Analysing the Role of HRM in Organisational Development - NCL Report

This report provides a comprehensive analysis of the role of Human Resource Management (HRM) in organisational development, focusing on its impact on sustainable organisational performance and contribution to business success. It examines different areas of HRM, including recruitment and selection, employee compensation, and training and development, highlighting their contributions to organisational performance with specific reference to Nissan. The report also discusses the relationship between strategic HRM and the changing business environment, the importance of recruiting and retaining appropriate employees, and the internal and external factors that influence HRM decisions. Furthermore, it explores how these factors support organisational development, emphasising the role of technology, labour market dynamics, and government regulations in shaping HRM strategies and ensuring sustainable business growth. The report concludes by reinforcing the critical role of HRM practices in improving organisational sustainability and shaping the future of the company.

THE ROLE OF HRM AND
ORGANISATIONAL
DEVELOPMENT
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Different HRM areas and their contribution in organisational performance-.............................3
Strategic HRM relation to the changing effects on the organisation and its business
environment-................................................................................................................................4
The role of recruiting and retaining appropriate employees from the available labour markets-5
The internal and external factors that influence HRM decisions in the workplace-....................5
Above factors supporting the organisational development-........................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Human resource management is the practice followed in the organisations to manage the
employees and the stakeholders of the company (Collings and et.al., 2018). This practice has
main functions which are to be followed by the organisations such as the recruitment,
compensation of the employees and designating the work. This is used by the organisations to
increase the productivity level through the performance of the employees. Nissan is a car
manufacturing company which is operated by the European division which is also located in the
UK. This report will discuss the different areas of the HRM as well as its contribution in the
success of the company. Along with this, it will also include the role of retaining and recruiting
the employees in the organisation. Further, it will discuss the internal and external factors that
can affect the HRM decisions at the workplace as this overall roadmap of the HRM practices will
enable the organisation to the success.
MAIN BODY
Different HRM areas as well as their contribution in performance of organisation-
HRM is very wide term and has various areas which are to be followed by the companies
for achieving success. Some of the main different areas of the HRM practices which will help
Nissan company in better performance of the overall organisation are-
Recruitment and selection- This process in HRM in which the skilled and talented as well as
having required qualifications as per the job roles are selected and recruited for increasing the
productivity level of the overall organisation. Nissan Company practices this main area of human
resource management effectively which helps them in selecting better employees for the
company for having competitive edge (Opute, 2020). The major strength of this HRM practice as
it helps in increasing the efficiency of the organisation whereas it also has disadvantage as it is
much time consuming process for HRM.
Employee compensation- This is the amount which the employee receives in return to the
efforts and hard work done for achieving the goals and objectives for the company. This is
considered as the most integral part of the HRM because this enables the employees in job
satisfaction and helps in motivating the employees which directly impacts the performance of the
employee (Stone, Cox and Gavin, 2020). Nissan Company ensures about this area of the HRM
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for increasing the effectiveness of the employees which directly contributes to the organisational
performance. This has the biggest advantage of increasing the productivity level of the
employee. But with this, it also demotivates the employees who has less payroll then others.
Training and development- The human resource management plays the vital role in providing
training and developing both new as well as existing employees of the company. They are
responsible for the organising the training and development program as the employees will be
more skilled then they will better perform. The HRM practices are directly related to the
effective performance of the overall organisation. They can pay attention to the individual skill
required by them so that they will feel that the company value for them. Nissan Company follow
this HRM practices as they have much skilled and talented employees in the company but they
must follow this practice regularly will help in more effective work. The major strengths of this
process it helps the employees in the self-development and by this employee will work better and
the drawback is that it costs much money and time (Anwar and Abdullah, 2021).
