Impact of HRM Practices on Organizational Productivity: A Case Study

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within two organizations: Aston Martin and Tesco PLC. The study examines the impact of contemporary HRM practices on organizational productivity, focusing on key areas such as human capital management, recruitment and selection, training and development, and legal frameworks. The report highlights how these practices, including employee engagement strategies, contribute to improved performance and employee satisfaction. It explores the different approaches of Aston Martin and Tesco, including their methods for recruitment, employee engagement, and training programs, and how these strategies affect overall business outcomes. The report concludes by summarizing the key findings and emphasizing the importance of effective HRM in achieving organizational goals.

Managing Human Resource
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
Managing human resource is an essential part of every organization. Without, it is not
possible to create a good professional team to achieve business objectives and aim. There are
various functions perform by HR department and its staff members in the favour and well-being
of employees. The present research is based on managing human resource and to understand its
significance within the company, two organizations Aston Martin and Tesco PLC are taking into
the consideration. Objectives that will cover in this study are impact of contemporary HR
practices on organizational productivity and functions of HR managers in firm.
TASK 1
Human resource management is considered as system allow the company to select,
manage, train and motivate the employees at workplace in effectual manner. It has been noticed
that there are different frameworks of HRM which allows to meet goals and objectives can be
accomplished in desired manner. According to Berger (2008), it can be said that application of
HR policies and practices has great impact on the organisational performance and productivity.
In addition to this, it can be said that human capital management is considered as one of most
critical aspect. Human capital management is referred as set of diverse practices which are
associated with people resource management. If human capital is not properly available in the
market then it might be possible that business firm may not have effective application of
activities. Gully (2013) has also stated that skilled human resource capital is beneficial to
improve the level of productivity. For example, the skilled workforce at Tesco allows to maintain
the wide range of retail chain in desired manner. It also helps in effective development of
activities which provide sustainable development so that goals and objectives can be
accomplished. As same the Aston Martin is having an effective allocation of human resource
capital which provide skilled engineers and professionals so that innovative and unique
designing of cars can be presented in the market (Henderson, 2005).
Joe (2008) has contended that recruitment and selection is also critical aspect for the
Tesco PLC as well as Aston Martin because it helps in strengthening the human resource
practice. In this management focuses on the recruitment and selection of efficient members so
that need of business firm in respect to production and customer services can be accomplished in
3

desired manner. Along with this, it can be said that recruitment and selection process of
organisation provides right candidate for the suitable profile. It means the work activities
accomplishment ratio has also advanced in positive manner. Lucio (2013) has asserted that such
kind of integrated activities allows business firm to improve the quality of products and services
so that satisfaction level among customers can also be advanced in appropriate manner. In
addition to this, it can be said that training and development is also a critical aspect which also
improves the human resource management activeness within Tesco PLC and Aston Martin. It has
been noticed that Aston Martin focuses in the training and development program in order to deal
with issues so that goals and objectives can be accomplished effectively (Ruysseveldt, 2004). For
example, company has developed a training program for sales professionals in order to improve
the communication skills. In this, practical application of theories is being considered as critical
aspect. With an assistance of this, skills of members has been improved which assist the
members in dealing with customers effectively. It has enhanced the level of presentation skills so
that information about product and services can be shared effectively with the management. It
assists in meeting key goals and objectives because of advancement in the productivity.
Werner (2008) has asserted that there are number of legal frameworks which are being
followed by the management of Tesco PLC and Aston Martin. Classification of legal frameworks
can be as disability discrimination act, employment act, etc. It has been noticed that by having an
effective application of disability discrimination act allows to ensure that all kind of employees
are attaining equal opportunity within organisation. It enhances the morale and make sure that
objectives are being accomplished in desired manner. It makes employees feel valuable so that
they can have efforts effectively to improve the overall performance. Longenecker and Fink
(2013) has critically explained that employment act 2008 makes provision about the procedure
for the resolution of the employment disputes and conflicts at the workplace. It has been noticed
that it help in make sure that the salary and other facilities provided by human resource team is
well maintained according to standards. It assists in advancing the morale of employees which
also improve the effectiveness of efforts. It is beneficial for sustainable development and make
sure that goals and objectives are being accomplished effectively. It also enhances the work place
environment and ensure that employees are feeling satisfied. Marler (2012) has contended that
there are few other respective activities of human resource team which also impact the
4

