Human Resource Management Report: HRM Practices at JP Morgan

This report provides a comprehensive overview of Human Resource Management (HRM), focusing on its purpose, functions, and strategic aspects within the context of JP Morgan, a financial services company. The report delves into the core functions of HRM, including staffing, resource utilization, and advisory roles, highlighting the importance of effective recruitment, selection, and employee relations. It examines the strengths and weaknesses of different recruitment and selection approaches, such as internal and external methods, and analyzes the benefits of various HRM practices for both employers and employees, emphasizing training, development, and a healthy work environment. The report also explores the impact of employee relations and employment legislation on HRM decision-making, offering insights into how these elements influence organizational profitability and overall success. The report then moves on to application of HRM practices in a work related context using specific examples. Overall, the report underscores the significance of strategic HRM in achieving organizational goals and fostering a positive work culture.

Human Resources
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1Purpose and the functions of HRM...................................................................................1
P 2 Strengths and weaknesses of the different approaches to recruitment and selection......3
TASK 2............................................................................................................................................5
P 3 Benefits of different HRM practices for employers and employees................................5
P 4 Effectiveness of various HRM practices in terms of raising organisational profitability 7
TASK 3............................................................................................................................................8
P 5 Importance of employee relations in context to influencing HRM decision making......8
P 6 Key elements of employment legislation and its impact upon HRM decision making...9
TASK 4..........................................................................................................................................11
P 7 Application of HRM practices in a work related context using specific examples.......11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Human resource management is considered as an important part of an organisation since
it is liable to organise as well as manage whole works occurring at the workstation. Without
them, a company cannot work in an efficient manner (Krot and Lewicka, 2012). Therefore, they
may not able to reach their ambitions and would suffer from a great loss. In order to achieve
goals and objectives of company, it is necessary to have proper HR department. In addition to
that, HR section also recruit skilled employees according to the need of enterprises. The present
report is depicting the significance of Human resource management for a firm named as JP
Morgan which is existing in Central London. It is an American international investment bank
which is also offering financial services to their customers. In this assignment, the purposes
along with functions of HRM is going to explain. This assignment is also throwing some light on
the nature or scope of strategic HRM. Apart from same, hard as well as Soft approaches of
human resource management is highlighted so that planning and resourcing can be done in
globally. It will enlighten benefits and effectiveness of HRM practices and will cover importance
of employee relations with key elements of employment legislation.
TASK 1
P 1Purpose and the functions of HRM
HRM stands for Human Resource Management. This can be simply defined as the
practice of recruiting, selecting and controlling employees within an organisation. An HR
manager is responsible for offering educational and developmental trainings, arranging induction
programmes, giving compensations, etc. to each person performing at work-site (Marchington
and et. al, 2016). The main role of an employer is to create a good culture at corporation in order
to engage more and more people in official work. JP Morgan is also having an active HRM
department so it is important for them to understand about every concept related to that. The
conceptions of human resource management can be better understood by examining following
points:
Purpose of HRM:
HRM division is designed for the intention of accomplishing various tasks of a firm.
These tasks is considered as the main purposes which is described below :
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 Staffing: HR managers used to hire suitable person at the appropriate designations
existing at workplace. They generally take interviews of candidates and judge their
capabilities by asking some logical questions associated with the post for which
applicants have applied. This is considered as most important purpose of HRM since
without attaining powerful staffs, a company cannot exist for long time period.
 Utilisation of resources: It is a HR manager who is liable to do arrangement of several
kinds of resources needed by workforce (Huselid and Becker, 2011). For example, in
work premises of JP Morgan, supervisors are having the responsibilities of looking after
each issues related to allocation of assets such as computers, machines, phones, internet,
documents, etc. This is to be noted that they are going to decide which resource is
required to be provided to workers as per their job roles.
 Acting as advisor: Managers also present their ideas and perceptions on particular
subject or task which would happen at workplaces. This assist organisation in taking
proper decision regarding wages, leaves, compensated amounts, incentives & so on.
