Human Resource Management Report: HRM Practices and Benefits

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This report delves into the core aspects of Human Resource Management (HRM), focusing on its purpose and functions in workforce planning and resourcing, particularly within the context of House of Frazer. It examines the strengths and weaknesses of various recruitment and selection approaches, offering insights into both internal and external recruitment strategies. The report further explores the benefits of HRM practices for both employers and employees, highlighting how effective HRM contributes to organizational profitability and productivity. Additionally, it addresses the importance of employee relations in influencing HRM decision-making, including the impact of employment legislation. Finally, the report illustrates the application of HRM practices within an organization, providing practical examples. The report emphasizes key HRM functions such as managerial functions like planning, organizing, directing, and controlling, as well as operative functions like employment, development, and compensation.
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HUMAN RESOURCE
MANAGEMENT
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Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Purpose and functions of HRM that applicable for workforce planning and resourcing.....................3
P2 Strengths and weaknesses of various approaches to recruitment and selections.................................6
P3 Benefits of HRM practices for both the employer and employee.......................................................7
P4 Evaluation of effectiveness of HRM practices for organizational profitability and productivity........8
TASK 3.......................................................................................................................................................9
P5 Importance of employee relations that influence HRM decision-making...........................................9
P6 Key elements of employment legislation and its impacts upon HRM decision-making...................10
TASK 4.....................................................................................................................................................11
P7 Illustrate the application of HRM practices in the organization with examples................................11
CONCLUSION.........................................................................................................................................13
REFERENECES.......................................................................................................................................14
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INTRODUCTION
Human resource management is very essential in order to run a business in an effective
manner as it assist company by furnish them with new candidates, provide them with required
resources (Strengths and weaknesses of recruitment and selection process, 2018). Along with
this, they give old and new employees proper training so as to increase their skills and
knowledge. Enterprise that is taken in this assignment is House of Frazer which is a retail
company in Scotland, United Kingdom. The report will focus on purpose and function of HRM
for making a workforce planning. Strengths and weaknesses of various approaches in context
with recruitment and selection process in an organization. Along with this, benefits and
effectiveness of different HRM practice for employee and employer in a company is included in
this assignment. The importance of employee relations for influencing HRM decision making is
mentioned in this report. Lastly, application of Human resource management practice related to
work is included.
TASK 1
P1 Purpose and functions of HRM that applicable for workforce planning and resourcing
Human resource management department in a company plays a very crucial role as it
provides with every possible basic facilities that are required in order to operate business
operations. HRM helps an organization in making proper strategies so that firm can implement
these in adopting innovation, increasing the power of productivity and sales etc., thus, it can be
said that the department of human resource management is considered as an important assets
because it assist them in taking company towards a better position (Albrecht and et. al., 2015).
Purpose of Human resource management
Human resource management plays many roles but the main purpose of this department
is to develop a bridge between line management and workforce of company. A large
organization like House of Frazer follows management that contains many levels. Therefore,
HRM is a need for a company and protects the rights of workers.
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Internal Customer management: There are many key purposes that are performed by
human resource management. Productivity of a company completely relies on employees’
qualities that are hired by this department (Bondarouk and Ruël, 2013). They rectify the process
and policies that are necessary for recruit new people and also to retain a better workforce.
Human resource has a direct link with financial performance of an organization. Along with this,
they decide employees’ compensation, benefits and structure of a team so as to achieve the set
targets and objectives right on time. HR department plays a crucial role in maintaining a better
relationship in terms of internal or external approaches between organization and customers.
Laws: There are certain rules and regulations formulated by federal and state which are to
be followed by the HRM department. This incorporates laws like how a company can hire and
terminate employees. For example: if a company is hiring a union labour, than it is necessary that
human resource management have a proper knowledge and understanding of labor relations and
negotiations. Thus, these laws help company in formulating and structuring employment
contacts. Human resource management makes sure that Equal Employment Opportunity is
provided to employees who are working in an organization. They also ensure that a safe
workplace is given to occupational workers so that all the tasks are performed in a better way.
Metrics: A good human resource management communicates with employees working at
different levels. Their prime duty is to work on strategic, plan b budget and look out for
performance goal (Bratton and Gold, 2017). Therefore, they make use of metrics in order to
analyze the cost so as to make company efficient at all levels.
