strength can be that selection of the right
candidates is being done. There is face to face interaction between interviewer and
interviewee.
 Weakness of interview: As interview is a verbal communication there is no record of this
is present. It is an incomplete process. Judgement cannot be done instantly and all
information cannot be gathered.
Physical examination:- Physical examination refers to check-up related health is done for any
field work job in the organization. LV give more emphasis on physical examination for its
employees.
Strength of Physical examination
Physical examination strength can be that it helps in identifying which candidates are
suitable for performing field work.
 Weakness of Physical examination
Its weakness can be that false in the health of the candidate suddenly are not selected who
need proper treatment and precaution.

Job Analysis:- Job analysis is the process of collecting information regarding duties,
responsibilities of necessary job. Job analysis strength can be that it provides clear information
related to job. It helps in training and development for a particular job. However, the major
weakness of job analysis can be it is time-consuming process. LV give more emphasis on job
analysis.
P3 Benefits of HRM practises in LVs
HRM practises include safety of employees, training and development, workforce
planning, organization structure etc. HRM practise that LVs follow are as follows:
 The major HRM practise which is beneficial for both employer and employees is safety
of employees at organization and it is the key element of the organization. LVs pay more
attention on future needs of the organization, especially in terms of its people and their
safety.
 LV uses a workforce planning programme to establish demand of new staff
(Cunningham, 2016). The main work of the HR practises of workforce planning at LV is
for job description and person specification which is beneficial for both employer and
employee.
 LV involves is the organizational structure. The term organizational structure refers to
the systematic functioning of the departments in the organization in effective and
efficient way (Rees and Smith, 2017). Organization structure is the key element for any
kind of the organization. As M &S deals in various departments so it follows the
organization structure.
 Organisation involved training and development, the term training and development
refers to process of guiding the individual to perform a specific job. It play a vital role in
organization without training and development no job can be performed. Organisation
gives more emphasis on it.
 HRM practises that follow by LV are 360 degree performance management system
which is beneficial for both employer and employee. 360 degree performance
management system refers to the overall evaluation of performance of the employees in
the organization. Performance management is the key element of the organization and the
best HRM practise.

 Company follow reward system of HRM practises which is beneficial for both employer
and employees. LV gives provide reward on the loyalty, hard work.
P4 Evaluating effectiveness of different HRM Practices in terms of raising organizational
productivity and profit
LEARNING, DEVELOPMENT AND TRAINING:
A key function of Human Resource Management is the training and development of its
workforce. It is a very important function as updating knowledge and skills of the employees in
response to changing trends, equipment or business direction is necessary for employee's
optimum performance. Training is the process of instructing an employee in technical knowledge
or equipment operations related to their job to increase their efficiency and productivity (Larsen,
2017). While development is an employees overall growth in relation to their adaptability,
attitude, leadership and human relations. To check whether an employee needs to be trained, the
HRM performs a training needs analysis. Different training is provided with respect to
employee's operations, but can be generally classified as on job programmes and off job
programmes and can range from technical training, internships, job rotation to lectures, group
discussions etc. This approach increases employee's productivity but is time and resource
consuming.
JOB AND WORKPLACE DESIGN:
Job design is the process of allocating, organizing and reorganizing tasks amongst
employees in order to increase employee productivity, by offering bonus rewards such as praise,
challenging work, promotion, raise etc. Rewards can be divided into 2 categories, intrinsic
rewards include showing increased employee’s recognition, freedom and trust, while extrinsic
rewards include bonuses, salary raise, promotion (Oldham and Fried, 2016). Appropriate rewards
to employees thus helping keep them motivated. Most important techniques for job design are 1)
Work Simplification in which jobs are broken down into small repetitive parts and assigned to
workers to increase his productivity. But due to this being a repetitive job, boredom increases. 2)
Job Rotation is when tasks allotted to worker are rotated to decrease to train the workforce in
more than one task, decrease boredom and motivate them. 3) Job Enlargement involves adding
additional tasks to the job in an attempt to alleviate monotony, boredom and increase employees
interest and efficiency. If implemented correctly this approach can overcome job dissatisfaction

arising from repetitive and boring tasks amongst employees and increase their efficiency and
satisfaction.
THE FLEXIBLE ORGANISATION:
A flexible organization is one that can adapt and respond to external changes to gain
ground against its competitors. Three types of flexibility in an organization are: 1) Functional
flexibility enables management to switch workers around tasks as they require. It trades job
security with employee versatility. 2) Numerical flexibility enables management to alter the
number of workers to meet variations in demand through the use of methods such as outsourcing,
short-term contracts, and temporary employees. 3) Financial flexibility is the management's
effectiveness to alter pay of workers depending on demand and supply of labour within company
(Procter, 2016). Thus, financial flexibility is directly linked to numerical and functional
flexibility. When implemented efficiently, employees enjoy many advantages under flexible
organization such as enhanced competitiveness, better team building, improved efficiency etc.
PERFORMANCE AND REWARDS:
Function of rewards is extremely important in order to optimize performance as the
prospect of additional bonuses pushes employees to maximize their performance and efficiency
to get these rewards. Performance management is the dynamic process of managing, analysing
and improving an employee's productivity performance by associating it with the organization's
objectives and goals (Mone and London, 2018). Some ways of monitoring employee's
performance are performance appraisals methods, quality checks, client surveys, office and
personal habits, absenteeism etc. There are various earning models through which an
organization can choose to pay its employees such as pay per hour, per week, per month, per
performance, per targets, per use, pro-bono etc. Performance management is an important
function as it keeps employees motivated and engaged which can provide a significant edge over
competitors and keeps employees from slacking off as they know their performance will be
monitored.
P5 Significance Of Employee Relations In Respect To Human Resources Management Decision
Making
HRM describes formal system meant for management of employee's within an
organization in which company's solid foundation lies. Employee's in company are source of

