Critical Evaluation of HRM Practices for Enhanced Business Performance

This essay critically evaluates the impact of Human Resource Management (HRM) practices on enhancing business performance, focusing on areas such as recruitment and selection, training and development, and performance management. It analyzes the role of line managers in managing human resources, including the implications of employment law and actions to improve their effectiveness. The analysis incorporates practical examples from Aston Martin (UK) and another non-UK organization, examining the impact of strategic HRM, relevant theories like the Organizational Lifecycle theory and Strategic Contingency theory, and the benefits and challenges of HRM approaches. The essay also discusses employment laws, such as the Equality and Range Act 2010 and the Sex Discrimination Act 1975, and their influence on HRM practices, providing a comprehensive overview of how effective HRM can drive organizational success.

Critically evaluate how the
implementation of human
resource management
practices can enhance business
performance

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explore at least three different areas of human resource management (HRM) practice (such as
recruitment and selection, training and development, reward, performance management,
engagement, etc.)....................................................................................................................1
Analyse the role of Line Managers in the management of human resources, including
implications of employment law and actions that can be taken to improve managers’
effectiveness in related HRM practices..................................................................................4
Illustrate your answer with practical organisational examples from at least two organisations
(at least one UK organisation and at least other non-UK organisation).................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management is regarded as the strategic approach towards the effectual as
well as efficacious management of individuals within organisation such that it assists their
business to obtain competitive edge. Moreover, this is developed for enhancing the staff
performance into services of an employer’s strategic goals. Additionally, within engineering
companies the HRM plays very essential role as without it entities might not become competent
to effectually hire and retain staff, develops and maximise the firms. Also, they could not able to
maintain a healthy, adaptable work area culture and atmosphere. For this report, the chosen
company is Aston Martin which is a leading British independent engineering and manufacturer
of luxury cars. It was mainly founded in year 1913 by Lionel Martin and Robert Bamford. The
topics which are going to be discussed in this report are different areas of HRM, role of Line
Managers into managing HR along with employment law implications. Apart from this, practical
organisational examples related to HRM are also highlighted in both UK and non UK based
organisations are also discussed in this report.
MAIN BODY
Explore at least three different areas of human resource management (HRM) practice (such as
recruitment and selection, training and development, reward, performance management,
engagement, etc.)
Human resource management (HRM) is undertaken as the term which is utilised for
describing formal systems devised for personnel management into companies. Additionally, as
other firms in engineering entities also HRM is defined as practices that are required to perform
the HR routines like employee growth, compensation management and others. So, some areas of
the HRM practices within Aston Martin are discussed below:
 Recruitment and selection: Recruitment and selection is vital HRM’ practice area.
Moreover, recruitment is undertaken as fundamental practice. As HRM of Aston Martin
intent in gaining as well as retaining the competent staff for attaining the organisational
objectives. So, all this initiates with recruiting appropriate workers among the list of
applicants and favourable candidates. Additionally, this usually are depends upon firm’s
mission and work area culture such as respective entity which recognises the workplace
diversity values embraces recruitment activities that grab the attention diverse pool of
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applicant. In addition to this, it underlie hiring activities like advertising job vacancies and
others.
 Training and development: This is also known to be the essential human resources
management practices areas which incorporates new staff orientation, job skills training, and
professional growth and so on. Additionally, these aspects develops staff job skills into its
present positions as well as equip them with expertise for cross functional task which may
enhance its values to firms like Aston Martin. In addition to this professional growth assists
entity’s succession planning strategy through forming upcoming leaders for higher activities
as well as supports work objectives within respective business.
 Performance management: Performance management is undertaken as the ongoing as well
as systematic approaches that assure to attain business objectives through streamlining the
staff performance and potential to meet the specified goals in effective way. Moreover, this
also develops a communication system among manager and staff which incurs throughout
the year. In respect of Aston Martin, this area of human resource management practices is
essential as it assures the output of workers for meeting their organisational objectives and
goals. In addition to this, it does not concentrate upon performance of their team, department
and business as whole.
Impact of strategic HRM on business performance
Strategic human resources management incorporates future oriented procedures to
develop as well as execute human resource programs which highlights and resolve business
issues and directly contributes towards key longer term business goals. Additionally, SHRM
facilitates ideas for allocating the resources of entity to most match and competent staff.
Moreover, this renders strategy as well as proposal towards director of company. In respect of
Aston Martin, the strategic human resource management impacts their business performance in
both positive and negative manner. As this determine and evaluates the external opportunities
and threats, renders clear business tactics and vision for future, recruit, retain and encourage
individuals. Apart from this, the connection of human resources with strategic goals and
objectives to improve corporate performance and the development of an organizational culture
that promotes innovation and flexibility is strategic personnel management. It is an overview of
the functions and activities of Human Resource Management (HRM) with the full purpose of
helping companies achieve the goals set out in Aston Martin's corporate guidelines. Strategic HR
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is a way to incorporate the HR role as a planned employee into the formulation of corporate
strategies and implement their strategies through HR activities such as recruiting, selecting,
training and rewarding employees in context to Aston Martin. While strategic HR is aware of the
connection between HR in the planning process, the term HR strategies refers to specific HR
