Human Resource Management Report: HRM in Zara and Employment Law

This report provides a comprehensive analysis of human resource management (HRM) practices, specifically focusing on the multinational company Zara. The report begins by outlining the purpose and functions of HRM, emphasizing its critical role in organizational success. It then delves into the strengths and weaknesses of various recruitment and selection approaches, including internal and external recruitment methods and different selection tests. The report further explores the benefits of specific HRM practices implemented by Zara, such as employee security, recruitment and selection strategies, and training and development programs. The effectiveness of these practices in enhancing profit and productivity is also discussed. Furthermore, the importance of employee relations in HRM decision-making is highlighted, along with an examination of how employment legislation impacts these decisions. The report concludes by summarizing key findings and insights into Zara's HRM strategies and their implications.

Human resource management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 purpose and functions of HRM...............................................................................................3
P2 strengths and weakness of approaches to recruitment and selection......................................4
P3 Benefits of different HRM practises in Zara .........................................................................6
4. Effectiveness of different HRM practise.................................................................................6
P5 importance of employee relations in respect of HRM decision making................................7
6.Employment legislation and its impact on HRM decision-making..........................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Human resource is an important resource for every organisation; without human resource,
the company cannot survive. Human resource has many responsibilities like hiring, workforce
planning, payroll etc. Zara is a multinational company that deals in footwear, clothing,
accessories etc. this study will discuss the purpose and functions of HRM, including merits and
demerits of recruitment and selection (Borozan, 2020). mission of company is customer
satisfaction by delivering best quality goods to them. Objective of business is to achieve
competitive advantages. Further, it will describe HRM practices for employer and employee and
how they will help in raising profit and productivity. The study will also describe employment
legislation and its impact on decision-making.
MAIN BODY
Purpose and functions of HRM
Human resource management:
HRM is the practice through which people are managed so that organisation can achieve
success. Human resource is the blood for the organisation, so if managed effectively, then
facilitate the growth of the company (Stankevičiūtė and Savanevičienė, 2018).
The function of HRM are:
Human Resource Planning:
It is the most important function of human resource; HR planning is essential to meet the future
requirements of the company related to the workforce. HR of Zara ensure that they plan for the
human resource of every department (Ringle and et.al., 2020). So that they can come to know
how many employees and what type of employees are needed to achieve the organisational
objectives. While planning, HR do research on the basis of research only planning is made.
Through research, HR will know that is there any need for extra human resource in the future.
Recruitment and selection:
Recruitment and selection is the major work of human resource. Managers of Zara give equal
employment opportunities and do not discriminate on the basis of caste, colour, gender etc.
company should give an attractive advertisement regarding vacancy so that more and more
candidate will apply. After receiving all the applications, HR selects some applicants who can
take further rounds (Aust, Matthews and Muller-Camen, 2020). Rounds include computer test,
written test, face to face interview etc. after evaluating the candidate HR select candidate, which

is best for the vacant position. This is to be performed carefully because if done wrong, they will
incur a huge loss.
Training and development:
It is the vital function carried but HR. providing training to the new employees. So that they can
know their job role and also build skills which will help them in doing the job. Training also
helps in getting advanced knowledge (Budhwar and et.al., 2019). It increases motivation among
employees, which will help in increasing productivity. So HR organises training programmes for
the employees.
Strengths and weakness of approaches to recruitment and selection.
Recruitment:
Recruitment is the process that involves identifying, shortlisting and interviewing the candidates
for the job in the organisation (Stahl and et.al., 2020).
Approaches to recruitment:
Internal recruitment:
To fill the vacant position, employees are appointed within the organisation only. Zara does
internal recruitment as it is cost-effective and save time and efforts (Stahl and et.al., 2020).
Existing employees already know about the organisation and its policies.
It can be done through the following ways:
Present employees:
The company promote existing employees instead of recruiting employees from outside or give
transfer to them.
Employee referrals:
The organisation hires employees who are referred by the existing workforce. This will help the
company in getting trustworthy employees.
Former employees:
It means when the company give the option to their ex-employees of rejoining. Sometimes when
the company require a candidate on an urgent basis, then they even contract retired employees.
Strengths of Internal recruitment:
It motivates the workforce to work better so that they can get a promotion. It helps in boosting
employee morale. It is less costly as it does not require cost for advertisement. It will also help

the company in getting those workers who already have an idea about how the company work
(Stankevičiūtė and Savanevičienė, 2018).
Weaknesses of Internal recruitment:
Internal recruitment will put a hurdle in getting employees who are young and have innovative
ideas. When employees are promoted through partiality, then they will demotivate other
employees who are not promoted.
External recruitment:
When an organisation recruit employees from outside of the organisation. Company adopt this
approach when wanting fresh and young talent (Lopez-Cabrales and Valle-Cabrera, 2020).
Ways to do external recruitment are:
advertisements:
When the company give an advertisement in the newspaper or use social media for advertising
the vacancy.
Campus recruitment:
When a company hire from educational institutions.
Strengths of External recruitment:
It gives an equal chance to every candidate. It helps the company in getting employees who have
innovative ideas.
Weaknesses of External recruitment:
This recruitment process is a lengthy and costly process.
Selection:
Selection means when the right candidate is selected for the right position.
Approaches to selection:
preliminary interviews:
It means screening of the candidates, and in this, those candidates are eliminated to found misfit
for the company.
Strengths:
It helps in removing unqualified applicants. It establishes good public relations.
Weaknesses:
The candidate is judged Nolton on the basis of one interview (Bos-Nehles and Meijerink, 2018).
Selection test:

