JP Morgan HRM: Functions, Recruitment, and Employee Relations

This report provides an in-depth analysis of Human Resources Management (HRM) practices at JP Morgan, a prominent commercial and investment banking institution. It begins by outlining the functions and purpose of HRM, including both operative (recruitment, training, salary administration) and managerial (planning, organizing, directing, controlling) aspects. The report delves into the nature and scope of strategic HRM, differentiating between hard and soft approaches to workforce planning and resourcing. A significant portion of the analysis is dedicated to the strengths and weaknesses of internal and external recruitment strategies, as well as selection processes such as situational interviews. Furthermore, the report assesses the benefits and effectiveness of various HRM practices for both employees and employers, including learning and development, payment and reward management, and performance appraisals. The importance of employee relations in influencing HRM decision-making is highlighted, alongside a discussion of key employment legislation and its impact on HRM. Finally, the application of HRM practices within the work context is examined, providing a comprehensive overview of how HRM contributes to JP Morgan's overall business objectives. Desklib offers a variety of solved assignments and resources for students.

“HUMAN RESOURCES
MANAGEMENT”

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions and purpose of HRM .......................................................................................1
Functions and Purpose of HRM of JP Morgan................................................................................1
M1...........................................................................................................................................4
P2 Strength and weakness of recruitment and Selection........................................................4
M2:.........................................................................................................................................6
M3:.........................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Benefits of different HRM practices to both employee and employer of the organization.. .7
P4 Effectiveness of different HRM practices.........................................................................8
M3...........................................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Importance of employees relations in respect to influencing HRM decision-making....10
P6 Key elements of employment legislation and the impact of this on HRM.....................12
M4.........................................................................................................................................14
TASK 4..........................................................................................................................................14
P7 The application of HRM practices..................................................................................14
M5 ..........................................................................................................................................3
CONCLUSION ...............................................................................................................................1
REFERENCES................................................................................................................................3

INTRODUCTION
Human resources management is a process of recruiting, selecting, including employees,
providing orientation, imparting training and development and maintaining the proper
relationship within the organization (Albrecht and et.al., 2015). It is fouces on the functions of
peoples within the organization and ensuring the best work practices are in place all time.
Present study is based on the “JP Morgan” which is a commercial and investment banking
institute, founded by J.P. Morgan in 1871. The company is established at United stated and New
york city. Also the company predecessor of three largest banking institutes in the world that is
JP Morgan chase, JP Morgan Stanley and Deutsche bank. There are about 26,314 employees
work in the firm. Study lays emphasis on the purpose and scope of the HRM which is
appropriate to fulfil business objective. Report will discussion on effectiveness of the key
elements of human resources management in an organization. In study will discuss the analysis
of internal and external factors affect to the HRM practices of organization. It is also discussion
on HRM practices is applicable in work context.
TASK 1
P1 Functions and purpose of HRM
Human resource management is defined as a vital approach to achieve, expand, managing
and inspiring and receiving guarantee of the organisation's main resource- the individual working
for it and in it (Albrecht and et.al., 2015).
Functions and Purpose of HRM of JP Morgan
Generally the human resource management is related to hiring, motivating and
maintaining individuals in the organisation. JP Morgan's HRM includes two functions which are:
 Operative functions
 Managerial functions
Managerial functions
Planning: It's a systematic plan to accomplish its highest to gain organisation valuable
benefit- human resource of JP Morgan (Bailey and et.al., 2018). It also helps to identify, consider
and compile the future and current needs of JP Morgan.
Organising: HRM of JP Morgan organise the task which is allotted to each employee
according to its area of interest and skills blending toward a common goal.
1

