Unit 3 HRM: The Role of HRM and Organizational Development

This report provides a comprehensive analysis of the role of Human Resource Management (HRM) and organizational development within Rolls Royce. It compares different HRM areas such as recruiting and training, performance management, organizational structure, and employee benefits, highlighting their contributions to the firm's operations. The report examines strategic HRM in relation to the changing business environment and critically evaluates the role of recruiting and retaining appropriate employees. It also analyzes the strengths and weaknesses of HRM in business success and investigates internal and external factors affecting HRM decision-making. Furthermore, the report explores HRM practices in a work-related context, focusing on improving sustainable organizational performance, including job descriptions, recruitment flowcharts, performance management, reward systems, and employee engagement.

The Role of HRM and Organizational
Development Part 1 HRM Practices Part
2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Comparison of different HRM areas and their contribution........................................................3
Examining of strategic HRM in relation changing effects on business environment,.................4
Critically evaluation role of recruiting and retaining appropriate employees from labour
market..........................................................................................................................................5
Analysing strengths and weakness of HRM in business success................................................6
Investigating the internal and external factors affecting the HRM decision-making which
supports the organizational development.....................................................................................7
PART 2............................................................................................................................................8
HRM practices in work related context for improving the sustainable performance of
organization..................................................................................................................................8
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human Resource Management is basically defined as the process or strategy used by
organizations for developing the existing workforce with the help of recruitment, training,
development and more. The major role of HRM is to identify the best and most suitable methods
for increasing the productivity with providing proper skills to the employees. The report shows
about 'Rolls Royce' which falls under the category of top car manufacturing brands based in U.K.
Analysis shows about comparison of various HRM areas and their contribution. Furthermore,
shows examination of SHRM with changing effects in firm. Along with that, it shows critical
evaluation of role of recruiting and retaining employees, with analysis of strength and weakness
of organization. Moreover, provides information regarding internal and external factors
influencing along with evaluation of factors and their support for enterprise development. Lastly
shows job description and person specification of marketing manager, recruitment flow chart
along with performance management and reward system and organization approach to
effectiveness of employee engagement.
PART 1
Comparison of different HRM areas and their contribution
Different HRM areas tend to provide various advantage to the firm's working and
operations for the betterment. These areas include:
Recruiting and Training: As the name suggest this aims to focus on recruiting, selecting
of different employees as well as providing them with appropriate trainings required for the
betterment of firm (Guest and et.al., 2021). By developing the required skills in people contribute
in boost in the work, efficiency and effectiveness, resulting in profit achievement of enterprise.
With the proper utilization of key area aids 'Rolls Royce' in acquiring the most suitable, skilled
and talented employees which tend to improve the working operations and efficiency. Apart
from that training may also being one of the important factors as after the selection of most
appropriate candidates providing them with training and developing skills aids firm in
improving.
Performance Management: Another important and key area under which the reviewing
of performance takes place. About the reviewing, all performance of the personnel implies that
workers being able to perform their assigned roles. Performance management also contributes in
observing analysing and getting to know about how much is more required or does organization

being able to achieve the benchmark or not. For example, the human resource team of 'Rolls
Royce' tends to keep an annual check on the performance of each and every department as well
as employees resulting in lowering issues, overcoming challenges and enhancing the
productivity.
Organization Structure: Under this key area, HR management team focus on aiding to
define brands vision and mission along with considering goals. With management team
providing various changes and innovations in the working resulting in adapting and maintaining
change which may tend to improve the working conditions (Bezyak and et.al., 2018.). For
example, 'Rolls Royce' human resource aims to improve the skills, working abilities and
operations with incorporating new methods, techniques and innovations by workforce. Apart
from that firm's structure also contributes in continually checking and improving as well as
providing equal resource and chances towards employees.
Employee Benefits: While considering this area, HR management team aims to provide
their workers with various and different types of compensation for their engagement. This
feature helps in gaining more of employees’ contribution towards their work as, this will aid in
lowering down retention rate. By providing various insurances and aiding in the working, results
in smoothly operating of firm. This also includes functions in compensation which includes
evaluation of pay practices of competition and establishing compensation structure.
Examining of strategic HRM in relation changing effects on business environment,
Strategic human resource management is basically defined as the process for developing
and implementing various human resource techniques and methods. This may tend to resolve
issues, challenges and contributing in long term business objectives (Hadler and Carter, 2018).
Aiming at developing and accessing new techniques and strategies which aid 'Rolls Royce' in
increasing profit earning and acquiring competitive advantage over other firms. As SHRM also
help firm in analysing various external opportunities for firm to grab and threats so that company
may able to lower down them. For example, the strategic human resource team of 'Rolls Royce'
keeps on properly utilizing this technique which tend to aid firm in recruiting and selection as
well as motivating individuals. Apart from that also provides to have higher productivity so that
company may able to manufacture high quality standardized products and meeting the
requirement of customers. In-addition increasing the profitability, group and organizational goal
achievement.

