Analyzing HRM Strategies and Employee Relations at JP Morgan

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at JP Morgan. It begins with an introduction to HRM, defining its purpose and functions within the organization, with a focus on resourcing and achieving business objectives. The report then delves into recruitment and selection approaches, comparing internal and external methods, and evaluating their strengths and weaknesses. It highlights the benefits of various HRM practices for both employees and the employer, including learning and development, flexible work options, and employee reward management. Furthermore, the report assesses the effectiveness of these HRM practices in raising JP Morgan's profit and productivity, using specific examples and data. The importance of employee relations in influencing HRM decision-making is also discussed, followed by an examination of key areas of employee legislation and their impact on HR decisions. The report concludes by illustrating the application of HRM practices in a work-related context, providing a holistic view of HRM at JP Morgan.

Human resource management
1

Table of Contents
Introduction....................................................................................................................................................3
P1 PURPOSE AND FUNCTION OF HRM..................................................................................................3
P2 APPROACHES TO RECRUITMENT AND SELECTION AND EXPLAIN THEIR STRENGTH
AND WEAKNESS........................................................................................................................................4
P3 BENEFITS OF HRM PRACTICES FOR EMPLOYEE AND EMPLOYER..........................................5
P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN TERMS OF
RAISING JP MORGAN’S............................................................................................................................7
PROFIT AND PRODUCTIVITY..................................................................................................................7
P5 IMPORTANCE OF EMPLOYEE RELATIONS IN RESPECT TO INFLUENCING HRM
DECISION MAKING FOR JP MORGAN...................................................................................................8
P6 KEY AREAS OF EMPLOYEE LEGISLATION AND THERE IMPACT ON HR DECISION
MAKING.......................................................................................................................................................9
P7 ILLUSTRATE THE APPLICATION OF HRM PRACTICES IN A WORK-RELATED CONTEXT,
USING SPECIFIC EXAMPLES.................................................................................................................10
Conclusion...................................................................................................................................................11
References....................................................................................................................................................12
Butcher, S., 2018. Salaries and bonuses for top performers at Goldman Sachs, JPMorgan, Citigroup,
BAML and Morgan Stanley in London. https://news.efinancialcareers.com/uk-en/159654/salaries-and-
bonuses-goldman-sachs-jpmorgan-citi-baml-morgan-stanley.....................................................................12
Son, H., 2018. JP Morgan posts record second-quarter profit on unexpected jump in trading revenue.
https://www.cnbc.com/2018/07/12/jpm-earnings-q2-2018.html.................................................................12
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INTRODUCTION
Human resource management is defined as that functional department of organization which is
involved in hiring, training, motivating and maintaining overall performance f employees so that
organizational goals can be easily attained (Lindemann, Tepper and Talley, 2017). This
department thus plays a strategic role in managing people as well as creating a positive work
culture within organization (Kuna and Nadiv, 2018). The present study has thus laid emphasis on
preparing an analytical report to help hr. department of JP Morgan in maintain a competitive
advantage over rival firm.
Focus has thus been given on assessing the overall purpose and the functions of HRM with
respect to resourcing and fulfilling the business objectives. Emphasis has also been given on
studying the different HR practices and how are they beneficial for employees and employers
and also in increasing the profit and productivity of JP Morgan. This is followed by discussing
the employee legislation and a need to maintain good worker relations.
P1 PURPOSE AND FUNCTION OF HRM IN JP Morgan
Human resource management can be defined as a strategic technique to effectively manage
workforce so that the business can gain competitive advantage over rival firms (Groen, Wouters
and Wilderom, 2017). On the other hand, Goma and et.al. (2014) defines HRM as the process of
recruiting, hiring, training and managing the staff members of an organization.
The nature and scope of HRM is that it helps to support the business strategies and adds value to
firm thereby adding in creating a competitive advantage. It also provides a forward thinking and
proactive approach to organization so that goals and objectives can be attained. Planning and
resourcing in JP Morgan is being done by adoption of hard and soft hrm approaches. In this
respect, hard HRM is the one that treats employee just like resource of a business (Karl,
Peluchette and Hall, 2016). Planning and resourcing is done by using quantitative approaches
like trend projection, econometric modeling etc. to make sure that right number and right kind of
people are available whenever any need arises. For example, JP Morgan uses trend analysis to
assess number of employees that may be needed in the future. It does the employee resourcing
work accordingly.
