A Report on Human Resource Management Practices at Costa Coffee (HRM)

This report provides a comprehensive analysis of human resource management (HRM) practices at Costa Coffee. It begins with an introduction to HRM, outlining its purpose and functions, and then delves into the application of these functions in workforce planning and resourcing. The report examines recruitment and selection strategies, highlighting their strengths and weaknesses, and illustrates various HRM practices that benefit both employers and employees. It evaluates the effectiveness of these practices in terms of raising Costa Coffee's profit and productivity. The importance of employee relations in influencing HRM decision-making is explored, along with the impact of employment legislation. The report concludes with practical examples of HRM applications within a work-related context, offering insights into how Costa Coffee manages its human resources to achieve its business objectives. The report uses academic sources to support the claims made.

HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1) Discuss purpose and functions of human resource management and how are they
applicable to workforce planning and resourcing an enterprise. ................................................1
P2) Highlight strengths and weaknesses of distinguished approaches to recruitment and
selection. .....................................................................................................................................2
LO 2.................................................................................................................................................4
P3) Illustrate several human resource management practices which assist both employer and
employees. ..................................................................................................................................4
P4) Evaluate the effectiveness of different HRM practices in term of raising costa coffee
profit and productivity.................................................................................................................5
LO 3.................................................................................................................................................7
P5) Examine the importance of employee relations in respect to influencing HRM decision
making.........................................................................................................................................7
P6) Identify the key elements of employment legislation and the impact it has upon HRM
decision- making.........................................................................................................................7
LO 4.................................................................................................................................................9
P7) Illustrate applications of human resource management practices in work related context
using examples............................................................................................................................9
CONCLUSION.............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Human resource management is a strategic approach of hiring and developing staff
members in order to make them valuable assets for the enterprise. HRM practices is necessary to
carry out in a organization as this department deals with issues like, compensation, development
of organization, wellness, benefits, staff training etc. The main motive of HRM is to upgrade the
working efficiency. This report is based on Costa Coffee which is a British multinational coffee-
house. It was established in the year 1971 by Sergio Costa and Bruno Costa. This assignment
covers purpose and scope of HRM in an enterprise. Moreover, strengths and weaknesses are
studies of various approaches related to recruitment and selection (Bailey and Garavan, 2018). It
also throw-light on the importance of HRM practices and how it affect the decision making
process. Moreover, distinguished employment laws are studied so that business can run
effectively without any government interference. Also, it focus on applications of HRM
practices carried out in an administration.
LO 1
P1) Discuss purpose and functions of human resource management and how are they applicable
to workforce planning and resourcing an enterprise.
HRM (Human Resource Management) can be defined as practice of recruiting,
deploying, training, motivating etc. of employees so that they can be turned into assets of the
administration. The core function of this division is to includes workers training, compliance and
safety, staff recruitment, payroll, internal relations, scheduling etc. HRM plays a strategic role in
handling diversified people and workplace culture in the cut throat competitive world. By
carrying out human resource management in an administration it assist in raising work efficiency
among employees by boosting them on continuous basis. Due to which productivity and
profitability volume raises accordingly (Banfield and Royles, 2018).
The purpose of human resource management are explained as follows:
Training and development: In context to Costa Coffee the main purpose of HRM is
training and development. It plays a significant role in retaining effective and skilled staff
members for longer time duration. Costa Coffee train it's existing and new employees on timely
basis so that their working efficiency can be raised due to which productivity be boosted up in
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the intance competition. The main obligation of enterprise is to render training and accordingly
resolving workers problem as well as stimulating them to perform their task effectively.
Building healthy relations with staff members: In order to create goodwill firm need to
generate healthy and transparent relations with it's employees in the market. It is another purpose
of human resource management which is followed by Costa Coffee in order to gain competitive
advantages in the global market. Maintaining effective relations with staff members helps
achieve the desired goals and objectives on the given time duration. In this case the main role of
HRM is to involve workers in their decision making process so that their morale value can be
upgraded and assure them that they are valuable human assets of the administration.
The distinguished functions of human resource management are explained as :
Recruitment and selection: The another function of HRM is recruitment and selection.