Strategic HRM relation to the changing effects on the organisation and its business environment-
Strategic Human resource management is the set of the policies which are designed and
implemented for ensuring that the employees contributes their best for achieving the goals and
objectives of the organisation. It is the combination of the strategy and the Human resource
management (Bailey and et.al., 2018). Organisations are exposed to the challenges faced by them
in the business environment. The emergence of the technical advancements, telecommunications,
globalizations and many more has created use of Human resource management in the
organisations. Strategic HRM designs the policies which are very necessary because of the
changing business environment. Strategic HRM helps in enhancing the productivity and
effectiveness of the organisations so it is used by the companies to combat with the changing
business environment as well as in the organizations itself.
This HRM provides many HR strategies which can be used by the companies. Nissan
Company must use the Strategic HRM for effectiveness of the organisations as it helps in
making changes in the organisation for competing in the changing business environment. This is
the most important element which must be considered while making changes in the company
because it will help the HR department to design the policies which are necessary for the
changing effects on the organisation as well its business environment (Gurmu and
Ongkowijoyo, 2020.).
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The role of recruiting and retaining appropriate employees –
Recruitment and retaining the talented and skilled employees in the organisations is the most
important role of HRM as these both are very necessary for the success of the organisation.
Recruitment is the process of hiring the candidates which are best fort the companies and having
good qualifications, skills and are highly talented. Retention is the process of stopping the
talented and skilled employees to leave the company as by this, the company may lose its
efficiency. The companies must provide the employees the benefits and rewards which will help
them to retain the employees in the organisation because this motivates and creates job security
among the employees which stops them to leave the organisation. Recruitment and retention has
direct impact on the overall performance of the organisation as hiring effective candidate will
lead to effective contribution by the employee and retaining the talented and skilled employees
will also help in maintaining the efficiency level of the organisation (Akunda, Chen and Gikiri,
2018).
They both plays a vital role in performance of the organisation as the effectiveness of the
employees is highly depended on these two factors. The HRM must ensure that they are hiring
the right candidate for the right job role according to the qualifications and skills. The employees
working effectively and efficiently will have positive impact on the organisations and will be
able to achieve the goals and objections of the company (Gallardo-Gallardo, Thunnissen and
Scullion, 2020). Nissan Company must hire those candidate which will contribute better for the
company and will help the company to stay ahead in the highly competitive market. It is very
important for this company to recruit better candidate from the available labour markets for
better performance of the organisation.
The internal and external factors that influence decisions of HRM in the workplace-
The HR department can face many internal and external factors which can affect the
decision making of the HRM in the organisations. These can be such as-
External Factors- These are the factors of the business environment which can affect the
working of the business as well as its performance. The external factors which can influence the
decisions of the Nissan Company are as follows-
Available Labour market- This is the main function of the HRM to maintain adequate staff in the
organisation for smooth running of the business operations. This external factor can affect the
decisions of the HRM as it depends on the number of the labours in the market. For example, if
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the HRM id deciding that more talented and skilled labours must be selected and hired but if
there is no availability in the market than they have to change their decisions and work according
to the availability in the market. Nissan Company HRM can also have influence of available
labour market on the basis of the candidates available in the market and what type of company
wants to hire.
Government Regulations- It is very important for the HRM to ensure that the organisation works
according to the compliance standards so they have much pressure of maintaining this in the
organisation. This external factors affects the decisions of the regulations because this can affect
the training, compensation, termination of the company (Zainon and et.al., 2020). Nissan
company can have impact on HRM of this external factors if the company is not ensuing this,
then they are extremely penalised for not following this.
Internal factors- These are the factors within the organisation and can affect the operations of
the company. Nissan Company can face these internal factors such as-
Level of growth- This internal factor can affect the business by evaluating the projected growth
of the organisation. The HRM have to change their decisions according to the growth of the
company for example, if the company is growing rapidly then they have to take decisions to
focus more on the recruitment and staffing process. Nissan Company after knowing the growth
of the company can have effect on the HRM decisions.
Use of technology- This is the key internal factor which affect the decisions of the HRM. As the
technology is very much advancing nowadays so it is very important for the companies to adapt
these changes for competing in the market (Osiurak and Heinke, 2018). For examples,
companies using online benefits management which helps the HRM to more focus on the areas
of recruitment and training development. Nissan Company also affect these decisions as they
have to work according to the technology in the business environment.
