Human Resource Management Report: HRM Practices in Two Companies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on two companies: Chocolate Presence and Microsoft. The report begins by defining HRM and outlining its functional activities, including HR planning, recruitment and selection, performance management, and training and development. It then evaluates the strengths and weaknesses of current selection methods used by organizations, specifically assessment tests, interviews, and employee referrals, offering recommendations for improvement. The report further examines the benefits of training schemes and flexible working arrangements at Microsoft, alongside an evaluation of the company's workforce motivation strategies, including the application of Herzberg's Motivation theory. The report also addresses employee engagement, its effectiveness in employee relations, and key approaches for engaging workers. Finally, it explores the influence of employee legislation on HRM decision-making and includes a person specification, along with a discussion of the benefits and drawbacks of job advertising methods, concluding with recommendations for improvement.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
TASK 1............................................................................................................................................4
Definition of HRM......................................................................................................................4
Explanation of functional activities of HRM..............................................................................4
Strengths and weaknesses of current method which is used by organisation.............................6
TASK 2............................................................................................................................................7
Benefits of training schemes offer by Microsoft to employees and employer...........................7
Flexible working arrangements in Microsoft and their Benefits................................................8
Evaluation of Microsoft's workforce motivation strategies while designing job roles...............9
Application of Herzberg's Motivation theory in Microsoft.......................................................10
TASK 3..........................................................................................................................................10
What is employee engagement and why it is effective in employee relations..........................10
Evaluation of key approaches used in order to engage workers...............................................11
Various elements of employee legislation and its influence on HRM decision making...........12
TASK 4..........................................................................................................................................13
Person specification..................................................................................................................13
Benefit and drawbacks of current methods of advertising jobs in an organisation..................14
Recommendations.....................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Human resource management is the process of recruiting, selecting, provide training and
development, appraising performance of employees, motivating employees and many more.
Every company need skilled and talented employees in order to attain success in the market and
this demand of the company is fulfilled by human resource department. Moreover, this
department has responsibility towards various sectors such as society, employees, suppliers,
investors and many more. It is a continuous process which includes team spirit and work. Human
refers to the competent workforce, resource refers to the limited availability and management
refers to organises and arrangement of the available resources at its best manner (What is Human
Resource, 2019). It includes the people and organisation, people who work for it and company
who is responsible for managing the resources. This report consist two organisations Chocolate
presence and Microsoft. Chocolate presence is a craft company who provide tailor-made
chocolate chocolate based gifts whereas Microsoft is a multinational company who provide
software and other related products. This report covers functional activities of HR and its overall
importance. It also discuss the current selection method which company use with its strengths
and weaknesses and also evaluate the two potential improvements which needs to be used by the
company. It evaluates the benefits of various HRM practices and also analyse how they motivate
their workers.
TASK 1
Definition of HRM
It is an approach to manage the workforce and management effectively which help the
company to gain competitive advantage of market (Noe and et. al., 2017). It is designed to
increase the performance of employees by motivating and encouraging them. Their purpose is to
identify the overall capability of their employees and to achieve the success by their manpower.
Explanation of functional activities of HRM
These activities refers to identifying the needs and wants of employees in the
organisation. It is useful in analysing the requirement of retaining and hiring employees in the
company. Its functions are discussed as under:
HR Planning: It refers to the identification of current and future needs of an organisation
which is used in achieving the goals (Bratton and Gold, 2017). It is used in optimising the

valuable asset or qualitative employees for an organisation. This function makes the balance
among the employees and management which is useful in avoiding the stress of workforce and
maintain the work life of their employees. Chocolate presence uses this function as it includes
career counselling and planning related to employees. It is helpful for both employees and
employers as it balances their work and for employers their talented employees are retained by
this.
Recruitment and Selection: Recruitment refers to recruiting or hiring of candidates
which are best suited for it and also helps in achieving the targets of an organisation. Meanwhile,
selection refers to selecting the applications of candidates which is done by sorting them and
after that scrutinize them in order to select best one from the pool of candidates. Both the terms
are different but linked with each other (Recruitment Process, 2019). Chocolate presence is using
two methods for selecting the candidates in an organisation first is, assessment test and second is,
interview. Their aim is to recruit qualified and knowledgeable candidates for their organisation.
It is necessary as it brings skilled employees which can improve the productivity of an
organisation.
Performance Management: Performance management is a continuous process which is
used among manager and subordinates which generate every year in order to accomplish
objectives of an organisation (Cascio, 2015). It is a process which identifies and develop the
performance of their workforce. It can be measured by various ways such peers, managers,
employees and many more. It is related with the mission and objectives of an organisation and a
systematic process of assessing the performance. Chocolate presence uses this method in order to
measure the performance of their employees and also helpful in motivating them in order to
accomplish the goals of an organisation.
Training and development: It refers to the process by which the employers provide
support and guidance to their employees and also motivate them in attaining the overall
objectives. It can be conducted for both new and existing employees as every employee needs
guidance at some point (Albrecht and et. al., 2015). Training has two ways, on the job in which
employees gain knowledge and skills while doing job and off the job is a way in which
employees learn through lectures or gain theoretical knowledge. Chocolate presence is a rapidly
growing company which uses on the job method in order to train their employees. For this, their
aim is to provide skills and knowledge to employees by which they can improve their

