Unit 3 HRM for Sustainable Organisation: HRM Practices & Development

This report examines the role of Human Resource Management (HRM) in creating sustainable organizational performance, focusing on Marks & Spencer as a case study. It defines HRM and sustainable performance, outlines the main areas of HRM and their contribution to sustainability, and analyzes the impact of organizational change on human resource skills and knowledge. The report delves into internal and external factors, using PESTLE analysis, to assess their influence on HRM decision-making and organizational development. It evaluates HRM practices in recruitment and retention, considering the labor market and business objectives, and provides a roadmap with milestones for strengthening talent management. Recommendations for future human resource planning are also included, offering a comprehensive overview of HRM's role in achieving sustainable organizational success. Desklib provides access to similar solved assignments and past papers.

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Unit 3 HRM for a
sustainable organisation
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Table of Contents
Introduction...........................................................................................................................................3
Findings
...............................................................................................................................................................3
a. Definitions of HRM and Sustainable performance........................................................................3
b. What are the main areas of HRM and how do they contribute to creating sustainable
performance?...................................................................................................................................3
c. How is change in the organisation impacting human resources skills, knowledge and
sustainability?...................................................................................................................................4
d. How internal factors affect HRM decision making to support organizational development.
..........................................................................................................................................................4
e. How external factors of PESTLE affect HRM decision making to support organisational
development for a sustainable future
..........................................................................................................................................................6
f. Comparison of areas of HRM to create a sustainable organisational performance.
..........................................................................................................................................................7
i. Critical evaluation of HRM practices in recruitment and retention in relation to importance of
the labour market and achieving business objectives and sustainability performance....................8
..........................................................................................................................................................8
J. Evaluate key factors affecting HRM decision making to make valid recommendations
........................................................................................................................................................10
k. How relevant HRM practices affect recruitment and retention to achieve business objectives
with ROADMAP with milestones....................................................................................................11
Recommendations for future human resource planning................................................................13
Conclusion...........................................................................................................................................13
Bibliography.........................................................................................................................................14
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Introduction
Human resource management is defined as an operation in companies which
is designed to maximize the performance of employees in order to meet their
objectives and goals. The report will be based on Marks & Spencer which is a
multinational retailer having their headquarters in UK and specializes in fashion,
home and food products. It will include strengths and weaknesses of HRM and
critical evaluation of the factors that will contribute towards leadership decisions, It
will provide a clear roadmap to success to improve employee engagement and
motivation. The internal HRM practices will be reviewed to focus on the recruitment
and external influences human resource management practices. Solutions for
strengthening the talent management strategy of the organization will also be
provided in the report.
Findings
a. Definitions of HRM and Sustainable performance
Human resource management may be defined as a strategic approach to
efficiently and effectively manage the workforce of an organization to help the
business to gain competitive advantage (Achinas and et.al., 2019). It may benefit the
organization by increasing the skill level of the existing employees and to recruit
highly qualified staff. Sustainable performance refers to the ability of an organization
to meet the expectations and needs of their stakeholders which may be achieved
with the help of effective organization management and staff awareness by applying
appropriate changes.
b. What are the main areas of HRM and how do they contribute to creating
sustainable performance?
Main areas of HRM How they contribute to creating sustainable
performance
Recruitment Candidates with high potential may lead towards the
increase in the productivity of the organization and
enhance the existing performance of the company's
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operations.
Organizational Structure An ideal organizational structure may help the
employees to work without pressure and generate the
maximum output by satisfying the major stakeholders of
the company.
Performance
Management
By managing the performance of the employees Marks
& Spencer may be able to find out the areas that may
need consideration by the management to improve
sustainability of the organization.
Training and
Development
It may help the employees to gain the relevant skills to
perform at their best potential and deliver the desired
performance for the organization.
Employee
Compensation and
benefits
The employees may get motivated with the help of
rewards and perks provided by the company which may
help in increasing their satisfaction levels and improve
sustainable performance of the organization.
c. How is change in the organisation impacting human resources skills, knowledge
and sustainability?
A technological change in the organization may have a positive impact on the
human resource skills as the management may benefit by organizing the workforce
better than it was before by using technological tools (Benzaghta and et.al., 2021).
The knowledge of employees may also enhance by effective changes as they may
be able to learn new skills to improve their productivity. It may help in increasing the
sustainability of the organization by developing the business environment of Marks
and Spencers.
d. How internal factors affect HRM decision making to support organizational
development.
