HRM Practices, Employee Relations, and Organisational Profits

This report analyses Human Resource Management (HRM) practices within Birds Company, focusing on the purpose and functions of HRM, strengths and weaknesses of different recruitment methods, and the benefits of HRM practices for both employees and employers. It evaluates the effectivene...Read More

Unit 3 Assessment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining purpose and the functions of HRM...........................................................................3
Explaining strengths and weaknesses of different recruitment methods.....................................4
Explaining benefits of different HRM practices to employees and employers...........................5
Evaluating effectiveness of HRM practices in raising organizational profits.............................6
Analysing employee relations and how they affect decision-making process of HRM..............7
Identifying some key elements of employment legislation.........................................................8
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
HR practices refers to hiring, selecting and providing training to the employees of the
organization so that long term goals might be achieved easily. Also, the present report is based
on birds company and will analyse the different functions of HRM that are practice and followed
on regular basis by the firm. Moreover, detail description of various strength and weakness of the
recruitment process along with the current selection method of the firm will also be covered in
report. Furthermore, effectiveness of HRM practices will also be analysed in increasing the
profitability of the business. Lastly, significance of employee relation along with various
employee legislations will also be discussed in detail under this study.
MAIN BODY
Explaining purpose and the functions of HRM
Every organization big or small is concerned with managing the people in effective
manner so that certain tasks might be carried out effectively so future gaols might be met.
Furthermore, the main purpose of HRM practices in birds is to align all the human resources the
firm towards the overall business goals so that there is no wastage of resources and the
productivity of employees is not impacted. Also, another purpose is to listen to the employees so
that high job satisfaction level might be maintained that would allow the birds to maintain
competitive advantage in the market (Cobanoglu, Sertel and Sarkaya, 2018). Furthermore, HRM
in quoted firm is responsible for managing all the changes that are occurring in the business
environment through suggesting the best techniques that might be applied by top management to
handle all challenges effectively.
Moreover, role of HRM is to systematically forecast the future demand and supply of the
employees through properly conducting the staffing and recruitment process so that there are no
difficulties faced in the future (12 functions of an Human Resource Management(HRM), 2022).
Also, HRM plays the role of organizing various activities, events and seminars for the
organization so that further organizational development might be ensured.
Also, there are various functions that HRM plays some of them are described as follows:
Employee training and development: HRM in the birds company is responsible for
conducting various training programs for the employees' so that skills might be enhanced and
also the firm might ensure greater innovations and creativity within the workplace. Also, these

training programs allow the employees to adapt to new skills and competencies that are essential
according to the changing business.
Employee hiring and selection: In quoted firm HRM also does the function of hiring
and selecting the right candidate so that certain goals of the company might be accomplished on
time (Shah, 2019). Also, ideal candidate are identified for interview and selection process and
the screened ones are than taken for various interview rounds to that there skills might be
analysed properly. For instance: During festive and seasonal times birds company hires more
staff because the work load is much more and thus help and assistance of more number of
workers is required.
Compensation and benefits: There are various personal goals for which any individual
join the firm but the most basic is salary and hence the quoted firm HRM department ensures
that best compensation plans are developed so that people love to work and remain dedicated
towards there certain roles and responsibilities assigned to them.
Explaining strengths and weaknesses of different recruitment methods.
There are various ways through which the firm might recruit the persons to work in the
firm and most common ways that are used by the quoted firm are as follows:
Internal recruitment: This is type of recruitment which is done internally within the
firm so that already experienced employees are able to move to higher positions within the firm.
Also, in the quoted firm this method is used when the firm wants to save the hiring cost and
knows that talented employees are present within the firm. For instance, in birds company it is
done through promotions where the lower level employees is moved to higher rank within the
firm (Keegan and et.al., 2018). Moreover, the major merit of using this technique is it improves
the employee retention and improves the overall team morale of group of employees. However,
quoted firm might suffer from increase in failure rates as some employees would not be
compatible enough to take new responsibilities.
External recruitments: It is the most common method that is used by the quoted firm so
that greater productivity might be ensured within the workplace through having the fresh talents.
Furthermore, the bird company have adopted advertisement as way of recruitment so that more
people are aware of the available vacancies that are existing within the firm. Also, major
advantage is that it helps in increasing the choice of selection for the firm and also only those
candidates will apply that find suitable for the job. Although the biggest disadvantage is that it