Cultural Sensitivity: Human resource management is solely responsible for maintaining
cultural awareness in an organization. On a regular basis they monitor the performance of
employees so as to maintain a proper environment in workplace. Along with this, they resolve all
the issues that are being faced by employees while working in a company. In context with House
of Frazer, they have managed to uphold a better workplace for their employees.
Functions of Human Resource Management
Human resource management plays a crucial role for optimizing all the resources in order
to meet challenges for expanding their business in competitive sector (Cascio, 2018). Their first
job is to make appropriate use of man power so that company can get better outcomes. Thus,
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managers of House of Frazer, are trying to make effective strategies which organization can
implement for enhancing their sales and profitability. Basically, functions of HRM can be
divided into two categories which are given below:
Managerial Functions:
Planning: This is considered as an important function as they lay down some policies
and procedures that help the team to reach their goals. In context with human resource
department they anticipate vacancies so as to know requirement of recruitment in a company
(Chang, Chiang and Han, 2012).
Organizing: Once the manager of human resource management has formulated some
objectives and plans so as to reach their goals than it is necessary to build up a design and
develop a proper organizational structure in order to carry out the function in an appropriate
manner.
Directing: Implement planning is not enough unless employees are guided properly to
work willingly for achieving the desired goal. Therefore, directing helps them to motivate and
encourage employees for obtaining their set targets.
Controlling: This refers with proper conduction of activities in accordance with plans so
that goals are achieved effectively. Along with this, controlling helps the manager in analyzing
the performance of its employees whether they are performing their task properly or not (Costea,
Amiridis and Crump, 2012).
Operative Functions:
Employment: It is considered as one of the main function of operative function as it
provides employment to right kind of person that are required by the company for achieving their
objectives.
Development: To new and existing employees HRM department provides with training
so as to develop their skills and knowledge. They give technical as well as personality
development knowledge so that company can train them for higher jobs.
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Compensation: This is concern with determination of employees for their contribution in
achieving organizational goals. Workers are provided with both monetary and non-monetary
rewards for their excellence in job (Ehrnrooth and Björkman, 2012).
P2 Strengths and weaknesses of various approaches to recruitment and selections
Recruitment and selection process for most of the organization is not as easy task because
it requires time, cost and skilled persons as well. This method is done to fulfill vacant position in
a company but before that HRM department go through all post available in various sections in
order to analyze vacancies. Based on that entire process of recruitment and selection is
conducted for getting an effective result so, approaches are given below that must be followed by
House of Frazer for the same:
Job analysis: This is the prior step in which mangers tries to identify job for which
candidates can apply. Therefore, John Lewis Partnership is monitoring the entire department so
as to know seats for which recruitment and selection process can be done. Along with this,
company is performing several activities for selecting suitable candidates for the vacant posts.
Job Descriptions: In this, company provides details about what post candidates can apply
for. Along with this, information regarding salaries, working hours, rules and regulations etc., are
included (Ganopoulos and et. al., 2013).
Person specification: This involves important documents that are provided by the person
individually and it includes personal details like qualification, age, skills, knowledge and many
more.
Job posting strategies: According to the current market scenario there are various modes
for posting jobs so that desired candidates can apply for the same. Therefore, House of Frazer
has adopted entire source for pull attention of large number of people.
Multi phase recruitment: Process of recruitment go through many steps in order to find
best amongst best candidates. This includes methods like telephonic conversation, face-to-face
interviews and many more.
Therefore, recruitment can be classified into two categories i.e. internally which is done
within the organization or externally: select people from outside.
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Strengths of internal recruitment
This is relatively low at cost and consumes less time (Gheiratmand and et. al., 2015).
Workers who are working in that organization are familiar with business and know how
to operate that in an effective manner.
Give chance to employees regarding their promotion within the company.
Weakness of internal recruitment: Organization already knows limitations and potentiality of the candidates. Bind firm to hire more eligible individuals from outside an organization.
Can build resentments between other workers who are not selected.
Strength of external recruitment New candidates will bring fresh and innovative ideas with them. Company will have a wide range of options for selecting best participants for their
organization (Gomes and et. al., 2012).
Weakness of external recruitment: It is quite a longer process which can take a large amount of money due to advertisement,
interviews etc. Sometimes the process of selection may not be suitable for selecting best candidates.