Strengths
Global Expansion:
The organization may have its services
Weaknesses
Cultural Diversity:
The organization may lack diversity in its
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in various countries and is present in
different markets around the world
which may help the organization to
improve its HRM decision making.
Unique Selling Point:
Marks and Spencer is famous for their
wide range of fashion products which
may be a major strength for the
business due to their huge demand
among the youth which may support
organizational development.
Talent Management:
The company may have developed a
perfect system to manage their
employees and generate an effective
outcome which may help to
sustainably grow.
framework which may be a major
weakness for the company and a
negative impact on the HRM decision
making.
Lack of Flexible working:
The organisation may have a rigid
structure in its working hours for the
employees which may sometimes put
pressure and decrease output of the
company affecting its HRM decision
making.
Products or service issues :
The company may be facing issues in
acquiring raw materials due to trade
restricts which may be reason for
decrease in the quality of products.
Opportunities
Expansion into developed
countries:
The organisation may have an
opportunity to explore new markets
and increase its market share
improving the HRM decision of the
organisation .
Focus on work-life balance and
flexibility:
Marks and Spencer may look upon
creating flexibility in the work
environment to improve performance
of employees.
Threats
Competition:
The rivals may be a major threat on the
market share of the business and need to
be considered to increase competitive
advantage.
Well-being of staff:
Staff may get affected by the hectic work
culture which my reduce the productivity
of the organization Which may negatively
impact the HRM decision making of the
organisation.
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e. How external factors of PESTLE affect HRM decision making to support
organisational development for a sustainable future
External Factors How these affect HRM decision making to support
organisational development.
Political Factor– High tax rates may be the major reason for the
reduction in the profitability of the organisation which
may restrict the management to spend money on
human resource management (Coatney and Poliak,
2022). Government intervention may put pressure on
the company to make uncertain changes in the
organizational framework.
Economical Factor– The increase inflation and exchange rates may put
negative impact on the HRM decision making due to
the inability of the organization to maintain its strategy
as the profits may get reduced. This may restrain the
organisation to grow sustainably.
Social Factor– It may have a positive influence over the business by
improving the employee retention and the cultural
influences over the decision making of the organization.
The demographical factors, interests and opinions of
the consumers may help the organization to prepare
effective HRM strategies.
Technological Factor– The advancements in the technological field may help
Marks and Spencer to recruit potential candidates from
remote areas and make use of cloud computing tools in
order to manage their activities and progress to improve
their productivity (Lukoschek and et.al., 2018).
Legal Factor– This may have a negative impact on the business as
the data protection and product safety rules and
regulations may influence the HR decision making of
the organisation. It may force the company to make
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External Factors How these affect HRM decision making to support
organisational development.
changes in its structure which may affect the
sustainability of the organisation.
Environmental Factor– This factor may have a positive impact on the business
as the organization the governments are highly
motivating organizations on adopting eco-friendly
products and services by reducing the pollution and
increase use of electric sources to improve
sustainability of the organization.
f. Comparison of areas of HRM to create a sustainable organisational performance.
Areas of HRM What is the same? What is different?
Recruitment Recruitment and
organizational structure
may have similarities as
both of the areas highly
focus upon selecting and
organizing employees.
The difference between
these two areas may be
that one is related to
selection of the potential
candidates and the other is
related in their
development.
Organizational
Structure
Organizational structure
and performance
management may have a
common thing with is the
aim to increase the
efficiency of employees.
They may have a
difference between them
such as organizational
structure may be related to
development of the
employees and
performance management
may be related to enhance
their sustainability.
Performance
Management
Performance
management and training
may be similar as both
They may be different as
the former may focus on
the overall performance
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focus upon increasing the
efficiency of employees.
and the latter may develop
their skills.
Training and
Development
The training and
compensation may focus
on improving the
performance of
employees.
The former may be related
to improving the skills of
the employees and latter
may be related to providing
them with rewards.
Employee
Compensation and
benefits
Employee compensation
and performance
management may be
similar as focus on
improving their
motivation.
The former may help in
rewarding the employees
and the latter may focus
upon enhancing their
performance.
g. How HRM is changing in the modern business organisation
Human resource management may be responsible for organizing the
recruitment process from beginning to end. It may result in increasing the
effectiveness of the modern business organisation by improving the competence of
the employees by providing them with training and guidance to get an effective
output from the process (Melo and Machado, 2021). It may also help them in gaining
competitive advantage in the market and motivating its employees to work with their
best potential.
h. How external and internal factors affect HRM decision making with examples to
show how they support organisational development
Internal factors such as the level of growth and use of technology in Marks
and Spencer may have a significant impact on the HRM decision making of the
business by generating pressure on the organization top improve these areas in
order to gain competitive advantage (Zahari and Romli, 2019). External factors such
as government regulations and legal frameworks may force the company to adjust its
strategies according to the demands.