In this case it's the obligation or duty of the human resource management to recruit skilled and
qualified participants or the vacancy. By carrying out this effective nominee can be hired who
will be accountable to carry out their job roles effectively and efficiently. Costa Coffee can
achieve their objectives on time when skilled and talented candidate is hired (Baum, 2016).
Training and development: T&D (Training and Development) aid the administration is
retaining potential workers for longer time duration. Proper training session is conducted by
Costa Coffee so that unseen skills, abilities and capabilities can be nourished which will be
beneficial for their career growth. It will directly or indirectly advantageous for the firm as it
assist in raising market share.
P2) Highlight strengths and weaknesses of distinguished approaches to recruitment and
selection.
Recruitment can be termed as investigating for prospective nominee with needed
qualifications and hiring them for the job opening in the administration. The main purpose of
this is to meet the requirement of the post vacant by recruiting candidate with appropriate skills.
Administration uses both internal (Former employees, Ex workers etc. ) and external (placement
agencies, campus recruitment, advertisement, consultancies etc.) methods to recruit appropriate
workers. Internal hiring is done on the basis of promotion, transfer, demotion, upgrading etc.
Whereas, selection can be defined as choosing the best and qualified employees out the
shortlisted candidates for the vacant profile (Bratton and Gold, 2017). Costa Coffee adopts the
following recruitment and selection procedure which are discussed as follows:
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Internal recruitment process: In this case recruitment of participants are done from
within the organization. By doing so it is advantageous to the firm as it saves time and money at
a large scale. Costa Coffee carries out internal source of recruitment as employees are examined
deeply from years so company does not have to spend precious time in explaining everything
from starting. When internal hiring is done then it directly or indirectly uplift the moral value in
the eyes of the customers in the competitive world. The strengths and weaknesses of internal
source of recruitment are discussed as follows:
Advantages Dis-advantages
 It directly uplift morale value and
retention rate of employees in the firm
when internal hiring is done within an
organization.
 Existing workers can adjust with new
job role in less time domain. It saves
time and money both. discord
 Internal recruitment is done when
promotion , retirement of employees,
demotion etc. takes place in the firm. In
this case less paper work is needed as
firm has all the details (Brewster and
Hegewisch, 2017).
 Internal recruitment brings potential
animosity and creates discord or
conflicts in the workplace. Due to
which productivity decreases.
 It creates conflicts among existing
team members due to which
productivity decreases.
External recruitment process: Costa office hires skilled and potential workers from
external sources such as through advertisements, campus recruitment, agencies etc. By doing so
new and innovative idea emerge which leads the firm to accomplish the objectives on time. In
this case Costa Coffee adopts online recruitment process to capture attention of applicants. Here,
the strengths and weaknesses on online external recruitment are discussed as:
Strengths Weaknesses
 External recruitment brings better  It is more time consuming and leads to
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competition in the working
environment. Due to which goals are
meet on time.
 It aid to motive the existing staff to
more much better then previous.
 Through external hiring firm gets an
open platform to investigate for high-
quality and skilled applicants. Which
will assist in achieving it's diversity
requirements.
high cost.
 Conflict and disputes increases between
existing and new employees.
 Many times unsuitable or wrong
applicant is hired for the vacant post
(Brewster and Sparrow, 2016).
Distinguished approaches to work force planning:
Approaches to training and development: On the job training is the approaches to
T&D which is provided to the employees during their job timing. It is done to motivate them to
work effectively and efficiently.
Approaches to reward system: Total reward system is the approaches to reward. Here,
workers are given monetary (cash amount, cheques etc.) and non- monetary (gifts, holiday trips
etc.) value which boost them up to work day and night to meet the desired goals on time.
LO 2
P3) Illustrate several human resource management practices which assist both employer and
employees.
HRM practices refers to as instrumental which aids in managing people and stimulating
them to work effectively in the global market. By adopting this in the organization it directly or
indirectly helps in achieving departmental goals and upgrades ratio of productivity in the market.
Moreover, this aid the administration in building strong and healthy relations among employer
and employees (Brewster and Farndale, 2018). Here, there are different human resource
management practices which are carried out by Costa Coffee are as follows:
Recruitment and selection: Recruitment is the procedure in which right candidate is
hired by examining all the qualification needed for the post vacant. Selection is the process of
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choosing appropriate candidate out of the shortlisted applicants. R&S is necessary to carry out in
Costa Coffee so that best applicant can be selected for the company which can leads to the
growth and development in the international market. This practices of HRM helps the business
concern to capture huge market ratio as well as raises market value.
