HRM Report: Analyzing Tata Group's Environment, HRM, and Strategies

This report provides a comprehensive analysis of the Tata Group's human resource management (HRM) practices, focusing on its internal and external environments. It begins with an introduction to HRM, defining its functions and relevance within an organization, specifically highlighting the context of the Tata Group, a multinational conglomerate. The report then delves into the analysis of the current business environment, categorizing factors as internal (plans & policies, brand equity, organizational structure, human resources) and external (customers, suppliers, political factors, competitors). The report then examines the purpose and functions of HRM, linking them to workforce planning and resourcing, including staffing needs, compensation, and benefits. It explores the effectiveness of different HRM practices, such as recruitment and selection, maintaining good working conditions, and training and development, while also differentiating between hard and soft HRM models and their application within the Tata Group. A PESTLE analysis is also included to assess the political, economic, social, technological, legal, and environmental factors influencing the company's HR functions. Finally, the report concludes with recommendations for improving HR functions and overall working conditions within the Tata Group.

External and internal
environment of any
organsiation

Table of Contents
INTRODUCTION ..........................................................................................................................1
1. Analyse the current environment of the organisation ........................................................1
2. Purpose and function of HRM linked to workforce planning and resourcing ..................3
Functions of HRM ..........................................................................................................................3
3. Analyse the effectiveness of different HRM practices currently in use to the organisation ..8
4. Recommendations ...........................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Human resource is defined as the function which is dealing with people and issues
associated with employees like compensation, recruitment and hiring and benefits. The staff of
HR department is responsible for providing advise to senior staff about impact on employees of
the planning, financial and performance decisions. The human 5resource includes developing
and administering programs designed for increasing effectiveness of business. This consists of
managing, creating and monitoring employee- employer relationship. There are various functions
of HRM in an organisation. The company on which this report is done is TATA group. This
company is a multinational conglomerate holding company of India. The headquarters of this
company are located in Mumbai, Maharashtra, India. This was founded by Mr. Jamshedji Tata in
the year 1868. This company has purchased various global companies and one of the largest
conglomerates of India is owned by Tata sons. This report consists of external and internal
environment of business, purpose and function of HRM and advantages and disadvantages of
types of recruitment. This report discusses about effectiveness of various HRM practices used in
TATA. At last, recommendations are made for this company to improve it's HR functions and
working.
1. Analyse the current environment of the organisation
Business environment is categorised into two categories viz. Internal and external. An
analysis for the same has been conducted below:
Internal factors: These are the elements which are present within and can be controlled by the
company. These are as follows:
Plans & policies: These are the documents that provide directions and guidelines for
achieving goals and objectives (Bratton, and Gold, 2017). HR department of TATA Group
should evaluate its current policies and formulate new ones which can fulfil expectations of
employees.
Brand equity: It is the commercial value of the organization held by the customers about
the brand. TATA Group has huge recognition throughout the world and it make strategies which
can help it retain the position. It is important to have higher growth of the business.
Organizational structure: The organizational structure refers to hierarchy of the entity. It
has major impact on working of the company. TATA is currently following centralised
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organizational structure which restricts the participation of employees. Hence, change in this can
encourage employees to share their ideas, views and opinions which can be included in making
decisions.
Human resource: This factor is about the people working in the corporation on its
instructions for achieving organizational goals and objectives. Employees can influence the
decisions, plans and policies to a substantial level. TATA Group should recruit potential
candidates having skills, talent and innovation.
External factors: These factors are outside the business on which entity has no control. It
requires major adjustments in business plans so as to make suitable for the organization. These
have been explained below:
Customers: Company makes products or services in order to sell them to number of
potential individuals who are willing to buy them, they are known as customers. TATA Group
should identify their needs, expectations and demands for incorporating them in goods. It is
important for providing higher satisfaction to them resulting higher profit and sales.
Suppliers: This factor is related with supplying raw material to the company for
converting them into final goods. There are number of suppliers present in UK market who
provide input to TATA Group for producing its products. Suppliers influence the final price to a
great extent by charging increased amount for the raw material hence, TAT Group should have
healthy relationship with them.
Political factors: Every country has political issues which affect the business
substantially. In this, government intervene in the matters of organizations for which it has to
make modifications in policies. Hence, TATA Group should analyse the political situation of the
country which can affect the employment of its employees. This can assist it to have stability
within the company.
