HRM Report: Key Functions, Issues, and Theories at ASOS plc

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at ASOS plc, a British online fashion and cosmetic retailer. It begins by outlining the key functions of HRM, including recruitment and selection, performance management, learning and development, rewards, and health and safety. The report then identifies and discusses the major issues and challenges faced by the HR department, such as recruiting new staff, employee retention, the demand for expert employees, and payroll management. Furthermore, the report delves into relevant HRM theories, including resource-based theories and the human capital theory. It also explores various models of HRM, specifically the standard casual model and the HR value chain. The conclusion summarizes the key findings, emphasizing the importance of HRM in achieving ASOS plc's organizational goals. References to academic books, journals and online sources are also included.

Human resource management

Table of Contents
Introduction......................................................................................................................................3
Task 1 ..............................................................................................................................................4
Key functions of HRM ................................................................................................................4
Task 2...............................................................................................................................................5
Issues and challenges of HR of ASOS plc...................................................................................5
Task 3 ..............................................................................................................................................6
Theories of HRM ........................................................................................................................6
Resource based theories ..............................................................................................................6
Models of HRM ..........................................................................................................................7
Conclusion ......................................................................................................................................7
REFERENCES................................................................................................................................9

Introduction
Human resource management is known to be the procedure of recruiting people, provide
training and education to them, create compensation strategies for them. Basically the role of
HRM is to manage the people at work so that they can perform their job and duty effectively. In
this report a company called ASOS pls has been defined. ASOS plc is a British online fashion
and cosmetic retailer. The major product of this company is clothing, accessories etc. in this
report, key functions of HRM is being explained apart from this different issues and challenges
faced by the HRM is also mentioned in this report.
Task 1
Key functions of HRM
The most important function of HRM is to enhance the performance of employees at the
highest level so that the organisation can accomplish their goal.
Recruitment and selection
Recruitment is the procedure of recruiting, screening and selecting the appropriate
candidate for the position who fulfil all the eligibility and qualification. The main function of
HRM is to attract the skilled and talented employees towards them. But recruitment also depends
on the brand value and image of the company as ASOS plc is one of the top brand in UK and
also in other countries so many people want to be a part of this company.

Performance management
This the another key function of HRM of ASOS plc that they have to make sure about the
performance of employees. Performance management states about work done by employees, is it
productive or not, are they working appropriately or not, everything has to be consider in the
performance management. On the basis of this, employees get promotional offer.
Learning and development
Another function of HRM is to work for the development of employees for that they
provide training and learning opportunities to them so that they can enhance their skills.
Basically the main motive of training is to bridge the gap between the today's workforce and
workforce which is needed in the future. For providing training and development, HR has to
decide the budget as well.
Rewards
This is also an important function of the HRM that they have to provide rewards to those
employees who are performing well so that this boost their confidence and morale they will give
their best in the near future. Rewards can be in the form of bonus, offers, performance based pay,
promotion etc.
Health and safety
Another key function of HRM is that they have to work for the health and safety of the
employees. To protect their health, HR has to prepare policies so that the employees feels safe at
the workplace, they offer various medical and insurance polices so that employees and their
families feel protected.
So these are the normal functions of HRM which they perform in the ASOS plc, but the major
function which the company is focussing the most is Recruitment and selection, because ASOS
plc believes that their employees are the valuable and precious assets of the company and with
the help of employees the company can attain it's all goals and targets. There for they want the
best talent in their company apart from this, they are one of the famous brand so they are looking
for such employees who can work efficiently and give the best productivity to the employees.
Task 2
Issues and challenges of HR of ASOS plc
HR of ASOS plc have to face emerging issues and challenges in the company. As HR is
the bridge between the top management and the employees so they have to fulfil needs of both.

Recruiting new staff
HR of ASOS plc has to face a lot of challenges because they have to choose the best
candidate for the company who can stay for long inn the company and give their best. To hire the
best candidate, HR uses various techniques to select the best one such as assessment test, group
discussion, technical round and and HR round so that they may get the best candidate. The
candidate must be technically expert along with it, they must be expert socially as well.
Retention
It is one of the major issue faced by the HR, retaining the employees is one of the major
challenge in- front of the HR. Retention is to minimize the staff turnover. This has been a
challenge because of some reasons -
Contingent workforce
Contingent work force known to be those who are working in the company as part-time
or on temporary basis. To retain such employees in the company is challenging because they are
not so much attached to the company. So it is the challenge for the HR to make them feel that
they are the part of the company and let them remain in the company for so long.
Demand of expert employees
ASOS plc is one of the big company so they want professional and expert candidates inn
their company so such type of knowledgeable candidates are highly demanded by every
company so it is challenging for HR to select such candidates and after hiring them it becomes
more difficult to keep them with the company.
Payroll
It is a written document which contains all the information about company, their
employees, and remuneration. Despite of training and development HR has to lot of task on daily
basis. With the help of proper payroll HR will be able to pay the right amount to the right
candidate.
Management of information
HRM has to maintain day to day information so that they company can manage its
operational data. It is very challenging for the HR to safeguard such informations from the cyber
crime and theft apart from this they have to be very clear about the information like which
information is essential or which is not.