productivity in positive manner. For example, Aston Martin is well focused towards human
resource planning which facilitates in identifying and satisfying the needs of human resources. It
means the allocation of work activities also get advanced in significant manner for sustainable
development. Moreover, the employee performance can also be advanced within Tesco by
having an application of standardised recruitment and selection process. With an assistance of
this, changes in HR practice can also be advanced in desired manner so that goals and objectives
can be accomplished effectively.
Mondy and Noe (2007) has contended that internal recruitment process is considered as
significant aspect because it allows to make sure that skilled employee is being hired for correct
profile so that goals and objectives can be accomplished. Tesco PLC is currently focused on both
internal and external sources of recruitment. It allows to have effective application of standards
in the process so that overall work productivity can be advanced. In order to have effective
productivity the human resource team also consider job rotation as a critical element. It means by
having a job rotation employees are also hired at vacant post so that overall work productivity
can also be advanced in desired manner. Berger (2008) has stated that if human resource
allocation is not according to company requirement then project can be delayed. It indicates that
overall productivity of workforce is also get influenced in negative manner. Moreover, improper
consideration of key principles of HR practice has also influenced the global work management
within Tesco. It has also created an issue for the organisation and lead business firm to failure
condition. Further, activities are being designed effectively which has facilitated in improving the
performance (Joe, 2008). Aston Martin is effectively focused towards taking a participative
opinion from the workforce so that human resource satisfaction can be advanced. In addition to
this, it can be stated that it is one of critical reason that company has not faced any HR or
productivity issues in the market.
As per the view of Gully (2013), it can be said that Aston Martin and Tesco are well
focused towards face to face, written and psychometric tests in order to make sure that efficient
employee is being hired. It will assist in allocating the talented workforce so that work quality
can be advanced in desired manner. In addition to this, it can be said that both kind of
organisations is well focused towards understanding the organisational needs and allocation of
workforce according to standards. With an assistance of this, goals and objectives can be
5

accomplished in desired manner so that overall process can be advanced. It has been noticed that
overall working of the organisation can also be boosted in positive manner by having an effective
application of human resource practice. Lucio (2013) has contended that application of reward
system is also being taken into account from the management of Tesco and Aston Martin in order
to make sure that employees are well motivated. Advancement in morale enhances the
capabilities to have efforts in desired manner so that goals and objectives can be accomplished
effectively.
According to Armstrong, and Taylor, 2014 at present, the major challenge for the
organizations is how to create high levels of employee engagement to ensuring their long term
commitment. It defines as the relationship between employer and its employees. An engaged
worker can be stated as one who is completely absorbed by and enthusiastic towards the work as
well as working towards the interest of the firm and its reputation (Bamberger, Biron and
Meshoulam, 2014). Employee engagement shows the clear understanding about how a company
is meeting its all purpose and objectives, how its try to perform better etc. It is about positive
attitudes and behaviours of the personnel that play an important role in the direction of triggering
and reinforcing the workers in the right direction. Dann, 2012 has stated in this respect that
Tesco PLC is the one of the leading retain organizations of the UK in the present time. The
recent number of workforce is about 295000. For the organization, it is not an easy task to
engage all the employees all the time. This has a great challenging work for cited firm so for this,
Judith Nelson, Tesco’s UK personnel director has taken some steps in the direction of boost its
employee engagement. Listen and Fix are the two biggest listening exercise of Tesco in the
present time in the direction of increase the engagement of staff members (Nelson, 2012). For
this, an annual staff survey called Viewpoint has organized by HR department of the cited firm.
With the help of this, it has becomes easy to determine those areas of personnel which needed to
fixed. In addition to this, Brody, 2010 has asserted that the adopted technique by Tesco PLC to
increase engagement of employees, HR department has used digital technologies to optimize that
procedure. Under this, HR manager has sent the invitations to the workers to share their thoughts
by mail or text. It has reduced a barrier in the participation of the staff members. Under this, the
managers of cited firm have responded the suggestions of employees via voicemails, text, the
6

intranet etc. It has established a two way communication between the staffs and employer
(Dessler, 2016).
On the other hand, Middlemiss, 2012 has explored in his study that in Aston Martin,
employee engagement has different as compare to Tesco PLC. For this, company has created
several groups and clubs as per the interest of staffs. It has developed the personal and
professional relationship between the employees. This has made a good environment at the
workplace regarding mind sharing and loyalty between personnel at both vertical and horizontal
levels. Along with this, constant feedback and scheduled evaluation as well as assessment
processes also carried out by the HR manager to increase the engagement of the employees.
Some valuable training also has given to the workers so that they can able to attain aims and
objectives of business in an effective manner (Guest, 2011). From the above discussion, it can be
concluded that different Human resource Management practices of Aston Martin and Tesco PLC
has helped in increase the engagement of the employees. It has lead to enhance the overall
productivity of both the firm.
TASK 2
Attached in PPT
CONCLUSION
From the above research, it can be concluded that the functions of HR has different in
types of industries. As per the nature of business sector, the working of HR manager has become
changed. The major practices have included in this area are such as human capital management,
employee engagement and training and development. Along with this, HR manager has not only
performed hiring and firing work. They have also responsible for different activities such as
payroll of staff, compensation, performance evaluation etc.
7

