Human Resource Management: A Report on JP Morgan's Practices

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at JP Morgan, a multinational investment bank and financial services company. The report begins by defining HRM and outlining its core functions, including workforce planning, resourcing, and the scope of strategic HRM, with examples relevant to JP Morgan. It then delves into the strengths and weaknesses of various recruitment and selection approaches, such as internal versus external recruitment, and different selection methods like situation judgment tests and panel interviews. The report also explores the benefits of HRM practices for both employees and employers, examining the impact of training and development programs, reward systems, and performance appraisal systems. Furthermore, the report discusses the importance of employee relations in influencing HRM decision-making, the key elements of employee legislation, and their impact on HR decisions. Finally, the report concludes with an overview of the application of HRM practices within JP Morgan and the broader implications for organizational productivity and profitability.

Human resource
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Functions and purpose of Human resource management ..................................................3
P2 Strength and weaknesses of approaches of selection and recruitment..............................5
P3 Benefits of human resource management practices for employee and employers...........7
TASK 2............................................................................................................................................9
P4Effectiveness of HRM practices in terms of raising organisation productivity and
profitability.............................................................................................................................9
TASK 3..........................................................................................................................................10
P5Importance of employee relation in respect of influencing HRM decisions making.......10
P6 Key element of employee legislation and their impact on HR decision making...........12
TASK 4..........................................................................................................................................13
P7Application of HRM practices.........................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
Human resource management is a contemporary umbrella which is termed to be the best
practices of recruiting, hiring, deploying and managing employees of an organisation. The
company which is taken into consideration in order to carry out this report is JP Morgan. It is a
multinational investment bank and financial service company with its headquarter in New York
city(Mayne and Stern, 2013). This report basically focuses on the purpose, functions and
effectiveness of HRM practices along with different approaches of recruitment and selection.
Additionally importance of employee relation in respect of influencing HRM decisions making
as well as key element of employee legislation and their impact on HR decision making is being
specified in this file. Lastly, this assignment focuses on the application of HRM practices.
TASK 1
P1Functions and purpose of Human resource management
HRM is an approach used by organisation to enhance their employees productivity level
to its highest by maintain peace and harmony of working conditions. Moreover it assist company
to recruit and select potential candidates in their workforce so to increase profitability and sales
of company. JP Morgan have thousands of employees all over world and to handle all of them at
the same time is complex and hard in nature. Main aim of HRM is to create a bridge between
employees and employer which will assist them to reduce conflict due to lack of communication
or information.
Purpose of HRM regarding workforce planning and resourcing: It is given below with
functional examples in context of JP Morgan is as follows (Dwivedi and et. al., 2014):
 Profitability and productivity of company is directly related to the quality of workforce
they have in the organisation. HRM purpose is to find out the best suitable candidate for
organisation so that their efficiency will increase constantly. For instance, if JP Morgan
requires candidate for their big data department then HR work is to find out the
candidates who has some certificate in this field like SAS rather than recruit someone
who has no knowledge about it.
 Employees will only feel motivated at work if their needs are regularly considered and
fulfil by organisation. There are various needs of employees like compensation, working
conditions or environment, leaves at work, job timing etc. If all these needs are

completed by JP Morgan, then it will also motivate their employees to work harder and
help company to reach their common purpose. It will persuade to lower rate of employee
turnover ratio and acquisition funds for newer employees resulting in increase
profitability of company.
Scope of Strategic HRM:
Scope of HRM is vast as it covered many aspects of organisation like acquisition,
development, maintenance and control of employees working there. Different scope are
elaborated below,
Remuneration
It refers to monetary value which individual is getting after working for company.
Employees will feel motivated if many factors like leaves, salary, working timing are favouring
their working style. For instance, if data analyst at JP Morgan is getting high pay as compare to
other person in different company then it will automatically spark motivation in them and try to
work even more harder to attain their goals.
Workforce planning
It is an approach used by organisation to determine their demands and supply of labour
according to the work load. For instance if more candidates are hire for company against less
work then it will incur more cost to the company on the other hand if less people are hire against
more work then they would not be able to perform their work in assigned deadlines.
Functions of HRM
Managerial functions
Different types of functions which comes under managerial is explained below,
 Planning: It refers to plan step by step activities which should be conducted and achieve
so to attain mission and vision of company. Manager have to focus on how much
headcount are required by the company in near future and what type of skills and
competencies are required in them so to accomplish assigned task.
 Organising: This includes assigning of task in the organisation to workforce according to
their skills and capabilities so that higher productivity of employees would be attain. If
task are assigned according to their employees competencies then only they can achieve
their goals with full professionalism.

