Analysis of HRM Practices and Factors Affecting Decision Making

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Liverpool Victoria, a large insurance organization. It examines the purpose and scope of HRM, emphasizing its role in maintaining quality work life, increasing productivity, and retaining employees. The report evaluates the effectiveness of key HRM elements, such as creating a positive workplace, providing competitive compensation and benefits, offering training and development opportunities, and ensuring flexible working hours and leave policies. It also discusses internal and external factors influencing HRM decision-making, including employee relations, health and safety rules, equality duties, and acceptance of legislation. The report concludes by highlighting the importance of aligning HRM practices with employee needs and legal requirements to foster a productive and satisfied workforce, contributing to Liverpool Victoria's overall success. Desklib offers a wealth of similar solved assignments and past papers for students.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Purpose and scope of Human resource management.............................................................3
TASK 2............................................................................................................................................5
Evaluate the effectiveness of the key elements of Human Resource Management in an
organisation such as Victoria Liverpool.................................................................................5
TASK 3............................................................................................................................................7
Discuss and analyse the external and internal factors that affects the decision making process
of human resource management including employee legislation...........................................7
TASK 4............................................................................................................................................8
Human Resource Management Practices in a context of Victoria Liverpool........................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Human resource management is refers to as the both the staff members who work as well
as the department of the organisation which is responsible for all the staffing and managing
related activities such as recruiting, hiring and deploying. They are responsible for developing
and implementing different human resource policies which govern the relationship among
employees and employer. Liverpool Victoria is taken as base company. Liverpool Victoria is
considered as a largest insurance organisation with a customers base of more than 5 million. The
organisation was established in 1843 with its headquarters in Westbourne, UK. In this report, it
covers the purpose and scope of human resource management with the evaluation of the
effectiveness of the key elements of human resource management. It also includes the analyses
of all the internal and external factors that affect human resource management decision-making
with employment legislation. At last, human resource management practices in a work-related
context is mentioned.
TASK 1
Purpose and scope of Human resource management
Human resource management is a subject which is related with the management of people and
the work which is done by them. The main role of Human resource management team is to
employ those people who are having sufficient skills and talent as this will be useful in the
accomplishment of the objectives of the company. Liverpool Victoria is a company which is
based on providing finance to the people and they work on the employment of those people who
are good in doing the task.
Purpose of HRM in context with Liverpool Victoria-
 To maintain quality life- It is very important to develop the quality life in the workplace
which Liverpool Victoria tries to maintain(Kodama, 2019). But the task which has been
assigned to do this thing is on the HR department of the company. As the workload in
such company is high so the HR team helps in developing the good
environment(Armocida and et. al., 2020).
 To increase productivity- It is important for the company to motivate the employees for
increasing their productivity in the workplace. Insurance companies are those in which

the productivity of the employees needs to be good which is delegated on the Hr
department of the Liverpool Victoria. To retain and motivate the employees- It is very important to reduce the turnover ratio
of the employees so that the company can meet its objectives in a great way. Retention of
the employees is important because this helps to develop the image of the company
which Victoria Liverpool have developed.
Scope of Human resource management-
 Employ talented and skilled employees- It is very important for the Victoria Liverpool
HR department to employ those people who are talented and skilled and have the
capability to achieve the goals of the company. They are the one who always tries to
recruit those people who are talented and can deliver new ideas(Pacesila and Colesca,
2020). The talented and skilled employees are the one who have the different ideas which
can work best for the company and which they can formulate in the workplace so that
many customer gets attracted with the pol9icies which are made by the Liverpool
Victoria.
 Performance appraisal- It is important and is done in every workplace to provide the
appraisal to the employees. This is also done by Victoria Liverpool so that they can
identify that who are working according to the defined standards and who are not so that
corrective measures can be taken. The methods by which the performance appraisal is
done depends upon the suitability of the work environment and what the company prefers
to take into consideration.
 Training and development- When any new employee comes to work which means that
the individual who has been selected for the job will not be given work on the first day.
As they will be given the proper training and development classes so that the individual
gets to know what is been required in the job position which has been assigned to them.
TASK 2
Evaluate the effectiveness of the key elements of Human Resource Management in an
organisation such as Victoria Liverpool
Benefits of different HRM practices