Training and development: This human resource management practices plays a
significant role in enriching existing skills of the employees. By providing training and
development to the staff members on continuous basis workforce efficiency can be raised
respectively. Due to which productivity and profitability volume boosted up in the intance
competition. Costa Coffee train their new and old staff members so that new candidates can
better understand their job role and existing can evaluate their hidden skills and competences.
The benefits to employers and employees in context of (training and development) and
(recruitment and selection) are as follows:
Benefits to employer Benefits to employees
1. By hiring right nominee for the post
vacant it will aid the business concern
to raise productivity level in the market.
2. Organization providing timely training
and development to the staff members
then potential and skilled workers can
be retained back for longer time
duration (Brewster and Morley,2016).
3. The Human resource management
practices is mandatory to perform in the
working premises so that any kind of
discrimination does not occur and
employees work safely in order to meet
their own and firm goals.
4. Workers unseen skilled gets polished
by training and development which will
assist them in their career growth.
Benefit to employees in context of recruitment:
 Employees workforce efficiency can be raised at a large scale.
 Applicant acquiring right post directly achieve set goals of the firm due to which the
chances of getting reward, recognization, appraisal increases.
Benefit to employer in context to recruitment:
 Reduces the cost of hiring in the organization.
 Effective recruitment decreases staff member turnout ratio at a large scale.
Benefit to employees in context of training:
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 Applicant existing skills and knowledge can be raised at a large scale.
 Employees performance will be raised due to which positive image can be build in the
working premises.
 Nourished skills helps the candidate to grow in their career in the coming year.
Benefit to employer in context to training:
 Motivated employees perform effectively and efficiently due to which emerging needs of
the customer can be fulfilled.
 Skilled and capable staff member's can be re-attained for longer time period.
P4) Evaluate the effectiveness of different HRM practices in term of raising costa coffee profit
and productivity
Human Resource Management (HRM) indicates to that systems, policies, and practices
which motivates employees to well perform, behaviour, and retaining in the organisation. There
are various practices which can help coffee costa to achieve their targets includes recruitment
and selection, highlight performer, fair remuneration, and many others (Shen and Benson,
2016). By helping of these practices they can achieve their objectives and enhance their
productivity. These practices can impact the functions or operations of costa coffee in a positive
way which is described below.
Recruitment and selection – It is one of the important part of any organisation (Nankervis and
Shields, 2016). In order to differentiate costa coffee from competitors, they are required to
select right employees for their work. After adopting this practice the Costa coffee choose
most suitable employees with the right skills and levels of confidence for a particular job.
This practice is become a boon for them as it is helped them for increasing their productivity
and profitability. In respect of this practice, every organisational performance is based on
skilled employees so they can achieve their goals, targets and can save their time and money
with the right employees.
Fair and performance-based compensation – This practice refers that every company should
giving fair remuneration to every employee according to their work. This practice helps
Costa coffee to sustain their best employees for a longer period of time in the organisation
because they always give their employees fair remuneration according to their performance.
Moreover, they always able to find that is every employee is different in their own way and
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have some different skills so they compensate every employee according to their
performance (Stone and Deadrick, 2015). This compensation can be in monetary terms and
non monetary terms also. By helping of this they are succeed in retain high performing
employees and giving proper satisfaction to them.
Safe, healthy, and happy workplace – Employees want a safe, healthy, and happy environment
where they can feel like a home and stay with the organisation freely. By providing a
physically safe surroundings and healthy behaviour costa coffee motivating their employee
to do hard work. According to them, if employees are happy at their workplace and feel
comfortable to talk about anything like their issues and supports they might need in the
company then they will always take part in the organisation activities and help company to
achieve their targets and profitability (Nankervis and Shields, 2016).
Training of employee – Training is essential part of any organisation. In context of Coffee
costa, they are conducting various training and development programs for the providing
proper training to the employees. By giving a better training they are trying to enhance the
skills and knowledge of their employees which they are using to increase productivity and to
succeed in the marketplace. So basically organisation performance is generally based on
their training programs that how they are providing training to their employees.