 Staffing: It means finding skills and competencies in the candidates for specific work
and hire them so that candidates can finish their task before given deadlines. For instance,
company have to recruit employees according to the required skills instead of skills that
are already present in them.
Operational functions:
 Training: Employees can only accomplish their task in an organisation if they are
equipped with all the skills and capabilities. Its HRM responsibility to inculcate skills in
employees by various means like giving workshop, classes, on and off the job training
etc.
Hard and Soft HRM approaches:
Hard HRM refers to when company considered their employees as resources or
machinery. Less pay is given to the employees as compare to amount of work they are doing.
Various features which includes is, low salary, redundancy, less empowerment, bad working
conditions etc. If JP Morgan follows this, then employees will try to avoid getting placed in this
organisation which will leads to shortage of employees.
Soft HRM means when employees is considered as assets of the company. It would
increase motivation level of employees which leads to increase in overall productivity of
company. Various means like high salary to employees, high motivation, favourable working
conditions comes under this. It will increase recruitment application for company which means
that company have to chose employees from pool of candidates which is a positive sign for them.
P2 Strength and weaknesses of approaches of selection and recruitment
Recruitment: It is the process of finding and hiring the best suitable candidate for the
job from within or outside the organisation(Kim, 2013). There are different approaches of
recruitment which are used by HR manager of JP Morgan in order to recruit best candidate for
an organisation. Internal recruitment: It is the process of recruiting the applicant from within the
organisation. HR officials of JP Morgan uses this approaches when they want to recruit
employees at quicker pace as well as when the organisation want to reduce the cost of
training and development process. In addition to this it also benefits the employees of an
organisation as they get the opportunity for promotion. Beside this it possess

disadvantage too that is it leads in limiting the value of suitable candidate in an
organisation.
 External recruitment: It is the process of recruiting candidate from outside of an
organisation. For example while using this approach HR officials of JP Morgan takes into
consideration campus recruitment process, advertisement process through different
medium like magazines, newspaper, social media etc. One of the benefit which the JP
Morgan will receive through this process of recruitment is that the company will get
skilled and talented workforce from worldwide. On the other side its disadvantage is that
it is a time consuming process and requires huge capital to carry out this process of
recruitment.
Strength and weakness of recruitment approaches
Strength Weakness
 When the HR of JP Morgan uses
internal source of recruitment it helps
in boosting employee morale and helps
in retaining talented workforce which is
termed to be the major strength of
recruitment approach for JP Morgan
organisation.
 Other major strength of recruitment
approach is that when the HR of JP
Morgan recruit candidate through
external source it help the organisation
to select and acquire talented workforce
who can result to bring better outcome
for he organisation.
 Recruitment through external source
result in increase in cost of an
organisation which is termed to be
major weakness for JP Morgan
company.
 Recruitment through internal source
result in lack of innovative ideas in an
organisation which can effect growth of
JP Morgan organisation.
Selection: It is the process of selecting the best and suitable candidate from those who
have applied for the vacant post in an organisation. There are different approaches of selection
method like personality test,skill test, personal interview etc. which can be used by JP Morgan in

order to select best suitable and talented applicant for an organisation(Sav, Harris and Sebar,
2012). Situation judgement test: In conducting this test HR manager of JP Morgan give certain
hypothetical situation to the applicant so as to find out what the reaction or with what
solution will the applicant will come up to deal with situation.
 Panel interview: In this type of interview a panel of interviewer will conduct the
interview with applicant, and various question are being asked by each panel interviewer
so as to analyse the knowledge and skill abilities of an applicant.
Strength and weakness of selection approaches
Strength Weakness
One of the major strength of selection
approach is that it help the HR manager of JP
Morgan to select talented and applicable
candidate for the organisation who can result in
increase in productivity and profitability ratio
of an organisation.
On the other hand major weakness of selection
approaches is that when HR manager of JP
Morgan select candidate on the basis of their
qualification then it result in underestimating
of capabilities of the applicant and because of
which company might lose talented employee.
P3 Benefits of human resource management practices for employee and employers
Human resource management perform various role and responsibilities which are
refereed to as HRM practices such as training and development session, recruitment, selection
motivate etc. so as to increase productivity and profitability of an organisation. In addition to
this HR manager of JP Morgan also consider several HRM practices which render benefits for
both the employers and employees of which some of them are specified below(Genevičiūtė-
Janonienė and Endriulaitienė, 2014):
HRM practices Benefits for employees Benefits for employer
Training and development
programmes
If the HR manager of JP
Morgan will render training
and development session then
it will help employees to build
If HR manager of JP Morgan
will render training to its
workforce then they will
perform their best and will