Competitors:Every industry has competition which is considered healthy for carrying
business fairly (Chelladurai, and Kerwin, 2018). TATA Group has number of rivals such as
Reliance, Maruti and many more. It should analyse strategies and tactics used by these rival
companies for using them into their own management. This can help it attract huge number of
customers. Also, these should be analysed on a timely basis for making changes accordingly.
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2. Purpose and function of HRM linked to workforce planning and resourcing
Human resource department effectively engage in the function of dealing with individual needs
and issues that are mainly related with recruiting, compensation, performance management, on-
boarding employees, hiring, training and more. Thus, it becomes essential for TATA Group HR
to effectively abide all the legal laws and legislations and further ensure that it is complying
within organisation structure as to effectively increase efficiency of functioning of organisation:
Staffing needs and demands:
HR of TATA Group hold numerous set of responsibilities such as recruit employees,
offer training and more. In addition with this, they also have responsibility to hire skilled and
efficient employees as per according to organisation needs and demands. In context with TATA
Group HR, they effectively ensure that each and every department are filled with talented
candidate. This will lead towards increase work efficiency and productivity of organisation that
further lead company towards gaining high end growth.
Compensation:
In order to gain loyalty from employees it is important for an organisation to offer them
compensation and rewards. TATA Group HR effectively operate their role which is related to
effectively decide pay structure and compensation percentage as to fulfil needs and demands of
workforce in best effective manner. They evaluate this by analysing current prevailing trends of
compensation within marketplace as to retain their employees for long term while ensuring long
term loyalty. This will effectively lead towards increase efficiency of end output in best effective
manner.
Benefits:
In order to increase loyalty of employees against company it is essential for an
organisation to offer attractive set of benefits to their employees (DeCenzo, Robbins, and
Verhulst, 2016). Within TATA Group, HR take use of retentions as well as recruitment tool as to
effectively develop and administer workforce. In addition with this, HR also ensure that health
insurance, dental insurance, retirement plans are prevailing within work structure as to satisfy
non-monetary needs of employees.
Functions of HRM
There are numerous set of functions that are required to be perform by HR department as
to effectively improve employees performance at highest level. In addition with this, human
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resource department with TATA Group effectively engage in the functions related to directing
them towards effective accomplishment of goals and objectives.
Recruitment and selection
Process of recruitment is relating to selection, screen and qualify candidates as per
according to the needs and requirement of company. HR of TATA Group effectively perform
their functions relating to attracting qualified candidates and further encourage them as to
increase workforce efficiency of organisation. HR of company operate their functions with
appropriate annual budget as to effectively accomplish long term goals of organisation. Thus,
with the help of this HR of company ensure that there is adequate supply of talented workforce
with organisational structure.
Maintaining good working conditions
It is the duty of HR managers to maintain a good and effective working condition at
workplace. The main duty of HR managers of TATA Group is to motivate employees. They take
care of financial and non financial benefits of employee. Employee welfare is promoted at
workplace to increase the level of job satisfaction. In addition with this, HR manager of company
regularly engage in the function of solving issues and other work related problems of their
workforce as to reduce the level of conflict. With the help of this they effectively ensure that
there is good working conditions prevailing in organisational structure that will further lead
towards increase in overall productivity of both organisation and employees.
Training and Development
In order to increase knowledge and skills of employees in best effective manner and
increase their work efficiency it is the basic responsibility of organisation to offer adequate
training and development courses to employees. HR of TATA Group effectively ensure that
employees get well effective training and development courses as to perform work in more
effective manner.
Hard and soft HRM models
The human resource management is defined as managing workforce of organisation. This
department is responsible for selecting, training, rewarding and assessing employees. There are
basically two types of HR management, the first is Hard HR management and another is soft HR
management. The hard HR management treats workers as resource of business (Jabbour, and de
Sousa Jabbour, 2016). These have strong connection between corporate business planning. The
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hard HRM emphasizes on identifying the workforce demands and needs of company. In context
of TATA group, it is analysed that hard HRM deals with recruiting, hiring and firing employees.
The main feature of hard HRM includes short term changes in number of employees like
redundancy and recruitment. Here is little empowerment of delegation in this type of HRM. On
the other hand, when TATA managers adopt soft HRM, employees are treated as the most
important resource of the organisation. While applying soft HRM, needs of employees are
examined and organisational plans are made accordingly. The main focus of soft HRM is to
concentrate on demands of workers. The main strategy behind soft HRM has long term goals for
workforce planning. There is a strong and regular two way communication among employer and
employee. In context of TATA, HR managers encourages and empowers employees for seeking
delegation and take responsibilities. TATA is using democratic leadership style and thus soft
HRM is best suited for this company.
