HND Business: HRM Strategies & Development at Rolls Royce Motors

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Rolls Royce Motor Cars Ltd, focusing on their contribution to organizational performance and development. It compares different HRM areas such as recruitment, training, and compensation, examining their impact on business profitability and employee satisfaction. The report explores strategic HRM in the context of a changing business environment, highlighting the importance of creativity, innovation, and managing change-related stress. It critically evaluates recruitment and retention strategies, emphasizing the role of employee referrals and job postings in attracting and retaining talent from available labor markets. Furthermore, the report analyzes the strengths and weaknesses of HRM in contributing to Rolls Royce's business success, considering internal and external factors that influence HRM decisions and support organizational development. The analysis also includes a discussion of how HRM practices can be improved to enhance employee engagement and overall organizational performance. Desklib offers this and other solved assignments to aid students in their studies.

Higher National Diploma in Business
Management
Unit 3 Human Resource Management
The Role of HRM and Organisational
Development (Part 1)
HRM Practices (Part 2)
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Table of Content

Part 1: Report
1.0 Introduction p
2.0 A comparison of the different HRM areas and their
contribution to organisational performance p
3.0 An examination of strategic HRM in relation to the changing
333333333 effects on organisations and its business environment
p
4.0 A critical evaluation of the role of recruiting and retaining
appropriate employees from the available labour markets p
5.0 An analysis of the strengths and weaknesses of HRM in terms
of its contribution to business success p
6.0 An investigation into the internal and external factors that
influence HRM decisions in the workplace p
7.0 Discussion and evaluation of these factors and how they
support organisational development p
8.0 Conclusions p
References p

1.0 Introduction
Human resource management is the strategic approach of effective and efficient
management of people in an organization through which a business can gain competitive
advantage. Human resource management is an effective practice followed within an
organization through which a business can maximize employee performance and meet
strategic objectives of an organization (Aklamanu, Degbey and Tarba, 2016). The practice
of human resource management involves various activities, such as- planning, organizing,
directing, controlling, development, maintenance and separation of business activities
through which an organization can accomplish their organizational activities and maximize
their profitability and productivity. Rolls Royce Motor Cars Ltd is a British luxury car
manufacturing company which was established in England in 1998. the parent company of
Rolls Royce is BMW. The products of Rolls Royce are- Phantom, Cullinan, Ghost, Wraith
and Dawn. This report will discuss various concepts and approaches of human resource
management in relation to car manufacturing company. In first section, the company will
outline the contribution of HRM and its effects on changing nature of business. The report
will define strengths and weakness of HRM which can be helpful in creating sustainable
performance. In next section, the report will discuss HRM practices in relation to recruitment
and retention and its importance to labour market. In third section, the report will outline
external and internal factors which affects HRM decision making and how such factors can
support organizational development. In last section, HRM practices will be determined
through which improvements can be made.
8.0 A comparison of the different HRM areas and their
contribution to organisational performance
Human resource management is the key practice which is followed by an organization
through which they can generate higher revenues and maximize business profitability
(Bamber, Bartram and Stanton, 2017). There are various key areas of human resource
management which an be helpful in creating sustainable performance are discussed below:
Recruitment and staffing Employee benefits and
compensation
Employee training and
development
Hiring right candidate for the Employee benefits and Employee training and