up the knowledge and skill
ability and will also help them
to become specialised in their
respective job profile.
come up with better outcome
for organisation. Thus, it will
help the employer of JP
Morgan to achieve their
desired aims and objectives.
Reward system If the HR manager of JP
Morgan will render reward
system in the form of money
or through appreciation it will
help in boosting up of
enthusiasm of employee and
because of which health
competition among the
employees will be generated
in order to achieve reward
system.
Similarly if the HR of JP
Morgan will render reward
system to its workforce, then it
will help to increase the morale
level of employees to give
their best performance. Thus,
better performance of
employee will indirectly
benefits the employers of JP
Morgan to achieve target goals
of organisation on specified
time period.
Performance appraisal system If the HR manager of JP
Morgan will continuously use
the different method of
performance measurement
then it will help employees to
become specialised in their
specific job profile and
chances of error will also
reduced.
On the other side continuous
performance appraisal of
employees will also be
beneficial for employer too as
it will help employer to
achieve increase in
productivity, profitability and
overall performance of JP
Morgan organisation.
Flexible working environment If the HR manager of JP
Morgan will render flexible
working environment to its
employees then it will help in
If the hr manager of jp morgan
will render flexible
environment to its employees
then they will be motivated to

creating a positive image in the
mind of employees that they
are being considered just like a
family members of an
organisation. Thus, it will help
in boosting employees
satisfaction level.
perform in the workplace and
will render better outcome for
the employers of an
organisation which will result
in increase in profitability ratio
of an organisation.
TASK 2
P4Effectiveness of HRM practices in terms of raising organisation productivity and profitability
Human resource management is termed as a planned approach of which the main purpose
is to manage workforce of an organisation effectively so as to increase the performance level of
each individual. In addition to this HRM of JP Morgan adopts certain practices so as to raise
organisation productivity and profitability and some of them are specified below(Klerck, 2014):
 Training and development programmes: In order to make employees and new
applicant familiar with the working environment an organisation must render training and
development session to its employees. So HR manager of JP Morgan must render training
session to its workforce. As with the help of training and development sessions
employees will remain update about the changes taking place in an organisation as well
as it will help them to update their knowledge and skill ability. Thus, if the employees
will remain update then they will perform their best and will render better outcome for
the organisation which will help to increase the profitability and productivity of JP
Morgan organisation.
 Reward system: It refers to the set of programs or motivational techniques which is used
by an organisation in order to motivate workforce on group level or on individuals level.
So in order to increase the productivity and profitability of an organisation HR manger of
JP Morgan must render both the reward system intrinsic and extrinsic. Intrinsic rewards
refers to those reward system which one get from their job satisfaction level, so HR
manager must flexible working environment, timely appreciation for their better
performance etc(Douglas and et. al., 2014). all this will help the employees to increase

their job satisfaction level. Whereas extrinsic reward system refers to the monetary
benefits like money, fringe benefits and promotions which the HR manager of JP
Morgan must render to their employees. Thus, it will help them to motivate their
workforce to perform and to give their best for the organisation and which will result in
increase in productivity and profitability of an organisation.
 Performance appraisal system: It is all about the systematic evaluation of the
performance level of the workforce so as to understand the ability of individuals for
future growth and development(Yu-Fang, 2012). It is also termed to be one of the best
HRM practices adopted by JP Morgan so as to increase the productivity and profitability
of an organisation. As JP Morgan has adopted the ranking method of appraisal where
the rater rank their subordinates on the basis of overall performance level. In addition to
this there are other methods too like Behavioural anchored rating scale, forced
distribution etc. which the HR Manager of JP Morgan can use so as to evaluate the
performance level of employees and training can be gives to those employees whose
performance level terms to be low. This will help to perform their best in order to result
better outcome for organisation which will indirectly result in increase in the profitability
and productivity of an organisation.
 Flexible working environment: It is also one of the HRM practices adopted by HR of
JP Morgan so as to render better working environment to its workforce. As employees in
modern era specifically prefer flexible working environment rather than centralised
working environment(Dysvik, Buch and Kuvaas, 2015). So HR manager of JP Morgan
prefer to render flexible environment which helps to motivate employees, decrease
employee turnover and to increase employee morale to work hard and to render better
outcome for the company. Thus, it will help to increase the profitability and productivity
of an organisation.
TASK 3
P5Importance of employee relation in respect of influencing HRM decisions making
In a workplace employees develops a relations with managements, co-workers and with
collogues. So its the prime responsibility of the HR manager of JP Morgan to maintain positive
relationship of employees with management and collogues as HRM decision making is highly