Highlight performers – It is one of the best practice which company follows to enhance their
productivity by motivate their employees. Every employee wants respect and intention of
other employees in the organisation. Company's overall performance is basically based on
employees performance, so that is the reason for succession of costa coffee because they
always highlights their best employees in the organisation to inspire other employees to do
hard work (Taylor and McGraw, 2015).
LO 3
P5) Examine the importance of employee relations in respect to influencing HRM decision
making
Employee relation are essential for the success of the organization as it ensures smooth
working . When the employees are working effective in Costa Coffee it results in achieving
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desirable goals as well as helps to build goodwill in the market place. However, some of the
benefits of employee relations influencing HRM decision-making are:
 The HR of Costa Coffee includes the employees of their organization in decision making
process as after this, they are only one whose work will be affected most.
 The good and strong relationship with the staff can helps HR manager to understand their
basic needs and requirements. After understanding the need of staff, the HR manager of
M&S can easily take the decisions which are beneficial for the employees as well as for
the organization too (Cascio, 2015).
The strong relationship between employees and HR manager can reduce the chances of disputes
and conflicts.
Employee relation can be sated as building healthy and strong relations with their staff
members working under one roof. For Costa Coffee building clear and transparent relation with
employees are very important. As it aid the Costa Coffee to create goodwill in the market as
well as positive working environment is created in the premises.
Trade unions can be defined as administration formed by people related to same field in
order to achieve similar goals of it's members. There are various roles which are carried out by
trade union in the open market. Some of the examples of trade unions are, regulate relations
between workers and employer, raise new demand on behalf of it's members etc.
The major areas such as, training and development, compensation, health and safety, job
design decisions, recruitment decisions etc. directly affect the decision making by HRM in the
administration . The area are discussed as follows:
Training and development decisions: HRM focus on training and development
decisions of employees so that productivity can be raised at tremendous scale. It is the core task
which HR of the firm effectively carry out in the open market. Costa Coffee take effective and
immediate decisions in context to this so that smooth function of the business can be carried out.
Recruitment decisions: HRM of Costa Coffee take effective recruitment decision so that
appropriate nominee can be placed at the vacant place. It directly or indirectly assist the firm to
select skilled and capable applicant so that overall performance can be raised in the market.
Compensation: Staff members working day and night to meet the set standards in the
market place. Costa Coffee provide deserving candidate compensation, reward, incentives etc. in
appraise then for their work.
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The affect of employee relation on HRM decision making process are explained as
follows:
Employment security: In an organization employees relations are unhealthy then it
directly affect the decision making process of HRM. Costa Coffee design policies in order to
improve employment security in the open market . But the relations are unhealthy due to which
idea dropped out and productivity ratio reduced at a large scale.
Working conditions: HR Of Costa Coffee frame policies for the betterment of the
employees and to provide them effective working conditions. Positive bond motivate them to
work for employees betterment whereas, unhealthy relations deny HRM to take positive decision
for staff members.
P6) Identify the key elements of employment legislation and the impact it has upon HRM
decision- making
Employee legislation is attempt to protect the employees at the workplace. This law is
prevent employees from unfair dismissal and discrimination in the organisation. The role of
employment legislation law is ensure that employees are treated well and to develop
employee/employer relations. Every company have to follow this employment law to protect the
both employee and employer rights in the organisation. Like other companies, costa coffee is
also followed the employment legislation to protect both employee and employers rights. There
are various acts which is followed by Costa Coffee, some of them are describe below-
 The Equal Pay act of 1963 – This act is made by the government to makes illegal for
companies to pay different wages on the basis of gender of employees which are
working at a same position and responsibility level. In context of Costa Coffee, this
company is adopting equal pay formula and give equal pay to the every employee who
are working at the same position in the organisation. By following this act they can
motivate their employees that they will receive equal remuneration in respect of their
work. So, the employees gets inspire to do hard work for increase the profitability of the
organisation.
 The working time directive, 1999 – This act defined the minimum working hours of
employees in the organisation. This act helps coffee costa for sustain their employees for
a longer period of time because by followed this act an employee do only 8 hours works
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