Effective HRM Strategies for Organizational Success

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Human Resources Management
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Table of Contents
Introduction................................................................................................................. 3
LO1 (P1, P2)...............................................................................................................4
LO2 (P3, P4)...............................................................................................................9
LO3 (P5, P6)............................................................................................................. 11
LO4 (P7)....................................................................................................................14
Conclusion................................................................................................................ 20
Reference list............................................................................................................ 21
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Introduction
Around the UK territory, there are multiple numbers of fast fashion retail industries,
“Hennes & Mauritz AB” is also known as “H&M” is one of the most popular fast
fashion retail foundations. Erling Persson founded it over 72 years ago, in 1947.
According to recent annual report of the business organization, the company has
more than 4988 numbers of stores worldwide and has 148,000-trained employees to
serve high quality products and services to their wide range of global customers. In
2019, the company has generated US$25.191 billion revenue in their business by
selling fast fashion items to worldwide customers (About.hm.com, 2019).
Modern business is all about providing high satisfaction to customers and
competition with market rivals to sustain in market long term. It is the art of procuring,
improving as well as maintaining competent employees for accomplishment of
business objectives in a precise manner. HR department is responsible for solving all
the issues related to employees and organisational development. Successful
organizations always use effective HR functions to improve their business excellence
and enhance their market position effectively. Apart from this, HRM process consists
of planning, attracting, improving as well as retaining effective and skilled employees
in the firm to improve overall performance and credibility.
Different aspects and responsibilities associated with the designation of HR
personnel in an organization will be explained in this portion of the study.
Significance of utilising effective HMR practices in an organization will also be
evaluated in this section.
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LO1 (P1, P2)
Explain the purpose and scope of Human Resource Management in terms of
resourcing an organisation with talent and skills appropriate to fulfil business
objectives
P1 Explain the purpose and the functions of HRM, applicable to workforce
planning and resourcing an organisation.
Modern business organizations consider their employees as their most important
asset. Therefore, companies are aimed at utilising their organizational workforce in
the most appropriate manner for accomplishment of their set business goals. In
modern business scenario, human resource management has become a vital
section for all business ventures, which are working for providing products and
services to their valuable customers. HRM looks after the needs, expectations and
demands of the customers and provide them all the benefits to retain them and
influence high employee engagement (Noe et al., 2017). HR personnel is also
responsible for recruiting eligible staffs and providing them adequate training for
becoming skilful. Ensuring the productivity and business excellence of the
organization is also the responsibility of HR personnel. In MNCs like “H&M”, HR
personnel follow verity of effective practices in the firm to ensure better productivity
and greater growth opportunities to business ventures. “H&M”, which is one of the
biggest and popular fast fashion retail organizations of UK so that the company
maintains a friendly as well as safe environment in the workplace for their valuable
employees (Bratton and Gold, 2017). Additionally, the human resource department is
also responsible for ensuring that the particular business organization is being met
its highest potential as well as accomplished its objectives.
In most of the MNCs like “H&M”, different but effective HRM models and practices
like Best fit model that suggests to adopt and use models those are suitable
according to the needs and targets of particular business organization. Another
important business consideration is Best practices that allow business ventures to
strengthen the skills of their existing employee unit (Kenny, 2015). Best practices are
always designed with the single aim of enhancing organizational profitability and
providing benefits to both parties owner or employer and the workforce unit.
However, in an organization like “H&M”, HR department is associated with multiple
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numbers and types of vital responsibility for authentic completion of all business
procedures (Cascio, 2015). Recruitment of required skilled candidates and
appropriate workforce planning are the most important responsibilities of HR
department of “H&M”. Apart from this, human resource department plays verity of
responsibilities such as employee motivation, reward program arrangement,
employee engagement and others that are as follows:
Recruitment of the best candidates
Through recruiting skilled and highly qualified candidates in an organization, HR
maintains the quality of the entire workforce unit and excellence of business
operations simultaneously. HR targets to select the highest potential candidate who
can assist the firm to speed up the business operations, growth and success rate
(Ekwoaba et al., 2015). Appropriate workforce unit of an organization is helpful in
several ways and required by all types of business organizations to reach their set
business targets and destinations.
Employee motivation
HR personnel of “H&M” is responsible for keeping the employee motivation
standard high and encouraging them in every aspect business operations so that
they can contribute to the company in a precise manner. The performance standard
of motivated employees is extremely attractive and quite higher than ordinary
employees. Due to this reason, HR departments of successful organizations are
aimed at improving employee motivation level and keeping them motivated all the
time in the company to increase speed of company’s productivity and profits
together.
Training and development
In order to assist the workforce unit to grow and strength their organizational skills,
successful business firms like “H&M” provides training to their employees. Thus,
employees can be efficient in their operation and manage tasks in better manner.
Training benefits both employer and employees, where HR department has
responsibility of managing entire training and development process (Cohen, 2017).
