The Role of Effective HRM in International Firms' Performance

This essay critically evaluates the role of Human Resource Management (HRM) in determining and enhancing the organizational performance of international firms. It emphasizes the importance of recruitment and selection processes in hiring the right employees, motivation strategies to boost employee engagement and productivity, and performance management systems for evaluating and improving employee contributions. The essay also highlights the significance of employee orientation programs in integrating new hires and maintaining positive employee relations to increase retention rates and reduce absenteeism. Training and development initiatives are discussed as crucial components for equipping employees with the necessary skills and knowledge to meet organizational goals. Through various organizational examples like Tesco, Virgin Atlantic, and Iceland Supermarket, the essay demonstrates how effective HRM practices can lead to improved product quality, financial success, and overall competitive advantage in the global market. Desklib offers this essay and many other resources to support student learning.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management

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Table of Contents
Introduction.................................................................................................................................................3
Role of HRM in determining and enhancing the organizational performance of international firms...........3
Recruitment and Selection.......................................................................................................................3
Motivation...............................................................................................................................................4
Performance management system............................................................................................................5
Employee Orientation..............................................................................................................................7
Maintaining good working conditions...................................................................................................10
Training and development.....................................................................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................14

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Introduction
In the current business scenario, HR manager plays an effective role in terms of organizing the
resources at the workplace. This essay presents the role of HRM to determine and enhance the
performance of the organization in international firms.
Role of HRM in determining and enhancing the organizational performance of
international firms
Recruitment and Selection
According to Foster (2014), recruitment and selection is an essential role that performed by HR
manager in an international organization. It aids to determine and enhance the performance of
the company. For example, Tesco PLC Retail Company hires HR manager to emphasize on
recruitment practices with the aim to influence the right person for their job. In this way, the HR
manager can focus on different recruitment activities such as technical and vocational events,
traditional newspaper advertisements, college hiring fairs, and internal efforts.
On the other side, Armstrong and Taylor (2014) stated that as per the requirement of current
opening and prospects for future recruitment, a HR manager will have a need to direct the efforts
with regards to best alternative for recruiting the right employees. For example, Virgin Atlantic
International airline focuses on hiring the employees through college fairs and traditional
newspaper advertisement as it can be feasible for an entry-level position within an organization.
In contrast to this, Shields et al. (2015) evaluated that there is a need for HR manager to address
the specific competency, knowledge, and qualities that a company seeks and desires from an
individual while selecting the right employees. It can aid to maintain the required skills and
maintaining the position itself like particular degree and certification and expected personal
qualities like a preference to recruit workforces with good ethical standard and good morale.

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In support of this, Guest (2017) stated that selection procedure involves the conducting aptitude
test and a background check assessment in order to make sure that employees meet their basic
qualification of both the position and their company. For example, John Lewis partnership Retail
Company hires an individual with the right personality types and job skills as it would be
beneficial to select the happy worker. A culture that matches the preference of employees and
makes them happy can also lead to a higher extent of retention.
Brewster (2017) argues that lower turnover rates and more favorable workplace moral may
contribute to the higher efficiency with higher profits. An effective recruiting and selecting
procedure may lead to producing the better outcome in the company. The quality of products and
services can be improved while the best workforces are retained and hired. The financial
outcome can be improved while the best people are retained and hired.
In support of this, Sheehan (2014) stated that financial success can be improved while the best
individual is recognized, retained, hired and trained. There are some employees who accomplish
their goal and objective hence organizational structure should permit more freedom while
workforces understand how to effectively complete their jobs. Influencing new workforces can
be easier while the reputation of the company for hiring and training is better. There are also
fewer requirements for recruiting and choosing the department in case of lack of constant hiring
procedure.
Motivation
Bailey et al. (2018) illustrated that a well motivates employees will perform in a way that offers
the greatest worth for international firms organization. Disinterest in daily tasks and feeling of
disconnect from the overall objectives of the company can lead to decline the quality of work.
Instead of performing their best, employees will want to do their jobs well enough in order to