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i. Critical evaluation of HRM practices in recruitment and retention in relation to
importance of the labour market and achieving business objectives and
sustainability performance.
Business
objectives
Strengths Weaknesses Evaluation
Recruiting staff
with the right
skills to expand
the
organisation.
It may help in
increasing the
productivity of the
organisation
(Wongchuig-
Correa and et.al.,
2020).
It may be a time
consuming
process.
It may put positive
impact by achieving
the business
objectives but may
also include a lot of
time and money.
Retaining talent
and skills to
achieve profit.
It may improve
sustainability of
the organization by
saving time and
money.
This may restrict
the recruitment of
potential
candidates.
It may put a positive
impact on the
profitability of the
business but may
also result into
exclusion of
important
candidates.
To incorporate
remote working
for virtual
meetings.
It may save
expenses for the
organisation.
It may be
responsible for
loss of quality of
work.
This practice may
have a positive
impact by
increasing flexibility
in the work but may
sometimes hinder
the quality of work
by the staff (Widya
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Yudha, Tjahjono
and Kolios, 2018).
To implement
relevant
legislation
including data
protection.
It may improve the
security of the
important data.
It may apply many
restrictions on the
HRM decision
making.
This practice may
help in securing
important
information of the
organization and
may also increase
regulations on the
sustainability of the
organization.
To achieve
cultural
diversity in
recruitment.
It may help in
having a variety of
options.
It may sometimes
lead to conflict of
interest.
It may be beneficial
in providing
different aspects to
problem but may
require proper
consideration.
To develop
managers to
performance
manage staff
It may enhance
the work quality.
It may require
huge investment.
It may improve the
quality of work of
the employees but
may also require
hug investment.
J. Evaluate key factors affecting HRM decision making to make valid
recommendations
External and
internal factors
Strengths Weaknesses Evaluation
Skills gaps and
labour force
trends
It may benefit the
organisation by
improving HRM
It may reduce the
efficiency of the
workforce.
It may have an
overall positive
effect on the
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decision making. decision making.
Globalisation on
HR policies for
equality,
diversity and
raising cultural
awareness in
the workplace.
It may create
opportunities to
expand their
workforce.
It may require
huge capital
(Pellegrini, Rizzi
and Frey, 2018).
The organization
may benefit by
global expansion
and recruit potential
candidates (O’Brien
and et.al., 2020).
Impact of legal
and regulatory
frameworks
It may improve the
organisational
structure.
It may impose
restrictions.
Legal frameworks
may provide
discipline in the
framework.
Impact of
leadership
styles on
organisational
transformation
It may enhance
the productivity.
This factor may
have rigidity.
It may transform the
organization to
develop better HRM
decision making.
Learning and
development
including digital
learning.
It may develop the
HRM decision
making
(Nandonde, 2019).
It may lead to
unclarity about
topics.
It may enhance the
framework of the
organization.
Organisational
culture and
strategic
planning and
development
This may help in
improving the
diversity in the
organisation.
This may lead
have complexity.
This factor may
help the
organization to
prepare effective
HRM strategies.
Impact of
motivation upon
performance
This factor may
increase the
morale of
employees.
It may sometimes
lead to
overconfidence.
It may improve the
performance of the
employee but also
have some negative
impacts.
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k. How relevant HRM practices affect recruitment and retention to achieve business
objectives with ROADMAP with milestones.
What are the
areas for HRM to
improve?
What activities
will HRM
implement?
What are
milestones?
Timelines –
start and
end date
Stakeholders
– who is
involved?
Providing security
to employees
Updating job
security
policies.
It will help in
retaining the
employees.
8 April 2022-
29 May
2022
Employees,
CEO
Selective hiring Developing an
effective hiring
team (Orji,
2019).
It will help in
improving the
quality of
employees
hired.
3 March
2022- 5 May
2022
Human
Resource,
candidates
Performance
based
compensations
Evaluating the
performance of
employees.
To improve
motivation in
employees.
4 December
2022- 5
February
2023
Management,
employees
Easy access to
information
Providing
required
information.
To reduce the
possibility of
errors.
15 April
2022- 5 July
2022
Resources,
employees
Training Provide
specific
training to the
employees.
To develop a
smart
workforce.
2 December
2022- 5
January
2023
Professionals,
employees
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