Human Resource Management Report: Ernst & Young - HRM Practices

This report provides a comprehensive analysis of human resource management (HRM) practices at Ernst & Young, a multinational business consultancy. The report begins by defining the purpose and functions of HRM, emphasizing its role in workforce planning and resourcing, employee engagement, and compliance with government policies. It then delves into the effectiveness of key HRM elements, including recruitment and selection methods, exploring both internal and external recruitment sources, and assessing the strengths and weaknesses of each. The report also examines the benefits of various HRM practices for both the employer and employees, highlighting the advantages of a selective workforce, high employee retention rates, a positive work environment, and employee development. The report emphasizes the importance of training, reward management, and maintaining harmony within the organization. Practical examples are provided to illustrate the application of HRM principles within Ernst & Young, offering insights into how these practices contribute to organizational success.

Human Resource
Management

Table of Contents

INTRODUCTION
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Human resource management means activities which are planned for managing,
organising, controlling, directing, work force of organisation. HR manager deals with placing
correct employee according to its skills, knowledge and competencies. This helps in improving
services of organisation. Hence HR function is tough and crucial (Bulgurcu, Cavusoglu and
Benbasat, 2010). These days, organisations gives importance to employees because they are
responsible for dealing with work force of organisation. If wrong candidate is placed, then this
proves to be wastage and cost. This report is based on Ernst & Young which is a multinational
organisation which provides business consultancy services. This organisation has headquarter in
London, UK. This report covers purpose and scope of Human Resource management,
effectiveness of key elements of HRM, internal and external factors which affects HR decisions.
At last it provides some practical examples of human resource management.
TASK 1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing
Human resource management is the important department of Ernst & Young because
they are the people who select best force for organisation. This helps to select skilled employees
and hence performance of overall organisation improves. As there are many candidate which
applies for the post, it is responsibility of HR manager to select best among them according to
requirement of designation and skills, characteristic and qualification of candidate. This
department is responsible for planning business workforce so operational efficiency can be
achieved. When candidate is placed according to their skill, knowledge, behaviour, this is fruitful
for performing operations well.
PURPOSE OF HRM
Workforce planning- Planning related to workforce is important and essential because
this helps in performing commercial activities. There are many departments in Ernst & Young
such as marketing, sales, IT, etc. so with proper planning appropriate number of employees can
be place at organisation (Cox, Arnold and Tomás, 2010).
Engage employees- Employees are the source through which brand image of Ernst &
Young is good. They deal with clients and provide them solutions. Hence HR manager provide
them chance to take part in decision making, so they are aware about reasons behind performing
actions.
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Comply with government policies- Ernst & Young is the organisation which runs in
society, so there is crucial role of government policies. It is responsibility of HR manager to take
care of government policies such as legal laws, etc. This reduces possibilities of government
interference and operations of Ernst & Young can be run in smooth manner.
FUNCTIONS OF HRM
Planning remunerations and rewards- Workforce works for getting some benefits from
organisation. There is difference in demands of employee (Decker, Riley and Siemer, 2012). HR
manager is responsible for planning remuneration according to skill, experience, designation of
employees. When performance of employees are up to the mark, then HR manager of Ernst &
Young has to recognise employees through rewards, monetary or non monetary benefits.
Training and development- Training is the process through which knowledge of
employees gets polished according to current market trends. Ernst & Young works as
management consultant, there are many technological changes taking place such as technological
up- gradations, change in computer software, etc. HR manager has to plan training events which
is most relevant for employees and positive results can be seen on performance of workers.
Maintaining harmony in organisation- There are many employees working in Ernst &
Young. They have difference in mindset, perception, geographical background, so sometimes
there are possibilities of conflict among them. This gives negative impact on performance of
employees at workplace. Hence it is responsibility of HR manager plan different entertainment
related activities so interaction among works improves and harmony in organisation can be
maintained (Eisenberger and et. al., 2010).
From the above mentioned functions and purpose of human resource management, it is
clear that managers are responsible for planning workforce in appropriate manner and placed
candidate appropriately according to skills and knowledge. There is positive impact on
performance of Ernst & Young and hence they are able to maintain good brand image in society.