On the other hand, soft HRM is the one that considers employees as valuable assets who can
increase competitive advantage of firm by using principles of commitment, knoweldge and
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adaptation. The approaches used for employee planning and resourcing are done by assessing the
cause and effect relation that impact the talent management which aids in gaining qualitative
insight about the team (Khoreva, Vaiman and Van Zalk, 2017).
P2 APPROACHES TO RECRUITMENT AND SELECTION AND
EXPLAIN THEIR STRENGTH AND WEAKNESS IN JP MORGAN
Benefits and shortcoming of internal and external recruitment
Recruitment can be defined as the technique of searching for the pool of candidates that have the
presence of desired skill, knowledge and expertise so that work can be performed by them in
organization (Kew and Stredwick, 2016). JP Morgan uses various techniques of recruitment
which can be divided into external and internal recruitment.
External recruitment means evaluating open pool of candidates other than the existing staff
members (Lane, Armin and Gordon, 2015). Recruitment here can be done through job portals
where a detailed advertisement can be posted on the website. The technique is advantageous as it
can help in attracting a large pool of candidates towards the company. It can further aid in
generating fresh talent form outside of JP Morgan (Groen, Wouters and Wilderom, 2017). On a
negative note, the process can be costly as some amount is to be paid to job portal company.
Moreover, the agency may not understand that exact requirement of staff members needed in JP
Morgan.
Next technique is putting job ad on social media for attracting talented applicant towards the
company. This can help in increasing overall brand recognition of JP Morgan. Moreover, the
information found on social media account of the candidate can offer a glimpse about overall
personality of the applicant (Lavania and Dixit, 2017). However the HR manager may get biased
if the applicants’ social media profile is an attractive one.
Then comes approaches to internal recruitment which can be defined as sourcing of candidates
from existing workforce (Laschinger and Read, 2017). The very first technique is of promotion
which is advantageous as the employer as the HR is already aware about skills and capabilities f
employee. There is also a presence of less paper work and significant amount of company’s cost
for recruitment is also saved. On a negative note, this strategy can cause resentment in existing
employees who are not considered for promotion. This is can affect overall work culture of JP
Morgan which may decrease work productivity.
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Other than this, an internal advertisement can also be posted by company on the notice board.
The technique can help to generate employee referrals hence a good candidate with the requisite
skill set can be hired (Pitt and Koufopoulos 2012). But the strategy may backfire the staff as HR
team may think that the employee is looking for other jobs also.
Selection methods observed in JP Morgan
Employee selection can be defined as the process of matching skills and expertise of candidate
with organizational requirements. It has been observed in JP Morgan that it adheres with
carrying out one on one interview session for selecting a particular candidate. This has been
advantageous as the Hr. team gets an overall view about the personality of candidate. Two ways
communication can also be facilitated which helps to resolve the doubts (Lindemann, Tepper and
Talley, 2017). On a negative note, the technique takes considerable amount of time as the hr.
manager is required to reserve separate slots for taking the interview. The interview also may get
biased while making the selection if the candidate is known to him or her. Other than this, hr. at
JP Morgan also uses Psychometric test as a selection technique. This makes sure that there is
absence of any biasness in selection and hence an accurate selection can be easily made. But the
assessor is required to have a complete knowledge about the test so as to avoid any issue.
P3 BENEFITS OF HRM PRACTICES FOR EMPLOYEE AND
EMPLOYER IN JP MORGAN
This is beneficial for both the company as well as employee.
Different HRM practices Benefit for employee Benefit for employer
Learning development and
training
These are the set of techniques
to increase overall knowledge
and skill set of employees. JP
Morgan provides these
opportunities in form of hands
on presentation, team
Helps to sharpen overall skill
set and expertise of employee
Ensures that employee
performance in a better
manner (Khoreva, Vaiman and
Van Zalk, 2017).
Increases chances of
promotion and better job
opportunities within and
Increase in sales, revenue and
profit of company as
employees are able to deliver
better work members (Lane,
Armin and Gordon, 2015).
Presence of learning culture
within organization that is
beneficial for all the
employees
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development activities etc. outside the firm.
Helps to boost overall morale
of employee and makes him
confident towards work
responsibilities (Groen,
Wouters and Wilderom,
2017).
Positive work culture.
A better industrial position as
compared to rival firms
Flexible work options
A technique which provides
flexibility to employee on how
long to work, where and when
to work members (Lane,
Armin and Gordon, 2015).
