Human Resource Management Report: H&M's HRM Practices Analysis

This report examines the Human Resource Management (HRM) practices of H&M, a global retail company. It begins by outlining the objectives and functions of HRM, including planning, organizing, staffing, directing, and controlling. The report then analyzes the strengths and weaknesses of H&M's recruitment and selection processes, exploring both internal and external recruitment methods. It assesses the benefits of HRM practices within an organization, including their impact on employee motivation, productivity, and profit. The report also evaluates the effectiveness of HRM practices in raising profit and productivity, discussing the importance of employee relations and the influence of employment legislation on HRM decision-making. Furthermore, the report provides examples of how these practices are applied within H&M, offering insights into the company's approach to managing its workforce and achieving its organizational goals. The report concludes with an evaluation of employee relations and the application of HRM practices, emphasizing their impact on organizational decision-making.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Objectives and functions of human resource management...............................................1
M1 Functions and purpose of human resource management...........................................................1
P2 strengths and weakness of recruitment and selection of employees.................................1
TASK 2............................................................................................................................................1
P3 Benefits of HRM practices within an organisation ..........................................................1
P4 Effectiveness of HRM practices to raise profit and productivity......................................2
D2 Evaluate practices of HRM and applications with specific example...............................1
P5 Importance of employee relation in influencing HRM decision making..........................1
M4 Key aspects of employees relation management and employee legislation that affect in
making decisions....................................................................................................................3
TASK3.............................................................................................................................................3
P6: Key elements of employment legislation and the impact on HRM decision making......3
P7: Applications of HRM practices in aspect to H&M:- ......................................................5
D3 Evaluate employee relations and applications of practices of HRM which impact in
making decisions of organisation...........................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management is managing people and resources in organization through
training, development, evaluating performance of employees, motivating and compensation. It
helps workforce to maintaining good relationship with one another and for their welfare and
safety (Armstrong and Taylor, 2014). Through this staff members can perform their work
efficiently and effectively. H&M is a retail store which offers different variety of cosmetics,
footwear for various segments including children, women and teenagers. It is operated in all
over the globe. This project is talking about purpose and functions of human resource
management, strength and weakness of different approaches of recruitment and selection,
advantages to manager and employee through staff recruitment methods, assess the
effectiveness of raising the profit and productivity of organization,relations between workers and
elements of employment legislation which have impact on human resources decisions, use of
these practices in the work and firm with examples. Firm follows these practices such as appoint
members for job, selects, trains, motivates, compensate them so that they can perform better in
the organization. Thus it can retain good employees, achieve more profits and can perform well
in the long run (Berman and et. al., 2012). Employees can work efficiently and effectively and
can achieve their goals and vision which ultimately results in achieving the company's
objectives.
TASK 1
P1 Objectives and functions of human resource management
There are different scope and functions of human resource management through which
company can recruit, select, train, motivates employees to perform better in the organization and
leads to achievement of firm's objectives. H&M company has various objectives which are
applied in its firm (Objectives and Functions of HRM, 2014). First objective is of organization
which includes human resource planning means the no of employees required in the firm, then it
make plans and policies for recruitment and receive applications from all people and selects
people who have required qualification for the job,gives them training so that they can learn
different methods and procedures of working in the company. This helps in developing
employees to perform better with their full efficiency. Second purpose is that to place the
employees at their positions,evaluate their work and performance and motivates them to perform
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better. Staff members can achieve more targets and objectives through encouragement, praise
and they can perform more efficiently and effectively. Thus members move in right direction by
receiving advices from their employer (Boxall and Purcell, 2011)Brattonand Gold2012Brewster
and Hegewisch2017. They can also give feedback and suggestions related to planning and
recruitment of people which helps managers in the selection process. Third aim is that giving
workers the compensation according to their work and performance. This helps in inducing them
in performing better. They have a feeling of competition to achieve more and better targets
which ultimately results in good work of employees. Thus organization also performs better in
the long run.
Fourth goal is the to increase the workers job satisfaction by giving them fair pay and
treatment. Through receiving of incentives, bonuses it increases the zeal, energy, enthusiasm of
staff members to perform better and results in accomplishing more targets. Thus members can
actually realize their skills and potential and they feel contended by getting wages according to
their abilities (Bratton and Gold, 2012). Company has make different plans, policies for
regulating behaviour of employees inside and outside the firm. Workers can become disciplined
and punctual in their jobs which have positive impact on their work. They interact with each
other, understand their views and opinions and thinking which helps in reducing the conflicts,
disputes in firm to increase productivity of staff members as well as for the organization. This
results in maintaining good relationship with employees and the management which helps in
achieving the goals of company.