Along with that 'Rolls Royce' management team also tend to provide efficiency in the
changing effects of business environment by supplying competitive intelligence that may be
useful in strategic planning process (McCann and Allen, 2021). With requirement of new
changes, results in recruiting and selecting new and right employees to improve the operations,
enhancing production and satisfy departmental needs along with forecasting future wants of
company, which may require for gaining more efficient knowledge regarding firm's
requirements. For example, 'Rolls Royce' HR team focus on providing the right employees
required for the right job, with this aid firm in lowering down arising challenges and recognizing
the dynamic interaction with personnel of other departments as well. Apart from that it also
checks about human resource planning must have required to be utilized and co-ordinated
effectively with the brands strategic and various planning functions.
Various changing effects creates the major requirements for HR department to use
different strategies and solving the staffing issues. With regularly increased growth in the market
results team to recruit more employees, so with SHRM aids in focus on expanding the employee
base with introducing new people. This may also help firm in filling up the role by selecting the
best personnel and leading in fully and smoothly working of operations which tend to improve
the production function, gaining competitive advantage and profit maximization.
Critically evaluation role of recruiting and retaining appropriate employees from labour market
Recruitment and retaining of employees does plays an important role in the choosing as
well as selecting the most efficient personnels for the suitable job. They both required to improve
the growth and success of 'Rolls Royce' by retaining the already existing individuals and
recruiting new personnels (Avdeeva, Grebenyuk and Kovriga, 2019). With the proper planned
recruitment by firm results in reaching out in selection of skilled people which may tend to
improve the efficiency and effectiveness of the working of brand. As with selecting and retaining
of approachable and appropriate workers also aids firm in resolving any issue arises, as with
enhanced skills they may tend to come up with new ideas by brainstorming.
Not just that but it may also assist in innovating new machines and techniques which may
tend to be unique and first one in the market resulting in higher attention grabbing of customers
and getting above from competitions. For example, when 'Rolls Royce' human resource team
retain and recruits’ new employees helps brand in creating more of high quality and standardized
cars for meeting the customers’ requirements. Not just that but effective and appropriate

workforce came up with new techniques, ideas and innovation which aid them to create less
energy and fuel consuming engines which results in increase the customer base of company.
On the other hand, the role of recruiting and retaining also delivers some negative
impacts as when company tend to recruit or select employees which may not being suitable for
the job role resulting in the downside of company (Dwyer, 2020). Not just that but higher
retaining of non-skilled workforce also results with increasing the cost of firm as organization
require to pay them their remuneration even when their skills being not required. Selecting the
inappropriate candidate for the job leads in inefficiency for the brand as they required to be
trained and after training does not grantee any aid or success for enterprise.
This also results in high occurred cost in the recruitment process as the company require
to select another person with appropriate skill set to work in the brand. For example, if 'Rolls
Royce' aims to recruit and retain individual who may not appropriate for selected job in firm,
results in decreasing the operations and production function of brand. Apart from that but also
company may have bear the losses and costs like recruiting and providing them with training and
development (Wadhwa and Madan, 2017). When the wrong person enters for specific job
position after being hired may tend to increasing the turnover as brand have to hire another
person for the same position resulting in another incurred costs, time loss along with lowering
the operation and profits for company.
Analysing strengths and weakness of HRM in business success
The HRM is required at different levels for achievement of business success. As without
the usage of human resource company may tend to not being able to deliver out the best
outcomes.
Strengths: As being an important aspect under the organization's development and
success with the proper utilization of HRM results in firm to have higher employee engagement
towards their works. Apart from that but effective HR management also aims to improve the co-
ordination between the workforces as well as under different departments of organization too.
Another strength being provided by management team by compiling or compliance of their
workforce by providing them with benefits and compensation resulting in greater amount of
production, decreasing challenges and gaining smoothness in operations (Rubel, 2019). HR
department also contributes in improving the 'Rolls Royce' working with effective working,
higher efficiency by analysing the target market and operate according to them resulting in