JP Morgan firm provides this
option in form of part time job
opportunity; work from home
and flexible timings.
Easy fulfillment of family and
social commitment in the best
manner.
Reduction in fuel surcharges
of employee and reduction in
stress caused on account of
traffic.
An overall decrease in burnout
caused on account of work
overload
Increase in employee work
produtivity as due to presence
of enhanced morale and
engagement with the
company.
Reduced rate of absenteeism
and tardiness in employees
The management can manage
the work flow in a better
manner.
Employee reward
management
It is the technique to formulate
and implement strategies in
such a manner that employees
are rewarded fairly and
equitably (Groen, Wouters and
Wilderom, 2017).
JP Morgan firm gives rewards
to its employees in form of
commission, increase in pay,
bonuses, discount coupons etc.
This boosts the overall morale
of employee and makes him or
her feel valued for the
organization.
This can led to increased
productivity for the company.
There is a creation of positive
work culture within
organisation (Lindemann,
Tepper and Talley, 2017).
Employee performance It makes the employees feel The motivated and
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management
It can be defined as
continuous process where
management and staff
members work together for
planning, monitoring and
reviewing the work goals of
employees so as to assess their
overall contribution to
organization (Lindemann,
Tepper and Talley, 2017).
there worth for company and
they thud put increased
efforts.
There is also an increase in
overall commitment placed by
employees (Khoreva, Vaiman
and Van Zalk, 2017).
This further brings a decrease
in overall employee turnover
empowered employees work
for JP Morgan with full zeal
and energy (Groen, Wouters
and Wilderom, 2017).
P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM
PRACTICES IN TERMS OF RAISING JP MORGAN’S PROFIT AND
PRODUCTIVITY
The above mentioned HR practices followed by JP Morgan have benefited the firm both in term
of profits and productivity. For example, the reward management techniques adopted by the
company has made the bank earn a profit of 1 billion dollars in July 2018 which clearly shows an
increase of 18 percent from the past year (Son, 2018). It is now regarded as the largest bank in
United States and 6th largest in the world on account of total assets that amount to 2.534 trillion
dollars. This is as presence of good rewards for employees have made them work for overall
betterment of firm which has aided in generating the above mentioned profit figures.
Also, the strategy adopted by company in the area of performance management is so strong that
the firm plans to open 1000 outlets in UK by 2022 (Pyke, 2018). There has further been a scaling
in its operations in comparison to the rival firms. It is all on account of the hard work placed by
employees for overall working of company. The performance management strategies make the
employee feels motivated and valued by organisation and thus they put full efforts in overall
success of organisation.
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Even the Hr. has worked a lot in this respect and ensured that employees feel belonged to the
firm. The company also pays good salaries to employees. In fact the pay at all hierarchial level
within the organisation is 15 percent more than the industry (Butcher, 2018). The company has
also been able to attract 61 million American households towards its service offering which is in
itself a record number (CB insights, 2018). All this has been made possible on account of the
HRM strategies adopted by company.
P5 IMPORTANCE OF EMPLOYEE RELATIONS IN RESPECT TO
INFLUENCING HRM DECISION MAKING FOR JP MORGAN
Employee relations refer to the efforts taken by a company for managing the relationships that
are prevalent in between management and staff members. This aspect assists in providing a
proper structure to employers so that better operations can occur in JP Morgan. The presence of
good or bad employee relations in JP Morgan put a huge impact on the HRM decision making
process (Groen, Wouters and Wilderom, 2017). For example, as a part of employee relations the
company adheres with grievance policy and handles all companies through a particular process.
This impacts hr. decision making as the team has to decide over what kind of grievance handling
process should be in place and who will be the in charge of it.
As a part of employee relation the need is to maintain positive work culture. Hence hr. has to
decide what kind of culture must be prevalent in organist ion so as to strengthen the relation of
employee with management (Lindemann, Tepper and Talley, 2017). Decision is also required to
be taken on the kind of communication channel to be adopted by company. This is with respect
to deciding on open, closed or circular communication format. Need is also in terms of taking
decision with respect to the principles of continuous support and trust to be adopted by the
company. This is most required so as to save the company from unwanted experiences of union
members and trade unions (Khoreva, Vaiman and Van Zalk, 2017).