H&M company performs different functions -
It includes five steps. First stage includes planning which means making of plans,
policies and procedures for achieving the goals of the organization. Company can make
objectives and targets of different employees so that they can know in which direction they had
to move and helps them in accomplishing their mission. Thus it helps managers also to manage
the employees and firm (Brewster and Hegewisch2017). Second step includes organizing which
means allocating different resources to various workers to complete the task. Staff members can
delegate their work and authority to various subordinates,communicate them to achieve their
goals .This helps in proper coordination in jobs which results in improving the performance of
workers as well as of the firm. Thirdly includes Staffing which means recruiting and selecting
the employees, setting benchmarks, giving them compensation, training and developing,
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evaluating performance of the staff members to work better. This helps the company to check
progress in the business activities in the job to achieve their targets.
Fourth and fifth includes directing and controlling. Leading means guiding, supervising
and motivating them to achieve their goal and targets which results in their satisfaction. It leads
to increase in energy, enthusiasm, zeal of workers to complete their tasks and for delivering
good results in minimum time which increases the productivity (Budhwarand Debrah, 2013).
Last step includes controlling which means setting standards of employees comparing actual
performance of members with standards set, and if there are any deviations, find corrective
actions to improve those variations. Managers give different ways to workers to correct their
methods so that they can work with their full efficiency. It directly leads to achievement of
organisation's objectives.
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M1 Functions and purpose of human resource management
There are various functions of human resource management that are performed by
managers of M&S in order to enhance operations of firm. It assists in satisfying needs of
employees and attaining objectives of company. Major objective of HRM functions is to enhance
productivity as well as profitability of firm. Implementation of these functions helps in
increasing motivation of employees.
P2 strengths and weakness of recruitment and selection of employees
H&M has applied various strengths and weakness in applying the recruitment and
selection process. There are various strong points of company. First is that company provides
different variety of products including shoes, accessories, clothing, cosmetics, vases, blankets,
pots, candles and others. It made products according to customer needs,preferences and taste of
consumers (Buller and McEvoy, 2012). Firm targets to various segments of population such as
children, youth, aged people etc. Thus it creates a favourable image in front of public. So thus
people are attracted towards it and purchase them. Secondly it creates various products in many
brands including Weekday, Monki. They are targeted to all segments in the country which
satisfies their all wants and needs. Firm can build a unique identity of its brand and helps in
awareness. Through it the products can become very popular among all consumers and in the
country. Thirdly firm have different stores and outlets all over the country. Approximately it has
6 retail shops in 60 countries. So it has expanded the markets all over the world which helps the
organization in developing the global presence in the world. Thus benefits company in increasing
the brand image and capturing more people. This is also very crucial in maintaining the loyalty
among many customers. Fourth strength is strong performance in terms of profits. It has earned
huge revenue over previous years. In 2015 around 19.4% growth in profits as compared to 2014.
So managers feels motivated,energetic and enthusiastic to perform better and make plans,
policies to increase the market share, to attract many people all over the world. Thus they are
confident that company can earn huge money which leads to expansion of the business and can
give competition to other organizations. Through this it can easily recruit many people and
they can create products according to their needs and wants. It has various outlets hence through
recruitment and selection of educated employees they can increase their operations and they can
easily expand their firm in many countries. It has many earned many profits thus it can use
different software so that it can recruit many people.

Company has different weaknesses which affect its performance. Firstly firm depends on
the third party supplier (Chelladuraiand Kerwin, 2017). They outsource their products through
various manufacturers and other retailers so hence they have less control on production. So due
to it firm cannot check its brand and results in poor delivery which leads to customer
dissatisfaction. It results in poor image of products and company. Secondly it takes trends of the
luxury accessories and variety of items and apply in its products. Firm do not put innovate much
new and innovative ideas on their brands and is dependent on supplier and competitors. So hence
it leads to poor performance and thus it cannot maintain a competitive edge on others. Thirdly
they follow affordable price in their products including clothing and others. This reduces the
quality of brands which result in lower sales and profits. It also leads to customer
disappointment and unhappiness which ultimately gives negative impact on the brand and
company. Thus reduces the market share of the firm. Thirdly it do not make proper use of online
websites, mails and other channels. Firm cannot sell many products through internet so thus all
customers cannot have knowledge of the brand. Thus it cannot make a good, favourable and
diversified presence in front of all customers. Consumers do not purchase it and leads to bad
reputation of firm (Choi, 2011). Fourthly it produces extra quantity of items which leads to
overstocking of goods. It results in wastage of resources of firm. This leads to increasing cost of
warehouses and of transportation which reduces the profits, sales and market share. Thus it has
weak financial performance as compared to other competitor companies and continuously it has
lower revenue in a particular financial year.
M2 Strengths and weaknesses of recruitment and selection approach
Marks & Spencer use various kinds of approaches to recruit employees within
organisation. Each approach has its own strengths and weaknesses.
Internal recruitment: Main advantage of this approach is that it save time and cost of firm
as all the employees are hire internally. Disadvantage of this approach is that it restricts entry of
new talent in firm.
External recruitment: By this process, innovation and creativity is promoted within firm
but it consumes high cost and time.
D1 Advantages and disadvantages of recruitment approaches
Their are having numerous sorts of qualities and shortcoming of enlistment and choice
process which influence the execution of organizations. For instance in this procedure chiefs of
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HR employ their relatives without having aptitudes and learning which will impact the execution
of firm that is the reason they need to broke down their capacities and abilities for the welfare of
organization.