organization is the practice
and responsibility of human
resource management
through which an
organization can maximize its
profitability and support
business in creating
sustainable performance. In
case of Rolls Royce, the car
manufacturing company
focuses on following strategic
recruitment and selection
techniques which will help
the brand in on-boarding
competent candidates in the
organisation who can support
in enhancing sustainable
performance of business.
compensation are the drivers
which are offered by business
to motivate their employees
and which can ensure
employee job satisfaction
(Functional area of human
resource, 2021). In case of
Rolls Royce, the company
offers various benefits and
compensation to their
employees, such as- health
benefits and other benefits
through which they can
contribute in motivating
employees. By keeping
employees motivated, this
will help car manufacturing
company to enhance and
meet sustainable
organizational performance.
development is the business
practice which is focused by
human resource management
through which they can
enhance employee
performance and improve
their skills. In case of Rolls
Royce, the car manufacturing
company offers effective
training and development
opportunities which will
helps their human capital to
perform the assigned task and
duties effectively and ensure
all objectives are met within
the selected time period
through which organizational
efficiency can be enhanced.
Human resource management is the practice which encompasses various functional
areas which are helpful for an organization to perform effectively and such functional areas
ensure effective transformation through which business can successfully develop their
competence and productivity within an industry (Bondarouk and Brewster, 2016). The
various functional areas, such as- staffing, recruitment, selection, compensation and benefits,
training and development are some of the key areas of business which supports them in
creating sustainable performance. In case of Rolls Royce, the comparison of functional areas
is depicted below:
RECRUITMENT AND
SELECTION
TRAINING AND
DEVELOPMENT
Recruitment and selections is the key
practice followed by car manufacturing
Training and development is the key
function area of business which

company which helps them in getting
talented personnels onboard through
which they can collectively perform to
achieve organizational objectives. In
case of Rolls Royce, the company
follows various techniques of
recruitment and selection through
which they can selected most desirable
candidate fro larger talent pool.
focuses on offering required training
and development to employees. In
case of Rolls Royce, the company
offers training opportunities to their
employees which will support them
in effective development of skills and
competencies through which
organizational sustainability and
performance can be enhanced.
9.0 An examination of strategic HRM in relation to the
changing effects on organisations and its business
environment
Changing nature in business is essential as this can be helpful in developing the business
through which an organization can maintain their competitive position within the industry and make
use of effective resources through which business proficiency can be enhanced. Organizational
change is the term which is used to define the current change and alternation in change which occurs
in work environment of business (Erasmus, Grobler and Van Niekerk, 2015). The change in
nature of business can create an impact on human resource skills and knowledge, such influence of
change is further discussed. Organisational change is responsible to create positive as well as negative
impact on business and on employees. The impact on change in context of Rolls Royce is addressed
below:
 Creativity and innovation- Change is the driver which can encourage creativity and
innovation in business through which an organization can generate higher revenues and
maintain their competitive position within the industry. Such organizational change in
business environment of Rolls Royce will help the car manufacturing company to create a
positive impact on the performance standard and efficiency of employees trough which all
employees can effectively work towards the accomplishment of organizational objectives.
 Change related stress- Change is the factor which affects the attitude and
performance of employees which creates a negative impact on their mental health and
leads to stress where employees are not able to cope up with change in the company
(Impact of organizational change on employees, 2017). Due to lack of change and

training in employee, this can create negative impact on the employees and their
performance. In case of Rolls Royce, organizational change can create negative
impact on employees where change can make them more frustrated which will
negatively influence their performance and organizational productivity.
Organizational change is the key factor for driving creativity in business through
which an organization can maintain their competitive position within the industry. In order to
maintain the balance between organizational change and business environment, human
resource management focuses on workforce diversity, technological and economic changes,
globalization, organizational restructuring and bring balance between the changing nature of
jobs (Heffernan and et.al, 2016). In case of Rolls Royce, human resource management
focuses on the changing nature of modern business where the company focuses on bringing
diversity to the workplace and through which they can create positive impact on employees
and offers a positive organizational culture through which they can effectively contribute in
meeting corporate goals and this will also help in increasing employee engagement within
the organisation.
10.0 A critical evaluation of the role of recruiting and
retaining appropriate employees from the available
labour markets
Human resource practice is the approach followed by an organization through which
an organization can offer security to employees and make information more accessible. The
HRM practices followed by an organization focuses on selective hiring, effective teams, fair
performance based compensation and many others practices. The human resource
management in relation to recruitment and retention of employees to meet business objectives
is discussed below:
RECRUITMENT PRACTICES RETENTION PRACTICES
 Employee referrals- It is internal
recruitment practice where new
employees are recruited by employee
referrals or existing employees are
offered the opportunity to apply for
 Investing in employee learning and
development- In order to retain
employees within the organization,
the company can give clear line of
sight to mobility within the company

