LSC UoS BA Business: Human Resource Management Assignment Report

This report provides a comprehensive analysis of the Human Resource Management (HRM) practices at Rolls Royce. It begins with an introduction to HRM and its importance in the automotive industry, specifically focusing on Rolls Royce. The main body of the report examines how HR strategies have been adapted using the concept of strategic HRM, followed by an analysis of the impact of environmental factors on the company's culture and HR plans. The report then explores the application of an HR model to illustrate how value is created by the firm. Storey's 27 points of difference between HRM and personnel management are applied as a benchmark. Further, the report covers job design strategies, hiring and firing strategies, and analyzes best HR practices with corporate examples. Recommendations for employers are provided to enhance organizational performance. The report concludes with a summary of key findings and references.

Human Resource
management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
A) Examine how HR strategies were changed by company. Use the concept of strategic HRM.............3
B) Explain impact of environmental factors on the culture and HR plan of firm.....................................4
C) Use any HR model and how value is created by firm.........................................................................5
D) By applying Storey's 27 points of difference made between HRM and personnel management as a
benchmark...............................................................................................................................................6
E) Job design strategies of business.........................................................................................................8
F) Provide different firing and hiring strategies of company...................................................................8
G) Analyze appropriate corporate examples for the best HR practices with justified lietrature...............9
H) Recommendation for employers in regard to HRM practices so as to ensure that the organization
performance is high...............................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
The human resource management is referred to as the method or practice with the help of
which companies can implement its components in order to manage the employees in workplace.
It is defined as the process by which hiring, recruiting and selection of the potential candidate is
done with an aim to manage the performance and compensate the workforce by providing many
job related advantages. These include appraisals, building relations with other employees and the
organization (Lucia-Casademunt, Cuéllar-Molina and García-Cabrera, 2018). This report is
based on Rolls Royce motor cars, the luxury organization which deals in automobile industry. It
is headquartered in England, United Kingdom and is founded in the year 1998. This report shall
deal with how HR strategies were changed by firm, impact of environmental factors on HR plan
and culture, HR model, Storey’s 27 points of difference between personnel management and
HRM and job design strategies. Further it will add firing and hiring strategies, HR practices and
suggestion for employers about HRM practices so that organizational performance can be
increased.
MAIN BODY
A) Examine how HR strategies were changed by company. Use the concept of strategic HRM.
The human resource is considered as an essential department which helps in maintaining
smooth functioning of business and involves the system of hiring of systematic skilled and
talented employee so that the company can run effectively so that organizational goals can be
achieved. Strategic human resource management is the one wherein a consistent and coordinated
HR is present which works for the overall objectives of the business so that the performance of
the company is improved. The strategic HRM mainly encompass traditional functions of HR like
recruitment, selection, interview, screening and hiring of employees and also works with overall
strategy of organization so that the success is achieved. The HR unit of every organization deals
with the long term issues of employees in order to manage them (Afum and et. al., 2021). There
are many strategies which can be adopted by the HR manager of Rolls Royce so that it can
effectively manage the workforce of the company. The following are some of the HR strategies
which may be changed by the organization-

 Strategic adjustment- This ensures that the HRM is not only the independent action in
order to fulfil the formal role of workforce management in Rolls Royce but it also
executes horizontally and vertically in the organization so that each employee is managed
in an efficient manner.
 Resource based view- It involves defining the strategies that can help Rolls Royce to
attain the competitive edge in the market. This may be done by making optimum
utilization of the present and future resources. Rolls Royce can make the optimum
utilization of the human resource so that it can take competitive advantage.
 Best fit method- This simply implies that Rolls Royce may not really copy paste the best
HRM practices without even considering its application. Rolls Royce involves different
working wherein it applies only those methods which it considers to be beneficial for the
organization as well as its employees (Cooke and Kim, 2017).
In respect of Rolls Royce, the organization applies the best fit method in the business so that
competitive advantage can be taken in the market. This may be done by the presence of high
quality workforce which can work hard towards the achievement of organizational goals and
thereby generating high profitability and revenues.
Fombrun model
This model of SHRM provides that the organizational structure and HR system must be
managed in such a way which is congruent with the strategy of company. Its main focus is on the
four functions which includes selection, development, appraisal and rewards. It helps in
explaining the significance and nature of HR activities but it also focus on these four functions
and ignores the other contingency and environmental factors which may affect HR functions.
B) Explain impact of environmental factors on the culture and HR plan of firm..
The human resource planning may be affected by the changes that occur in the internal
and external environment. It is very essential for the organizations to have such plan which is
flexible so that it can adopt the dynamic changes of the environment. The HR planning may be
done for the long or short term and based on different environmental factors. The different
environmental factors that affect the culture and the HR plan of the Rolls Royce are discussed
below-