Functions of HRM:
JP Morgan should focus on various functionalities offered by HRM. Some of the
functions which is usually played by HRM department are following :
 Assignment of Job: Employers are responsible for allocating job roles according to the
past working experiences, passion, educational qualifications, skills and qualities of a
employee (Hendry, 2012). JP Morgan can staff employees according to their
specialisations within enterprise.
 Training and development: Supervisors used to provide training and preparation classes
for both new staffs as well as those who are already present at work premises on the basis
of their requirements and demands also. This helps in improving the quality of production
and services generated by JP Morgan.
 Arrangement of induction programmes: Since newly recruited workers are not
familiar with the working environment of company, that is why they so not feel good
after joining. Thus, in order to make them stress free, company can provide them with
information about employee's duties, colleagues, physical surroundings, etc., members
working at higher designation used to arrange induction or orientation sessions.
Nature/ Scope of Strategic HRM or SHRM:
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Strategic Human resource management simply refers to connecting predetermined
ambitions and objectives with the human resources. The primary reason of doing so is to upgrade
the performances of business by developing a good organisational culture. This will assist in
fostering innovation, gaining competitive advantages and improving flexibility. The scope of
SHRM is very bright or wide since it will contribute in attaining each aim and mission of
company either it is short term or long term. Thus, association can use this concept for longer
time frame.
Soft and Hard HRM :
Hard HR management used to treat workers as a resource of businesses. In this case,
main focus of HRM is to determine the needs of workforces related to business. Recruitment and
management is carried on accordingly (Ford and Richardson, 2013). On the other side, Soft HR
management consider staffs as most important asset and also understand them as a source of
gaining competitive advantages. It is to be noted that herein personnel’s are treated individually
and their requirements are planned according to that. The primary focus of soft HRM is on basic
necessities of workforces such as motivation, roles, rewards, etc.
P 2 Strengths and weaknesses of the different approaches to recruitment and selection
Recruitment and selection are two different term which is used in the area of staffing.
Recruitment can be outlined as a phenomenon of finding out appropriate candidates for company
and attracting those persons by showing them attractive job roles. On the other hand, selection is
the procedure of screening eligible contestants by going through a series of stages in order to
select right person for right post. JP Morgan should understand several approaches of recruitment
& selection along with their advantages and limitations. This is described below:
Approaches to recruitment and selection:
There are basically two approaches of recruitment and selection which are internal and
external. When employers used to hire person for filling the vacant positions within corporation
from outer environment then it is called as external recruiting (Fine, 2012). On the other hand,
when a firm used to employ personnel’s from within their working premises, then it is known as
internal recruitment. Selection is done on the basis of applied methodologies or recruitment.
Main methods which can be applied by JP Morgan in employing personnel’s from outer business
surrounding are following:
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 School, colleges, University: Company has to arrange campus recruitment drive in
famous colleagues, universities and schools for the purpose of choosing suitable
candidates. Company can use this in order to perform recruitment and selection
procedures.
 Advertisement: JP Morgan can give advertisement in newspaper, TV, journals, etc. for
attracting more and more people towards their vacant designations.
 Former employees: By applying this technique, a manager can bring back those staffs
who have leaved organisation because of genuine reasons.
Benefits of external recruitment
 Company is having a lot of options as whole world is full up of suitable candidate.
 Innovational ideas get created by new joiners.
 Productivity of company get rise up.
Drawback of external recruitment
 This is quite expensive in nature.
 It is confusing task to find suitable person from huge number of candidate.
Approaches of Internal Recruitment
Besides this, some of the approaches of hiring people by applying internal recruitment are listed
below:
 Transfer: Herein, people are being transferred from one location to another for meeting
the needs of corporation (Bloom and Van Reenen, 2011).
 Promotion: This is done for giving appraisals wherein an employee is moved from lower
designation to higher one.
 Present employees: Some of the vacant positions of company is commonly filled by
existed workers who are performing at work site by examining their capabilities and past
records.
Approaches of selection:
Traditional: In this approach, the characteristics are matched with ideal person to fill the
vacant position of a defined job. Person specifications and job descriptions are used. Company
can hire suitable candidates are hired on the basis of knowledge, skills and personal qualities.
