Human Resource Management Report: Enterprise Rent-A-Car Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on their application within Enterprise Rent-A-Car. The introduction establishes the significance of HRM in modern business, emphasizing its role in workforce planning, recruitment, selection, and employee relations. Task 1 delves into the core functions of HRM, including workforce planning and resourcing, and evaluates the strengths and weaknesses of internal and external recruitment approaches. Task 2 explores the benefits of various HRM practices, such as learning, development, and performance-based rewards, for both employees and the employer. It also assesses the effectiveness of these practices in terms of raising profits. Task 3 examines the importance of employee relations in influencing HRM decision-making and the impact of employment legislation. Finally, Task 4 applies HRM practices to the case study. The report concludes with a synthesis of the key findings and recommendations for optimizing HRM strategies within the context of Enterprise Rent-A-Car.

HUMAN RESOURCE
MANAGEMENT
1

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Purpose and the function of HRM applicable to workforce planning and resourcing......4
P2 Strengths and weakness of different approaches of recruitment and selection.................5
TASK 2............................................................................................................................................7
P3 Benefits of different HRM practices within the enterprises for employee and employer.7
P4 Effectiveness of different HRM practices in terms of raising profits...............................8
TASK 3............................................................................................................................................9
P5. Importance of employee relations at enterprise w.r.t. influencing HRM decision making.
................................................................................................................................................9
P6 Key elements of employment legislations and its impact on HRM Decision making....11
TASK 4..........................................................................................................................................11
P7 Application of HRM practices........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
2

INTRODUCTION
In modern times it is important for the firm to have best Human resource practices within
the firm. Since human resource is considered to be as the most valuable asset since all other
resources effective utilisation depends on this only. Different organisation applies different
strategies for managing their human resource which totally depends on their business needs
(Albrech, 2011). HR manager recruits, selects and trains employee as per company’s
requirement. They also take care of the demands of workforce and apply different
techniques such as reward to keep their performance level on higher side. Effective HRM
practices also supports in making good employee relations. Enterprise Rent-A-Car is one of
3

the largest rental car business in North America and was founded in the year 1957. This
report highlights the purpose and scope of HRM. It also describes different kinds of
approaches to recruitment and selection. Benefits of HRM practices within the workplace
have been discussed here.
TASK 1
P1 Purpose and the function of HRM applicable to workforce planning and resourcing
There are several functions of HRM practices. This is done so as to satisfy various
purposes they have. In a firm like Rent-A-Car there are various purposes of HRM which is
applicable to workforce planning. HRM practices are developed in order to maximise the
productivity of the firm by optimisation of the effectiveness of workers. They also serve
the purpose of understanding the needs of employee which has to fulfil by the firm. In
other words they act as a bride between the employee and employer which is an integral
aspect when considering with employee relations of the firm. HRM practices also has the
purpose that employees within the firm has the skill set that is required for the company
business and hence recruiting, selecting and training becomes an important aspect. Since
both employees and employers sets to benefit from the HRM practices hence the
effectiveness of the activities within it needs to be ensured (Armstrong and Taylor, 2014).
While discussing the function of the HRM practices one thing that needs to be understood
that all around the world there have been rigorous changes in the activities within it and
depends on the demand of the firm. One of the major functions of HRM practices is to
recruit, select and timely train employees as per the need of their own personal and Rent-
A-Car operations. It is having the function to align human resource and Cited firm’s goal.
These practices are performed so as to somehow re-engineer the processes of firm. These
practices aims to address the employee needs so that higher level of job satisfaction is
maintained. They also have the function of managing transformation and alterations. Apart
from this the major function of the practice is to comply with all the rules and regulations
made by the government in regards to integrating ethics at workplace so that the interest all
employees gets safeguarded (Bamberger, Biron and Meshoulam, 2014). These practices
ensure that rewards and compensations will be provided to the staffs who are performing at
outstanding levels. They have to take care that there will be future business of the firm if
4

they will expand their business in new horizons staff needs to be trained accordingly
especially in terms of new technology and its use.
P2 Strengths and weakness of different approaches of recruitment and selection
There are several approaches that are used in human resource management. This helps firm
in bringing effectiveness in the whole practices. Here approaches are related with internal
and external recruitment and selection procedures. Some of the approaches with their
strengths and weaknesses are as follows:
Internal approach to recruitment and selection: In this company like Rent-a car
includes recruiting candidates from their own pool of workforce. In this company departs
staff to other vacant position based on their capabilities. The staffs are generally promoted
to higher levels.
Strength:
 It is easier and simple process as company does not have to look out for the
candidates.
 Company do not have to train employees about the ethical consideration and the
work culture within the organisation (Boxall and Purcell, 2011).
 This increases the employee’s motivation to perform in a better way so that they
can also be promoted.
 It reduces the overall cost of the process as firm do not have to invest a lot on the
whole procedures.
 It helps in safeguarding the quality of work as it can be possible that an candidate
selected from outside may not be able to comply with company’s rules and
regulations.
Weakness:
 It restricts the fresh ideas present with the new candidates to come inside company. This
will stop firm’s problem solving capability of the firm based on the modern days
problems.
 Can conflict amongst colleagues since it makes negative impact on the morale of
employee if not selected for vacant post.
 The post that vacates by the staff getting promoted needs to be fulfilled by someone
other. Hence the effort of maintaining the workforce does not reduced with this approach.
5

