Effectiveness of HRM Practices in Raising Organizational Profitability

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within an organizational context, using Dyson Company as a case study. It explores the benefits of various HRM practices, such as training and development, health and safety, compensation and benefits, and performance appraisal, for both employees and employers. The report examines the effectiveness of these practices in raising organizational profit and productivity, highlighting the importance of selective hiring, compliance with laws, and effective communication between management and employees. It also delves into different methods used in HRM practices, emphasizing the role of HRM in motivating employees, enhancing their skills, and fostering a positive work environment. The report concludes with a critical evaluation of HRM practices, underscoring the need for capable human resources, strong coordination between employers and employees, and adherence to legal regulations to achieve organizational goals.

Human Resource
Management

Contents
P3. Benefits of different HRM practices within an organisation for
both the employer and employee:.......................................................................2
P4. Effectiveness of different HRM practices in terms of raising
organizational profit and productivity:.............................................................4
M3 Exploring different methods used in HRM practices:...........................5
D2 Critical evaluation of HRM practices and application within an
organizational context:............................................................................................. 5
P3. Benefits of different HRM practices within an organisation
for both the employer and employee:
Human resources department always engages in various
activities in order to fulfil requirements and expectations of
employees as well as employers. It plays role of a bridge
between them and liable to create healthy communication. The
professionals of Dyson Company are able to develop strategies
so that both the company and the personnels may achieve
maximum benefits and key objectives of the company. Benefits
of different HRM practices are discussed as below:
Training and Development: These practices consists
internship and apprenticeship programs, orientation for new
joiners, job skills training and professional development,
leadership upbringing, job rotation, mentoring, etc. So many
activities and processes are followed in order to improve the
skills of new and existing employees.
Benefits to Employees: These new evolution programs
help the personnels to learn fresh skills, organizational
behaviour and improve their productivity which eventually
provides helps in increasing profitability and achieving business
goals. Practise of this procedure also enhance confidence and
inner personality of the employees.
5

Health and Safety: Human Resource management is liable to
take care of health and safety laws and regulations within the
organization. It includes employee benefits like life & health
insurance, vacations and protection from harassment,
discrimination, etc.
Benefits to Employees: With the help of practising
health & safety procedures, employees are able to keep
themselves fit and healthy. It provides enthusiast and joyful
environment to them and helps in increasing effectiveness in
order to perform their jobs.
Benefits to Employers: Formation of safety and health
regulations helps the administrators to avoid workers grievances
and injuries. It aids in decreasing employees' absent and worker
turnover ratio by retaining existing employees with it.
Compensation and benefits: Compensation and benefits exist
together and described as to HRM duties related to paying
worker and providing inducement for them. Its aim is to set up
salary and wage levels that increase the organization's
investment regarding its aims. Impressive HRM managers plan
programs in such way that reward employees by satisfying their
emotional needs, such as recognition for good work.
Benefits to Employees: An effective and transparent
framework of reward policies and pay structure helps in
increasing productivity and efforts of the employees. Such
procedures motivate workers to work harder by providing
flexible working options and increasing their level also.
Benefits to Employers: Management can attract highly
skilled, talented and professional
employees by offering them such compensation and benefits.
The employer is capable to attain last long loyalty and honesty
of workers through these extra benefits which also helps in
increasing goodwill of the organization.
4 1

P4. Effectiveness of different HRM practices in terms of raising
organizational profit and productivity:
The management of human resources in Dyson company
performs several functions in order to attract and retain skilled
and talented human resources which are described below:
Selective Hiring: The HRM team is supposed to hire
valuable employees who may be accountable assets for the
organization. This practice is based on attracting proper
candidate for job position. It is a process in which candidate is
searched for potential job position in time as well as cost
effective mode. A valuable employee is one who have
appropriate technical and soft skills according to the job, is
ready to learn new things and dedicated to ones commitment.
HR professionals use selection instruments such as structured
and unstructured interviews, knowledge tests, IQ tests,
personality evaluation, reference checks, etc. A highly skilled
employee is much more productive and creative than an average
skillful employee.
Performance Appraisal: The HRM has to perform role of a
leader and motivate employees working with the company. For
this purpose, it is important to assess expectations and
requirements of workers as well as their potential and
performance. An individual needs recognition for its efforts in
order to get motivated hence the management helps in analysing
and reviewing performance, giving feedback and appraisals &
providing monetary or non-monetary benefits for encouraging
the workers of the firm.
Compliance with law: Such practices are related to the laws and
legislations created by government or legal bodies in order to
protect human rights of human resources. Human Resources
Professionals must follow these rules and regulations in order to
avoid legal conflicts and workers' resistance. This procedure
comply with labour laws, health and safety laws, Statutory
benefits, employees' welfare laws, civil rights and others.
Negligence of these regulatory compliances may create huge
risk of lawsuit.
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Connecting Medium: An HRM is answerable for hiring,
training, motivating and firing the employees. It knows the
potential and expertise of the employees so he can transmit with
them easily and clearly. It also have the idea about all the
strategies and aims of the organization. The HR team plays a
role of a circuit between administration team and employees.
When employees face any problem or need any counselling, it
acts as a responsible person or motivator on behalf of the
organization. Dyson Company has given this responsibility to
the team to resolve all the queries, problems and complaints of
the employees and motivate the employees on time to time. It
passes all the orders from the management to employees as well
as the feedbacks, complaints and suggestions from the
employees to the management.
M3 Exploring different methods used in HRM practices:
Human Resource Management is crucial to admit active
and productive personnels within the organization so that
required profitability can be obtained. By performing above
described practices, an organization can motivate its workers
and enhance their efforts and effectiveness to gain profitability.
In case of Dyson company, the management is very cautious
about training and development of its personnels. With the help
of this method employees getting more skilled and adapting
new creative ways to work smartly. The HRM team is
continuously providing training sessions and development
process to inspire its workers so that they can be retained with
their commitments.
D2 Critical evaluation of HRM practices and application within
an organizational context:
To build a strong internal workforce management, it is
necessary for HRM team to hiring capable human resources and
make a co-ordination between employer and employees. It has
to use its leadership skills to prompt and appraise individuals
hired. Compliance with external factors such as legal rules is
also very necessary to avoid struggles. The management Team
of Dyson company has knowledge about employer's agenda and

tries to create better understanding and communication between
boss and workers so that organizational goals can.