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remain engaged. The success of the corporation will suffer as a result of workforces performing
below their extent of capability.
In opposed to this, Analoui (2017) exhibited that employee’s creativity and imagination can
incorporate into the innovation made by a new firm. All corporations focus on to remain
competitive because when workforces will not be encouraged then they will cease to offer ideas.
It will aid the corporation to maintain its market share and increase new clients. For illustration,
Under the Iceland Supermarket Company, employees show their less energy in jobs due to lack
of motivation and less time as productivity would be declined and the business could suffer the
bottom line.
Bolden (2016) argues that employee’s motivation is the extent of commitment, energy, and
creativity that a worker of the corporation will apply to their jobs. Higher staff retention helps the
business to decline the staff turnover and leading to declining the recruitment cost. Furthermore,
absenteeism can be reduced and leads to a higher extent of productivity. For example, United
biscuit i.e. Food manufacturing company motivates their workforces for improving their
procedures and quality of products can be produced. It can also lead to enhancing the reputation
of the company amid suppliers, potential workforces, and customers and also aids to make it
easier to recruit the best employees. It can also enhance the industrial relations with the trade
unions and can see effective work with trade unions.
Performance management system
Kramar (2014) stated that the performance management system is another role of HRM that is
used by an HR manager to determine the criteria for choosing the productivity of employees and
contributions. It permits the business owners to guide performance and to suit the needs and
activities of an organization. For instance, Virgin Atlantic International airline can use

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performance review in order to determine and analyze the performance of individual employees
on the job.
Marchington et al. (2016) discussed that performance appraisal can be used to explore the job
growth of each employee and to set benchmarks and goals to struggle for during the next
appraisal time. Understanding the advantage of performance appraisal can aid the managers and
supervisor to make the best utilization of resources. In contrast to this, Wilton (2016) evaluated
that performance appraisal can aid to build the relationship. It also gives the opportunity to both
employer and employee to sit down and evaluates the performance. For example, in Tesla, Inc.
i.e. Energy Storage Company, each individual is taking care of business because the HR manager
conducts a periodic meeting between employees and supervisors. It permits the organization to
develop and strength the relationship. Thus, building rapport generates a line of communication
for the workforces to use in making future suggestions for the corporation and applying for
promotions.
Dhar (2015) argues that charting progress is key benefits of using performance appraisal in
international firms. For example, Tesco PLC Retail Company uses performance appraisal where,
it compares their appraisal from Benchmark Company. It is beneficial for both workforces and
organization to measure the mark of improvement, lack of enhancement, and regression in job
performance areas. These facts and figures could be precious for human resources. Furthermore,
the increment in salary, promotions, demotions, and terminations are all the essential elements
that can be demonstrated in data of performance appraisal.
In support of this, Albrecht et al. (2015) stated that performance appraisal can target the
particular field of weakness that needs assessment and remediation. It can also serve as a
valuable technique to build goal that would lead to career advancement and promotion. For

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example, John Lewis partnership Retail Company uses performance appraisal to uncover the
needs of training and allows the corporation to emphasize on efforts in the narrowly specified
field.
In contrast to this, Marchington (2015) evaluated that performance appraisal can encourage the
good work with improvement in an organization. Celebrating a job well-done is an effective part
of the performance appraisal. It is stated that nothing fields of improvement are not so easy,
hence performance appraisal is essential to tactfully focus on the areas that need to enhancement.
HR manager should identify the needs of employees by taking time to performance appraisal and
make them feel better.
Employee Orientation
Mittal and Dhar (2015) stated that employee orientation is the procedure of introducing the
workforce to their new tasks and working atmosphere. Orientation facilitates an opportunity for
new workforces to become acclimated to their new corporation, colleagues, department and
working expectation. For example, in Vodafone Telecommunications Company, HR manager
provides an orientation program to provide benefits to both employers and employees. This will
also ensure the smooth transition into the new workplace.
In contrast to this, Paillé et al. (2014) evaluated that employee’s orientation benefits an
organization by offering the opportunity to introduce the workforces about the fundamental of
the corporation and their jobs from managerial perspectives. Furthermore, employees may take
advantage of learning the significant rules and details of position and job. For example, Virgin
Atlantic International airline will verify the licenses, and certification that is required for the
broker's license, teaching credential, and license of brokers. Employees will require complete
manual work, receive and review the handbook of employees and learn regarding the benefits

