Comprehensive Report on HRM Practices & Workforce Planning at Orion

This report provides a systematic analysis of Human Resource Management (HRM) practices within Orion Electrotech Ltd, a recruitment company. It highlights the functions and purposes of HRM in resourcing and workforce planning, emphasizing the importance of employee management and remuneration. The report identifies strengths and weaknesses in Orion's recruitment and selection processes, noting a 16% employee turnover intention due to ineffective HRM. It evaluates different HRM practices, including payroll management and employee motivation techniques, and their impact on productivity and profit. The report also discusses the impact of employment relations and legislation on HRM decision-making, using specific examples from Orion's operations. Ultimately, the report underscores the need for Orion to enhance its HRM practices to improve employee retention, workload management, and overall organizational performance.

Human resource management
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Table of Contents
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P1. Explanation and application of the functions and purpose of HRM in resourcing and
workforce planning in Orion Company.......................................................................................5
P2. Explanation of strength and weaknesses of selection and recruitment of Orion Company. .7
P3: Explanation of different HRM practices in the company and its benefits on employer and
employees....................................................................................................................................9
P4: Evaluation of different HRM practices and their effectiveness in productivity and profit. 11
Task 2.............................................................................................................................................13
P5 Impact of the employment relation in the decision making of HRM...................................13
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making for the chosen organisation.............................................................................15
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples for the chosen scenario..............................................................................................17
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Executive summary
The current report highlights on the systematic analysis of different HRM practices in the Orion
Company. The human resource management is the most significant management body for a
company. In case of Orion Electrotech, the human resource management is effective to
incorporate more employees in the company. Thus, the role of the HR management is to manage
and provide the proper remuneration of the employees. Effective employee motivation can be
provided by performance bonus, incentives, credit point allowances, promotion and other
techniques. The Orion Company does not possess effective training module which put barriers
on enhancing the production and profit of the company. Along with this task, the HR
management conducts the job analysis and resource planning for Orion Company. At the end of
this report an evaluation has been conducted with regulation and effective conclusion has been
drawn.
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Introduction
In order to run a successful business in the competitive market, it is necessary for the companies
to develop an effective Human Resource Management to draft the plans for the progression of
the companies. The main aim of the HRM practices lies in generating effective services for the
growth of the company. It helps the company to understand the relevance of respective
employment practices and the importance of employee relations. The implementation of proper
HRM practices instigates the success of a company. In the case of the recruitment company
Orion Electrotech Ltd, it has to deal with a lot of employees to provide services in different
sectors. Talking about the company Orion Electrotech Ltd, they also have adopted a set of
Human Resource Management Practices to enhance the performance of the employees while
ensuring the improvement in the productivity.
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Task 1
P1. Explanation and application of the functions and purpose of HRM in
resourcing and workforce planning in Orion Company
Explanation of functions and purpose of HRM
The human resource management is the most significant management body for a company. In
case of Orion Electrotech, the human resource management is effective to incorporate more
employees in the company. It has been noticed that being a small and medium enterprise (SME),
there are around 50 employees present who looks after the recruitment work for other
companies. Thus, it is necessary for the company to incorporate more employees. According to
Welch and Björkman (2015, p.303), the most significant HRM practice is to manage the
employees and to look after their necessity and demands. Thus, in order to maintain effective
workplace environment the human resource management plays significant role. On the other
hand, Tansel and Gazîoğlu (2014, p.1260) argued that, in case of a business organisation which
deals with a number of employees, the business turnover can impact on the revenue.
Figure 1: Human Resource Management
(Source: Welch and Björkman, 2015, p.305)
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Thus, the role of the HR management is to manage and provide the proper remuneration of the
employees. However, Sylvester et al. (2015, p.38) opposed that, the employee motivation and
their retention is the purpose and function of the HRM in order to improve the overall
performance of a company. It has been noticed that, along with these task, the HR management
conduct the job analysis and resource planning for Orion Company. Critically, it can be stated,
being a recruitment company, the Orion Company is requiring a strong human resource
management system who can manage the current and future employees. About 16% turnover
intention can be seen in the company which is the result of the ineffective human resource
management system of the Orion Company.