knowledge and new ideas. Efficient communicating between employee and HRM increases
productivity of and decreases outsourcing resulting in a successful organization (Guest, 2017).
An employee's happiness is directly proportional to its productivity and the happiness largely
depends on how the management addresses and interacts with worker. When good relations
maintained, it helps in reducing workforce conflicts, raises staff morale.
Clearly writing down the policies and explaining it to the employee at the time of
program start helps to maintain a clear information about all the legal policies avoiding future
conflicts. This also ensure that company policies are followed fairly and consistently. Better
communication enhances relationship and also encourages a strong sense of teamwork among
workers.
Increased productivity has a drastic effect on employee's loyalty to the organization. This
improves employee retention (Li, Rees and Branine, 2019). Better employee relations results in
decline in employment turnover which cuts cost of recruitment, hiring and training. When
employment turnover is low the employer has a trained and skilled set of employee's.
Good relations result in less conflict, people avoid searching for faults in each other and
start adjusting and therefore employee's concentrate on the work and aim to work harder. The
increased level of compromise is a result of improved relationship. There is decline in the rate of
absenteeism, individuals become more serious towards their work which decreases chances of
taking frequent leaves.
There are many decisions one cannot take alone and need advise from the management
for the same so that no important points are missed and no impressive ideas are missed which
can help to achieve the target at a faster rate. Better relations leads to better communication
which help workers to evaluate all the pros and cons on an open platform. If relations are not
maintained in a better manner it could abstain people from HRM to come and help employees.
An easy connection means easy assignment of task. This also allows the employer to accept and
understand their strength and weakness. HR is also aware enough what quality prevails in an
individual and what sort of work assigned will be better performed. Sensitivity levels and stress
management of each other can be known of each other which aids in managing pleasant
relationship which increases overall efficiency of the company (Mazzei, Butera and Quaratino,
2019). A bonding lets one know about t approaching someone in the way they need to be
approached so that the best could be brought in employee's.

Employee relations is just like the icing on the cake for the human resource management,
this opens many doors to make the brand grand success with complete involvement of
employee's in an organization as an intact team and serving with the highest out rates. Good
relationship helps individual to deal with terms and conditions of the company in a more
peaceful way.
P6 Key Elements of Employment Legislation
Employment legislation are acts which have been made for the employees so that they
can have a healthy environment to work in so that there is a better functioning of the
organization and productivity can increase. These measures are for protection, benefits, quality,
etc. for employees.
Employees are working in businesses not for having an ill-treatment for themselves or
inequality when they work. It is very important that the employees get what they want because
that will affect productivity of organization. For example, employment right acts in 1996 was
explaining as to how important it is for the employees to have their right in the work they are
doing so that they gave a satisfactory life. Age, beliefs, culture, religion, sex, etc. does not matter
till the work is being completed in the business. HRM must make sure that they are being
followed so that the staff is comfortable and balance is being maintained in the environment
where employees are working. HRM must make sure that the employees of LV know their right
in the company so that if they are having any trouble then they can complain and trust the HR
department with it and measures will be taken accordingly.
HRM makes sure that they are being able to maintain standards for themselves which will
make the company have a positive impact on the employees and the customers. For example,
health and safety law 1974 was promoted in business so that the employees can have a better
environment and they got surety in the company and there is better and effective workforce in
the company (Boon, Den Hartog and Lepak, 2019). This law is not just for the employees but
also the safety and security of the customers which are coming in the company so that the
revenue generation of the company is better.
Right of customers which company must provide to customers so that they have loyal
customers in the company. For example, data Protection act 2018 is being followed by LVs very
well because they have to make their customers feel safe as well because that is a very important

for them to do so. HRM has to take measures so that the unique identity of the company does not
leave the company and they are having to protect their data and the customer's data that the loyal
customers are not taken away by other companies in market.
Act is very important that companies provide to employees so that they can trust
employees of company and they will be able to have a better understanding for themselves. For
example, employment contracts act 1996 is another way to make the employees stay with the
company for a long term and this is a tie which creates relationship between the employees and
the company (Lai, Saridakis and Johnstone, 2017). HRM has to update the contract according to
the policy changes which are taking place in country so that the company can make most from
that law and employees feel comfortable as well with the business. LV has an easy contract
which the employees and the company can understand and accept them so that they can have a
better workforce for themselves.
P7 Job Specific
Personal Specification
Basis Essential Skills Desired Skills
Qualification Education till degree level is
compulsory. Must be
knowledgeable so that the processes
and operations of LV can be
maintained and the organization can
do a good job for the future and get
a competitive advantage. Freshers
are welcome. Experience of 0-3
years
There must be a degree for being
the perfect assistant in the company
so that LV is going to have a
perfect productivity in
organization. Candidates already
having experience as an assistant in
a large organisation will be given
preference.
Skills Excellent communication skills,
problem solving skills, highly
motivated to outperform, flexible
thinking, impressive command on
language. Punctual, must be a
Must be knowledgable about the
industry and the functioning of the
organization so that they can start
with the work immediately. They
must be amicable and know how to