Above factors supporting the organisational development-
External Factors:
Available Labour market- This factor will help in development of the organisation as
hiring the skilled and talented employees in the market will contributes better for the company.
When highly skilled employees are hired in the organisation it helps in boosting the productivity
level and it directly contributes to the development of the organisation ( Yadav and Singh, 2021).
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Government Regulation- This external factor also supports the development of the organisation
as it helps in increasing the sustainability which contributes to the development. The business
growth becomes more speedy and holistic.
Internal Factors:
Level of growth- Evaluating the level of growth helps the organisation to understand their
performance of the company. Speedy growth of the company means the company is developing
day by day. Growth is the key element for the organisational development because growth and
development are interrelated with each other.
Use of technology- This factor also supports the most for the development of the organisation.
Companies which are using highly advanced technology are considered as the most developed
companies. As this helps in the growth of the overall organisation and they are highly advanced
in every operation of the business.
These all external and internal factors will support the organisational development of the Nissan
Company if they ensure about using highly advance technology and hiring the mist effective and
suitable candidates which can work according to the job roles and responsibilities of the
company.
HRM practices plays the major role in improving the sustainable organisation as it helps
in recruiting and selecting the better employees for the company which contributes in speedy
growth of the company. HRM also helps in shaping the future of the company as well as
boosting the profit of the company. These all helps in improving the sustainable organisation
performance (Chams and García-Blandón, 2019).
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CONCLUSION
This report has discussed the different areas of HRM practices as well as their contribution for
the success of the company. Along with this, it has also discussed the strategic HRM relation to
the changing effects on the organisation and its business environment. Further, it has considered
the importance and role of recruiting and retaining the talented and skilled labours or employees
for maintaining efficiency of the company. It has also discussed the weaknesses and strengths of
the HRM practices in the organisation. Later, it has discussed the external and internal factors
which can influence the decisions of the HRM as well as how they also support in the
organisational development. From the above report it can be conclude that using effective HRM
practices is the roadmap for strengthening the organisational performance as well as its talent
management strategy by hiring highly talented and skilled employees for the organisation.
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REFERENCES
Books and journals
Akunda, D., Chen, Z. and Gikiri, S.N., 2018. Role of HRM in talent retention with
evidence. Journal of Management and Strategy, 9(2), pp.8-19.
Alzyoud, A.A.Y., 2018. The influence of human resource management practices on employee
work engagement. Foundations of Management, 10(1). pp.251-256.
Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management practice on
Organizational performance. International journal of Engineering, Business and
Management (IJEBM), 5.
Bailey, C., and et.al., 2018. Strategic human resource management. Oxford University Press.
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources,
Conservation and Recycling, 141, pp.109-122.
Collings, D.G., and et.al., 2018. Human resource management: A critical approach. Routledge.
Gallardo-Gallardo, E., Thunnissen, M. and Scullion, H., 2020. Talent management: context
matters. The International Journal of Human Resource Management, 31(4), pp.457-473.
Gurmu, A.T. and Ongkowijoyo, C.S., 2020. Predicting construction labor productivity based on
implementation levels of human resource management practices. Journal of
Construction Engineering and Management, 146(3), p.04019115.
Opute, J.E., 2020. Recruitment and Selection. In HRM in Africa (pp. 17-30). Palgrave
Macmillan, Cham.
Osiurak, F. and Heinke, D., 2018. Looking for intoolligence: A unified framework for the
cognitive study of human tool use and technology. American Psychologist, 73(2), p.169.
Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
Yadav, P. and Singh, B., 2021. The Impact of Effective Recruitment & Selection Process on
Organizational Development: An Empirical Study. Annals of the Romanian Society for
Cell Biology, 25(6), pp.693-703.
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Zainon, S., and et.al., 2020. Factors of human resource management practices affecting
organizational performance. International Journal of Organizational Leadership, 9(4),
p.184.
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