Apart from this, HR solves every single issue of employees and maintains a healthy
relation between employees and employer. Alternatively, it influences the employee
engagement in the company that is highly needed for betterment and sufficient
business growth of the particular business organizations.
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P2 Explain the strengths and weaknesses of different approaches to
recruitment and selection.
Recruitment is one of most vital business functions or public relation exercises that
is aimed at obtaining both right type and right number of people those who can
successfully contribute to the company’s objectives. Recruitment methods are
undertaken by respective HR department in order to maintain the quality and
excellence of organizational workforce unit (Greiner, 2015). Large shark
organizations like “H&M” are always aimed at using the most effective and authentic
recruitment methods to improve employee quality and skill performance of entire
operation unit. Business organizations like “H&M” can recruit in two different
methods that are internal recruitment method and external recruitment method.
Modern business organizations mainly use external recruitment process as it
provides the most skilled employees those can manage business operations of
ventures. External recruitment refers to the recruitment process that is conducted
to recruit best quality, skilled candidates only from outside the organization to fill the
vacant places in the company (Gully et al., 2014). On the other hand, internal
recruitment is all about filling organization’s job vacancies from the existing
workforce unit or their family members those are familiar and well-linked with the
company. While it comes to pros and cons then it is absolute that both internal and
external methods are associated with multiple facilities and imitations that are
explained in the below section:
External and internal recruitment methods
Compared to external method, internal method of recruitment is cheaper and the
entire recruitment process can be completed within almost zero investment. It allows
employer to invest less on recruitment and selection, where the other method is
extremely expensive and time-consuming process. Most of the companies invest
huge amount of capital of filling job vacancies with appropriate skilled candidates
from outside the organisational boundaries. Internal recruitment process does not
take huge time to fill job vacancies like external recruitment method. Internally
recruited candidates are less skilled compared to externally recruited employees and
additionally, internal recruitment limits potential and eligible candidates. Companies
like “H&M” use both of these external and internal methods of recruitment
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processes for attracting and recruiting best quality candidates along with all the
required skill set and knowledge boundaries to effectively manage all the business
operations.
Selection means putting the eligible people at the best suitable designation
according to his knowledge and skill set and improving organizational excellence
successfully. Modern HR personnel use more than one selection methods such as
psychometric test, interviews, and others for authentic as well as appropriate
selection of eligible candidates. “H&M” uses multiple selection methods to maintain
their organizational success and revenue simultaneously (About.hm.com, 2019).
Selection methods that are used by the specified organization are as follows:
Psychometric test
Psychometric test is one of the most reliable selection methods in modern business
context. It is possible to gather a lot of information regarding candidates through
utilising the psychometric test.
Advantages Disadvantages
 It is one of the most reliable
selection methods so that
decision-making for selection of
candidates becomes easier
though using the psychometric
test.
 It provides unbiased approach
of selection.
 It takes less time to identify
qualities and skills of
candidates.
 The process is complex and such
needed assistance of experts to
recruit effective candidates.
 The process is costlier compared
to other different types of selection
processes.
 In order to use psychometric test,
providing training is mandatory
that increases the overall cost of
recruitment.
Panel Interview test
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Panel interview is special type of interview program, where more than single
interviewer takes interview of candidates and then identifies the qualities and
compare it to requirements of the organization.
Advantages Disadvantages
 Panel interview is highly
reliable process to select
candidates for any selected
business organization.
 Panel interview appropriately
measures the qualities of
candidates and then make
decision of selection. Different
perspectives allow better
assessment of candidates.
 The process can make candidates
nervous. This nervousness
decreases the performance of
applicants.
 Panel interview sometimes takes
huge time to complete effectively.
The key reason behind using more than single selection methods by “H&M” is
increasing the standard and reliability of selected candidates. Multinational
companies like “H&M” are always aimed at improving their business excellence
through resourcing perfect candidates for the organization.
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LO2 (P3, P4)
P3 Explain the benefits of different HRM practices within an organisation for
both the employer and employee.
HRM is practiced within a business structure in order to ease the activities from both
the side of employees and the employers. With the support of HRM practices within
the business premises, the employees can understand the ways that they should
perform their activities in order to meet the business set goals and objectives (Bello ‐
Pintado, 2015). On the other hand, the employers with the aid of HRM practices can
make proper flow of authority among the employees. The HRM practices even helps
in selecting the best skilled labour from the market, which allows the firm in
performing their activities in the best possible manner. HR and its management allow
the employees to feel secured while working for the organization. Within the
premises of H&M practicing flexible working hour allowed the employees to work
more effectively than before, which further supports the growth of the business.
Additionally, practicing proper HRM involves monitoring the activities that are
executed by the employees, which further helps the business in receiving the most
hard working employees, which further appreciated from the side of the authority.