Here HR conduct tests on the basis of the nature of the job. It can be a personality test, aptitude
test etc.
Strengths:
Through the test, the company can identify what knowledge and skills the candidate is having.
Weaknesses:
If the interview failed in any test, then it's not promoted for further rounds.
Benefits of different HRM practises in Zara.
HRM practises are known to be the policies and practises, which is being required to
perform the day to day activity in the organisation (Zaraket and et.al, 2017). The policies are
made for employee staffing, employee development, performance management, compensation
management etc.
Security to employees
The first and foremost human resource practises the security and protection of their
employees, as Zara is one of the leading brands, and this HRM practises not only provide benefit
to the employees but to the company as well. The concepts of health and security are essential
for employees as they feel safe and protect at the workplace, and this will attract new employees
as well because due to health and security policy, Zara will get name and fame in the market.
Recruitment and selection
This is the another important practise of HRM which provide benefit to employees of
Zara and also to the company, as being one of the name and fame company they need skilled and
talented people who can help the company to attain its goal apart from this it is beneficial for the
employees because Zara is known to offer best salary package top its employees apart from this,
they provide various growth opportunities so that employees can stay for long in the company
(Al and et.al, 2020).
Training and development
HR of Zara believes in providing proper training and education to the employees so that
they can utilise their skills effectively. As the market trend keeps changing, along with this
technology is also getting changes every day so it is essential to provide appropriate training to
the employees so that the chances of errors will decrease and they will know how to use new
techniques, on the one hand, it will be beneficial for the company, that Zara will walk with the
market trend.

Effectiveness of different HRM practice
These HRM practises are very much effective to raise the profit and productivity of Zara.
Security of employees plays a very important role for the company because when the employees
feel protected, they will do mouth publicity of mouth publicity about the company and its work
culture thus at the end the name, fame and reputation of the company will get increased. Apart
from this, recruitment and selection also play a vital role in the profitability of the company.
When the company get top talent in their organisation, their profitability will also get enhanced.
Training and development also have effectiveness, as the company focuses on providing training
to the employees so that they can finish their work in less time and the chances of committing
errors and mistakes also get resolved. Apart from this, there are various effects of different
HRJM practises as Zara believes in providing performance-based appraisal, those employees
who are performing well they get the promotion, bonus and other incentive allowances and this
will be motivation for other employees (Mendy, 2018). Apart from this, the company will get to
know who are the efficient employees and who need more training and development.
Importance of employee relations in respect of HRM decision making.
Employee relations:
Employee relation means the relationship between the employer and employees of the
organisation. Human resource should make sure that working relations should be good. If
employee relations are good, then they will involve in the decision-making process by HR. HR
will get innovative and fresh ideas from the workforce. Good relation will help in retaining the
top performer, and this will help Zara to grow more and more (Liboni and et.al., 2019).
Whenever an organisation opt for change management, then the employee will easily approve it
and did not disagree because they have good employee relations. It also helps in getting a few
conflicts because a healthy employee relationship will do not lead to any conflicts. When
employee relations are better than the workforce gets motivated, which will help in increasing
productivity. If the productivity of the employees gets an increase, then they will work harder,
which will help Zara in getting higher returns. Better employee relations means employer and
employee both will help each other, and no one feels work as a burden. The human resource
makes decisions regarding employer and employees, so healthy relationships will help HR in
providing suggestions that can be added when decisions are taken by them. It reduces employee

turnover because if employees are happy, then why will they leave the organisation. Reduced
turnover means HR will not be required to hire employees more frequently. It enhances
employee morale and loyalty. If the employee is happy, then he will become loyal to the
company.
Employment legislation and its impact on HRM decision-making.
Employment legislation means it is the type of protection act that includes all types of
employment protection measures and grounded towards their primarily in legislation. It also
states the law regulated the relationship between employees and employers (Farndale and et.al.,
2017). It might be governed what employee can be expected from their employees along with
what employers have asked to do, and they also have their rights in work. Here are some key
elements of Zara employment legislation and which help HRM decision-making-
Equal employment opportunities:-
This might also be led to have equal opportunities for all employee who are working at
their place. Zara also tries to make their employee and try to do their seeking jobs, along with
providing them with better job opportunities in their organisation. This might be lead them to
have their impact on HRM decision-making as HR need to make more rules and work with them
for having more equal opportunities. It means that they could also be for having their huge
amount of profits and reputation of their brand name in the market.
Working with time regulation:-
In Zara, as employee work with their time or fixing hour, this might be lead to have their
less use of resources and make their goals to be complete on time. HRM have a positive impact
on their decision-making through which they can effectively make their more jobs providing to
other employees.
Good working conditions for the employee:-
Zara provided their employee with a good working environment and developed a well-
working environment for their employee. They also provide all types of advance technology in
their organisation along with that, they have also made the proper use of technology that has
been launched recently in the market (Liebregts and Stam, 2019). HRM decision-making will not
be more effected in their organisation, and that could also have less employee turnover.

CONCLUSION
Through this report, it can be concluded that human resource is vital for organisation and
recruitment and selection to have many methods through which the company can hire
employees. The report has evaluated HRM practices which will help in raising the company's
profit. Employment legislation elements are also identified.

REFERENCES
Books and journals
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HRM): A Literature Review. International Journal of Management and Human Science
(IJMHS).4(2).pp.44-53.
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.
Borozan, I., 2020. Human resources management function in company Zara SA (Doctoral
dissertation, University of Rijeka. Faculty of Economics and Business).
Bos-Nehles, A.C. and Meijerink, J.G., 2018. HRM implementation by multiple HRM actors: A
social exchange perspective. The International Journal of Human Resource
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Budhwar, P. 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.
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