Competency based: This approach identifies abilities which are required to perform the
job in better manner. Managers of company can implement this in order to hire flexible workers.
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Advantages of internal recruitment
 It saves huge amount of money of JP Morgan.
 It also takes less time interval.This assist in improving the moral of employees working
in JP Morgan.
Disadvantages of internal recruiting
 It will lower the rate of innovation from corporation.
 This generates a feeling of discouragement in civilians living in outer environment.
TASK 2
P 3 Benefits of different HRM practices for employers and employees
HRM practices is proved to be beneficial for both employers as well as employees since
it gives opportunities of being developed to both of them. JP Morgan also provide various profits
to their workers and managers. Some of the practices used by human resource management for
the up-liftment of staff members are listed below:
Benefits of Employer Benefits of Employee
 Less conflicting condition: When
managers used to give training and
grooming sessions to their staffs,
then they interact each and every
person at personal level. By doing
this, they come to know about the
issues and difficulties faced by
them. Afterwards, by taking help of
other higher authorities, they create
solutions for those people who are
facing several issues (Dalal and et.
al ., 2012). This in turn aids in
reducing the existed degree of
conflicts which usually occurs
between management and other
members.
 Training and development: HR manager
always give proper training to those people
who have recently joined ventures for
increasing their skills and talents (Benabou
and Tirole, 2011). The main motive of
doing so is to make them confident towards
their jobs so that they do not face any kind
of issue while performing at working site.
 Healthy working atmosphere: Employers
commonly want to establish a positive and
healthy environment for motivating each
and every personnel towards their duties.
They try to maintain safe and secure
premises by removing risky factors that
may cause sudden accidents. In addition to
that, supervisors take care of every need and
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 Stronger workforce: The other
advantage of giving preparation
classes to employees is the creation
of a strong team which is able to do
any kind of work. In that session,
they are attaining easy strategies of
accomplishing particular
organisational chore. By this, their
manufacturing rate get increases
and production of company also
get accelerated in drastic manner.
 Organisational growth: By
working at any organisation for
longer period of time, a manager
acquire work experiences regarding
how to deal with different nature
and behaviour of people. This will
help them in their person life also
when they join some other
corporation at same designation. At
that time, they are having an
experience certificate for working
under the premises of particular
organisation. This creates a plus
point in their Curriculum Vitae and
as a fruitful result, that person may
gain high package of salary.
demands of their team members as they
known that it will help them in improving
employee relations as well as engagement
in effective manner.
 Career growth: By receiving innovative
training and development classes, workers
get a chance to enhance their personal as
well as professional skills. This will
contribute in their professional career
growth.
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P 4 Effectiveness of various HRM practices in terms of raising organisational profitability
HRM practices not provide benefits only to employers and employees but also to the
whole organisation by increasing their current level of production and profits. JP Morgan should
focus on these practices in order to make enhancement in existing profitability as well as
productivity scale. The effectiveness of different HRM practices are highlighted below:
 Training and development classes: Human resource management system usually cater
learning and growth programmes to each of their team members especially those who are
weak in some sector. Mentors or Supervisors plays an important role here as they are
liable to give corporation - al knowledge to those people who are not good in specific
field. The reason for catering these preparation sessions is to make them more capable
and able that their weaknesses get converted into strength. This will positively impact on
the performance of organisation (Bratton and Gold, 2012). For example, when JP Morgan
would create special training class for making personnel’s learn about trending
programmes related to banking such as tally, handling of ERP software, using
spreadsheet, etc. After acquiring cognition about these digitalised techniques, it is
obvious that skills as well as qualification of all workforces get upgraded. As a result,
they will handle each difficult task on the basis of acquired knowledge. This would
increase the level of production which in-turn directly improve the profits level of JP
Morgan as customers get satisfied after attaining best quality services affiliated with
banking.