PESTLE
Tata is one of the biggest company of India. There are many employees working here and
it is very important for HR department to focus on it's practices. PESTLE analysis will help the
HR managers of TATA to know where they have to work for improving performance of
employees. PESTLE analysis is a framework which will help TATA for analysing macro-
environmental factors. The various kind of factors are political, environmental, economical,
social, legal and technological considered for functioning of HR functions.
Political factors: These includes factors associated with political stability of government.
Other factors are foreign trade policy, tax policy, export import policies, etc. The HR
department of TATA is focusing on following all the rules and regulations given by government
of country. The company is working hard to achieve standards given by government (John, and
Taylor, 2016). The main focus is on providing health and safety to employees.
Economical factors: The economic factors which affects functions of an organisation are
economic growth, interest rate, exchange rate, inflation etc. They influence HR department of
TATA as all new practices and functions of HR department are introduced only when economic
conditions are feasible. Employment of TATA decreases rate of unemployment in India. Also,
TATA group should make policies that are favourable and can help it retaining workforce for a
longer time.
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Social factors: These includes values, beliefs, perceptions and thinking of individuals.
The functions of HR department are influenced by various social factors. The social factors
include population growth, age distribution, career attitude, etc. The HRM department of TATA
have to focus on bring diverse workforce within the company. This helps in bringing new and
young talents by hiring new employees.
Technological factors: These factors are those which changes according to time. As
technology is upgrading at a faster rate, it is important for HR department to hire people using
latest techniques and tools. TATA can hire through job portals, social media, digital
advertisements, etc. Also, TATA is investing in research and development for introducing new
technology in the company. This requires more number of employees which are hired by TATA.
New workforce is given training and development for working effectively using new techniques
and processes.
Environmental factors: These factors emphasise on reducing level of pollution in the
atmosphere so that people can survive easily (Kianto, Sáenz, and Aramburu, 2017). These
include pollution targets, carrying business ethically and so on. HRM department of TATA
should implemented policies and code of ethics in making all the working people to act ethically.
Also, the employees should be motivated to be environment friendly.
Legal factors: The factors which are related with legal system prevailing in a country are
covered in this. Every organsiation should abide laws and should not breach them leading to
enhanced financial burden. In the context of TATA, the HRM should be aware about laws that
are applicable to employees such as Employment Rights Act, Equality Act, etc. Also, the
amendments should be known in order to follow them. It is helpful in attracting new candidates
as they look for companies which are safe and secure to work.
Approaches of recruitment
Recruitment process is defined as the way of hiring and selecting employees for working
in the company. Each and every entity has different ways of recruiting employees. There are two
ways by which TATA recruits it's employees including external and internal. The two type of
recruitment approaches used in organisations are given below -
Internal recruitment approach – This is defined as the way of recruiting individuals
form within the organisation. In this type of recruitment process, employees who are already
working in the company are considered. Employees who work extraordinary are promoted to
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higher positions. The various types of internal recruitment types in an organisation are listed
below -
Promotions – This involves promoting an employee to higher position. The employees
who are capable to work effectively are given promotions or they get high raise in their salary.
This helps in increasing their motivation level.
Transfers – This is done by organisations through interchanging job positions of
individuals. This involves shifting of employees from one unit to another.
Internal advertisements – This consists of advertising and posting of jobs within the
organisation. This is an easy process and it minimises cost to the company.
Pros and cons of internal recruitment in TATA
Pros Cons
 This is an easy, simple, cost effective
and quick way of recruiting employees.
 There is no requirement of training,
induction and orientation of these
employees as he is already working in
the company.
 The HR managers motivates employees
for working hard and increase work
relationship.
 This is helpful in development of
loyalty of employee towards
organisation.
 This limits hiring of new talented
employees.
 There is limited scope of this
recruitment way as all vacant positions
are not filled.
 This recruitment way creates issues
between employees who are promoted
and those who are not promoted.
External recruitment approach
In this type of recruitment process, employees are hired from outside the organisation.
This type of approach helps those individuals who are seeking jobs (Mondy, and Martocchio,
2016). Workers and employees hired from outside the organisation are more talented. The
various types of external recruitment ways are listed below -
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Direct Recruitment – In this recruitment style, employees are hired by putting up a
notice. This notice is pit in factory gates. The TATA group hires technical workers and blue
collar workers through this way.