Macro environmental factors
These are those factors which are present in the external environment which influences the
decision making and functioning of business. The impact of these factors on the HR plan and
culture of the Rolls Royce are illustrated below-
 Economic growth- The economy of the country affects the planning of HR in Rolls
Royce. For instance, where there is high GDP like in UK, there are more job
opportunities in the market and where there is a troubled economy, it faces the recession
and the unemployment rates are also high. So it is very essential for the HR manager of
Rolls Royce to plan its HR functions in such a manner that there is less effect of
economic conditions on it. The HR planning is generally done keeping in mind the
economic situation.
 Labour market- It is mainly concerned with the availability of the workers, their level of
participation, skill set and many other aspects. The HR must plan for recruiting and
retaining the potential employees keeping in mind the conditions of labour markets so
that its plan can work effectively. Moreover these conditions also affect the culture of the
organizations as there maybe fluctuations in the employability level due to harsh labour
market conditions and vice versa (Yuan, 2020).
Micro environmental factors
These include those factors which are internally present in the organization. The impact of
these factors on the HR planning and culture of Rolls Royce are discussed below-
 Technology- This is considered as the most essential factors that affect the HR planning
and culture of Rolls Royce as the organization is dependent on technology in order to
manufacture its product. The HR manager has to make sure that it recruits such talented
and skilful employees in its organizations so that the company can produce such
technology based automobiles which can help in taking the competitive edge in the
market. The HR manager must hire such employees that are technology savvy so that
competitive edge is taken.
 Industry growth- As there has been the healthy growth in the UK from the past ten years
due to the strong customer demand in the market. This affects the HR planning as the HR

manager of Rolls Royce has to recruit such workforce that can match the growth level of
industry. Moreover the industrial growth has also stimulated the human capital demand in
the organizations such as Rolls Royce (Kouadri and Nouri, 2017).
Contingency model/ theory
According to this, the HR practices and policies can be effective only when it is
integrated with specific environmental and organizational context. The best fit theory also
emphasizes on importance of ensuring that the strategies of HR must be appropriate to
circumstance of company including its culture, process of operations and the external
environment. The HR strategies must be linked to the organization and the people associated
with it as there is close link between strategic management and the HRM where business strategy
must be integrated with HR practices and policies.
C) Use any HR model and how value is created by firm..
The standard casual Model of HRM is the chain based model that is effective in
associating the business strategies that end up with examining the operational and financial
aspects of business. This model is used by the managers of Rolls Royce in order to manage the
activities of human resource. Under this strategy, there are many policies being framed and each
is aligned together so that the standard of performance is developed. In every organization, the
HR manager is accountable for the preparation of such strategies so that the higher performance
and productivity is gained by the workforce and the inefficiency can be prevented. On other side,
the HR manager also manages many activities like recruitment, training, hiring, etc. in order to
develop the quality standards at the workplace and the employee commitment is also initiated.
This tool helps in increasing the external and internal performance so that overall performance is
enhanced and a better productivity is inhaled. These Aspects of HR are directly related to the
return on investment and profitability of the firm and helps in generating high level of value for
business so that the effectiveness in performance can be seen (Pfiffelmann and Soulez, 2018).
There are many policies that relates to framing of the robust strategies in Rolls Royce in order to
obtain the effective results. These policies are mainly managed by the HR manager so that the
smooth control is taken of the business. On other side, the individual performance is also
improved wherein the employees gets the opportunity to develop new knowledge and skills.