External approach to Recruitments and selection: In this approach candidates are selected
from the pool available outside the firm (Bratton and Gold, 2012). In this approach also
recruitment and selection is based on the skills and ability of the candidate. Rent-A-Car follows
various processes like going to college campuses, developing an internship program etc.
Strength:
 It allows new talents to add into the workforce which many have skills that can be
beneficial for the growth of the firm.
 It increases competition inside the firm which motivates employees to work harder on
their performance.
 It brings diversity in the workforce which is important for bringing effectiveness in the
work processes.
Weakness:
 The biggest weakness is that it takes a lot of money to be invested in the whole process
(Daley, 2012).
 It takes lot of time in training as the employee does not know about the ethics and rules of
the organisation.
 It may change the working environment and culture of the organisation.
TASK 2
P3 Benefits of different HRM practices within the enterprises for employee and employer.
There are various benefits of different HRM practices with the firm for both employees
and employers. Since there are various practices that is followed in HRM. Two such kinds
of practices and its related benefits are as follows:
Learning, development and training: It is important for the firm as well as employees to
increase their personal and professional skills which can be utilised for grabbing
opportunities (Flamholtz, 2012). Learning is a two way approach where staffs learn
according to the needs of their own development as well as the requirements of the firm. It
is important for the firm to design training modules for their staffs which they can utilise
for making process appropriate and hence developing required skills in the workforce.
Benefits of this practice are as follows:
6

 It helps in competing in the cut throat competition by enhancing the performance
levels of the workers which ultimately increases the productivity of the firm.
 Employers can easily add the skills that they require in the workforce which help
them in raising more profits from their operations.
 Employee can have opportunity of their professional development which will
enhance their chances of grabbing higher positions in the firm.
 It reduces the rate of errors in the working procedures as staffs have high quality
skills.
 It helps in adding value to the whole process and ultimately higher quality products
can be produced.
Performance and reward: It is one of the most essential processes that is used in every firm
where the rewards is being distributed among the staff members based on their performance.
These rewards can be in the form of any trophy, monetary value or promotions (Gordon, 2014).
In this practice the major role is of performance management system. Better performance
management system better will be appraisal process. There are various benefits of this practice:
 It enhances the motivational level of the staff members.
 It increases the chances of getting better performance from their employees.
 It helps employees to identify the performance level they want from their other staffs.
 It also helps HR managers to understand the training need of various staffs within the
organisation so that required skills can be embedded in them.
7

Figure 1HRM functions, 2017
P4 Effectiveness of different HRM practices in terms of raising profits
There are various practices within the HRM scope all these are highly essential for making it
more valuable. It is also essential for the firm to understand the effectiveness of each process
so that present disadvantages in it can be reduced. Effectiveness of different HRM practices
will determined in terms of raising profits and productivity of the firm (Gruman and Saks,
2011). In order to understand this assessment and evaluation of two practices are as follows:
 Training and development: This is one of the most crucial practices in the HRM.
This helps to fulfil the requirements of the firm in the better ways. Since the training
and development programs helps the firm in bringing effectiveness to the
performance as it adds new skills to the staffs. Training is the most valuable
requirement of the any employees since the technology, working process and
procedures are changing all around the world. With the globalisation the competition
faced by the firm is not at the local levels but they are competing with global
environment. They are facing competition from the people all around the globe. It is
to be understood that training and development enhances the abilities of the workers
8

which enhances their performance and hence adding to the productivity of the firm.
Better the productivity better will the chances of achieving higher productivity
levels. Since skills possessed by the employees adds value to the products and hence
the sale of the products and services increases which will increase the profit margins.
More effective training and development program more is the chances of getting this
as early as possible. Higher standards of performance is always dependent on the
level of effectiveness of training and development programs.
 Reward System: Second most important practice in this regards is the reward system.
It is the system that has been developed on the basis of performance of employees at
their respective workplace (Guest, 2011). When reward is given to the employee it
helps to increasing the motivational of the employee which is essential for bringing
quality to the working of enterprise. Effective reward system helps to ensure there is
no discrepancy in distributing the incentives among the staffs based on their needs.
Effective reward system raises the confidence of their own while doing their task
which helps in enhancing the productivity of the firm. This employee reward system
assist in increasing the standards of employee working which increases the
probability to achieve higher profits from Rent-A-Car business.
Hence it is essential for the owners of the cited firm to ensure that they induce these two
practices in a better way and hence increasing the productivity and profit margins of the firm
which is essential for having competitive edge over others.
TASK 3
P5. Importance of employee relations at enterprise w.r.t. influencing HRM decision making.
In modern days since the needs of both employee and employer has enhances hence it has
become important for the both them to manage their relationship in a better way. Employee
relation is termed as the relationship that is present between management of the firm and
the workers so that they can understand each other demands and work accordingly. It is
important for Rent-A-Car to manage ER since it helps in bringing positivity at the work
place and hence company can perform in a better way. Good relationship always bring
worker’s satisfaction which is necessary for their personal motivation since it is the fact
that satisfied employee provide better services to consumers which is necessary for
9