Application in Resourcing and workforce planning
The Orion Company is consisted of only 50 employees who look after the recruitment service of
other companies like Amazon, Unilever, and other fields of aerospace, engineering, technology
and construction. In this scenario, the employment recruitment and retention of potential
employees are essential aspects for the company for achieving their sustainability in the
competitive recruitment market. According to Sikora et al. (2015, p.1908), in order to maintain a
healthy workforce and retaining them in an organisation the human resource management team
can incorporate strategies to provide motivation to the employees. With the help of effective
motivation, the work intention can be enhanced. As stated by Marchington (2015, p.176),
effective employee motivation can be provided by performance bonus, incentives, credit point
allowances, promotion and other techniques.
However, in case of the Orion Company, the human resource management and the leaders are
lacking this strategy as a result annual 16% employee turnover and 23% employee turnover
intentions can be noticed. Along with this, the team based support is not provided by the
employer and manager which make the employees dissatisfied to their jobs. On the contrary
Sikora et al. (2015, p.1908), opposed that, in order to maintain healthy workforce based
practices, the HR team needs to arrange training, motivational seminars and others which is
completely lacking in the company. However, the resourcing or the recruitment is quite
satisfactory and the company provided training to the employees in the initial phase about how to
handle recruitment calls, job posting and others.
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P2. Explanation of strength and weaknesses of selection and recruitment
of Orion Company
Strengths Weakness
 The Orion company provides training
to the recruited employees
 The selected employees are known to
work within the work environment
and culture of the company
 Provides opportunity of getting
promotion right after three months of
joining
 In the selection process the company
evaluates each and every candidate in
order to select the best one.
 The company offers an attractive
remuneration to their new joined
employees.
 The weakness of the recruitment and
selection process in the company does
not choose the probable employees
based on their experiences, as a result,
a huge amount of time required during
the training session
 After the recruitment the company
does not provide their employees any
long term contractual bond for
retaining the employees in the
company.
 The company does not provide
training further after the first training
completed.
 The Orion Company put tremendous
workload on the shoulder of
employees that de-motivated the
employees at the beginning.
Table 1: Strength and weakness of HRM of Orion Company
(Source: b.co.uk, 2018)
With this context, it can be stated that the employee recruitment and selection process has both
some drawbacks and advantages. According to Marchington (2015, p.176), with the help of
effective recruitment process, a company can achieve their knowledgeable employees. Karanges
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et al. (2015, p.129) supported and commented that, the effective human resource management
system can increase the skill and proficiency of the employees by the help of training. Thus, the
Orion Company does not possess effective training module which put barriers on enhancing the
production and profit of the company. Along with this task, the HR management conducts the
job analysis and resource planning for Orion Company. Being a recruitment company, the Orion
Company is requiring a strong human resource management system who can manage the current
and future employees. According to Jamali et al. (2015, p.125) selection of employees based on
their behaviour, attitude and preferences.
On the other hand, in order to maintain the effective workforce the HR management needs to
monitor the discriminating activities among the employees. Thus, at the time of joining the
company and the human resource management needs to conduct an orientation programme
which can help the employees to adjust themselves within the environment and work culture of
the company. Thus, with the help of these aspects the Orion Company can achieve performance
appraisal their skilled and proficient employees in the company. Jackson et al. (2014, p.1) stated
that, in order to maintain a healthy workforce and to retain them in an organisation the human
resource management team can incorporate strategies for creating the motivation to the
employees. With the help of effective motivation, the work intention can be enhanced.
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P3: Explanation of different HRM practices in the company and its benefits
on employer and employees
The strategic employment management is the key role of a human resource management. In case
of the Orion Company, recruitment management and the payroll management is the most
challenging functioning for the HRM. According to Graham et al. (2015, p.449), with the help of
effective payroll management the HRM can regulate the revenue and also satisfy the employees.
Thus, both the employees and employer get satisfied with the efficient payroll management
system of the Orion Company. Similarly in case of the companies like Amazon and Unilever,
instead of a huge revenue loss of the company, the employees are paid properly by the
management. As a result, the employee retention rate is quite high. However, Eby et al. (2015,
p.1275) argued that, the employment and the revenue of a company is equally proportional to
each other. Thus, the Orion Company can look after the payroll system of the company.