Hence, this chain of model is very helpful in increasing the performance level of employees so
that there is financial performance boosted together with overall development.
D) By applying Storey's 27 points of difference made between HRM and personnel management
as a benchmark
Personnel management is the administrative record keeping function t operational level
which attempts to maintain the fair terms of employment by efficiently managing the activities of
employees for the individual departments.
Human resource management is mainly concerned with implementation and development
of strategies of people that are integrated with corporate strategies and mainly ensures that value,
culture and structure of company contribute to the goals together with commitment, quality and
motivation.
The HRM is mainly concerned with carrying out same functional activities which were
traditionally performed by the personnel function like HR planning, employee relation,
performance management, etc. but the approach of HRM perform these functions in the
qualitative way as compared to personnel management.
The personnel management and the human resource management are two different
concepts. For Rolls Royce, the primary aim is relating to identifying the demands and needs of
people who are working in the organizations so that monetary and other rewards are given to
them regularly. The HR policies are generally framed so that the competitive position is created
in the market and this may be done by right execution of activities in the business. this is the
main reason that the HR plays an important role in the organization as it is directly associated
with managing the employees so that a positive working culture and environment is developed. It
has been analyzed that there is a huge difference between the HRM and personnel management
and Rolls Royce must create a balance between the two so that it can efficiently manage the
workforce.
Below are the difference between the HRM and personnel management given by Storey.
out of 27 differences, few are discussed below-
Basis Personnel management HRM

Contract In Rolls Royce, the written
contract is done for
personnel management so
that clarity is gained in
respect of working standards
in specific time limit.
The human resource
management is responsible
for the regularization of
activities with the help of
which different contracts
van be performed in
workplace and at the same
time; the activities of
business are also addressed.
Management task The personnel manager
mainly tracks all activities
so that the negative aspect is
not considered that can
affect the sustainability of
business (Mbedzi, 2019).
The HRM is mainly
associated with the policies
which are helpful in
enhancing the knowledge of
workforce so that they can
complete their work in
effective manner.
Rules It is the tool which
accumulates the many rules
and regulations. This is
important at every time
when disputes occur in
business so that it can solved
and the probability of
confusion is eliminated.
In Rolls Royce, the HR
manager examines the
negative elements so that
the operational efficiency
can be maintained. In order
to eliminate the negative
elements, communication is
the correct way in which
functions of HRM can be
carried on in effective
manner.
E) Job design strategies of business.
It is very essential for business that they must design the jobs with proper strategy in
order prepare the proper job description so that the candidate can get all information relating to

job role. The strategies of job design includes four types of strategies which may be used in Rolls
Royce that are illustrated below-
 Job rotation- It is defined as practice wherein the company moves the workforce
between the jobs. It helps in enhancing variety of knowledge and skills so that it can learn
from varied experiences and also contributes in making the employee specialist of job
role. This helps in motivating the workforce and creates flexibility in working.
 Job enrichment- It involves adding motivators in existing job role. This may be done by
reading opportunities, receiving feedbacks, establishing relationship, creating natural unit
work and many others.
 Job enlargement- It is considered as the essential job design strategy as it helps in adding
skills by addition of activities in same hierarchy of job. For instance, in Rolls Royce, the
company is adding duty of HRM in manager so that it can lead human resource as well.
This helps in enhancing the skill set of employee.
 Job simplification- This strategy is used by Rolls Royce when it feels that HR needs
more focus on a particular activity. It is in contrast of job enlargement wherein the role
and responsibilities are reduced so that the employee can focus on one activity at a time
(Rai and Maheshwari, 2020).
Approaches
There are various approaches to job design which are discussed below-
 Mechanistic-This approach stems from scientific management school wherein the
training period is short due to stress and overload are high and mental demands are
minimum. They believe that errors are less as mistakes have less chances to occur. The
main drawback of this approach is that there less satisfaction, motivation and high
absenteeism.
 Motivational- It comes from work on job enlargement and enrichment wherein
employees are more motivated, satisfied and involved. The absenteeism is less and higher
job performance is there. The main drawback of this approach is that there is long
training time period on order to lead satisfied and motivated workforce.
 Perpetual- The human factors contribute more on this approach wherein focus is on
motor and perpetual abilities and is based on experimental psychology. According to it,