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P6 KEY AREAS OF EMPLOYEE LEGISLATION AND THERE IMPACT
ON HR DECISION MAKING IN JP MORGAN
There is an existence of various employee legislations that are required to be followed by JP
Morgan so as to handle human resources in a better manner. They further put an impact on
overall decisions taken by HR that has been discussed below;
The HR at JP Morgan is required to adhere with equal pay act 1970 where all staff members
should receive same salary which is beyond any gender, social class, caste or color. Hr. decision
making is impacted as they have to form policies for the same and give equal payment to
employees as per the work done by them members (Lane, Armin and Gordon, 2015).
Then is the anti-Discrimination Act 1995 which states that no discrimination should be practised
against employees of JP Morgan on basis of disability, social class, color or even gender. Hr. is
required to take decision with respect to formulating strict policies for same and informing all the
employees about it. It must decide on taking strict actions against those who adhere with
activities like bullying and harassment.
Data protection act is the one where management of any company is required to maintain
transparency in terms of how the data of employees is being used. Hr. is required to decide on
how the data should be encrypted and who should have an access to the data files. This is an
essential as any breach in data privacy can led to legal issues for company (Groen, Wouters and
Wilderom, 2017). This will not only impact overall reputation of company but also led to fines.
The hr. is also required to decide on how long the data of ex-employees must be stored before it
is deleted from system on a permanent basis.
Last but not the least regulation is of health, safety as well as welfare of employees who are
devoting there time and efforts for successful running of the company. The Hr. is required to
decide on assessing those areas that may cause personal injury to employees (Lindemann, Tepper
and Talley, 2017). These can be in form of faulty staircase, faulty equipment, improper lights etc.
they must decide on making guidelines as to how health an safety of employees should be
maintained in organization and what steps should be taken if any injury occurs.
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P7 ILLUSTRATE THE APPLICATION OF HRM PRACTICES IN A
WORK-RELATED CONTEXT, USING SPECIFIC EXAMPLES
The work related context that has been chosen in present case is preparing a job specification
document and five interview questions for a position of nurse in NHS
Person specification
Post: Staff nurse for NHS
Reports to: Clinical nurse manager
Essential Desirable
Qualification and experience Registered general nurse with
nursing and midwifery board
of UK
Diploma in nursing
Experience in working in a
hospital in acute care setting.
Knowledge Broad knowledge about
clinical nursing and scope of
practice
Clinical risk management,
infection prevention/control,
patient health/safety (Groen,
Wouters and Wilderom,
2017).
Knowledge about health
services
Competency Excellent oral and
interpersonal communication
Ability to make accurate
clinical decision in area of
nursing
Problem solving capability
Leading and motivating others
Working as a team player and
Computer skills
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as an individual
Others Flexible to work as per
changing shift (Lindemann,
Tepper and Talley, 2017).
Shows interest in own
professional development
Interview question
1. Why did you decided to become a nurse?
2. Why do you wish to join this hospital?
3. What kinds of personality traits are most effective for nurses?
4. Give an example of a scenario when you had to deal with a difficult and demanding
patient
5. what is your greatest skill as a nurse
In context of the above, there is a need to apply many HRM practices that are as follows. First of
all the company must decide on demand of nurses and skills required in them to become a nurse
in NHS. A person specification can be prepared accordingly by any of HR team member. Then
the need is to carry out comprehensive process for recruitment so that candidates can be analyzed
on abilities, skill set and overall attitude possessed by a person (Groen, Wouters and Wilderom,
2017). A selection process is also required to be carried out by use of an interview session. The
need here is to decide on how an interview session is to be taken in terms of face to face or
telephonic. In case, of a face to face interview session the requirement is to decide about who the
interviewers will be (Lindemann, Tepper and Talley, 2017). Last but not the least stage is to rate
the interview on the basis of a scale that assesses the candidate on various skill set such as
interpersonal communication, decision making, problem solving etc.
CONCLUSION
A conclusion can be drawn from the above report that human resource management practices are
very important for successful running of a big company like JP Morgan. This is as the firm is a
part of service sector industry where the need is to lay emphasis on consumer service in all
possible manner. A better consumer service can only be given when well qualified applicants are
not only selected but also trained and motivated by JP Morgan.
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Pitt, M., and Koufopoulos D, N., 2012. Essentials on Strategic Management. Sage.
Online
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<https://www.cbinsights.com/research/jpmorgan-chase-consumer-banking/>
Butcher, S., 2018. Salaries and bonuses for top performers at Goldman Sachs, JPMorgan,
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