creating brand name and hence achieving higher sales (Huselid and Becker, 2011). If in
any firm the employee relation is better maintained then workers also work at their
optimum level so that firm can achieve their set goals and objectives smoothly that too on
time. There are many kinds of strategies that are used by the firm to make sure that
employee relations is on higher side. Some of the most widely used strategies are as
follows:
 Engaging staffs in the decision making process: This helps in creating higher
motivational level in the employee since they also understands their importance in
the firm. This is highly important in the case of new staffs. Their suggestions in
various changes needs to be taken through direct or indirect involvement in the
process of making decisions.
 Appraisals and rewards: It is one of the most widely used strategy. Every worker
wants that their hard work should be appreciated by the firm. Providing the rewards
to the employees helps in making better employee relations. This totally done after
evaluation the performance of the employees at the workplace in their specific jobs.
 Providing opportunities: Every worker wants to grow at faster speed and hence it
becomes essential for the firm to give opportunities to their employees. More the
opportunities the better will be ER.
 Fulfilling training needs: Since the competition has increased and hence the level of
competition that a worker is facing has also enhanced and if staff lags in any of the
competency required for the post that he is holding may result in retrenchment
(Human Resources Development. 2017).
Rent-A-Car needs to continuously work on increasing the levels of employee relations
a firm has. They need understand the requirement of the firm. HR managers have to
listen to the employees so that they can address to their work related or personal
demands (Jiang and et. al., 2012). Any decision made by the HRM must be citing that
what effect it will pose on the employee relations.
P6 Key elements of employment legislations and its impact on HRM Decision making.
There are various kinds of legislations that are present in regards to HRM practices. A firm
needs to comply with all these legislations. There are various elements to employment
legislations and it has different degree of impact on the decision making process of the
10

HRM. These legislations aims to safeguard the interest of people associated with the firm.
Like the purpose of the employment law is ensure that there is equal opportunity that is
given to every candidate if they fulfil the criteria for any post (Kehoe and Wright, 2013).
It also suggest about the minimum requirements of the workers which every employer has
to provide. Some of the major issues and associated legislations are as follows:
 Equality Act: Many a times it has been seen that some employee is given more
preferences over others. This act safeguards workers from such kinds of practices
and hence there is no discrimination on the basis of caste, colour, creed or race.
 Data protection act: It is important for the HRM department to protect personal data
of the employees to remain to themselves only
 Health and safety act: This act suggests that every employee has some kind of
health and safety needs and every firm has to responds to it. In case of any
mishappening compensations has to be provided.
 Employment contracts: It helps to ensure that employee gets whatever they have
been promised at the time of joining. Laws provide various essentialities that has to
be present in contract.
 Ethical considerations: It is essential that workers and employers both use ethical
means while dealing with each other (McMichael, 2011). Laws help in underlining
this in a better way.
TASK 4
P7 Application of HRM practices
PART 1
Job advertisement:
Job title: Area Manager
This job is for the Area manager in the Rent-A-Car company which is one of the oldest and
biggest companies in the industry of lending cars to the users. The role of the people for this job
is to manage all the deliveries and shipments of company’s vehicles and managing all the drivers
in the area.
Company: It was established in the year 1957 since then it has never looked back. It was started
with just 7 cars in starting and today it has around 7000 offices in USA and more than 900 in
11

Canada, Puerto Rico, Germany, UK, and Ireland. Presently it is operating with around 728000
rental cars and employing over 65000 people. Its annual turnover is around 4.5 billion pounds.
Organisation needs a skilled employee who will work for the company and comply with all the
rules and regulations made in the organisations under the ethical framework of the organisation.
Company follows all the regulations related with employment like the minimum wages act,
equality act and all the labour laws where ever it is operating. Rent-A-Car provides equal
opportunities to all the eligible candidates and dismisses any kinds of discrimination on the basis
of cast, creed, colour, sex or any kind of disabilities (Other than what makes them inefficient to
work).
Company has a very clear line of policies regarding the employment where it provides equal
opportunity to everyone if eligible. Company is firm to make lives of employee better. Company
will provide training from time to time so that staff members remain best in the industry.
PART 2
Job Description: This job is for the post of Area manager in London UK. Their role is to assist
all the drivers and maintains the collaboration between all the staffs. They ensure that all the
order has been successfully addressed and the cars are properly dispatched and collected.
Person specification: The person sitting on this post has following characteristics:
 Fluency in English language.
 Worked on the same post for at least one year.
 He must be at least graduated.
CV
Name:
Sex:
Age:
Objective: To be a more experienced employee by working in a firm and serving it using the
knowledge gained from the educational life.
Educational qualification: Masters in Human resource.
Experience: Worked as Area manager for one year.
12