grabbing market and increasing brand's goal resulting increased profitability. Apart from that
human resource depart also aims to secure the top talent i.e. simply setting and retaining the most
and suitable individuals with high working capabilities and efficiency.
Human Resource team also aims to strengthen company's strategic management and
techniques for easily solving any occurred challenges and compliance issues as with the help of
proper and effective utilization or resources (Triwibisono and et.al., 2017). With this also aid
firm in gaining and acquiring the valuable time and energy for running and growing business in
the market, as well as improve the working conditions along with increasing profitability and
getting access to more & new markets.
Weaknesses: Not just that but HR may also its fair share of several weaknesses
consisting ignoring the finance as the department may tend to hire or recruit most suitable
individuals and not focusing on the cost impact. As recruiting process requires high amount of
cost consumption for selecting resulting in having very less sight on cost incurred and high
expenses. 'Rolls Royce' HR department needs to develop various programmes like career
planning, MBO and many more under which they may lack. So team need to solve the major
challenge of inadequate development programmes. Apart from that also requires to put their
concern towards high turnover rates by employees, without an effective resource management
employee dissatisfaction could go unnoticed which may tend to increase the turnover. Another
major weakness by department includes lack of support towards their top management, as the
change in attitude of top management personnel’s may tend to result in bringing good and
effective results while implementation of HRM.
Investigating the internal and external factors affecting the HRM decision-making which
supports the organizational development
There are various factors affecting the rolls Royce and results in change in practices and
policies of the company. From these factors the company is facing various changes as it is
experiencing the aggressive expansion and growth which requires the HRM department focus on
the retentions of the employees and improving the culture.
The company is affected by various internal factors and external factors. External factor
affecting Rolls Royce includes the political factors as the company is currently seeking the
financial help in the down times. For overcoming the financial crises, the companies of UK
depend on government for meeting financial help. Furthermore, the economic factors have

impacted the company at great level, as it has by decreased the sales of the cars. Moreover, with
the social factors company faces economic downturn as the people are preferring those goods
which are operated with corporate social responsibility (PESTLE analysis, 2021). With the
environmental factors the costumers have demanded more fuel efficient vehicles and company is
impacted legally by the regulation export and imports of auto mobiles.
The internal factors include strengths, weakness, opportunists and threats. The company
Strength is it has strong technological support from the parent company and have the strong
brand image which is recognized globally. Weakness of the company mainly includes the
introduction to the sport car is not fitting in it this luxury brand. The design of Rolls Royce suits
the luxury cars not the sports cars. Also, due to rise in pricing the Rolls Royce have small
potential customer (SWOT Analysis Understanding Your Business, Informing Your Strategy,
2021). The opportunities of the company mainly include the rise in the trend of the
environmental friendly cars is an opportunity for the brands. The threats for the brand may be the
protectionists trade policies and the unwillingness of various people to buy the cars at such high
prices.
As these factors are analysed by HR department for enhancing the workings and
effectiveness of firm. The external factors aim to observe, analyse and evaluate future threats for
the business. In addition, by analysis these factors will help in building pre planned actions and
methods anR strategies for avoiding and minimizing the impact. It also supports the organization
in developing various strategies. Analysis of these factors will mainly help in understanding the
business environment with the broader aspect which helps in providing the information about
market segment, profitability and target segment of the business. Thus, by analysing all these
factors will help and support the organizational development. By considering all the internal
factors will helps the business in enhancing the quality of car produced, also by utilizing
company's strength helps to overcome the weakness along with grabbing all the opportunities.
PART 2.
HRM practices in work related context for improving the sustainable performance of
organization
Job documentations for training managers on various HR related issues
Job description: job description summarizes all the essential responsibilities and
activities. It is the written narrative document which describes the general tasks, duties of an

