Analysis of HRM Roles, Theories, and Functions in Business

This report delves into the multifaceted roles and functions of Human Resource Management (HRM) within a business context. It begins by outlining key HRM theories, including motivational theories (such as Maslow's hierarchy of needs), transaction cost theory, and agency theory, illustrating their practical application. The report then explores the core responsibilities of HRM, such as recruiting, ensuring a safe work environment, fostering employer-employee relations, managing compensation and benefits, and providing training and development programs. Furthermore, it examines the interplay between HRM, motivation, and various management styles, alongside a discussion on different types of organizational culture. The report uses Sainsbury as a case study to illustrate the application of these concepts and concludes with a summary of the key takeaways and a comprehensive list of references.

HRM ROLE AND THEIR FUNCTIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
THEORIES OF HRM......................................................................................................................3
MOTIVATIONAL THEORIES..................................................................................................3
TRANSACTION COST THEORY............................................................................................3
AGENCY THEORY...................................................................................................................3
ROLE OF HRM...............................................................................................................................3
Recruiting the right People..........................................................................................................4
Managing the safe environment..................................................................................................4
Employer-Employee Relations...................................................................................................4
Compensation and Benefits.........................................................................................................4
Training and development...........................................................................................................4
HRM RELATION, MOTIVATION AND MANAGEMENT STYLES.........................................5
TYPES OF CULTURE....................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Human Resource is one of the function of the business where its role is to find new
applicant, to screening them, recruiting them, training the job applicant and administering the
employee benefit programs. Their role is to proving the quality employees in the organisation. In
other words Human resources deals with the people and any finding conflict within an
organisation or within employees (Ayentimi and et. al., 2018).
THEORIES OF HRM
MOTIVATIONAL THEORIES
Abraham Maslow developed the first theory which motivates individual. According to
Maslow individual have some needs which should be full filled and this theory is demonstrated
by the pyramid. These needs are the physiological needs, Safety needs, Belongingness and love
needs, Esteem needs and then Self-actualisation needs. These should be fulfilled in the respective
manner. Sainsbury is the second largest supermarket brand in the UK. In this company, HR plays
their role to full fill those all needs of Maslow.
TRANSACTION COST THEORY
It is the theory which states that goal of the organisation to reduce or minimize the cost of
managing exchanges inside the organisation and exchanging resources in the environment.
Human resources should reduce the gap in employment to the objectives, standard and target. In
this Sainsbury is reducing its cost by introducing the self-service which help in reducing the
labour cost.
AGENCY THEORY
It is the branch of financial economic which explains between the agents and principals.
This theory deals with two of the specific problems. First one is the goal of agent and principal
should not be in conflict and Second one is that agent reconcile tolerance of risk. In this,
Sainsbury need to use the first one theory for which they need to have good coordination within
the organisation (Diaz-Fernandez and et. al., 2017).
ROLE OF HRM
There are many role of HRM, the some of the role are discussed below.

Recruiting the right People
It is one of the main role of the HR department to attract people to work for their
organisation and selecting the best candidate for the job role. In Sainsbury, the role of HR is to
choose the right employees for the right job where they can give their best for the business. They
generally recruit the best behaving person which can attempt the customer nicely with positive
attitude.
Managing the safe environment
It is the role of the human resource to provide safety to the workplace. It is an important
factor. HR role is to create and implement health safety regulation in the organisation. Sainsbury
is providing different safety for their employees. The company is able to provide the safe
environment to their employees so that they can work without any worry (Mudambi and et. al.,
2016).
Employer-Employee Relations
It is necessary to have some good relation between the employer and employee of the
organisation which helps in performing well and establishing the relation to make the task done.
Sainsbury always talk with their employee to reduce the communication gap in the workplace.
The company makes the relationship better with the employees so which they can give their best
to the organisation.
Compensation and Benefits
In smaller organisation or companies, compensation and benefits role are often handled
by a single HR, but in the larger companies the duties are split up. Sainsbury provide different
compensation to their employees and provide many benefits. So that employees like to work
with the company. The company gives different compensation when they take extra work from
the employees and there are many profit which are given to the employees when they are in that
company for longer period of time (Wickramasinghe and et. al., 2020).
Training and development
HR role is not to only recruit the employees, they also need to train them in such a way
that they not only able to do the job but also develop some skills other than the job. Sainsbury
provide different training program to communicate with their customer in better way. Which also

helps in development of the staff on personally and professionally both (Pereira and et. al.,
2017).
HRM RELATION, MOTIVATION AND MANAGEMENT STYLES
The work of HRM is to make the relation between the different departments of the
organisation where each and every department need to get in tough with each others department
for the proper communication in the organisation. They also motivate the employees of the
different department of the company or organisation. The motivation can be of different types
such like monitory or non monitory motivation, any reword, different type of appraisal like 360
degree or 720 degree appraisal. Such types of motivation should always be given to the
employee to motivate for the work which subsequently leads to the business profit and which
help in increasing the productivity. Sainsbury is having the both autocratic and democratic
management style which is used to meet the objective which is to be customers first choice for
food. That's the way managers takes decision about the supermarket which is done with the help
of the staff members (Pham and et. al., 2020).
TYPES OF CULTURE
There are different type of culture which are Sainsbury is adopting on each and every
organisational function within the company. The company need to provide different culture in
the organisation which can motive their employees and able to make them work in easy manner.
The company can adopt different culture which can affect the business by the adopting some
culture regarding to the employees because there are many factors which can affect the culture
change within the organisation. Sainsbury is having their own country culture of tackling the
customer where the staff or the employees of the company are comes direct in the contact for full
fill the requirement of the customer to satisfy them (Ramirez and et. al., 2016).
CONCLUSION
According to the above report, that you may now able to say that there are different role
of the Human Resource Management which are having the different theories in the business and
there are many role which the HR department need to play in the organisation which are having
different culture in the selected business.

REFERENCES
Books and Journals
Ayentimi and et. al., 2018. Does the historical and institutional re-construction of Ghana support
the transfer of HRM practices?. Journal of Management History.
Diaz-Fernandez and et. al., 2017. HRM practices and innovation performance: a panel-data
approach. International Journal of Manpower.
Mudambi and et. al., 2016. A global value chain analysis of the ‘regional strategy’perspective.
Journal of Management Studies, 53(6), pp.1076-1093.
Pereira and et. al., 2017. Mapping the impact of Asian business systems on HRM and
organisational behaviour: Multi-level comparative perspectives. Journal of Asia
Business Studies.
Pham and et. al., 2020. The role of green human resource management in driving hotel’s
environmental performance: Interaction and mediation analysis. International Journal of
Hospitality Management, 88, p.102392.
Ramirez and et. al., 2016. The impact of narcoterrorism on HRM systems. The International
Journal of Human Resource Management, 27(19), pp.2202-2232.
Wickramasinghe and et. al., 2020. Effects of HRM practices, lean production practices and lean
duration on performance. The International Journal of Human Resource Management,
31(11), pp.1467-1512.