Directing: HRM guides employees towards positive environment to contribute them to
achieve job-oriented goals and objectives of JP Morgan.
Controlling: HRM controls by setting standards of JP Morgan, measuring and comparing
actual performance with required goals and if it is in contrast with it then taking correct actions.
Operative functions
Recruitment/Hiring: HRM hires or recruit eligible and intelligible candidates suitable for
the job profile required in JP Morgan. Its main aim is to select the candidates having appropriate
skills with according to profile.
Training and development: It is given by HRM to team's employees and new joiners to
enhance their knowledge and improve their skills and performance according to requirement of
the objectives of JP Morgan (Functions and purpose of HRM, 2016).
Salary administration: The HRM of JP Morgan regulates the pay distributed to the
employees, including the terms of Incentives, rewards, perks, bonus, benefits and allowance.
Purpose of HRM in JP Morgan
The main purpose of the HRM in JP Morgan is to amplify the productivity of the
organisation by amending performance of its employees. It also co-ordinates the employees of JP
Morgan to achieve goals. It even accomplishes the staff needs and maintain the employee's
satisfaction. JP Morgan have new skills and talent when it hires the new employee from outside
(Nankervis and et. al., 2016).
The nature and scope of strategic HRM in JP Morgan
2

Source: (Strategic human resource management, 2017 )
Nature
Strategic HRM is the process that determine how the organisation's goal will be achieved
through employees in term of HR strategy and HR policies and its practices. HRM is the
strategic company companion of JP Morgan (Functions and purpose of HRM, 2016).
It economises its activity and always work as profit centre for the JP Morgan. HRM adds value
in term of HR practices.
Scope:
HRM in personnel management: JP Morgan has very wide functions of HRM
concerned with workforce planning, recruitment, selection, placement, transfer, promotion,
training and development, unemployment shortage, compensation, incentives and productivity in
the JP Morgan (Brewster, Chung and Sparrow, 2016).
HRM in industrial Relations: HRM carefully manages the communication with labour
or employee union, devoting effort to solve grievances and ending the disputes in order to
maintain company's healthy environment (Wilton, 2016). It has the art to understand employees
needs and relations while sustaining profitability of the JP Morgan.
Hard and Soft HRM approaches for planning and resourcing in JP Morgan
3
Figure 1: Strategic model of HRM

HRM is introduced in two varied terms: Soft and Hard.
The soft approach of HRM affirms the employees to self direct them, takes liability, trust
and helps develop their skills for JP Morgan growth, self-managed behaviour at point of strategic
approach to employees (Brewster, Chung and Sparrow, 2016).
While, the agenda of hard HRM is to manage the staff system where employees are
considered as a resource which needs to be controlled as to accomplish high outcome and
competitive benefits in JP Morgan (Albrecht and et. al., 2015).
Workforce Planning-The workforce planning is the methodical procedure to align the demands
and priorities of JP Morgan with its human resources to assure that it can meet its legislative,
regulatory service and production requirements and even the business objectives of JP Morgan
(Harney, Dundon and Wilkinson, 2018).
M1
The productive Human resource management helps to fulfil objectives of JP Morgan
company by its management functions of recruitment, selection, training and developing the
skills and talent of the employees and managing team members (Vivares-Vergara and et. al.,
2016). HRM helps the employees to obtain their services, develop their talent and skills and
encourage them to acquire high level of performance and to fulfil objectives of JP Morgan
company.
P2 Strength and weakness of recruitment and Selection
Recruitment is process of hiring and finding the best qualified employee for a suitable
job. Internal recruitment is when business uses to fill the vacancies from within the existing
workforce. External recruitment is when firm hires the workers from outside the work-place
(Marler, and Parry, 2016).
Internal and external recruitment approach- The internal recruitment approach is the
planning to attract and analyse the candidates within the organisation.
The external recruitment approach to find appropriate talented and suitable candidates
from outside the organisation (Vivares-Vergara and et. al., 2016).
Selection approach- Interview is the process of selection where questions and answers are asked
to the candidate to check ability of the particular candidate chosen for the job profile whether he
is suitable or a right match for the work profile.
Strengths and weakness of internal Recruitment of JP Morgan
4