is very time-consuming and higher risk process as selection of any wrong candidate would only
add to the cost and wastage of firms resources.
Furthermore, in context of selection it can be said that the quoted firm chooses the
interview round process where all qualified candidates are called for the final selection round
so that there existing competencies might be identified clearly. Also, major benefit of such
method is that bird would be able to find out gather the supplementary information about the
candidate and also the applicant job knowledge might be assessed (Heilmann, Forsten-
Astikainen and Kultalahti, 2020.). However, the major limitation while using such technique for
the firm is that it is sort of incomplete process and hence suitable candidate cannot be selected
only with the interview process only. Furthermore, lack of attention to suitable employee details
would not allow the firm to identify the correct skill set of the individual.
Explaining benefits of different HRM practices to employees and employers.
HRM practices are very useful when the company is planning to ensure that working is
efficient and also when certain goals need to be achieved on time. Furthermore, the major
benefits of such practices for quoted firm is divided into two parts as follows:
Training in the firm : It is known that with this practice companies are able to retain the
best employees within the firm are able to reduce the employee turnover rate and also able to
achieve garter height of success in limited time-frame (Al Mamun, 2019). For example: Such
type of retention has allowed the firm to boost the employee engagement and performance to
solve challenging tasks. Moreover, in context of employees it has allowed them to learn new
skills so that they might be able to preparer for higher roles in the future.
Performance management : Moreover, best HRM practices help the employers to save
lot of time and energy in evaluating the performance of each employee through adopting better
tools for performance (Benefits of Human Resource Management and Why It Is Important for
Small Businesses, 2021). Furthermore, with saved time top management would be able to focus
on those areas that are less important or secondary activities of the firm. Moreover, employees
are able to analyse there is weakness so that proper discussions with top management would
allow them to grow and earn better rewards in the future.
Selective hiring : It is known that if best selection of HRM practices of the firm is done
than employees would be able to increase the productivity through assigning some role to the
new candidates that so that they are able to take more challenging task in future and remain

motivated at the same time. Also, the good for employers as it would allow the firm to
accomplish certain professional goals of the business that is essential for sustaining in the market
in the longer run. Moreover, employers would be able to enhance creativity within the workplace
through finding out the ways to accomplish certain activities within the specified time frame.
Evaluating effectiveness of HRM practices in raising organizational profits.
From the above practices that have been followed by the quoted firm it can be said that
these practices have been proved good and bad at some point of time as it depended on of the
current working situations of the firm. Also, the detail description of these practice have been
provided as follows:
Selective hiring: It is method where the few of the candidates out of the application of
different individuals is been called for the further round of interview within the firm. Moreover,
it is important that firm is hiring only those individuals that are able to perform certain task so
that not much training is required. Furthermore, major advantage of such process is that it helps
the firm in getting the productive employee that would achieve higher target for the firm. Also, it
helps the company to build strategic goals so that greater profitability might be ensured for the
future (Bush and Balven, 2021). However, the major disadvantage of this process might be that
is any wrong employee is selected for the organization that it would only results in cases of
employee absenteeism and the higher turnover rate that would only demotivate other employees
that are working within the firm. For example: Due to higher turnover rate in birds company,
there might be cases where the quoted firm is not able to achieve the short term gaols on time
that would further affect the long term profitability of the firm.
Performance management: In every organization the firm is able to analysis all the
individual employee performance so that better rewards schemes and incentives might be
provided. Also, performance is measured through some metrics so that actual analysis might be
found out. Moreover, performance might be measured either on quarterly, yearly or monthly
basis based on the objectives the firm wish to achieve (Ahmed and Ogalo, 2019). Also, such
analysis is beneficial for maintaining the profitability of the firm as birds company would be
able to find out employees that are the least productive so that training programs might be
developed. However, major disadvantage is that if the performance is evaluated on regular basis
than it would hamper the efficiency of the employees thus affecting there productivity to deliver
the best results due to frequent comparison with other employees that are working at the

workplace. For instance : in the quoted firm performance management techniques like 360
degree feedback would allow the firm to identify the best and least efficient employees in the
firm so that corrective actions might be undertaken on time.
Analysing employee relations and how they affect decision-making process of HRM
There are various best HRM practices that are conducted by the firm so that better
employee relations might be maintained and the company is able to maintain the competitive
advantage in the long run. Some practices are briefly described as follows:
Conflict resolutions: The quoted firm has separate team that handles various small and
big conflicts that are faced by the employees' in their day to day working. Also, such type of
conflict resolutions is important to ensure that working environment of the business is not
impacted and all employees are able to survive in the firm for longer time period. Moreover, the
major advantage of such conflict resolution is that employees feel valued as management listens
to all their problems and also greater level of trust and loyalty is developed for the firm that is
essential for the ensuring continuous success of the firm (Bello-Pintado and Garcés-Galdeano,
2019). However, the major disadvantage is that if sometimes panel of resolving the conflict
within the workplace is not righter than it would only lead to wrong decisions and assumptions.
Thus, this would create negative impact on the employee motivations and trust and in some
cases' employee would leave the firm.
Job security: To maintain the good employee relations quoted firm ensures that
employees are provided enough job security in terms of the salary and growth opportunities so
that employee feels part of the firm and is ready to take higher level goals in the future. Also, the
major benefit is that the company is able to gain the hard-working and loyal employee that
would in turn would allow the firm to take better decision in the future. Also, through this
practice the employee is able to gain confidence and is able to handle the task independently
without any hesitation (Glaister and et.al., 2018). Furthermore, with type of job security the firm
is able to have better atmosphere at that workplace where employee engagement is seen higher.
Although the job security is good for any firm but major demerit is that in some cases where
employees become too much securer than there are chances that they might not improve
themselves. Also, they might rely on the assigned workloads and thus might not find the
incentive creative.