productivity and performance of employees and it is important as it eliminates the turnover of
workforce which helps in overcoming their weaknesses.
Overall explanation: These functions are important in an organisation in order to manage the
employees or staff which helps in in increasing the productivity and performance. As planning is
important because by this employees get proper direction for their objectives and it makes
employees faithful and loyal for an organisation. Training is also necessary as helps in
developing the skills of an employees which provides satisfaction to employees and though this
their stress also reduces. So, for HR manager it is important for them to identify all this functions
and perform them in proper manner.
Strengths and weaknesses of current method which is used by organisation
Selection: It refers to the process of selecting the right candidate for vacant job position for the
organisation. In can also be understood as evaluating the qualities and skills of an employees
which is needed for the specific job position (John and Taylor. 2016). Through this process,
managers and employers put the right individual on right job. By this process, managers matches
the needs of an individual with the requirement of vacant job. It is also consider as the negative
process by which employees face rejection and also gets demotivate. It is cost effective and also
eliminates extra time and efforts of employers. It screening and scrutinizing the profile of
candidates. Chocolate presence uses two methods which are discussed as:
Assessment test: It is a method which is organised by companies to test the qualifications
and knowledge of candidates (Stone and Deadrick, 2015). In chocolate presence this test
includes two subjects maths and English which is organised as online or offline depends on the
company and organisation also set standard for the test which is 50% achieve in overall subjects.
Strength is through this test individuals determine their skills and capabilities which are
necessary in order to take out the best candidate from the pool of candidate. Weaknesses, people
pass this test on the basis of their theoretical knowledge and candidates think that the test is
irrelevant or it is not reliable for them because their skills cannot be judged on the basis of this
test.
Interview: It is way in which a formal chat is conducted between interviewer and
candidate in order to check the reliability and personality of candidate. In chocolate presence,
candidates are selected for this round on the basis of the marks which they got in their
assessment test. In chocolate presence, this round is conducted as an informal chat between

employer and candidate. Strength is through this employer can observe the personality of
candidate such as communication skills, knowledge and many more. Weakness is that candidates
get nervous or might hesitate to speak in front of interviewer.
Employee referrals: It is the common way of selecting candidates in an organisation.
Companies think that it is the most productive method of hiring candidate as it take short time
and most affordable in terms of other methods (Stone and et. al., 2015). In this method, existing
employees recommend candidates in order to recruit them. Strength is that by this method,
organisation get quality employees which can reduce the turnover rate and also improve
retention of employees. Weakness is that if referred employees leave or did not get select then
this can ruin the image of employees.
Issues which are face by the company in their selection process are they get more
complaints from their employees such as the test is not fair, consistency is not maintained and
biggest one is informal chat. To deal with these problems various recommendations are provided
by which they can improve:
 Chocolate presence can improve their assessment test as candidates think that it not
sufficient enough of check the personality and skills of employees as a single test cannot
measure the capability of candidate.
 Company can enhance its selection process by converting the informal chat into formal
conversation as it develops and maintains professionalism and relevancy in selection of
candidate.
TASK 2
Benefits of training schemes offer by Microsoft to employees and employer
Microsoft provides great working opportunities for its employees and graduate students,
to work for bringing new thing to world. Microsoft helps graduates to start their careers by
unique programs, where they engage interns or graduation students to work on real projects to
get an understanding of real scenarios. Company is providing opportunities in software
programming to graduate students which brings new innovative ideas in technology sector
(Hecklau and et. al., 2016). They also offer internship opportunities in sales sector, exposing
interns to foreign markets gaining knowledge about business world. These internships programs