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and fundamental elements of the new position and parking arrangement in which restrooms and
cafeteria are available.
As per the view of Chang (2015), the key benefit of orientation is to make a fewer mistake and
faster productivity. For example, in Iceland Supermarket Company, Human resource manager
organizes the orientation program to make clear and transparent environment between employees
and organization. The benefit of using orientation is to decline turnover and enhances
productivity at the workplace. In addition, employees can get benefit from valued feeling and
apply into the new job more promptly and easily. Fewer mistakes can be made by new
workforces who are more stress-free.
On the other hand, Brewster Chung and Sparrow (2016) stated that an employee’s relation can
make or break their business. Encouraged workforces are more productive and put more efforts
into their performance. Maintaining employee’s relation aids to meet the expectation and helps to
grow the company. A favorable association amid managers and their teams can lead to high
employee’s motivation and engagement. This can transform into more revenue and satisfied
customers.
It is also argued that employees who have a favorable association with their managers, and their
colleagues to make smarter and efficient work. They are more prospects to put forth their best
efforts and get involved in the project of the company. It could also lead to increase performance
and productivity that aids to grow the business (Jabbour, et. al., 2015).
In support of this, Edwards and Hulme (2014) stated that maintaining employee relation aids to
increase retention rate. There are over one-quarter of workforces in a high retention uncertainty
category. There are some of the employees who possess critical skills and could support to the
growth of the company. Replacing the employees could be expensive. The best thing that an

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employee can do is to eliminate losing them at the initial stage. Workforces are fewer prospects
to leave a corporation that identifies and rewards their competency. As a manager, it is a
responsibility to generate an engaging working atmosphere in which employees feel appreciated.
Increased motivation and morale is one of the key benefits of maintaining good employee’s
relations. Disengaged workforces may increase the cost of the company and may lose the
productivity each year. HR manager should ensure staff feels appreciated and empowered. It can
also use advanced technology to work faster and better (Mayo, 2016).
In opposed to this, Van De Voorde Veld and Van Veldhoven (2016) stated that managing
workplace relation may decline the absenteeism from the organization. Stress and conflicts are a
key driving factor behind absenteeism of employees within an organization. There are certain
employees who using abusing behavior in the workplace hence, the organization should
emphasize to avoid such activities in the workplace. When employees are constantly missing the
performance, then the HR manager should try to assess the cause. For example, Tesco PLC
Retail Company asks regarding issues with their team members to keep a relationship. HR
manager should assess the harassment charges and motivates the staff to report such cases. They
should also assure the employees that company care regarding their well-being and safety.
According to Anitha (2014) maintaining good relation may aid to increase the revenue of the
company. A strong workforce relation has a favorable impact on the growth and revenue of the
company. Workforces who feel encouraged and engaged in an organization do a better job in
their assigned roles, resulting in better products, gained revenue and higher customer
satisfaction. In opposed to this, Jabbour et al. (2015) evaluated that workforces are a most
valuable asset of the corporation. The success of the business relies on their performance. When
staff is engaged and motivated then, they will stay with the company longer and strive in order to