individual. This gives all the details which is good fort both the organization and the applicant
regarding the job posting. The job description is developed by the job analysis, which includes
the sequencing of the task necessary for the required position. This document is used in the
recruitment process to inform the applicant of the job profile and the requirements, also used for
the performance management system (Khudhur and Aziz, 2020). As this helps in evaluating the
employees performance against the description. It mainly includes the job title, job duties, job
purpose and working conditions. The job description of the marketing manager is developed for
executing the marketing strategies of the company and maximizing the profits by meeting the
needs of the consumer.
JOB DESCRIPTION
Post title: Marketing manager.
Job location: Derby, England, UK.
Job summary: For managing marketing budgets, promoting and analysing trends.
Reporting for: Marketing assistant.
Reporting to: Managing director, VP of marketing.
Working with: Managing director and all other employees.
Working hours/ conditions: Flexible 20hours per week, 3-4 hours per day.
Job duties
To manage the receipt handling and Managing, targeting, positioning and assisting for the
targets.
Creating the marketing strategies which result in the greatest share of the market.
Monitor market trends, building targeting strategies based on demographic data.
Establishing marketing goals and ensuring the share of market and profitability.
Coordinating all the information regarding marketing.
Preparing marketing activity report.
Annual marketing and communication plans.
Tools and techniques used: Marketing techniques and tools (ads, email, presentation, road
mapping, SEO, media marketing, marketing automation, commercial advertising)

Job specification for marketing manager
Job specification outlines the specific traits of an individual. It is the detailed
description of the role, including all the qualification, skills, personal traits including all the
responsibility, objectives and requirements (Rudolph and Zacher, 2021). This document
helps in the training, recruitment and selection process, evaluating the employee’s
performance in their appraisal and promotion.
JOB SPECEFICATION
MARKETING MANAGER
Description: The marketing manager is responsible for managing, positioning the brand,
analysing data, supporting sales; mainly responsible for overall marketing of the business.
Experience/skills
 At least 5 years of administrative experience in marketing and business.
 Marketing qualification, excellent Microsoft skills.
 Highly developed Teamwork skills, supervising staff.
 Excellent Communication skills, writing skills and networking ability.
 Experience in digital marketing, content management system.
 Proven experience in developing marketing plans and campaigns.
 Broad knowledge in program management and handling project
Education: Bachelors in marketing, Masters in marketing management required.
Recruitment and selection process followed by the company
For ensuring the market growth of the company, Rolls Royce is constantly recruiting the
talented executives for managing the challenging situation of the organization (Bhatnagar, Kajla
and Gupta, 2021). Recruitment and selection process of the company is developed on the strong
foundation with the purpose of employing the right person for the right job.

Determining the job vacancies: It is the first step where identification of the vacant
position is being done by HOD. The number of employee for meeting the present and the
future needs will be identified, along with understanding the client requirement for the
cars.
Sourcing the candidate: Sourcing of the candidate will be done through: paper
advertisement, job portals and manpower consultants. The Human resource department
will advertise the job vacancy on the various portals, websites.
Mapping position: The sourcing of the profile will be done along with mapping the
position in industry, for this The HR manager will map the position by forecasting the
long term hiring needs.
Arrange and screening the interview by short-listing candidates: candidate will be
screened based on the age, experience, appearance, health. Post screening the applicants
will be asked to fill the application form. Further, the IQ, test will be conducted for short-
listing the candidate and for preceding to the next level of interview.
Final selection of candidate: For this test a panel comprising of HR, CEO will take
interview and arrive at the decision for selecting the candidate who can add the value to
the organisation. This test plays a major role in selection and recruitment.
Facilitating Selection interview: The post interview decision will be made by realising
the offer letter and joining formalities, the auto-mobile company will decide about
candidate is suitable for the job opening. Post interview the company recruiter will keep
in touch with the candidate for conversing the feedback and the decision made.
The offer letter will provide detail about the offer position, joining date, offered salary
and documents required to bring at time of joining.

Recruitment and
selection process
followed by the
company
Facilitating
Selection
interview
Determining the
job vacancies
Sourcing the
candidate
Mapping
position
Final selection
of candidate
Arranging and
screening the
interview by
short listing the
candidates