M1 Assess how the functions of HRM can provide talent and skills appropriate to fulfil business
objectives
As there are many departments in Ernst & Young, so it is responsibility of HR manager
to analyse requirement of employees. After analysing they take actions for selecting best
candidate. This provides best candidate out of crowd for the post. When employees are well
aware about their job responsibilities and personalise in this sector. This helps in providing best
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quality services to client and hence satisfaction can be achieved. For instance: a candidate has
good communication and interaction skills, then HR manager must place such candidate at sales
departments. This helps to improve sales and profits of organisation (Farndale, Scullion and
Sparrow, 2010).
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection
Section and recruitment are the basic functions of HR manager. There are different
approaches used by manager of Ernst & Young to select best candidate.
RECRUITMENT
Recruitment is a positive process which invites employees to apply in Ernst & Young for
specific designation. There are numerous people which applied according to skill, experience,
qualification, etc. There are two methods of recruitment i.e. internal and external source.
INTERNAL SOURCE
In internal source of recruitment, managers of Ernst & Young use existing employees for
the vacant post. Transfer, promotion, re- allocating existing employees, etc. are some examples
of this method.
Advantage of this methods is it is easy to fill vacant places frequently and existing
employees has knowledge related to working environment, so less possibilities of labour
turnover. Internal source of recruitment requires less time and cost for filling vacant profile in
Ernst & Young.
While disadvantage of this method is use of traditional methods at work place (Fine,
2012). There are possibilities of biasness, which affects morale of workers and it impact working
efficiency. There is less scope of selecting candidates with the help of internal source of
recruitment because selection is done from candidates within Ernst & Young.
EXTERNAL SOURCE
As per external sources, there is use of external sources place workers at workplace.
Employment agencies, campus placement, etc. are examples of this source.
Advantage of this method is use of new and fresh ideas at work place. While
disadvantage is low resistance of new employees because they are not familiar with
organisational environment.
Selection:
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After recruiting candidates, section is done. In recruitment many candidates are applied
for the post. Afterwards managers of Ernst & Young use different techniques to select candidate.
Hence there is sorting of employees. This methods is negative process. There are many methods
of selecting individuals. Some of them are as under-
Interview- Interview is a formal way of interaction with candidate. There is personal
interaction among HR manager and candidate (Fulton and et. al., 2011). In interview candidate
has Curriculum Vitae which contains their personal, professional family background
information. On this basis, there are some questions asked with employees to judge its perception
and mindset.
Advantage of this method is HR manager is able to personally contact with candidate to
understand level of knowledge and skills. With the help of interview it is easy to provide
knowledge about job profile and hence it is easy to analyse their preference to work or not.
While disadvantage of this method is sometimes candidate feel nervous and they are not able to
give up to the mark. Sometimes, it is not easy for candidate to provide information related to past
job and experience due to lack of confidence, then this method is not relevant.
Ability and aptitude test- This test is conducted before interview to judge knowledge of
candidate in relation to subject matter. There are some general and subject related questions
which has to be answered by individual. This test can be pursued online or offline.
Advantage of this method is that knowledge about subject matter can be examined, so it
is easy to scrutinise employees. Aptitude test provides knowledge about different aspects which
is relevant and significant for getting information about relevant topics. Disadvantage of this
method is this is time and cost consuming process and questions are not relevant or up to the
mark of candidate. This test is conducted through online system, so in case of technical issue this
affects test and confidence of individual.
M2 Evaluate the strengths and weaknesses of different approaches to recruitment and selection
Above discussion shows strength as well as weakness of selection ad recruitment process.
Internal source of recruitment are less time and cost consuming process (Hobfoll, 2011). While if
managers of Ernst & Young use internal source of recruitment then there is use of same old and
traditional methods of working. If external source of recruitment is used by managers, then new
and fresh personnel are placed with has good and effective ideas which are fruitful for growth of
Ernst & Young. There are less possibilities of biasness and customers remain satisfied. Hence
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managers of Ernst & Young must use external source of recruitment for lower level personnel
because they have new and creative ideas to pursue commercial activities. While internal source
must be used for top level managers.
TASK 2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee
HR practices means activities which are performed by HR manager. Such activities
includes planning for remuneration, negotiation with trade union, etc. These practices are
beneficial for Ernst & Young and work force as well (Iles, Chuai and Preece, 2010). Hence it is
responsibility of HR manager to plan activities in best and relevant manner. There are some
changes which has to be made in working style which helps to maintain god brand image in
industry. HR manager of Ernst & Young are responsible to frame training event for improving
knowledge of employees. This practice is fruitful or employees as well as employer. Employees
are satisfied that they are working with new and latest techniques, while operational efficiency of
Ernst & Young gets improved because resistance rate of employees in organisation is more.