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meet the expectations. The benefit of maintaining better employee’s relations is to encourage the
team members and provides a reward.
Maintaining good working conditions
According to Mayo (2016), HRM aids to maintain the good working condition in international
firms. An organization can generate favorable working atmosphere by identifying the issues
proactively and maintains the discipline among committers with regards to discrimination before
they arrive at the point at which workforces is driven to file a complaint. It is also judicious to
generate safe working atmosphere from the beginning rather than waiting for someone to get
hurt. For example, Tesco plc believes to provide the healthy and favorable working atmosphere.
It also compiles the relevant laws in their workplace policies. Thus, it is stated that maintaining
safe environment satisfies the workforces to make good business sense as people are more
prospect to build quality work when they feel appreciated.
Training and development
Chang (2015) argued that the human resource manager uses training and development method to
lead their team members towards the accomplishment of the organizational task. This method
could be effective to boost the financial performance of employees by enhancing the capability
of employees. Training and development could also be effective for increasing the existing skills
as well as knowledge of the employee with respect to the specified area to gain their
productivity.
In support of this, Mittal and Dhar (2015) examined that there are two kinds of training and
development method that could be used by the human resources managers like Off-the-job and
On-the-job training methods. For illustration, Tesco uses both Off-the-job and On-the-job
training methods to improve the productivity of employees in the least time. Moreover, training

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and development strategy could be effective for delivering the opportunities to their employees.
Sometimes, employees avoid the training section that could decline the possibilities of getting a
higher profit.
Marchington et al. (2016) stated that a human resources manager understand the weakness of
employees for increasing the productivity of them. The training program could be effective for
improving skills of employees as it could be effective to gain productivity of organization as well
as employees. A development culture brings a positive atmosphere at the working place. It could
improve the skills and knowledge of the workforce in the least time. It supports to decline the
weak links of the organization as it would increase the productivity of the firm. Thus, it is also
stated that training could be effective in making a reliable decision with respect to the
organizational task.
In the view of Analoui (2017), workforce who receives regular training could be capable to
obtain higher profit. The organization makes aware to their employees towards the policy of
organizational task. Moreover, it is evaluated that training might build the confidence level of the
employee as it would increase their productivity. The confidence level of the employee could
boost employee performance in limited time. It is also recommended that continuous training
maintains the productivity of the employee.
Brewster (2017) examined that organized training and development cultures ensure that
workforces have a reliable experience and contextual knowledge. The reliability is particularly
applicable to the organization’s basic policy and process. It is mandatory for the organization
that each employee should be aware of each policy of the organization as it would make
consistency at the working place. It considers many factors like discrimination, administrative,

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and safety. In addition, it is also addressed that putting each workforce by regular training in
such areas could also support to make the consistency in the organization.
Armstrong and Taylor (2014) argued that employee satisfaction could also be increased by
considered the proper training and development method. The investment in the program of
training and development could provide an opportunity for the organization for increasing their
revenue. It is also stated that the training and development method could aid the organization to
make a supportive atmosphere. Employees might learn more and polish their skills by making a
part of the training and development method.
Mittal and Dhar (2015) stated that the primary purpose of the organization is to use the training
and development method is to decline the workplace conflict and get higher profit. Moreover,
employee conflict could arise if the employees are failed to understand their allocated duties in
limited time. The lack of communication skills could increase the possibilities of conflict at the
working place. Hence, the human resources managers could use training and development
method and directly communicate with their employees with respect to their allocated work as it
would be effective for decline the conflict. It would also be effective for obtaining the reliable
outcome. A manager who has effective interpersonal skills could be capable to make a real
relationship with others and retain their employees for the long term.
Conclusion
As per the above interpretation, it can be concluded that HRM plays an effective role to
determine and enhance the organizational performance in international firms. These roles include
the recruitment and selection, motivation, performance management, training and development,
employee’s orientation and maintaining employee’s relations. It can be also summarised that
HRM is beneficial to increase the productivity, revenue and declines absenteeism of employees

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at the workplace. Furthermore, it can be also concluded that HRM is also advantageous for
decline turnover and increase employee’s retention rate at the workplace.

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