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TASK 2
P3 Benefits of HRM practices within an organisation
Human resource management is a systematic approach used in any organisation to deal
with employee. Human resource department deals with this department and these days there is
special important to this section as employee plays vital role in achieving organisation goal.
Company has to also think about them as how can they motivated so that they work with more
diligence. Human resource department has to think about recruitment, selection, training,
induction, etc. so that employee get good impression about company and he/ she feels confident
while dealing with organisation (Clarkand et. al., 2016). Compensation and staffing of person is
most duty of HR department. Company should focus on employing best person as desired and
accurate position.
Training of employee is in great need these days. There are many training institution
private as well as public to provide assistance to companies. Training and development is
beneficial for employee as well as employer. If company or employer provides training to their
employee then there improve in quality of their product and services. This reduces the
production time and increase quality of services. While as employee's point there is more
confidence in their working. They feel secure that company is aware for personal development
of individual.
Benefits of HRM to employer Good working environment in organisation: In any organisation it is very important to
maintain good working environment. In H&M organisation human resource department
plans different policies so that organisation decorum can be maintained. Ethical behaviour: It is duty of HR staff to provide rules and regulations to be followed
by staff of company. There is provision of punishment and fine in case of unethical
behaviour. Hence, H&M company emphasis on HR policies.
 Less chances of conflicts:There are many employee in any company having different
cultures and values (Daley, 2012). Hence they are chances of conflict of interest among
employees. In H&M company human resource department frame such policies which
reduces the chances of conflict in company and staff work with harmony.
Benefits of HRM to employee
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 Problem resolution: From employee point of view HR policies are equally important as
per employer. There are many issues arise in organisation related to employee personal
and professional life. Human resource department is important to resolve them so that
employee does not get affect his job life due to any issue. Enhancement of performance: Performance of employye are regularly checked by
employer (Fultonand et. al., 2011). In any organisation it responsibility of HR
department to evaluate perform. Measure are taken by company to improve them. In case
of good performance there is provision of reward. This increases the feeling of
confidence among employee and they try to give best out of their capability.
 Set manner of working style: HR provides similarity in the act of employees. This
provides least chance of discrimination among staff, hence they feel motivated while
working.
From the above came to know about importance of HR personnel in regular dealing of company.
They are equally important for company as well as its staff. H&M organisation emphasis on best
recruitment and selection, induction of new person, its training. HRM not only deal for new
recruitment but it also work for existing employees,their growth and satisfaction.
M3 Methods used in human resource management practices
Different practices which are utilized to execute for meeting hierarchical targets and
objectives. They offer preparing to their workers like as at work preparing and innovation based.
They will sort out an advancement program for inspiring their laborers and change in their
execution inside an association.
P4 Effectiveness of HRM practices to raise profit and productivity
Role of HR department is important in generating profit. There efforts provide increases
the goodwill of employee in industry. As human resource section works and deal with human
resource in any company i.e. employee, they are people which make company's goal and
objective achievable (Glick, Stein and Edelson, 2011). Policies framed by HR department are
known as HRM practices. Hence HR department is responsible for overall growth, profitability
and productivity of organisation.
HR policies are very beneficial for company performance. There are various policies
made which keep employee satisfied so that they can work effectively which will affect
production and sales in positive way.
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 Motivate employee: Human resource department help in motivating employees. In H&M
company HR deals with worker to give their best. They provide provision of reward as
per performance. This gives chance to employee to work with high diligence. Motivated
employees working in company will increase production of their goods and services. New and effective ways of working: HR plan training to employee as per need of
employee (Guest, 2011). Different training methods are adopted by company to train
employees. Training help in applying good and effective ways while they are working.
This provides up to date knowledge about current scenario.
 Team building and leadership skill: In H&M team work is most important. There are
many benefits of working in team to organisation as well as employee. According to …...
HR department plays important role in generating profit. There efforts provide increases
the goodwill of employee in industry. As human resource section works and deal with
human resource in any company i.e. employee, they are people which make company's
goal and objective achievable . Policies framed by HR department are known as HRM
practices. Hence HR department is responsible for overall growth, profitability and
productivity of organisation. HR policies are very beneficial for company performance. There are various
policies made which keep employee satisfied so that they can work effectively which will
affect production and sales in positive way. Motivate employee: Human resource department help in motivating employees. In H&M
company HR deals with worker to give their best. They provide provision of reward as
per performance. This gives chance to employee to work with high diligence. Motivated
employees working in company will increase production of their goods and services. New and effective ways of working: HR plan training to employee as per need of
employee. Different training methods are adopted by company to train employees.
Training help in applying good and effective ways while they are working. This provides
up to date knowledge about current scenario, quality and motivation to person (Jiang and
et. al., 2012) . This ultimately enhance leadership quality in person. This affects the
profitability of organisation in positive sense. Improve quality and reduction in production time: HR department of H&M
organisation take care of their employees training and development. Human resource
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