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Berger, L., 2008. The Compensation Handbook. McGraw Hill Professional.
Brody, G. R. 2010. Beyond the basic background check: hiring the “right” employees.
Management Research Review. 33(3). pp.210–223.
Dann, R., 2012. Promoting Assessment as Learning: Improving the Learning Process.
Routledge.
Dessler, G., 2016. Human resource management. Prentice Hall.
Gropu, B., 2013. Mandated Benefits. Aspen Publication.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human Resource Management Journal. 21(1). pp.3-13.
Gully, S., 2013. Human Resource Management. Cengage Learning.
Henderson., 2005. Compensation Management in a Knowledge - based World. Pearson
Education India.
Hendry, C., 2012. Human resource management. Routledge.
Joe, M., 2008. Strategic Compensation: A Human Resource Management Approach. Pearson
Education India.
Keller, J. M., 2009. Motivational Design for Learning and Performance: The ARCS Model
Approach. Springer.
Khan, B. and Farooq, A., 2010. Human resource management : an Islamic perspective. Asia-
Pacific Journal of Business Administration. 2(1).
Khan, M. and Sheikh, N., 2012. Human resource development, motivation and Islam. Journal of
Management Development. 31(10). pp.1021-1034.
Lane, B, and Kangulec, S., 2010. Integrated Offendor management workforce development.
Safer Communities. 11(3).pp. 154-158.
8

Laytras, D. M. And Pablos, O. P., 2008. Competencies and human resource management :
implications for organizational competitive advantage. Journal of Knowledge
Management. 12(6).
Longenecker, O. C. and Fink, S. L,. 2013. Creating human-resource management value in the
twenty-first century: Seven steps to strategic HR. Human Resource Management
International Digest. 21(2). pp. 29-32.
Loosemore, M. and Dainty, A., 2013. Human Resource Management in Construction Projects.
2nd ed. Rutledge publication.
Lucio, M. M., 2013. International Human Resource Management: An Employment Relations
Perspective. SAGE publications.
Lucio, M., 2013. International Human Resource Management: An Employment Relations
Perspective. SAGE.
Marler, H. J., 2012. Strategic Human Resource Management in Context: A Historical and Global
Perspective. Academy of Management Perspectives. 26(2). pp. 6-11.
Merryl and et.al., 2013. Self-directed Learning: Critical Practice. Routledge.
Middlemiss, S., 2012. The legal impact on employers where there is a sham element in contracts
with their workers. International Journal of Law and Management. 54(3). pp.209–221.
Mondy, W. R. and Noe, M. R., 2007. Human Resource Management. Indian Journal of
Industrial Relations. 43(1). pp. 128-132.
Moon, A. J., 2013. Reflection in Learning and Professional Development: Theory and Practice.
Routledge.
Othman, B. R. and Poon, L. M. J., 2000. What shapes HRM? A multivariate examination.
Employee Relations. 22 (5). pp. 467-480.
Ruël, M. J. H., 2011. Electronic HRM in Theory and Practice. Emerald Group Publishing.
Ruysseveldt, J., 2004. International Human Resource Management. SAGE.
9

Tansley, C., Newell, S. and Williams, H., 2001. Effecting HRM-style practices tHRough an
integrated human resource information system: An e-greenfield site? Personnel Review.
30(3). pp.351 - 371.
Werner, S., 2008. Global Compensation: Foundations and Perspectives. Routledge.
Online
Chand, S., 2016. Human Resource Management Functions: Managerial, Operative and Advisory
Function. [Online]. Available through: <http://www.yourarticlelibrary.com/hrm/human-
resource-management-functions-managerial-operative-and-advisory-function/27995/>.
[Accessed on 5th January 2017].
Nelson, J., 2012. Employee engagement at Tesco: optimising two-way communication. [Online].
Available through: <http://www.personneltoday.com/hr/employee-engagement-at-tesco-
optimising-two-way-communication/>. [Accessed on 5th January 2017].
10