vacant position in the organization. In
case of Rolls Royce, the company
also recruits employees from within
the organization by promoting their
desirable candidates through which
they can effectively performed the
assigned task duties. Whereas the
recruitment process of car
manufacturing company also focuses
on valuing employee referrals where
they can give more chance to
candidates who are offered by the
existing employees.
 Job positing- It is the practice of
external recruitment process where an
organization attract candidates from
open market through which business
can recruit the most competent
candidate who can meet the job
description and fulfil all roles and
responsibilities (Jamali, El Dirani and
Harwood, 2015). In case of Rolls
Royce, the car manufacturing
company can make use of job posting
recruitment practice which will help
the brand in attracting fresh talents
from wider talent pool which can
bring their innovative ideas for
completing assigned task and such
initiatives will be helpful in
accomplishing organizational
objectives.
will be helpful in retaining greater
number of employees (Practices for
employee retention 2021). In case of
Rolls Royce, the car manufacturing
company retains their employees
through making investment in
continuous learning and development
which helps the brand in enhancing
employee skills and competencies
through which employees can
perform the assigned duties and such
practice will be helpful in boosting
employee morale. Such practices will
support the organization in
accomplishing organisational
objectives within the desired time
frame.

Labour market is the place where workers and employees interact with each other.
The supply and demand of labour in the market can be influenced by the change in
bargaining power. The use of HRM practices in relation to recruitment and selection in
relation to importance of labour market can be reflected through productivity of employees
which can be influenced by laws and regulations. The practices of human resource
management focuses on improving productivity, growth, offer higher wages and supports in
higher job creation to the employees.
In case of Rolls Royce, the HRM practice of recruitment and retention of employees
of the car manufacturing company focuses on internal and external recruitment approaches
which helps an organization in getting talented personnels on board through which they can
bring change to the employment rate within the industry and offer higher employment
opportunity through which economic employment rate can be increased (Johnson and
Szamosi, 2018). Such practices followed by the organization will be helpful in enhancing the
living standards of personnels through which market conditions can be enhanced. The
retention practices followed by Rolls Royce can be helpful in encouraging their employees,
boosting their morale and improving their performance standards which helps in retaining
them for longer time period through which organization and labour market can gain
competitive advantage.
11.0 An analysis of the strengths and weaknesses of HRM
in terms of its contribution to business success
Human resource management is the approach which deals with the personnel who
work within an organization. This practice plays a crucial role in which focuses on enhancing
the skills and competencies of employees through which they can collectively work towards
the achievement of organizational objectives. The strengths and weakness of human resource
management in relation to the success of Rolls Royce is discussed below:
Strengths
 Human resource planning- Human resource planning is the practice followed by
and organization which helps an organizations in performing all activities in
systematic and strategic order (Kirk, 2016). This practice of human resource
management helps in identifying different job roles and responsibilities and supports
the car manufacturing company in planning strategies through which they can offer

strategic direction to their employees through which organizational objectives can be
accomplished.
 Resolving queries and conflicts- The function of human resource management deals
with queries and conflicts of the organization and it is the responsibility of the
department to resolve such conflicts through which they can bring balance and
maintain organizational working environment. In case of Rolls Royce, human
resource management plays a critical role in business success as this can support the
organization in maintaining a positive working scenario with the help of resolving
queries of their employees. With effective HRM practices, Rolls Royce can maintain
peace and positive organizational culture among employees through which employee
and overall organizational performance can be enhanced.
Weakness
 Lack of information- In case of Rolls Royce, the lack of information can is the
weakness of HRM as this can affects the continuity of their operations (Kultalahti and
Viitala, 2015). The lack of strategies and lack of database management, the company
will not be able to evaluate employee performance and maintain their records, such
weakness is responsible to create a negative impact on the profitability of business.
 Expensive approach- The practices of HRM involves huge cost which can create an
impact on the profitability of an organization. In case of Rolls Royce, the systems and
process of HRM requires costly approaches and setup as in order to offer training and
development to employees, the company must have a proper setup in order to ensure
effective development of skills and competencies.
12.0 An investigation into the internal and external factors
that influence HRM decisions in the workplace
INTERNAL FACTORS EXTERNAL FACTORS
The internal and external factors are responsible
to influence the strategy and decision making of
an organization. As there are variety of internal
and external factors which exists within the
environment through which decision making of
human resource management can be influenced.
External factors are those factors which exits
outside the business environment which can
influence the business environment (Malik,
Pereira and Tarba, 2019). Some of the factors
of external business environment which affects
the decision making of an organization are listed