Employment Exchanges - This is a government entity which is used by TATA when
hiring employees from outside. This government entity includes candidate's database. The names
of these candidates are taken by HR department of TATA for fulfilling their job positions.
Advertisements - These are the most essential source by which employees are hired by
TATA group. In this type of recruitment, candidates are given information about job description
and specification by announcement in electronic media or prints.
Pros and cons of External source of recruitment
Pros Cons
 This helps in encouraging new
opportunities for individuals seeking
for job.
 Organisation is able to increase it's
branding by using external sources of
recruitment.
 There is no partiality among
employees.
 In this way, selection of right
candidates is more.
 This is a time consuming process and it
is a lengthy process.
 The cost included in this recruitment
process is high.
 The candidate needs more benefits and
remuneration.
3. Analyse the effectiveness of different HRM practices currently in use to the organisation
It has been identified that with the help of effective HRM practices company will
be able to perform their functions in such a manner that it will produce positive outcome. In the
reference of TATA group, there are various HRM practices which are followed by the
management team of the company which as a result enhance the satisfaction level along with
efficiency of employees. Some of the practices are as follows:
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Performance and reward system – In the context of TATA group, appraisal of
employees are done on yearly basis. It has been identified that in order to appraise employees ,
there must be performance analysis of each and every staff members. There must be an effective
discussion on the performance of employees on a regular basis before providing them reward and
appraisal. In the context of TATA group, managers of the company implement performance and
reward system within their organisation in order to enhance the efficiency of employees. HR
manager of the company review and measure the performance of each and every employee's
efficiency in order to provide them rewards. With the help of this, company will be able to attain
their goals and objectives within given time frame.
Rewards and benefits – It has been said that there are two types of rewards which is
provided to the staff members which includes intrinsic and extrinsic rewards. In the context of
intrinsic reward, individual is self motivated where they do not need any kind of external
motivation in order to perform their task (Sparrow, Brewster, and Chung, 2016). In case of
external rewards, employees need various benefits which is related with money and other
financial benefits. In the context of TATA group, management team of the company provide
various benefits which includes bonuses, incentives, promotions, holiday packages and many
more.
Training and development program – Along with all these practices, one of the most
effective method which is adopted by management team of TATA group is training and
development sessions. With the help of this, company will be able to develop and enhance the
efficiency of employees in an effective manner and grab various future opportunities.
Manpower planning- It is one of the most effective and important function of Human
Resource Management. With the help of this, company will be able to appoint capable and
highly killed employees according to the situation. It is the method which is commonly used to
reduce the gap between required and available employees. This as a result, assist them to attain
the goals and objectives in an effective manner.
Performance management system - It refers to a systematic approach used by companies
in order to examine and measure the performance of staff members. It is done for reducing the
gap between actual performance and standard performance. In the context of TATA group,
management team of the company provide training and development sessions to their employees
so that there performance will be enhanced.
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4. Recommendations
As per the above mentioned report, it has been recommended to the management team of
TATA group that managers need to provide training sessions to their employees on a regular
basis so that they can enhance their performance in an effective manner and produce positive
outcome. Along with this, managers need to provide benefits and incentives to their employees
according to the performance of staff members (Wilton, 2016). This as a result increase
employee engagement in an effective manner and retain their potential staff members for long
period of time.
In addition to the above mentioned recommendations it has also been recommended to
the top management team of the company that they must adopt effective HRM practices within
their company so that they can increase the brand image of the company as well as efficiency of
staff members in an effective manner.
CONCLUSION
The HR department plays an important role in smooth functioning of any organisation.
As this department takes care of employee benefits. Compensation and other facilities, this helps
in motivating employees. This directly impact performance of employees. A more satisfied
employee has good performance than others. There are two types of HRM in the company i.e.
hard and soft. It depends upon situation of the company as which HRM strategy has to be
adopted. Also there are various functions and purpose of HR that helps in increasing
performance of employees. Motivated workers will work more effectively and attain goals and
objectives of the company in less time. Different HRM practices are applied within the
organisation for increasing efficiency and performance of employees.
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REFERENCES
Books and Journals
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., 2017. Policy and practice in european human resource management: The Price
Waterhouse Cranfield survey. Taylor & Francis.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production, 112, pp.1824-1833.
John, R. and Taylor, B., 2016. Human resource management.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
practices, intellectual capital and innovation. Journal of Business Research, 81, pp.11-
20.
Mondy, R. and Martocchio, J.J., 2016. Human resource management. Pearson.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Wilton, N., 2016. An introduction to human resource management. Sage.
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