This appreciation helps the employees to feel more encouraged, which further
pushes them to work productively for the firm. Practicing HRM even creates bonding
among the employees, which creates a strong employee base for H&M and this in
the future allows the business in achieving its goals much efficiently. Moreover, it is
analysed that with the proper practice of human resource management, the
employees can share their views regarding any decision that is taken by the
managers, which further helps the business in identifying the areas that are
supported by their employees and which is not (Björkman et al., 2014). This
additionally allows the firm in taking the right decision, which is supported by the
employees, creating a positive environment for the employees to work in.
P4 Evaluate the effectiveness of different HRM practices in terms of raising
organisational profit and productivity.
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HRM practices allows the employees and the managers in knowing each other
closely, which further help the organization in generating better productivity from the
side of the employees and additionally creating the sense of responsibility and
belongingness among the employees. There are mainly two different types of HRM,
hard and soft. In hard HRM, employees are treated as the source of income and are
not taken care of their emotional factors. However, this HRM practice allows the
firms in receiving better profits because the employees are there only for production
purpose (Ahlvik and Björkman, 2015). The evaluations of their skills are not made
properly, which can sometimes create sense of inferiority among the employees. In
this HRM approach, the firm is focused only for the short-term purpose.
Contradictorily, soft HRM considers the employees as the core component of an
organization, which allows the managers in knowing the issues, which they are
facing while working for the firm. This allows the employees in being treated as the
long term resources, which allows the employees in not only feel securedbut also
can even enhance their own skills while being a part of the organization. This allows
the employees in developing a positive image of the firm among them, additionally
creating the image of the brand to them. This HRM approach involves retention of
employees for a longer period. The two-way communication among the managers
and the employees helps the employees in sharing their views and even in receiving
the perception of the authority. This creates fluency within the decision-making of the
firm (Hassan, 2016).
It is essential for the organization to understand the HRM approach that they need to
follow in order to receive better productivity from the side of the employees. With the
practice of different HRM approach, the results are different and it is essential for the
firm to choose the most suitable HRM approach for their practice.
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LO3 (P5, P6)
Analyse internal and external factors that affect Human Resource Management
decision-making, including employment legislation
P5 Analyse the importance of employee relations in respect to influencing
HRM decision- making.
Employee relation is one the most essential thing that the employers of an business
must keep in mind while executing their activities within their selected market. H&M
being one of the renowned fashion retail need to understand the need of employee
relation in order to ensure that they are functioning properly. Employee relation
allows the managers not only to create a better employee base but also creates a
business image on their mind, which further helps the firm in becoming a brand in
the future (Bardoel et al., 2014). Employee relationship involves strategic steps with
the help of which the coordination among the employees are maintained and where
the employees feel familiar with the colleagues while working for the firm. In order to
exercise the decisions among the employees that are taken by the managers of the
organization, employee and their relationship with one another is essential. With
proper bonding among employees, the flow of authority can even be spread
effectively.
However, quality relationship among the employees can even help the managers in
receiving better strategies for the development and growth of the business. This can
help the organization to functions its activities smoothly. Retention of employees is
another way of strengthening the relationship among the employees with the
management, which further helps the business in knowing the areas of which the
employees are facing the issues and this helps them in designing the job roles
accordingly. With the support of employees, the firm can make proper productivity,
which further helps them in earning better profit (Godard, 2014). It is necessary for
the management to understand the ability of their employees and to give them the
responsibilities as per their skills, which can encourage the employees by meeting
their job satisfaction level.
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P6 Identify the key elements of employment legislation and the impact it has
upon HRM decision- making.
The legislation regarding employment is currently exists for protecting the employees
of different organizations from doing wrong and unethical things at certain extension.
Employers of different organizations might be unfair towards their overall
employment base by giving threats and other things like that. Therefore, the overall
HRM department belonging from organizations like H&M need to follow some basics
regarding the employment legislation at certain extension. These elements of
legislation have been described below:
Equality Act, 2010- As per the Equality Act, 2010, every employee of an
organization have equal rights, which will ultimately be extremely helpful towards
generating trust and respect among the employers and employees at certain
extension. The key objective of the Act is to provide equal opportunities towards the
vast majority of employment base. The particular act mainly prevent employee from
different types of discrimination such as race, age, gender, cultural and moral
backgrounds and many more (Vinichenko et al., 2016). It is needed for H&M to adopt
and follow the particular law in order to prevent different forms of discrimination in
context of their employment base. While following Equality Act, minimize the
negative aspects of diversity is also possible. Adequate recruitment and selection
process might also be extremely helpful towards the process of adopting the
legislation.
Data Protection Act, 2018- This act is especially helpful towards creating a legal
framework, which will ultimately be helpful towards protecting the overall
employment and other data at certain extension. In addition to that, data protection
act as delivers that a specific organization such as H&M is responsible for managing
and preserving their vast amount of data all by themselves (Abubakar, 2015).
Different integral and confidential data can easily be preserved through the help of
adequate data protection act.
Health and Safety Act, 1974- As per the act, it is essential for different
organizations like H&M to maintain the basic safety regulations for their entire
employment base. Different provisions regarding the workplace safety can easily be
protected while applying the particular act. In addition to that, it is the role and
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