Human Resource Management Report: HRM Practices and Strategies

This report delves into the core principles of Human Resource Management (HRM), exploring workforce planning, recruitment, and employee relations within the context of a business organization. It examines the purpose and functions of HRM, differentiating between soft and hard HRM approaches and their application in a global context, using JP Morgan as a case study. The report analyzes the strengths and weaknesses of internal and external recruitment methods, evaluates the advantages of various HRM practices for both employees and employers, and assesses their impact on productivity and profitability. Furthermore, it discusses the significance of employee relations in decision-making processes and identifies key components of employee legislation. The report concludes by applying HRM practices to work-related contexts and offering insights into effective management strategies. This document is a student contribution to Desklib, a platform offering AI-driven study tools.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of HRM applicable to workforce planning...................................1
P2 Strengths and weaknesses of different approach to recruitment and selection.................2
TASK 2............................................................................................................................................5
P3 Explanation of advantages of different HRM practice to employees and employers.......5
P4 Effectiveness of different HRM practice in increasing profits and productivity..............7
TASK 3............................................................................................................................................8
P5 Analysation of the significance of employee relation in decision making process..........8
P6 Identification of main components of employees legislation and their affect of decision
making....................................................................................................................................9
TASK 4..........................................................................................................................................11
P7 Application of HRM practice in work related context....................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business organisation have different departments like operations, information
technology, finance, marketing etc. But, the most important division is the company is human
resource wing because they are responsible for hiring those people who are going to work in
above mentioned divisions. HRM is an approach of managing employees in an effective way so
company get some extra edge over their rivals (Alfes and et.al., 2013). JP Morgan is investment
banking company of USA who is providing their services across the globe. Around 2,50,000
people are working in this firm and some of their successful products are asset management,
bank underwriting etc. This assignment will discuss about hard and soft approach of HRM.
Besides this, various benefits of internal and external recruitments will also become part of this
file. HRM practice is beneficial for both employees and employers, its advantages will be
explained in this report. A discussion will be done of effectiveness of HRM practice regarding
productivity and profitability. Significance of employees relation in decision making will get
cover under this file. Few acts and application of HRM practice will be discussed at the end.
TASK 1
P1 Purpose and functions of HRM applicable to workforce planning
HRM – Human resource management is the process of doing all the work relating to
employees like provide training to them, decide their salary, solve their issues etc. HR executives
work as a mediator between employees and company. Although HRM involve various function
but the most important is recruitment of personnel. This is key responsibility of all the people
who work in HR division because if right people will not enter in organisation then company
cannot proceed towards their set aim. Beside this job, HR division is also take accountability of
compliance of labour laws and making organisational policies regrading leaves, working hours
etc. Sound HRM also provide competitive advantage to an organisation (Armstrong and Taylor,
2014).
Strategic HRM – It is an approach which is connected to the long term goals of an
organisation. It include normal work like hiring, setting payroll but beside this, it involve
retaining of key employees, improving work experience etc. These are some underrated but
significant work which assist an organisation in execution of their short and long term plans. An
important part of strategic HRM is that it a collaborative approach. HR division do not only
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focus on their own work, they also get involve in organisational strategy and work of other wings
of company.
Soft and Hard HRM
An organisation can adopt two type of HRM approach i.e. soft and Hard. Both
approaches are completely different from each other and they have various dissimilarities.
Soft HRM – This concept argues that important are an important asset of an organisation
because they have ability to provide competitive advantage to the firm. Quality workforce is now
becoming basic need of every enterprise (Arumugam and Rouhollah, 2011). Focus of this
approach is on concentrating the demands of workers. It involve motivating employees by
adopting different methods like rewarding them or job enrichment etc. Soft approach include
some key features like two way communication with employees, workforce democratic
leadership style etc.
Hard HRM – This approach of HRM is losing its charm because of the rigidity and
strictness. It argues that employees should be treated like any other resource i.e. machine,
building etc. The emotions of workers are completely ignored in this concept and its main focus
is on ascertaining total number of employees that are needed in business. Beside this, it only
concentrate on hiring, firing and moving workers.
Soft and Hard HRM in global context
Most of the multinational firms, who are running their business at global level, adopt soft
HRM because they understand that it fits in their business model. Big corporation have to give
more power to their employees and resolve their issues because if workers are not happy with the
company then attaining organisational goal is not possible. JP Morgan serve worldwide and they
use Soft HRM because it consider employees as their prime resource (Bloom and Van Reenen,
2011). Hard HRM is generally adopted by those small firms who are present in a single location
and the job which is done by their employees does not need much skills and qualification. They
understand that even, if they will not remain strict and give additional importance to workers
than it their performance is not going to improve. Their productivity will be same whether they
adopt Hard or Soft approach of HRM.