the mental capabilities and the limitation of employees do not exceed. Their main aim is
to reduce errors and stress.
 Humanistic- It emphasize on the job design which is around employees and people and
nt around organizational process. According to this, the jobs must gratify the need of
individual’s need for the respect, recognition, responsibility and growth.
From above discussion, it can be analyzed that Rolls Royce uses humanistic approach to job
design where it emphasizes on human needs so that they are more motivated and satisfied
towards their job in order to perform their level best.
F) Provide different firing and hiring strategies of company.
It is very important for businesses that they focus on effective strategies of hiring and
firing so that the productivity and performance of employees is enhanced so that organizational
goals are accomplished of Rolls Royce. After the pandemic of Covid-19, it has become difficult
for Rolls Royce to hire as well as fire the employees due to decline in automobile sector. The
following are some hiring and firing strategies which may be used by Rolls Royce so that it can
focus on overcoming the loss due to pandemic and manage the employees effectively-
Hiring
Hiring may be taken place at many levels and in many ways wherein hiring can be based
on the competitive exam level and the personal approach which is favored by the HR manager in
case of senior position. Hiring at entry level has taken a new turn wherein many approaches to
recruitment has come into existence such as campus recruitment or placement consultants.
Hence, hiring strategies are different at each level. It is one of the internal strategies of company
wherein more focus and attention is provided.
These strategies are concerned with addition more employees in workplace wherein it has
become tough for Rolls Royce to recruit the employees in this pandemic situation. Some
strategies are discussed below-
 The company can adopt the online recruitment process in order to prevent physical
contract wherein it can use digital mediums to recruit and conduct interview online.
 The Rolls Royce can recruit the talented candidate by referrals or from analysis of the
data of the job seekers.

 The organization can place advertisement on social media and websites so that the
candidates can easily apply for jobs (Cheek, 2017).
Firing
Firing an employee is difficult but is the important aspect of HR as when an employee
makes any mistake, they no longer contribute to the creation of hostile working environment so it
is important to let them go. There are various strategies which may be used by companies in
order to get rid of the employees which no longer contribute in the achievement of business
goals.
These strategies are such which involves terminating existing workforce but this is not
easy for Rolls Royce as the pandemic has affected the whole nation and losing job at such time
can bring harsh consequences for employees. The following are some firing strategies which
may be adopted by Rolls Royce-
 The company must work to analyse the current situation and take the decisive step or
action so that it can terminate the non-useful employees.
 The strategy must be made by Rolls Royce wherein it must fire the workforce in such a
manner that its dignity is retained and its sentiments are not hurt.
 The reason for terminating the employee must be communicated clearly so that there is
no clash in the decision and the employee also understands the scenario (Koerner, 2020).
G) Analyze appropriate corporate examples for the best HR practices with justified lietrature.
According to Hassan, 2017, the HR department has various roles and responsibilities to
play so that the perfection and accuracy is brought in managing employees. As the workforce is
regarded as the valuable asset of business as it helps in gaining the competitive edge and
provides strength in battling the competition. It is important for organization to retain the
employees so that they can work effectively for achieving the organizational goals. This may be
done by providing rewards, recognition which acts as motivator and contributes in retaining
them. Planning is one of the most important functions of HR as it involves recruitment and
selection process so that the sustainability opportunity is rendered to business. it is also important
to recruit the talented employees so that productivity and performance of organization is
enhanced (Salomon and Allen, 2019). In Rolls Royce, the organization has such policies which

are aligned to keep the environment of business healthy and positive so that the employees are
retained for longer time and employee engagement is increased. For instance, Google makes sure
that it has its strategies aligned with HR practices wherein it can manage the staff in the efficient
manner. They recruit the staff with thorough strategy by focusing on key aspects. They manage
their talent in an effective manner and have best HR practices such performance management,
reward management, etc. One more example is FedEx Corporation which believes that success
of company lies in how effectively it manages the employees and how they perform. They use
people service profit philosophy so that excellent care is provided to employees where they track
satisfaction level of workforce.
H) Recommendation for employers in regard to HRM practices so as to ensure that the
organization performance is high
It is recommended to Rolls Royce that it can ensure the high organization performance by
following means-
 There must be consistency in working by gaining high working style so that the HRM
practices are used which can contribute in gaining the coherent aspect. This may be
helpful for company to get the competitive edge in market so that its brand image is built.
This will also help in developing various skills for employees so that high flexibility is
rendered which is helpful in gaining th market prominence.
 The employer must deal with efficiency in such matters wherein the workforce is
involved and must bring timely changes in the workplace so that employees can work
with changing needs of environment. This will help in ensuring high performance as
employees will be motivated to work and there will be less staff turnover (Scalise, 2020).