Human resource is a division of business organisation where the they see the entire
employment related functions and activities took place such as payroll, recruitment, on boarding,
compensation management and so on. The assists the organisation in compliance with all the the
laws and legislations which are necessary to follow (Malik and et. al., 2019). Human resource
management not only oversee about the employees but for the employers and some of the
benefits to both employees as well as for employers in context to the selected organisation are
mentioned below:
For employee
Creates a positive work place: The human resource management make sure to provide a
work place which is suitable for all the employees which assists them confidence to speak for the
concerns or issues that they are facing. HRM responsible for the maintaining all the organisation
wide diversity as the employees could be of different religion, casts, race, physical abilities and
so on. Also by creating a cosy environment by arranging of comfortable furniture and working
equipment, the employees could feel stress free and do the work comfortably (Chen, Chuang
and Chen, 2018).
Compensation and benefits: This is considered as one of the major benefit which is
provided to the employees. The manager firstly would research about the pay rates in the market
for a appropriate position and then offer the candidate with the salary package. The organisation
initially hire employees on a probation period and then after some months, the employees get job
and settle as getting a permanent member of the organisation which automatically increased their
salaries and also eligible for getting compensation (Agarwal, 2021). The selected organisation
provide employees with private medical insurance, dental insurance, personal accidental
insurance and life assurance.
Training and development: Human resource management make sure to provide training
and development sessions to the new joiners so that they could aware about the organisation,
their rules and regulations, company policies and so on. They also make sure to conduct sessions
for the existing employees to polish their skills as well as could get updated about the emerging
technologies which could be used in the organisation (Pagán-Castaño, Maseda-Moreno and
Santos-Rojo, 2020). This ensures the employees they are a part of the organisation and also helps
in motivating them.

Working hours and leaves: Human resource management make sure to provide flexible
working hours so that employees doesn't have much pressure on them regarding the work. Along
with this, the human resource management also ensures that employees get compensated leaves,
paid parental leaves and many more. This make them feel that the organisation is cooping up
with them as employees are valuable for them. The selected organisation is offering an employee
assistance programme which is a 24-hour confidential legal, financial and wellbeing advice
service. The employees also get shared parental leaves.
For employers
Organisational culture: Organisational culture comprises of bring values, beliefs,
traditions and all the working rules that organisation have adopted. Human resource management
has an essential part in influencing the culture, by establishing the company procedures, the
employees could be able to accept the different behaviour and attitude in the organisation (Malik,
Lenka and Sahoo, 2018).
Planning for change: It is the responsibility of human resource management to make
sure that organisation is stabilize and also for a constant change such as the emerging
technologies that could be used by the organisation. It also comprises of the developing a bridge
between different units of the organisation and manager so that they all could communicate well
with each other.
Developing good relationships: The human resource management has also the
responsibility of maintaining a good and healthy relationship between all the employees of the
organisation. This would assists organisation getting the work done and achieve the aims and
objectives (Boxall, 2018). It is essential for human resource management to implement the HRM
practices as it will assists them in ensuring harmony in the organisation.
Retention: The human resource management assures to retain their employees as they are
valuable for them. They will acquire skilled and qualified employees, retaining in the firm,
providing appropriate training and development sessions and motivate them with offering
compensation and various benefits to them (Micu and et. al., 2017). This will not only retain
their employees but also make the organisation successful in terms of productivity and
profitability.

TASK 3
Discuss and analyse the external and internal factors that affects the decision making process of
human resource management including employee legislation.
Employee relations can have a major impact on the decision making of the human
resource department as the company works on the basis of the mutual understanding of both
management and employee. If a company fails to fulfil the expectations of the employee towards
the performance of the company it will lead to lack of motivation in employees, decrease in the
performance and productivity of employees and also will increase the employee turnover rate
which is not good for the finances of the company as it will make the company less attractive for
the employees and will increase the economical expenditure of the company.
HRM practises must be according to the basic facilities that the company must provide to their
employees such as fair treatment, equality, stress free environment, safe working conditions and
proper reward systems (ST Maryam, Sumartono and Dwi Orbaningsih, 2020). It will help the
company in providing satisfaction to employees along with increase in the profits of the
company. In context to Liverpool Victoria, it is important for the company to make sure that the
human resource department of the company is working according to the requirements of the
employee in order to retain the employees in the company and can also help the company in
creating a pool of talent which is essential for the company in order to have a talented workforce
which can lead the company towards success.
Health and safety rules: It is important for the company to make sure that they are
providing healthy working conditions to the employees and they are complying with the rules
and regulations of the government regarding this factors (Nisar and et. al., 2021). Their is a
proper act which deals with the issues that are related to the health and safety in workplace. In
context to Liverpool Victoria, the company is making sure that the human resource department is
taking care of all the measures regarding this aspect.
Equality duties: It is the duty of the company and human resource department to make
sure that their is no discrimination activities are taking place in the workplace. It is essential to
provide equal opportunities and rights to all the employees of the company so that the company
will be able to create a positive impact on the employees and will also help in retaining the
employees which is essential for the company. In context to Liverpool Victoria, the human