Some benefits are as under-
Benefits for employer
Selective workforce- With the help of HRM practices, best candidates are place at Ernst
& Young. Managers of organisation are working to place best candidate according to skills and
competencies. When organisation has skilled employees then operational efficiency can be
achieved. This helps to perform operations with full efficiency and hence good consumer base
can be created.
High employee retention rate- HR department deals with employees working in
organisation. This is the department which analyse needs and demands of employees and plan
policies accordingly. HR manager of Ernst & Young if take acre of demand of employees, then
this keeps workforce satisfied. Employees do not want to leave organisation. This ultimately
helps in maintain good and long term relations with workers (Kerlinger and et. al., 2013).
Promoting positive environment- HR managers works to create harmony among
employees working in Ernst & Young. This helps employees to focus more on operations work
i.e. providing consulting services. This is effective and organisational growth and development.
Sales and revenues of Ernst & Young gets improved. Positive environment within organisation
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will lead to maintain provide best consultancy services to client and hence brand loyalty gets
improved.
Benefits of employees
Remain relevant- Training and development programme are planned by HR manager of
Ernst & Young, so it is responsibility of HR manager to plan most appropriate training plan.
When new ideas, working style, knowledge are enhanced through training, then employees
wants to be part of organisation. Employees are satisfied that they have relevant information
which is effective for performing operations (Pfeffer, 2010).
Reward management- Reward is the extra benefit which is provided to individual when
they are giving their best, this is the best technique which is used by managers of Ernst & Young
so it is easy to make organisational objectives achievable. Hence it is responsibility of HR
manager of Ernst & Young to plan operations according to demand of employees.
Platform to share reviews and issues- HR manager of Ernst & Young works to deal with
employees. They use different techniques such as personal interview through which they can
judge perception and mindset of workers. Hence in case of any issue, employees can share their
thought with HR manager.
Information source- HR manager circulate information among different department. They
paste information at notice board, business e- mails, etc. which are relevant and effective for
telling information to employees. Hence for employees HR practices is a source of transferring
information and hence employees are are about activities which are happening in organisation.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity
HR policies work for the benefit of employees, there is direct relationship between
employees satisfaction and profitability of organisation. There is use of different aspects which
helps to raise profits and productivity of organisation. If employees are satisfied, then they give
best and this helps to maintain good brand image in industry (Salvendy, 2012). There is
effectiveness of HRM practices which is relevant for productivity and organisational profits.
They are discussed as under-
Contingent compensation- Contingency stands for emergency. There are some
situations which are not favourable for Ernst & Young. In this situation, employees plays crucial
role. When employees give their best in unfavourable situation, then it is responsibility of HR
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manager to give provide compensation. This makes employees motivated and they give their
best. This assist in improving profits and productivity.
Decision making rights- Ernst & Young is big organisation they have hierarchical
structure. Power is held by few top level managers. This affects business operations in negative
manner because employees has to ask for every decision with managers. In order to motivate
workers, there must be use of some decision making rights. This motivates employees to give
best because they are liable for negative results. Decision making power provides feeling of
responsibleness.
Extensive training- Training is one of the important aspect in service sector. This
improves performance of employees as they are able to learn new ideas and implement at work
place. With training employees care satisfied that they are working with latest techniques. This is
relevant and effective for getting positive impact on production and profits (Shuck and Wollard,
2010).
Flexible working environment- There is requirement flexible working environment which
can be achieved with the help of proper planning by HR manager of Ernst & Young. This can be
done with the help of proper planning with the help of HR decision making. This option makes
changes in working style of workers and they are satisfied with workplace.
Above discussion shows some points which assist in improving performance of workers
because they are satisfied with workplace. Training helps to improve operational efficiency and
employees are working with latest techniques. If employees are not satisfied then they will not
perform well and this affects growth of Ernst & Young.
M3 Explore the different methods used in HRM practices, providing specific examples to
support evaluation within an organisational context
There are many activities which are part of HRM practices such as selection, recruitment,
training, entertainment related activities, etc. Ernst & Young is big organisation having
numerous employees, so it is responsibility of managers to maintain harmony at work place at
among employees. In order to maintain harmony, there is use of employees, there must be some
entertainment related activities. This helps to create interaction among them and coordination
can be maintained among them, this is fruitful for maintaining reducing cost and improving
profits.