In case of Rolls Royce, the internal and external
factors which influence decision making are
addressed below:
underneath:
 Corporate objectives- The corporate
objectives of an organization can be
create an impact on the HRM practices of
business which can also create an impact
on the decision making of business
(Podgorodnichenko, Edgar and
McAndrew, 2020). The change in
decision making of Rolls Royce due to
corporate objective will lead to change in
planning strategies which can lead to
forming effective strategies through
which organizational development can be
enhanced.
 Corporate strategies- The corporate
strategies, such as- marketing strategies,
finance and other strategies of business
can create an impact on decision making
of business which will further lead to
change in strategies which will help Rolls
Royce in accomplishing organizational
objectives and enhancing their
competitiveness within the industry.
 Technological factors- The
technological factors and change in such
external factors can create an impact on
the decision making activities of an
organization where the company needs to
bring change to the factors which are
employees within the organization.
 Social factors- The socio-cultural
factors are responsible to drive
change in decision making if an
organization where the brand needs to
form decisions in accordance to the
cultural values and beliefs (Shipton
and et.al, 2017). This can lead to
more socially aware and responsible
organization through which a
business can enhance their
organizational efficiency and ensure
organizational development.
13.0 Discussion and evaluation of these factors and how
they support organisational development
The key internal and external factors which can influence decision making of business and
how such factors support in organizational development is explained below:
INTERNAL FACTORS EXTERNAL FACTORS

 Corporate objectives- The Corporate or
business objectives are responsible to
create an impact on decision making
practices of business. As the decisions
are formed in the basis of objectives and
targets of the company, this can support
Rolls Royce in forming strategic
decisions which can be helpful in
meeting the desired objectives within
desired time period (Stahl and et.al,
2020). For example, the objective of
company can be cost minimization which
can give the outcome for redundancies,
delayering or other restructuring.
 Technological factors- The
advancements on technology can bring
change in the communicating with
employee and customers. In case of Rolls
Royce, the technological change in the
company can affect the decision of
automotive company where they needs to
make use of new technology which can
be implemented through decision making
and this it will encourage the brand in
development and growth. For example,
the rapid growth of social networking
will lead to change in the approaches
followed by business to communicate
with employees and customers.
8.0 Conclusions
After detailed study of above report, it can be summarized that human resource
management is the practice which allows organization to engage in activities through which
overall performance and productivity of business can be enhanced. It can be stated that
organizational change is the factor through which an organization undergo and such changes
faced by business are inevitable. The human resource management practices can be affected
due to changing nature of business where such organizational change can create positive as
well as negative impact.
It can be stated that human resource management ensures effective contribution of
employees through which they can collectively work towards the accomplishment of
organizational objectives. There are various internal and external factors which can create an
impact on the decision of business and such changes can also support in development of
business. The practices of human resource management helps an organization in enhancing
their performance and developing sustainable performance. Such practice followed by the
organization also helps them in accomplishing their objectives within preferred time frame.

References
Books and journals
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Bamber, G. J., Bartram, T. and Stanton, P., 2017. HRM and workplace innovations:
formulating research questions. Personnel Review.
Bondarouk, T. and Brewster, C., 2016. Conceptualising the future of HRM and technology
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2671.
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development: Contextual ambidexterity in a US MNC’s subsidiary in India. The
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