influenced by employee relation. Therefore importance of employee relation in respect of
influencing HRM decision making of JP Morgan is explained below(Stolton and Dudley, 2014):
 Conflict resolution: Good employees relation plays an important role in the overall
development of an organisation (Aqeela and Victor, 2016). Moreover better employees
relation influence positively in HRM decision making, as the decision which will be
taken by HR to resolve conflicts will be easily accepted by employees in case when there
take place positive employees relationship in an organisation. Similarly if the employees
doesn't make any positive relations with management then it becomes difficult for HRM
to take decision while solving conflicts. Therefore positive employees relation influence
positively on HRM decision making which result in increase in the productivity of an
organisation.
 Productivity: Organisation productivity can be increased if the HRM render flexible
working environment so as to build positive employee relation with management(Xavier,
2013). Like if JP Morgan adopts the centralised working style then in that case
employees get dissatisfied with such style so this indirectly influences the HRM
decision-making as they have to change their decision and should adopt decentralised
working style so as to build positive employee relation with management..
 Reduce employees turnover ratio: If an organisation wants to reduce increase in
employee turnover then HRM needs to take such decision which can creates positive
employees relation with management and with their co-workers. If JP Morgan has taken
into consideration autocratic leadership style so as to get work done from them, but this
style of leadership has lead to increase in employee turnover(Zeuch, 2016).Thus, it
influence HRM decision making as they have to take decision to adopt the democratic
style of leadership so that employees turnover get reduced.. Thus, it will help to build
positive employees relation with management and will also help to reduce employee
turnover.
Thus, it can be said that it is very much essential for HR manager of JP Morgan to build
positive employees relation with their co-workers and with management, as HRM decision
making is highly dependent on employees relation. Additionally if the management maintain
better employees relationship then there will be no involvement of trade unions which will help
in creating better brand image of the company in market. As the role of trade union is to resolve

the conflict and dispute which might take place among employers, employees and management
etc. So in order to reduce the involvement of trade union company should adopt different
strategies like better wage system, proper working and flexible environment, reward system on
the basis of performance and quality of work they have rendered to the company in the form of
outcome. Thus, it will help in building positive employees relationship with management.
P6 Key element of employee legislation and their impact on HR decision making
Laws are made by the local authority to maintain peace and harmony in the states which
directly creates impact on the decision making of HRM and organisation(Sukocoand
Prameswari, 2017). Its mandatory for every company to follow rules and regulation set by
government to avoid any type of legal issues. Laws which should be followed by JP Morgan is
given below:
Data protection act 2018
This act has recently updated and gets it royal assent on 23 May 2018. It states that
people of UK has the power to take control of their data and no one can share their information
without taking authorized consent from the individual. Moreover they have the power of how
much information they should provide to the other person. JP Morgan should sincerely followed
this act and does not disseminate employees information to the individual or group of people
who might take advantage of it. Apart from this, they can not demand confidential information
from them without any authorization from local authority. HR have to take care of every data
they have taken from the employees for smooth functioning of company and try to considered to
unauthorized person won't use that data for their personal benefits.
The Equality act 2010
This act states that no person can discriminate other person on the basis of their gender,
age, sex, disability, sexual orientations, religions, caste etc. If anyone has found guilty of doing
discrimination on these factors then government of UK will punish them with strict actions if
found guilty(Tadokor and et. al., 2012). JP Morgan should follow this law at the time of
recruiting and selecting candidates for new job or while give promotion to the employees. If this
act is not followed by company then it would create negative environment at the workplace
which will lead to lower productivity and profitability of company. Company should try to avoid
every factors which might affect company and employees efficiency and productivity in a
negative way. HR have to considered this act while giving appraisals or incentives to different