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TASK 3
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making
Employee relations refer to the efforts made by companies to facilitate effective and positive
relationships between the employees as well as employers of an organisations. It is very
important that organisations work in a manner that equal treatment is received by all its
employees. The effectiveness of employee relations in a firm could be determined by their
commitment and loyalty towards the company as well as their satisfaction levels. Ernst & Young
uses employee relations as human resource strategy to ensure the optimum usage of these human
resources in the company. The importance of employee relations in respect to influencing HRM
decision making is mentioned below: Productivity: Ernst & Young operates in different parts of country marinating good brand
image (Song and et. al., 2010). It is of vital importance that HR managers of the company
ensure that the employees stay productive regardless of the situations. To maintain the
brand image of the firm, HR managers must take decisions that contribute in increasing
the productivity of the employees. They should be fair to them and decisions taken must
enhance their productivity in the firm. Regularity: In an organisation like Ernst & Young, the daily operations involve almost
all the individuals to ensure a smooth running of business operations. Absence of even
one employee hinders the work and sometime exerts pressure on other individuals.
Decision-making of HR managers must ensure better employee relations so that
employees stay motivated to work with efficiency daily and provide best services to
clients. Loyalty: Employees are assets for growth and development of Ernst & Young. They are
exposed to company's working, their strategies and even decision-making process
adopted by the firm. Through effective customer relations, the HR managers of the
company must ensure this loyalty in each employee of the organisation. This can be done
by involving them in decision-making of the firm so that they realise their importance
and provide better commitment towards the firm.
 Conflict Management: There are many employees working at different designation in
Ernst & Young, so it is essential to maintain harmony among them. But there are times
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when these conflicts arise on a large scale. This could be between employees or between
employers and employees. HR managers must take decisions without being biased and
must build take effective decisions that strengthen their employee relations.
There are some legal issues which has to be considered by managers of Ernst & Young
such as equality, data protection, dismal, health and safety, redundancy, etc. which is relevant
and significant for HR decision making. With considering it is easy to maintain good and
positive relations with workforce.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making
Employment Legislations or employment law includes those set of laws and regulations that
protect the rights of the employees working in the workplace. It covers all the issues related to
employees, for instance, occupational safety, retirement and pension plans, discrimination in
workplace and so forth. It is very essential for companies to follow these regulations as they have
an impact on the whole organisation (Zheng, Yang and McLean, 2010).
Ernst & Young must ensure that these laws are rightfully followed within the company
and employees are treated fairly and equally. Moreover, the company must ensure the safety of
its employees and give it a full priority. These legislations are briefly discussed below: The Sex Discrimination Act, 1975: This refers to the discrimination against employees
on the basis of gender. Companies often discriminate employees during selection of
employees for particular jobs, during training sessions, while distributing incentives and
opportunities for growth, etc. Managers at Ernst & Young must work in an ethical
manner and must not discriminate any employee regardless of the gender. Equal
opportunities and fair incentives must be given to employees, even unanimous training
and development programmes must be introduced in the firm. The Equal Pay Act, 1970: This act states that men and women must receive equal pay
for performing similar task. This means that both the types must be given equal
importance in the firm. Ernst & Young must ensure equal pay to all its employees and
must value women and men as equal. Such equality would facilitate better commitment
of employees in the firm and would enhance their productivity knowing that it would be
paid.
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 The Race Relations Act, 1976: The act suggests that under no circumstances must
employees be discriminated on the grounds of race. This discrimination might be on the
task given to the employees or the pay scale, or even opportunities given to them. The
decisions taken on salaries, incentives, bonuses and opportunities at Ernst & Young must
focus on facilitating equality in the workplace and the clients. In addition to this, the
managers must ensure that employees belonging to other religion must be treated fairly
amongst other employees of the organisations. This would enhance the reputation of the
firm in the market and they would be able to gather more customers internationally
(Wang and Noe, 2010).
 The Disability Discrimination Act, 1995: This act is applied to the organisations who
have more than 20 employees. They must not discriminate any employee if they are
disabled. In contrast to this, they must be given proper support and motivation to work
despite of being incapable physically. Managers at Ernst & Young must provide better
access to disabled employees in terms of transport, seating facilities elevators etc. These
decisions would enhance the productivity of the employees as they will be equally treated
in the work place.