resource department of the company makes sure that each and every employee is receiving fair
treatment and opportunities.
Acceptance of legislation: It is important for the company to make sure that the
employees of the company have accepted the terms and conditions of the employment contract
so that they do not have to suffer afterwards or do not have to face resistance in the workplace
(Cuskelly and et. al., 2021). In context to Liverpool Victoria, they make sure that the employee
before signing the employment contract read and analyse each and every terms and conditions
written so that they do not have to face problems afterwards.
TASK 4
Human Resource Management Practices in a context of Victoria Liverpool
Human management practices in any organisation are based on the legal compliance
requirements, goals, vision and best practices of human resource professionals. These practices
are used by HR department to guide their core activities which are surveys, payroll, recruitment
and selection, training and development, compensation and benefits, safety and health, employee
retention etc. These practice are strategic in nature and activities HR activities performed should
be co-related with these effective and modern HRM practices (Santana and Lopez‐Cabrales,
2019). Below mentioned are some of the most common and widely used HRM practices in
context of Victoria Liverpool. Employee security: Life in uncertain and work is the only stable factor that is important
for people as it provides work life security to them and enables employees to meet their
safety and security ends. There is a formal and informal contract between employer and
employee of Victoria Liverpool which provides labour for money and some extra benefits
which allows employees to look after themselves and their loved ones. Employment
security enables employers in retaining talented workforce and makes feel secure
employees at the time of lay off. Selective hiring, hiring the right person: Second most significant HRM practice is
getting a right person for right job in right time. With this practice Victoria Liverpool can
attract and select employees who makes best use of their potential and adds value into an
organisation. Companies try their level best to hire expertise people and for this they need
to build a structured and fair selection process. Victoria Liverpool used selection

instruments like interview, IQ tests, reference check, personality assessment and work
tests (Hamadamin and Atan, 2019). Fair and performance based compensation: Another significant and most effective
HRM practice is Contingent compensation which has all to do with fair compensation
and benefits to the employees for their efforts. Paying employees above than average
allows Victoria Liverpool in boosting the confidence, morale and motivation of an
employees as it enhance employee's productivity and quality of work. Additional benefits
like paid holidays, extra pay, shopping vouchers and retirement plans, all these extra
value added benefits keeps the employees committed towards work and keeps them
motivated. Training and development in relevant skills: As per this most effective HRM practice,
Victoria Liverpool should invest in their talented workforce with the aim of upbringing
their skills and knowledge in relevant fields. Victoria Liverpool after recruiting the right
talent provides them adequate training so that employees can work with their maximum
potential and become frontrunners in the competitive market place or industry to keep the
company ahead of the competition (Chillakuri and Vanka, 2020).
 Creating an egalitarian and flat organisational structure: One of the best HRM
practices in attaining success and building trust among employees is having egalitarian
organisation. With the help of such structure, Victoria Liverpool foster the culture of
equality where each employee irrespective of their position, power or any other
difference factors is treated equally with dignity and respect. This culture helps the
company in making employee feel valuable and significant assets for the company. Some
example of such culture is common uniform, same working hours, same place for
refreshments etc.

CONCLUSION
From the above discussion, it can be concluded that human resource management plays a vital
role in an organisation as it acts as a bridge between the employees and employer which
strengthens the relationship between them. It also has a significant contribution towards setting
up a healthy work culture in the organisation which direct creates influence on a improve
productivity and performance of all the employees.

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