So these are the major issues which is being faced by the HR but the major function on
which the company is focusing more is recruitment and selection so that they may overcome the
issue of retention, by hiring new candidates company can fulfil the place of those who are
leaving the organisation.
Task 3
Theories of HRM
Resource based theories
This theory states that employees are the valuable assets of the company, and it is the
responsibility of the HR to fulfil all the needs of the employees so that they do not think to
switch the company. So the main motive of this theory is to, make their resources more strong
so that they do not get easily imitate and copy. It is the responsibility of HR to offer therm
handsome salary package so that no one company can copy them or attract their employees.
Human capital
This theory focuses on the group and individuals that they are the capital of the company,
due to their knowledge and skills, company may attain their goals. If the employees are skilled
they will never walk off from any kind of difficulties and challenges, they will take them
positively. So there for employees are the capital of the company and HR also provide them,
proper training so that they can perform well.
Models of HRM
The standard casual model of HRM
This model focuses on the HR activities which are aligned with the strategies of the
organisation, if the HR strategies and the strategies of the company and organisation is working
together this will definitely bring the profit and growth of the company to the next level. HR
practises such as – hiring, recruitment, appraisal, compensation etc. bring output to the company.
If the HR of the company know its mission and objective then only they can deliver it to the new
employees so that they can work accordingly and help the company to reach the goal as soon as
possible.
The HR value chain
This model is one of the best known model of HR, this model divides the HR and their
activities into two categories- HRM activities and HRM outcomes. HRM activities are known to
be the day to day activities which includes- recruitment, training, compensation and planning.

These activities are frequently measured by using HR metrics. This activity is typically believes
that HR should hire cheaper and then they should train them. On the other hand, HRM outcomes
are referred to those goals which the company wants to obtain by using HRM activities. This
activity fully believes on recruitment, training so that the company may achieve the goals.
Conclusion
After analysing the entire report it can be concluded that this report states about the
HRM. This report includes various key functions of HRM such as – recruitment and selection,
performance management, learning and development and rewards etc. apart from this, the major
issues which is being faced by the company has been mentioned in this report. Except this, issues
and challenges faced by the HR has also been elaborated in this report. Such as – retention,
recruiting new staff, demand of expert employees, payroll etc. apart from this, different theories
and models of HRM has been explained in this report.

REFERENCES
Books and journals

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Ahammad, T., 2017. Personnel management to human resource management (HRM): How
HRM functions. Journal of Modern Accounting and Auditing.13(9).pp.412-420.
Al and et.al, 2017. HRM University Systems and Their Impact on e-HRM. International
Journal of Information Technology and Electrical Engineering.6(3). pp.5-27.
Aust, I., Matthews, B. and Muller-Camen, M., 2020. Common Good HRM: A paradigm shift in
Sustainable HRM?. Human Resource Management Review.30(3). p.100705.
Azhdari and et.al, 2018. Innovation in Human Resource Management Functions in Knowledge-
Based Enterprises.
Budhwar and et.al, 2019. The state of HRM in the Middle East: Challenges and future research
agenda. Asia Pacific Journal of Management.36(4).pp.905-933.
Hewett and et.al, 2018. Attribution theories in human resource management research: A review
and research agenda. The International Journal of Human Resource
Management.29(1.pp.87-126.
Keegan and et.al, 2018. Organizing the HRM function: Responses to paradoxes, variety, and
dynamism. Human Resource Management.57(5). pp.1111-1126.
Mendy, J., 2018. Key HRM challenges and benefits: The contributions of the HR scaffolding.
In Teaching human resources and organizational behavior at the college level (pp. 1-
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Ringle and et.al, 2020. Partial least squares structural equation modeling in HRM research. The
International Journal of Human Resource Management.31(12). pp.1617-1643.
Online
Maharanjan., P, 2020 Challenges and Issues in Human Resource Management[Online].
Available through: <https://www.businesstopia.net/human-resource/challenges-issues-human-
resource-management>
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