Impact of employment legislations on Human resource management:- The HR
managers must ensure that these legislations are well applied in the organisations. These laws
influence employees, working environment, business operations, salary issues, etc. In context to
Ernst & Young the HR manager must employee protection through these legislations.
M4 Evaluate the key aspects of employee relations management and employment legislation that
affect HRM decision-making in an organisational context
HR manager of Ernst & Young follow some legal laws and regulations such as
employment act. These are the laws which assist in performing operations in ethical and relevant
manner. It is essential for manager to follow these laws, so less possibilities of government
interference. If there is alteration in these laws, then HR manager must alter organisational
policies. Employees are satisfied that Ernst & Young has relevant style of working. This
improves image of Ernst & Young in front of stakeholders. With the help of legal norms,
employer and employee relations are good which assist in improving quality of product and
services (Song and et. al., 2010).
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TASK 4
P7 Illustrate the application of HRM practices in a work-related context, using specific examples
Person Specification:
This refers to the skills that are required in a potential job candidate in order to complete
the activities and roles of the position offered by the firm. This is necessary for the firms as it
would provide a clear idea of what is required from the candidate. It includes the educational
qualifications of the candidate, training experience and their personal qualifications that must be
possessed by the individuals (Teece, 2012).
The current requirement at Ernst & Young is of an Human Resource Manager, the person
specification for which is discussed below:
PERSON SPECIFICATION
Organisation: Ernst & Young
Job title: HUMAN RESOURCE MANAGER
Criteria Essential Desirable
QUALIFICATIONS MBA Executive (Human
Resource)
Full time MBA
RELEVANT EXPERIENCE
Experience of five years in
same field.
Trainee at any reputed
company for more than 12
months.
SKILLS AND
COMPETENCIES
 Appropriate knowledge
of human resource
practices
 Managing customer
relationships
 Effective
communication skills
(both verbal & written)
 Effective influencer
 Leadership Skills
 Presentation Skills
 Management Skills
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Job Advertisement: A job advertisement refers to electronic or print notification which
shows intentions to hire personnel for a particular designation in the firm. Job advertisement is
used by the managers to get application by information society about the post that is vacant. For
HR Manager, the Job Advertising used at Ernst & Young is as follows:
JOB ADVERTISEMENT OF ERNST & YOUNG
JOB OPPORTUNITY FOR HUMAN RESOURCE MANAGER
EDUCATION BACKGROUND: MBA (Human Resource)
EXPERIENCE: Minimum 5 years at the post of Human Resource Manager
AGE CRITERIA: 25 to 35 years
PACKAGE: As per competencies and skills.
OTHER ADVANTAGE: As per policies of Ernst & Young
LAST DATE OF SUBMISSION:
Send Curriculum Vitae (CV) at personal Email ID of the firm.
Address: Ernst & Young, London, United Kingdom. Phone: [phone]
M5 Provide a rationale for the application of specific HRM practices in a work-related context
HR practices must be implemented in appropriate manner because this helps to place
appropriate candidate according to skill, qualification. Job advertisement is management tool
which market job position in front of society. Advertisement can be done in newspaper, online
source, etc. These are the ways through which designation, organisation, pay skill, experience,
etc. can be conveyed. Person specification provides knowledge about skills, qualifications which
are required by candidate to become competent for post (Tarique and Schuler, 2010).
CONCLUSION
Thus, it is concluded by the report that Human Resource Management is very important
in organisations driving towards achieving success. The report includes the purpose and
functions of HRM which is essential for organisations to effectively manage the employees. It
also includes a detailed analysis of recruitment and selection process along with emphasis on
their advantages and disadvantages. The report covers benefits of various HRM practices within
organisations for both employees as well as employers. Along with this, effectiveness of
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different HRM practices is evaluated on the basis of their contribution in raising organisational
profit as well as productivity. Employee relations and their influence on Human Resource
Management is also discussed briefly. The report inculcates the key elements of employment
legislations and their impact upon Human Resource Management decision-making. Lastly, the
application of HRM practices is discussed by preparation of job specification and job
advertisement.
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REFERENCES
Books and Journals
Online
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Human Resource Best Practices. 2018. [Online]. Available through:
<https://www.digitalhrtech.com/human-resource-best-practices/>.
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