Strength
When JP Morgan hires someone within the organisation, the person hired internally
through transfer or promotion is well-known by it. The existing employee is known with the
process of how JP Morgan works. The on-board training will be much faster with the existing
staff than compared to the person hired externally. It includes less paperwork and benefits the
organisation (Marler and Parry, 2016).
Weakness
JP Morgan promotes one person over another so there can exist dispute between the two.
Stagnant behaviour may create to do things in same way they are doing and not developing new
ideas in work which will lead to competitive disadvantage (Vivares-Vergara and et. al., 2016).
Strengths and weakness of External Recruitment of JP Morgan
Strengths
JP Morgan have new skills and talent when it hires the new employee through
employment agency or management consultant. As the person may have working experience of
other industry in the past, they may be able offer new ideas and technique they have learnt from
past organisation which could help to acquire vision (Stone and et.al., 2015).
Weakness
If JP Morgan recruits candidates from outside they may have little understanding about it.
The biggest weakness is that it is time-consuming as it takes excess of time to conduct induction
for new employee, introduce whole process and the terms and policies of JP Morgan to
candidate. If the new employee may not be adjustable with existing employee or new
environment he/she may leave the company (Marler, and Parry, 2016)..
Strengths and weaknesses of Selection
Situational interview- In situational interview candidates are asked to answer to a specific
situation they may/have faced during job. To successfully pass in situational interview is to
evaluate the past work experience and assess the steps to be taken to solve such problems and
rectify them (Marler and Parry, 2016).
Strength
Firm is engaged in making use of various selection methods like interview, psychometric
test. Selection process eliminates the term favouritism. By this process the cost and time taken is
reduced of JP Morgan. This test helps to know the candidate's capability, knowledge, talent,
5

skills and experience (Storey, 2016). This helps the reference appraisal. This helps to select the
candidate as per requirement of job designation.
Weakness
Candidates may easily manipulate the result by choosing favourite answers. The
questions asked may be much direct, interfering and straight-forward for some test takers (Stone
and et.al., 2015). The candidates may require frequent updates to know responsibility of current
designation.
M2:
Strength of internal recruitment
The cost of this recruitment approach is lower.
Weakness
Choice for selecting a candidate is limited
Strength of external recruitment
Choice for selecting an appropriate candidate is wider
Weakness
This method can increase company cost
Strength of Selection approaches (Interview)
It is a flexible method of selection
Weakness
Time consuming
M3:
Strength and weakness of internal and external recruitment- The recruitment cost are lower
because hiring the candidates internally which will save the money because there is need to
employ recruitment company and advertise about the vacancy (Marler, and Parry, 2016).. The
weakness is there is no variation in choices of candidate selection internally.
The External recruitment gives advantage to select right candidates with wide range. The
weakness is it can increase the company's cost as it will have to follow some methods like to
employ recruitment company and advertisement (Wilton, 2016).
The selection approach gives flexibility to on job including willingness and capability for
candidate to easily respond in changing work environment.
The weakness of selection approach is that it takes huge time to select right candidates.
6

TASK 2
P3 Benefits of different HRM practices to both employee and employer of the organization.
Benefits of Employee Benefits of Employer
Learning and development
By effective learning and development,
employees are better prepared to face the
challenges in the JP Morgan and the marketplace.
Learning and development process helps to
employer of JP Morgan to faster and more
effective on-boarding of new hires by an
advanced training cycle.
Increase the employee motivation and
engagement level in the organization(Bailey and
et.al., 2018).
Effective training to employer are provide
structured training to develop their staff to
high-potential staff.
Providing effective training and development to
employees, they shows greater productivity and
higher quality of work output.
Employer develop their staff abilities to
identify improvement area and develop better
way of working, by that they improve their
business performance.
Payment and reward management
Payment and rewards are help to increase
performance of employee.
Employer are motivated by the effective
work performance of the employee.
This will boost employee engagement leading to
better performance in the future at JP Morgan.
This will boost to employer relation leading
to give better performance at the meetings,
board meetings etc..
Employees are satisfied by the work, then they
will able to give excellent customer services to
By that will appreciate, give their effective
and hard contribution to achieving the goal
7