are beneficial to both Microsoft and graduate students\interns some of those benefits are
mentioned below:
Benefits to Employees\Interns:
 Offers interns to make their career in Microsoft includes regular increasing knowledge of
new changing market and environment.
 Working on real projects with Microsoft enhance skills of employees, experiencing new
things and personal development.
 Microsoft is great opportunity to work with building great career, also with other leading
organisation. New challenges will encourage interns to work with full potential bringing innovative
ideas to do work.
Benefits to Microsoft:
 These programs help Microsoft to employ new minds in business which will bring fresh
ideas to company to attain organisations objectives effectively.
 Cost is also saved by internship schemes as pay is really low in comparison with what
Microsoft pay to existing employees saving a lot of money and other benefits.
 Company's environment also gets better, as it created healthy competitive spirit between
interns and existing employees.
 Employees turnover ratio also improves as Microsoft offer jobs to best interns retaining
them and saving a lot of resources by less complicated selection and recruitment process.
Flexible working arrangements in Microsoft and their Benefits
Microsoft believe in retaining and keeping workforce satisfied for effective running of
business with increasing efficiency of its employees. Organisation offer many benefits to
employees for living a healthy life with their families, equal pay structure with bonuses to
employees based on eligibility. Personnel also be happy and satisfied with flexible arrangements,
feel comfortable and belongingness in Microsoft. Some arrangement are mentioned below along
with their benefits:
Work life balance: Employees at Microsoft can schedule their work according to them
managing work with personal life (Shen and Benson, 2016). Nowadays, work is importance but
family is also important as well so, employees can use flexible work timing approach to manage
their personal and professional life and fulfilling both sides responsibilities.

Benefits to Employees:
 Better balance in their life's making their personal and professional relationships better
and easy. They fell less burdened due to flexible timing which will allow them to do work with
their full potential developing personal skills.
Benefits to Microsoft:
 Using this approach will enhance employees productivity in relation with accomplishing
Microsoft's goals. Less absenteeism and satisfied employees which will directly help in maintaining and
even reducing employee turnover ratio.
Care for Your Family: This arrangement includes different holiday schemes for them
and their family matters encouraging them to work with their full potential (Abdullah and
Zulkifli, 2015). Especially women staff is benefited with these schemes at it involves 20 weeks
paid holidays to new mothers as well as 12 weeks paid holidays to all new parents including
adoptions and foster placement.
Benefits to Employees:
 Flexibility brings comfort, these holiday schemes allow employees to reduce stress and
thus directing their efforts towards organisational objectives. Employees performance will enhance providing better results, employee's heads are clear
and no other things are not running in back of their minds.
Benefits to Microsoft:
 Employees are well motivated and satisfied which will make them willing to work with
their full potential, increasing company's effectiveness.
 Workforce is most important resource any company can have if they effective and
efficient Microsoft automatically providing best results.
Evaluation of Microsoft's workforce motivation strategies while designing job roles
Microsoft's leaders use unique leadership and motivating techniques to keep their
workforce motivated while designing or assigning jobs. Using different ways of motivation
brings productivity to company through which they attain prescribed goals and objectives for
organisation. Some of these strategies used by Microsoft are;

Skill Variety: This refers to required skills to perform a job. Microsoft managers keep in
mind of different responsibilities and skills needed to perform a job while designing it so that
employees are motivated to gain new knowledge and develop skills (Brewster and Hegewisch,
2017).
Task Identity: This is related to the outcome of any task is performed. Employee if know
or clear with their job to be performed in project and is equally motivated to complete it and get
the expected outcome. Managers in Microsoft ensures that all employees are clear with their job
role in a particular project to attain company's objectives.
Task Significance: The extent to which a job is related influencing other task in an
organisation is considered as Task significance. Employee feel motivated towards their task if
they know work performed by them is affecting company (Baum, 2015). Microsoft's managers
always make sure to involve employee in decision making, noticing their work and appreciating
them with rewards to keep them motivated.
Application of Herzberg's Motivation theory in Microsoft
Herzberg's motivation was founded by Frederick Herzberg in 1959, it's a tool used by
leaders in organisation to motivate employees. This theory includes two factors
motivators(satisfaction) and hygiene(dissatisfaction), also known as dual factor theory.
 Motivators factor says that employee will work harder to attain these factors. They are
something more than what employees basic requirements which will encourage them
(Knies and et. al., 2015). Microsoft managers has made use of it to encourage employees
who are already motivated to attain better goals with increased satisfaction level.
 Hygiene factor says employees will work harder to achieve these factor but if these
factors are not present workers get demotivated. These are some basic factors every
employee work for and if not present gets demotivated (Kasemsap, 2016). Microsoft
managers ensured that workforce is always be motivated and their needs are being
fulfilled to move forward for achieving best effective results.
TASK 3
What is employee engagement and why it is effective in employee relations
Employee engagement is a process by which employers and employees develop and
maintain relationship. It is a kind of commitment which is given by employees to their