However, Cristiani and Peiró (2015, p.381) opined that, along with the effective payroll system
the company can conduct various motivational payment system. These systems are credit
allowances, incentives, attendance grace and other in order to motivate the employees and to do
more hard work.
Additionally the payroll system of the Orion Company also demands to include the basic
payment along with health insurance, travel allowance, retirement payment and others which can
make the organisation ideal for working. On the contrary Conway et al. (2016, p.901) argued
that, another important aspect that impacts on both the employee and employer satisfaction is
recruitment. It has been noticed that the recruitment and selection function of the Orion
Company is limited to the soft skills of the candidates. However, Coetzee and Harry (2014, p.90)
argued that, the recruitment of a company must be based on the effective behavioural, attitude
and knowledge of the candidates. In case of the Orion Company, being a service provider
recruitment company, they need the knowledgeable candidates who can access different fields of
the recruitment fields. The company is conducting their business in many fields such as
technology, engineering, construction, aerospace and gas where the employees need to have a
wide range of knowledge and a skill to motivate the candidates. However, the company provides
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their employees good salaries along with childcare vouchers, days out with family, gym
membership, health insurance, holiday incentives and excellent commission.
Thus, both the employees and employer get satisfied with the efficient payroll management
system of the Orion Company. As a result, the employees get attracted by the proposal of the
company although the retention rate is very low. The company does not provide proper training
in the after period of recruitment which impacts on the skills of employees. On the other hand,
the Orion Company put tremendous workload on the shoulder of employees that de-motivated
the employees at the beginning. In case of the Orion Company, being a service provider
recruitment company, they need the knowledgeable candidates who can access different fields of
the recruitment. Thus, the workload management needs to be effectively done by the company in
order to retain the employees. As for this reason, the HRM of the company can start recruiting
more employees in order to increase their sales. On the other hand, the company is having
business turnover of Euro 30 billion in the last year which states that the company requires more
employees in order to maintain the revenue and sustainability of the company.
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P4: Evaluation of different HRM practices and their effectiveness in
productivity and profit
The productivity of a company is directly proportional to the employment. As opined by
Brewster et al. (2015, p.451), with the help of proficient and knowledgeable employees the
growth of any organisation can be enhanced. It has been noticed that, the annual business
turnover is of Euro 30 billion of the company which is due to the high quality service of Orion
Electrotech in the giant companies like Amazon, Unilever, Accenture and others (b.co.uk, 2018).
Hence, with the help of more employees the rate of cope up with the market can be enhanced by
the company. As for this reason, the HR management of the company can play a significant role.
They can provide motivation and communicate with the employees for generating new ideas.
Beer et al. (2015, p.427) supported and commented that, in the generation and collection of new
ideas for organisational betterment the human resource management is responsible. In this way
the Orion Company can enhance their financial and reputational growth in the competitive
market with the strength of HRM. On the contrary Brewster et al. (2016, p.532) argued that, not
only the revenue of a company enhance by the effective HRM model, but also the production
increases.
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productivity
profit
HRM

Figure 2: HRM practices and their effectiveness in productivity and profit
(Source: Beer et al. 2015, p.427)
In case of the Orion Company, being the service provider recruitment organisation, the ability of
the performance of the employees can be enhanced. With the help of effective payroll
management the HRM can regulate the revenue and also satisfy their employees. Thus, both the
employees and employer get satisfied with the efficient payroll management system of the Orion
Company. As a result, the employees get attracted by the proposal of the company although the
retention rate is very low. The company does not provide proper training in the after period of
recruitment which impacts on the skills of employees. The HRM along with the director of the
company Chris Benham also highlights on the employee retention rate and their impact on the
production of the company. Hence, as for this reason, the HRM can provide motivation to the
existing employees not only by monetary means, but also by the emotional support which leads
the company retain the potential employees. According to Beer et al. (2015, p.427), employee or
resource retention rate of the company is the most effective way to enhance the financial growth
and productivity of a company. Thus, this can be done by the HRM of Orion Company and
enhance the production and profit.
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