customer. of the JP Morgan.
P4 Effectiveness of different HRM practices.
Hr practices means through management can improve quality of their employees.
Training and development
The training and development is an important for every organization. This is an effective
way to increase profit and productivity of JP Morgan. Effective training is help to employees to
increase their productivity and work capacity(Bratton and Gold, 2017). Importance of training
and development to increase productivity, are as follow: Improved performance: Training and development is a necessary for better performance
of employees. By that employees are receive more knowledge about work and become
competent about daily tasks (Stone and et. al., 2015). They are more confident and sure
for their work and then they can come up with the new ideas. Employees are try to make
effective strategies for the betterment of JP Morgan to achieve goal and gain additional
productivity. Increased standards of productivity and quality: Productivity and quality are core think
which is reputation of the organization. It is very important for JP Morgan to maintain
standard of quality and productivity of employees (Marler and Parry, 2016). That is
maintain by providing effective training to employees to develop their productivity for
the organization to achieve goals. Innovative strategies and products: Learning and training process increased think of
employees. Employees get opportunities to polish thoughts and ideas of innovation and
creativity. That help to employees to make them effective strategies and innovative
product to achieve goal of the JP Morgan and get effective growth in profit and
productivity (Marler, and Parry, 2016)..
 Better profile and reputation of the corporation: For increase productivity and profit of
the JP Morgan, it is important to make better profile and reputation of the
organization(Brewster and et.al., 2016). Strong and successful training helps to build
employees for effective work. When employees perform well in their task and understand
8

responsibilities of post then they will give hard contribution to make effective profile of
the JP Morgan.
Payment and rewards system:
Rewards are important not only to retain them but also to motivate and attain them. It is
encourages employees to have a positive behaviour or attitude which is help to increase the
productivity of JP Morgan. That is ways through which organization communicates with their
employees, they are important asset of the firm. Employees with a strong needs for the
achievement want to accomplish reasonably challenging goals by their own efforts (Marler, and
Parry, 2016).. Job satisfaction: JP Morgan is give rewards to employees against their hard contribution
in task. It is send message to their hard work is worth rewarding and therefore must be
important. That is turn, makes the individual feel that they are making a difference(Florén
Rundquist and Fischer, 2016). By that they are satisfied by their job. When employees
are satisfied by their job, then they are able to achieve goal of the company and also to
raise profit and productivity of the organization. Employees happiness: Happy and fulfilled employees are motivated to perform better
because of the positive feeling they have towards the company. Hr of JP Morgan always
try to make employees happy with the work and workplace. For increase productivity of
the company, they give various rewards and gifts to employees to become happier. Motivation: Motivation is very important for every employee which is work in the
organization. Director of JP Morgan motivate their employees for their effective
performance by appreciation in front of whole staff member, effective comments on the
social media etc.. That is help to indefinite quantity and develop productivity of the
organization.
 Loyalty: Employees are engaged with the business, they will able to promote and sell
brand far better. Rewarding hard work generates loyalty and help team to feel an
emotional bond with JP Morgan. When the bond is effective between employee and
employers of organization, then productivity increased by high effects.
9

M3.
Human resources management of JP Morgan use different methods to motivate and
increase productivity of employees(Harney, Dundon and Wilkinson, 2018).
Company adopt training and development method to increase employees productivity
towards the work in positive manner. In the training and development method, JP Morgan use
on-the-job training method to give extra learning to its employees. On-the-job training method is
easy to understand by the employees. In this method company include job instruction method.
That method is systematic fast and effective method of teaching employees to do work correctly
and safely. Benefits of job instruction training method: faster on-boarding of new workers,
improve employee relationship.
JP Morgan have effective payment and rewards management to motivate the
employees. Payment/money satisfies physiological and security needs of employees, non-
financial rewards to motivate the employees. In rewards JP Morgan includes appreciation of
work done, promotion, incentives, special comments on social media (Marler, and Parry, 2016)..
By that rewards employees are motivate and give their hard contribution to achieve goal and
more loyal for the company.
D2.
The evaluation is based on the Training and development is important for employees to
better performance in task. That program is organized by the organization to develop employees
productivity in positive way(Marler and Parry, 2016). Training is proven to cost effective for the
company. Because the cost per employee reduce when they are trained in a large group. This
beneficial for the employees to improve their professional qualification at workplace. But same
time training add extra burden to administration department of the company. Training facilities
and materials as well as select the suitable candidates for the training. This is difficult to execute
in addition to being inefficient in comparison of employees. Payment and reward
management is important to give employees against their hard work like; gifts, salary, non-
monetary rewards. That is most applicable when there is detailed data available for measure the
performance of employees. By that employees are motivate, give hard contribution in task, they
able communicate with company objectives etc... some time that is not conducive to measuring
employees contribution clearly, making it difficult to establish an effective means to pay rewards
and payments.
10