 Payment & reward management : This is considered as one of the important practise of
HRM system. Managers generally recognise those people who are performing well at
workplaces by doing deep investigation. Subsequently, they used to arrange a programme
where rewards is being provided to best performer of the month and year. This creates a
feeling of enthusiasm, motivation or inspiration in employees. Rewards can be given in
the form of bonus, additional payment, compensation, extra holidays, more paid leaves
etc. After being motivated, personnel’s start working by giving more focus on their job
roles. Sometime, they work extra hours for attaining the target of JP Morgan. This as a
good outcome, enhances the productivity of venture. Since production get rises, it is
obvious that profit will be enhanced.
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TASK 3
P 5 Importance of employee relations in context to influencing HRM decision making
Workers are treated as the heart of an enterprise since without them a single task of
company cannot get started. They are the only one who use both their physical as well as mental
power in accomplishing the aims and objectives of corporation. JP Morgan should also
understand or realise the importance of employees who are performing for their up-liftment.
Personnel’s at their work – premises are working hard for achieving mission and vision of
company. Therefore, it is the responsibility of employers to maintain a good and optimistic
relationship with them. This will assist them in creating motivation amongst team members. By
being inspired and enthusiastic, people would work toward reaching the goal of organisation
since they realise the fact that “work is worship” (Bagnoli and Megali, 2011). Hence, they give
their precious time for the development of organisation by working devotedly. This is proved to
be more beneficial for the company since after that their productivity as well as profitability get
increased.
JP Morgan used to apply following methods for maintaining healthy relationship with
their workforces:
 Reward management: The corporation is offering several kinds of rewards to those
workers who are giving best in completing the organisational task on continuous basis.
Employers present at JP Morgan are keeping their eyes on the performance level of each
employee by interacting and examining their work personally (Boxall and Purcell, 2011).
This is to be noted that appraisals are being offered to the best performer along with a
good hike in their monthly salary. In addition to the same, bonus is provided at the time
of festivals like Christmas, New year, etc. Some of the workers are also receiving
additional paid leaves, if their attendance is good in the end of each month. These
activities are giving great impacts on the decision making of HRM since HR manager
have to decide which person is eligible for taking the rewards. If wrong person is selected
then this will create demotivation on those persons who are actually well performing.
Thus, it can be said that there is a pressure on the head of supervisors since their
determination would decide the organisational career or future of subordinates working
under them. Reward management play crucial part in engaging employees within
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company as this motivates them to perform better and get maximum rewards against their
work.
 Giving Challenges: Management used to generate a challenging environment for their
team-mates as they think that after getting challenges, people begin working by paying
more attention towards their jobs. Employers also deliver motivational speech in order to
generate inspiration among workforces (Purce, 2014). By getting inspired, individuals
start working devotedly and attempt to reach every challenges in effective manner. These
hindrances make people stronger in nature and help them in sustaining at same
organisation for long time period. Determination of challenges effect on the decisional
making process of HRM since if they frame more tough hindrances, then there might be
possibility that employees would not get ready for working.

P 6 Key elements of employment legislation and its impact upon HRM decision making
Government of United Kingdom has made various laws for creating an ethical
environment within nation. These rules and regulations generally give impact on the decisional
making process of Human resource management by forcing them to follow all of such norms
properly. JP Morgan needs to understand about the key components of employment legislation
and its influences on their decision making system. This interpretation can be more clear by
focussing on below mentioned points:
 Health and Safety, 1974. : Governing of Great Britain is more conscious regarding the
safety of workers performing at any corporation. For ensuring their well – being, they
have framed a legislation known as Health and Safety at Work Act 1974 (Nielsen and
Randall, 2012). According to this law, each and every firm existing in UK must have to
provide a healthier and safer environment while working so that people remain safe.
Companies should arrange medical facilities at work premises for personnel’s. This will
assist any individual who is having injuries. In order to minimise the overall number of
sudden accident, Ventures should also not start their commercial chores at highly
elevated location. Besides this, first aid box ought to available at workplace for giving
initial treatment to a sufferer. These all facilities must have to be offered by JP Morgan
to their staff members for doing business appropriately as per the legislation of
government. It is to be noted that a HR managers existing at JP Morgan is responsible
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