Identifying some key elements of employment legislation.
There are various elements that are related with employment legislation and hence have
the major influence on the HRM decisions making process. Moreover, some key elements might
be understood through the following acts that are described as follows:
Health and safety acts 1974: It is act by the parliament that defines fundamental
structure and the authority for maintaining the workplace health and safety standards so that
employees are able to work in the best manner. Also, through this act the quoted firm develops
certain safety standards that need to be strictly followed and practice so that there is no insecurity
that is faced by the employees (Zaid, Bon and Jaaron, 2018). Moreover, such acts impact the
decision of the firm as HR policies need to be developed in way that provides safe working
environment. For example : HR in quoted firm ensures that right training, instruction and
supervision is been provided to the employees' so that staff is able to understand all the safety
rules properly. Furthermore, they are able to easily communicate with the safety representatives
whenever in need.
Employee rights act 1996: This act covers all the rights that are been provided to the
employees within the firm so that work is carried out smoothly. Also, this type of act impacts the
decision of quoted firm as it helpful in situations of unfair dismissal, parental leave and
redundancy etc. that causes HR to devise the best policies that would increase the employee
retentions and would allow the employees to demand such leaves at difficult times (Przytuła,
Strzelec and Krysińska-Kościańska, 2020). For example: Providing such type of rights in quoted
firm would help in building trust and also protect the employees form the unlawful
discrimination that might occur on the workplace in birds company.
CONCLUSION
From the above report it can be concluded that adopting the right HRM practices allows
the firm to achieve the long term goals in timely manner. Also, the report had identified various
functions of HRM such as recruitment, training and staffing so that better planning of resources
might be done by birds' company. Also, strengths and weakness of various recruitments had also
been discussed in detail under this report. Furthermore, the study had also identified the benefits
of HRM practices through both employer and employee point of view. Moreover, effectiveness
of HR practices had also been identified that has allowed the firm to increase the productivity
and efficiency. Also, the significance of employee relation had also been discussed that has

impacted the decision-making of the firm. Lastly, some key elements of employment legislation
such as health and safety act and employee rights act had also been analysed in detail.

REFERENCES
Books and journals
Cobanoglu, F., Sertel, G. and Sarkaya, S. S., 2018. Human resource management practices in
Turkish education system (Denizli case). European Journal of Educational Research. 7(4).
pp.833-847.
Shah, M., 2019. Green human resource management: Development of a valid measurement
scale. Business Strategy and the Environment. 28(5). pp.771-785.
Keegan, A. and et.al., 2018. Organizing the HRM function: Responses to paradoxes, variety, and
dynamism. Human Resource Management. 57(5). pp.1111-1126.
Heilmann, P., Forsten-Astikainen, R. and Kultalahti, S., 2020. Agile HRM practices of
SMEs. Journal of Small Business Management. 58(6). pp.1291-1306.
Al Mamun, M. A., 2019. An analysis of employee awareness on green human resource
management practices: Evidence from Bangladesh. Human Resource Management
Research. 9(1). pp.14-21.
Bush, J. T. and Balven, R. M., 2021. Catering to the crowd: An HRM perspective on crowd
worker engagement. Human Resource Management Review. 31(1). p.100670.
Ahmed, A. and Ogalo, H. S., 2019. From hrm to e-hrm: Contemporary developments from
scholarly work. Annals of Contemporary Developments in Management & HR
(ACDMHR)', Print ISSN. pp.2632-7686.
Bello-Pintado, A. and Garcés-Galdeano, L., 2019. Bundles of HRM practices in family and non-
family firms: the impact on enhancing performance. The International Journal of Human
Resource Management. 30(21). pp.2971-2992.
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.
Zaid, A. A., Bon, A. T. and Jaaron, A. A., 2018. Green human resource management bundle
practices and manufacturing organizations for performance optimization: a conceptual
model. International Journal of Engineering & Technology. 7(3.20). pp.87-91.
Przytuła, S., Strzelec, G. and Krysińska-Kościańska, K., 2020. Re-vision of future trends in
human resource management (HRM) after COVID-19. Journal of Intercultural
Management. 12(4). pp.70-90.
Online
12 functions of an Human Resource Management(HRM). 2022. [Online]. Available
through:<https://www.betterplace.co.in/blog/hrm-functions/>.
Benefits of Human Resource Management and Why It Is Important for Small Businesses. 2021.
[Online]. Available through:<https://www.trinet.com/insights/benefits-of-human-resource-
management-and-why-it-is-important-for-small-businesses>.