actions that companies plan to achieve their goals.
HRM Theories and models
This is a general term for tactics, strategies that is used by business owners and managers
for administering policies and process regrading employees.
Organisational Lifecycle theory- It is one of HRM theory which is been observed by
historians and academicians that just of living organism they also have life cycles which grows
and develops in context to Aston martin. This also have stages of maturity, declining and death.
This theory is related to organisation growth and development which is impacted by external
situations of environments along with internal factors.
Strategic contingency theory- This theory is based on two concepts of contingency and
strategic. In context to Aston martin contingency is a need for different tasks of a sub-unit in an
organization, on which the tasks of other sub-units have an influence. This contingency becomes
strategic as soon as another sub-unit begins to control more contingencies and becomes powerful
in an organization. According to strategic contingency theory, a manager's unique ability to solve
problems or problems that others cannot solve becomes a central part of an organization.
Human resource planning- Human Resource Management (HRM) helps in assessing the
right number of individuals needed for completing the essential exercises of an association. Its
investigations distinctive work positions inside a business for distinguishing the ranges of
abilities required for such positions. Legitimate data in regards to work assignments help in
securing the ideal people groups in Aston martin.
Benefits and challenges
In framework of Aston martin, the benefits of HRM approaches are as follows-
Retaining employees- Human Resource Management assumes a productive part in
holding talented representatives for a more extended term inside an association. It screens
working climate gave to laborers and guarantees that they get clean working spot, better
compensation, additional advantages and offices. This prompts long haul relationship of laborers
with association.
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The challenges are as follows in context to Aston martin
Unpredictability- One more significant constraint is failure to foresee the outside
occasions and conduct of people groups. HRM needs a full help of every functioning individual
and top administration in an association for its fruitful execution. Without legitimate help from
top administration, it may not yield anticipated outcomes
Analyse the role of Line Managers in the management of human resources, including
implications of employment law and actions that can be taken to improve managers’
effectiveness in related HRM practices.
Line managers have a much essential role to plays, not only into managing the personnel as
well as the day to day operations. But also it plays executing the human resources and other
firm’s related policies in support of the team developments. In respect of Aston Martin, line
managers plays vital role. In addition to this, Employment laws are described as those
regulations which are developed by government for effectual operations of business and also
their management comply so that respective firm’s are treated effectively and efficiently.
Additionally, these legislation should undertake all forms of actions and employment protection
measures which is helpful in improving managers effectiveness in context to HRM practices. In
addition to this, these norms are also formulated by government so that engineering firms like
Aston Martin may efficaciously performs their business in lawful manner. So, they have to
undertake some employment law and actions within respective organisation:
Equality and range act, 2010- It is an activity that is framed via legislature of UK to
offer defence to personnel from favouritism which may be designed with the aid of from in
reference to pay, gender, race, way of life, language and masses of greater. This act endure in
mind overall performance primarily based totally blessings in each financial and non-financial
time period, non-favouritism gratuity and many others. For instance, in connection with Aston
Martin, if Line managers of precise corporation will now not comply with this act in effective
shape and construct diversification and in element, in form of recompense the various ones
individuals who are functioning on identical put up. Then, it negatively have an impact on HRM
choice making of employer as even as employees are execute in a set then troubles and issues are
arisen and this unfavourably affect dedication of organization work of reputation quo.
Sex discrimination act 1975- This regulation is framed to the ones employer that make
differentiation in male and woman on the bottom of sex in reference to pa, development
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opportunity, and plenty of greater. In Aston Martin, if the firm does no longer track this plays
and makes bias between them, then it unfavourably impacts the HRM selection making. As there
is type of people who are male and girl executing inside the commercial enterprise business
enterprise. If the management always assort a male worker to direct a collection or do no longer
recompense equal to the ones personnel who working comparable publish then it unfavourably
have an impact on the resolution of staffing male and woman applicants. It also impact each
male and female negatively in context of operating hours as in the commercial enterprise hooked
up order, the Line managers additionally make favouritism to provide less operating hours to
woman in compare to male. For example in a few engineering organization, male are worked
greater then their running hours but woman are not pressured for that. This unfavourably impacts
the male employee and de-motivates them.
Therefore, from the above, it has been analysed that there are various employment law and
actions that can be taken to improve managers’ effectiveness in related HRM practices. As, this
is helpful in regulating the recruiting and firing, work area safety, training and development and
others serve for protecting against the discriminatory activities and harassment. In addition to
this, it also renders directions into respective organisation disputes or complaints.
Illustrate your answer with practical organisational examples from at least two organisations (at
least one UK organisation and at least other non-UK organisation)
UK organisation
The Aston martin is been taken as UK organisation which is a British manufacturing of
luxury sports cars. On this critical evaluation is been provided in HRM related to its practices,
strategies and models.
Impact of strategic HRM on business performance
The connection of human resources with strategic goals and objectives to improve
corporate performance and the development of an organizational culture that promotes
innovation and flexibility is strategic personnel management. It is an overview of the functions
and activities of Human Resource Management (HRM) with the full purpose of helping
companies achieve the goals set out in Aston Martin's corporate guidelines. Strategic HR is a
way to incorporate the HR role as a planned employee into the formulation of corporate
strategies and implement their strategies through HR activities such as recruiting, selecting,
training and rewarding employees in context to Aston Martin. While strategic HR is aware of the
5