Therefore, although there are some limitations while performing the entire process of
recruitment but it is required for making company more effective and reliable for others. In short,
this provides eligible workers to an organization who can give their best in order to take the firm
in superior positions (Heikkilä and Smale, 2011).
P3 Benefits of HRM practices for both the employer and employee
Human resource management plays an important role those who are working in a
company form long period of time. HRM practices provide a lot of benefits to both employees
and employers at their stages. In case of House of Frazer, it is helping them in determining the
relationship between workers and organization.
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Employer's benefits
Focus on tasks: This helps them in dividing the task according to the capabilities of
candidates so that the work is done in a right manner. Thus, superiors try to find out the methods
by which task can be completed in specific time period (Kaufman and Miller, 2011).
Using work time: For getting effective results it is important that company utilizes skills and
knowledge of a worker in order to get their set targets. In context with House of Frazer, it is
helping them in attaining their desired goals and for this, they have incorporated latest tools
technologies and as a result it is giving them better outcomes.
Proper involvement: In order to go hand-in-hand with current market scenario it is important
for the company to implement such activities through which they can pull attention of maximum
number of candidates. This will assist employees to learn new things which they can use for
future proceedings.
Benefits for employees
Experiences in new areas: HRM practice is determine as one of the beneficial activity for
candidates who are new or working in a company. This helps the candidate in exploring things
that have not been experienced yet. Along with this, it assists them in enhancing their knowledge
as per the current market situation (Keegan, Huemann and Turner, 2012).
Opportunities of training and development: HRM practice helps new employees by giving
them appropriate training regarding work so that they can perform their task effectively. In case
of House of Frazer, it has improved their sales and productivity.
Source of Information: In order to gain maximum benefits it is important for an organization
to make certain kind of changes so that all the desired goals and objectives can be fulfilled. By
conducting seminars, workshops etc., they try to improve the skills and knowledge which worker
is possessing and for this company utilizes effective communication tools.
P4 Evaluation of effectiveness of HRM practices for organizational profitability and
productivity
Regulatory bodies have formulated different kind of rules and regulations for companies so
that they can run their business in an effective manner (Kim and Bae, 2017). This helps the
organization in attaining goals and objectives in specific time frame. In case of House of Frazer,
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they have included some of the factors so as to increase their productivity and profitability and
these are given beneath:
Setting of directions and implementation: A proper guidance is required for new employees
so that they can improve their skills and knowledge. Thus, here role of manager and leaders are
important because they show the right direction to employees through whom workers can
achieve company’s goals. In terms of House of Frazer, they are setting short terms objectives by
attaining this it can motivate its employees to work more in a better way. Therefore, through this
an increase in sales can be seen in business of the entitled company.
Excellent performer and innovative staff: HRM practice helps the organization in choosing
appropriate candidates for their company. Fresh employees will assist them with innovative ideas
which firm can implement for getting better returns. Henceforth, leaders and managers along
with their eligible employees make proper strategies through which they can complete the task in
an effective manner (Kultalahti and Viitala, 2015).
Achieving individual and team goals by effective communication: For delivering any
process so as to accomplish the work it is essential that company incorporates effective tools of
communication. This will assist them in creating a transparency between employees and
superiors as a result it will enable workers to express their views regarding any kind of work.
Therefore, in case of House of Frazer, they are using this for interacting with their workers and
explaining them about the roles and responsibilities they are to perform.
Revise skills and uphold efficiency at workplace: By analyzing the workplace and task
performed by employees, HRM department can evaluate what kind of training and development
programs are required to introduce in order to increase the efficiency of its workers. Henceforth,
through this, House of Frazer is focusing on enhancing the knowledge of employees who are
working in their organization. As a result it is enabling them with competitive advancement.
TASK 3
P5 Importance of employee relations that influence HRM decision-making
For having a smooth conduct in their business operations it is important to maintain a
healthy environment at workplace. Mutual understanding between employees is very essential as
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it will help workers in working together for a common goal. With the change in course of time
there are organizations who give better opportunities for attracting eligible candidates towards
them. In case of House of Frazer, for retaining their old and skilled candidates they are providing
them with various kinds of benefits like bonuses, compensation, health facilities etc., as a result
it is encouraging employees to give their best in order to take company in forward direction
(Lamba and Choudhary, 2013).