organisation in order to achieve the goals and objectives (Deery and Jago, 2015). Engaged
employees are worried about their performance by which they feel that their efforts make
difference. It is the responsibility of HR manager to develop and maintain the relationship among
employees. Microsoft manages the good relationship among employees which is helpful in
engaging or involving employees in organisation. They also develop coordination and
cooperation which helps in developing the efficiency of employees and brings positivity or boost
morale of employees.
Meanwhile, employee relations is a way by which organisation can achieve success or
growth in the business environment. Good relations among employees shows their energy
towards their work and also avoid confusion among them which is worthy because by this
employees can easily share their work with their fellows (Cavanagh and et. al., 2017). It is
important as it motivate employees which helps in increasing the performance of employees.
Importance of employee engagement for employee relations are as follows:
 By this the productivity increases because employers inspire their employees and value
them which is helpful in decreasing their burden of work.
 It is useful in improving the performance and appraisal gets much easier as objectives are
clear and easily achievable.
 Here, employees are involved in their work and also indulge them in decision making
process as by this company gets different suggestions and advices through their
employees.
 Through this, the work life of employees gets balance also helps in eliminating the stress
and workload.
 Employees feel encouraged as it helps in eliminating the trust issues and also helpful in
resolving conflicts and confusion from employees.
Therefore, engagement helps the employees in achieving goals and objectives and inspire
them to go beyond their limits can innovate something or do more productive in their work to
attain sustainability or competitive advantage of market (Chang, 2015).
Evaluation of key approaches used in order to engage workers
Connect more and more people: Microsoft connect people with it and it is important for
them because it increase their productivity and influences the performance of employees.
Building connection can improve their hub of employees and also motivate other candidate to

join them (Gachoka, 2015). Here, from their communication they can develop transparency in
their employees and also develop their community by which they innovate more ideas and take
initiative in order to share best practices.
Hub of teamwork: Good relationship promote team work and also inspire employees to
perform their task in an effective manner. It can be promote by reducing the confusion from the
mind of employees (Sparrow and Makram, 2015). Healthy relationship promotes helping nature
among employees and employers and try to motivate employees in order to make them feel
worthy for the organisation. Teams of Microsoft are make in order to meet the requirements as
decisions are taken without considering any limit and those can be attainable for team as it brings
closeness in work.
Develop efficiency: Engaging employees with conversation is the best way to involve
them. Microsoft uses sharePoint which is an intranet technology used in providing the news to
employees. It empowers the employees to connect with workplace and develop their efficiency
by share resources on their portals and authorise teams with dynamic and productive projects
(Noe and et. al., 2017). Their teams collaborate with them effortlessly with their organisation.
Communication: It fills the gap and also the approach by which the information can
easily transferred to their employees in an effective manner or very easily from person to person.
This approach is useful in conveying the aims and objectives which can develop transparency
among them (Bratton and Gold, 2017). Communication raise the chances of clarity about
objectives and bring interest among people and collect the ideas of their employees across the
network in order to attain the objectives of company.
At present, Microsoft is using communication in order to make objectives clear and
conveying goals to their employees. It also brings transparency in their work and also used to
inform each other about their progress of work. It is helpful in introducing changes in
organisation. Microsoft hire best leaders and managers who can effectively execute changes and
coordinate and communicate with each other.
Various elements of employee legislation and its influence on HRM decision making
Laws and policies are important to run business in a smooth and effective way.
Employment legislation is a way which helps in working and operations of employees. In law it
is mentioned that how to tackle workforce in an effective manner. Companies execute various

laws and regulations in order to maintain balance between employees. These laws are described
as under:
Sexual Harassment Act, 2013: This act states the safety of employees in organisation
and it also impacts the decision making of Microsoft's HR manager which plays a significant role
in those activities which are included in harassment activities or its committee. If the manager is
not the part of those activities then they should guide their employees about the law of
harassment and teach them how to file complaint (Mondy and Martocchio, 2016). In Microsoft,
HR manager is the part of harassment committee has rights to take decisions about those
activities and can take strict decisions. As they plays significant role in hiring and selecting of
candidates who does not have any negative or criminal record and spread awareness to their
employees about the act.
Health and Safety Act, 1974: According to this act, HR manager make sure that the
health and safety of employees. Here, they ensures that the healthy working conditions are
provided to their employees as they are not involved in any harmful activities. Their aim is to
develop and maintain clean and healthy surroundings for their employees and avoid using
harmful materials or resources at their working area (Cascio, 2015). Therefore, it becomes the
duty of HR manager to provide healthy and safe working environment to their workforce. If
company does not provide these conditions then employees can take strict actions. Hence,
Microsoft provide healthy and safe working environment to their employees in order to develop
ethical practices and maintain balance between their work and them.
Equal Pay Act, 1970: According to this, companies need to handle their employees in
fair manner and also provide equal rights and authorities to them. Equal pay states that
employees get salary on the basis of their post not according to gender or by their friendly nature.
It represents that their should not be any discrimination or any misconducted activity happen on
the basis of gender, caste, sex etc. if this can be seen or happen in organisation then employees
has right to complaint against the company (Albrecht and et. al., 2015). HR manager of
Microsoft provide equal and justified payment to their employees which meets their satisfaction
level. It will help in taking decisions regarding the payment of their workforce as Microsoft
provide equal salary to their employees who perform same task.