connection between HR in the planning process, the term HR strategies refers to specific HR
actions that companies plan to achieve their goals.
HRM practices
In context to Aston Martin various Hr practices is performed in HRM process and actions
which works universally. There are a variety of best practices that have been proven to result in
superior business performance. If the HR department does the right thing, these practices will
add significant value to the company and its goals. several HR practices is performed by Aston
martin to enhance its value which are as follows-
 Providing security to employees- This is a best practice in HR of employment security
which is performed in Aston martin. In the organisation it involves both formal and
informal contract between the employer and employee. Job security enables employees to
back their home after work and take care of themselves and their families. This security
concept is essential and underpins almost everything that HR does.It also benefits the
organisation in retaining people.
 Selective Hiring-This is also abest practice which is performed by organisation in
context to Aston martin to brings employees who can add value. They make the fair
selection process which may help in understanding consumer behaviour and the needs of
different customers. Several recruitment tools are used for making right selection and
keeps track of recruitment metrics for evaluating performance.
HRM Theories and models
This is a general term for tactics, strategies that is used by business owners and managers
for administering policies and process regrading employees.
Organisational Lifecycle theory- It is one of HRM theory which is been observed by
historians and academicians that just of living organism they also have life cycles which grows
and develops in context to Aston martin. This also have stages of maturity, declining and death.
This theory is related to organisation growth and development which is impacted by external
situations of environments along with internal factors.
Benefits and challenges
In framework of Aston martin, the benefits of HRM approaches are as follows-
Retaining employees- Human Resource Management assumes a productive part in
holding talented representatives for a more extended term inside an association. It screens
6

working climate gave to laborers and guarantees that they get clean working spot, better
compensation, additional advantages and offices. This prompts long haul relationship of laborers
with association.
The challenges are as follows in context to Aston martin
Unpredictability- One more significant constraint is failure to foresee the outside
occasions and conduct of people groups. HRM needs a full help of every functioning individual
and top administration in an association for its fruitful execution. Without legitimate help from
top administration, it may not yield anticipated outcomes.
Non-UK organisation
The Toyota is been taken as non-UK organisation as which is Japanese multinational automotive
manufacture in Japan producing 10 million vehicles per year.
Impact of strategic HRM on business performance
HR could be utilized to acquire an upper hand through accomplishing business targets.
Toyota Motor Corporation has had the option to utilize its HR to accomplish its destinations.
This has been accomplished through essential human asset the executives and key enlistment and
determination.Toyota Motor Corporation uses the Kaizen method to continuously improve its
production and this makes the company's focus on human resources a major concern. Personnel
management at Toyota is an organizational function that occupies and operates a unit. This
workforce deals with issues related to individuals within the organization. You will create
programs to select the best, develop and retain talent, and set up a system for employee benefits,
payroll and day-to-day operations.
HRM practices
Training in relevant skills- It is best HR practice in organisation which needs to invest
in training time and budgets for its employees. The training can be formal learning or on-the-job
training which helps in improvising their skills through coaching, peer learning in context to
Toyota.
Fair and performance-based compensation- In context to Toyota to increase the value
of an organisation it is essential to retain the employees by offering them fair compensation in
accordance to their performance. By coupling authoritative execution results with individual
rewards, the individual is boosted to augment this result. It additionally makes a feeling of
proprietorship for the worker.
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HRM Theories and models
Strategic contingency theory- This theory is based on two concepts of contingency and
strategic. In context to Aston martin contingency is a need for different tasks of a sub-unit in an
organization, on which the tasks of other sub-units have an influence. This contingency becomes
strategic as soon as another sub-unit begins to control more contingencies and becomes powerful
in an organization. According to strategic contingency theory, a manager's unique ability to solve
problems or problems that others cannot solve becomes a central part of an organization.
Benefits and challenges
Human resource planning- Human Resource Management (HRM) helps in assessing the
right number of individuals needed for completing the essential exercises of an association. Its
investigations distinctive work positions inside a business for distinguishing the ranges of
abilities required for such positions. Legitimate data in regards to work assignments help in
securing the ideal people groups in Toyota.
CONCLUSION
Based upon the above report, it has been concluded that human resources management plays
vital role within engineering companies. Moreover, it assists their business to obtain competitive
edge. This is developed for enhancing the staff performance into services of an employer’s
strategic goals. Additionally, without HRM entities might not become competent to effectually
hire and retain staff, develops and maximise the firms. Also, they could not able to maintain a
healthy, adaptable work area culture and atmosphere.
8

REFERENCES
Books & Journals
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