Sharing work for attaining common goal: Sharing always make the task easier for a
group along with this it reduces the time taken for accomplishing the work. Thus, team leaders
should create an environment where employees can easily share their views and thoughts. This
will help them in developing mutual understanding amongst employees and subordinates as well.
Furthermore, the work will be completed right on time as a result company will be able to deliver
the product to its end customers before time.
Resolve conflicts: Conflicts are normal in big organization like House of Frazer, as
different mind sets and views for a task can create problem. Thus, meetings must be conducted
on a regular basis so that issues can be clarified by superiors. Along with this, it is necessary that
a better communication is established between employees and subordinates as this will enable
workers for sharing their issues with managers or group leaders (Renz and Herman, 2016).
Maintain Equality amongst employees: There are certain factors that must be looked by
firms if they want that their company should grow in forward direction. It includes certain rules
and regulation that are regulated by the regulatory bodies. For example: No discrimination
between employees on the basis of caste, colour, gender, sex etc. For maintaining a healthy
environment managers must keep an eye on the performance of employees so that they can know
about the nature or behavior of worker towards others.
P6 Key elements of employment legislation and its impacts upon HRM decision-making
There are different kinds of laws that generated by Government of United Kingdom so
that a peace can be maintained in the environment (Shen and Benson, 2016). Companies are
bound to follow these and if they don’t do so than they may face some harsh actions against
them. In case of House of Frazer, they are following all the rules and regulations while operating
their business in an effective manner. Although they face some of the complexities because of
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rigid organizational structure but it is helping them in maintain a better workplace for its
employees.
Analyze position: Giving advertisement for a vacant post is not enough as it is essential that
to know the right space for correct job. This stage helps a company in doing so by providing
relevant information for the same. In order to attract more and more candidates towards them
they are making proper use of tools of promotion and it is giving them appropriate results as
well. Along with this, they are giving information regarding salary that will be given for desired
post, working hours and many more (Tung, 2016).
Equal wage act: Equality is very important for having a healthy environment at workplace.
Whether worker is a male or a female and if they are working on same post than they must be
given equal wages. Therefore, this act protects employees from being discriminated with regards
to salary.
Minimum payment act: Government of United Kingdom has implemented this act in order
to give an insight about minimum wages that are to be paid by companies to workers. This is not
only confined with private sector but other sectors as well. A certain amount of money is fixed so
that employees can live their life easily. If company steer clear of from this than, they can
register a complaint against the company and a strict action will be taken against guilty.
Employee's rights act: While working in companies there are many rights through which
employees can ask for protection from company. Person can avail any time if they are facing any
kind of difficulties regarding work or organization. Mainly, it is concern with health and safety
discrimination, compensation and many more (Vermeeren, Kuipers and Steijn, 2014).
TASK 4
P7 Illustrate the application of HRM practices in the organization with examples
As it has been understood that there are different kinds of work which is performed by the
department of HRM but their main role is to recruit new candidates, providing them with proper
training etc., Some of the HRM practices has been identified through which the process can be
evaluated in an appropriate manner:
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As House of Frazer, is one of the famous supermarket organizations in United Kingdom
and provides variety of stuffs to its customers (Albrecht and et. al., 2015). Thus, they provide
best quality products as a result company is amongst the top firms in UK. Application of HRM
practice is given below:
Job Specification
Job Details
Post: Assistance Manager
Department: Human Resource Management
Job Purpose
Provides with all details asked by its superiors so as to evaluate the effective outcomes.
Should be capable of giving innovative and new ideas.
Must have proper knowledge about effective training programmes that can be given to
employees for enhancing their skills.
Roles & Responsibilities
Assist manager in his/her work.
Giving proper information about growth in different departments.
Must be able to identify both short and long term goals according to the situation.
Should be able to anticipate the outcomes so that effective strategies can be made.
CV:
Curriculum Vitae
Name: John Edward
Address: 34th Elizabeth Street, 17th Avenue, London
e-mail id: edwardjohn91184@gmail.com
Contact No.: 6734349345
Objectives:
The main objective is to work for a leading company, so as to improve skills and knowledge as
it will enable employee to give effective outcomes to the company.
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