P2 Strengths and weaknesses of different approach to recruitment and selection
Recruitment and Selection
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Recruitment – It is a process where prospective employees are searched and convinced
for applying for a job role. HR team always want to recruit people at low cost but they did not
want to compromise in the terms of quality.
Selection – Selection is often considered as a negative process because those candidates
who does not contain required skills are reject understand it in order to find best people.
Advantages and disadvantage of internal and external source of recruitment
(Source: Sources of Recruitment, 2018)
Internal source of recruitment - When an organisation fill vacant post by promoting or
transferring their employees then it is known as recruitment which is done by using internal
sources (Boxall and Purcell, 2011). Sometime referrals are also considered as internal source for
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Illustration 1: Sources of Recruitment

hiring. In referrals, existing workforce is asked to suggest the name of their friends and family
members who may have qualities which is required for a particular post.
Advantages
 Existing workers understand culture and working environment of organisation. Company
do not have to spend time and money of training and orientation programme when they
use this source of selection because they know that employees does not need any
introduction. Internal promotion play crucial role in reducing employee turnover rate. Their are various
employees who leave company like JP Morgan when they get better offer from other firm
but if they get promotion on continuous basis or transfer according to them, then they do
not switch their employer. Promotion work as a motivation and it seek more commitment
from the side of employees.
Disadvantages
 One of the key advantages of this approach is that it reduces the number of fresh talent
and more qualified people who can do same job in better way. This ultimately make a
huge negative impact on the growth of company because at some point, they start feeling
that they lack talent in organisation (Buller and McEvoy, 2012). Internal conflicts enhances when a company send existing employees to a higher post.
People who are working with the promoted member may raise question about why they
are not being promoted. They may stop cooperating with their seniors and it result
negative working environment.
External source of recruitment – This form of recruitment involve hiring candidates from outside
of the office. Recruitment agencies, campus recruitment, walk-ins etc. are few methods that are
used for selecting employees for an empty post.
Advantages
 When fresh blood enter in the organisation then it increases number of talented and
skilled workers in the organisation. This assist organisation in achieving their target in
less period of time and in an effective manner (Choi, 2011). When new employees do hard work then it motivates existing workers to work harder
and get quick promotion. This generates a positive environment in the company by
developing healthy competition among employees.
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Disadvantages
 External source of recruitment is expensive and it take more time compared to internal
promotion and transfer. When an organisation has to hire candidates for empty position in
short time period then they cannot adopt this option.
 If company recruit an outsider for higher post then it demotivate employees who could
have reached to same position. They may leave company and can increase employee
turnover percentage which is not good for any firm.
The above discussion reaches to a conclusion that company's like JP Morgan adopt soft HRM
because other one is not going to give desired results to organisation. Internal and external
recruitment sources has their advantages and disadvantages and JP Morgan chose one according
to the demand of situation (Daley, 2012).
TASK 2
P3 Explanation of advantages of different HRM practice to employees and employers
Training and development of employees important for workers as well as employers.
Training means positive alterations in the behaviour of trainees by organising learning
programmes and giving instruction to them. Training enhances knowledge of employees and
develop new skills in them. Development is different concept compared to training, it focuses on
overall growth of a person by increasing his/her ability and potential. This work is done through
education and working experience. Below are benefits of learning, training and development:
Benefit to employers Benefits to employee
Quality workforce – When employees get
training and company spend money on
developing them then it increases the skills of
employees who are working in company. This
improves quality of services which is provided
by organisation and give them extra edge over
their competitors (Guest, 2011).
Career development – When employees get
training and company assure their continuous
development, then it assist employees in
attaining quick career growth. Workers at JP
Morgan can reach to a better position after
completing various kind of training
programmes.
Measure progress of staff – At the time of
organising development programme, JP
Morgan can analyse the growth of each and
Earn money – Money can be considered as one
of the basic need of every person. Training and
development increases skills and talent of
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every employee. This will assist them in
finding right person for promotion and transfer.
employees. It provide them more opportunity
to grow and enhance their remuneration. JP
Morgan understand that they cannot grow
without increasing monetary benefits to the
company. They provide training to their
employees so they can increase their
capabilities and earn more things. Reward
management develop a positive system where
if an employees is giving better performance
then he/she will earn more than other
irrespective of their experience and position.
Comply duty – JP Morgan is obligated towards
professional development of their employees.
If they get necessary training, then it fulfil their
duty to provide growth opportunities to the
workers.
Help in understanding culture – New
employees are unaware of the culture of
organisation. When they attend training and
development programmes, then they learn new
things which assist them in understanding their
job in better way and help them in getting settle
down (Hendry, 2012).
Employee retention – Training and
development sessions shows that company care
about their employees. It help firm like JP
Morgan in reducing employee turnover rate
which is very important for company who is
operating in a highly competitive market.
Flexible working conditions is another HRM
practice which stop employees from switching
their jobs.
Increase productivity – Every employee at JP
Morgan want to increase their productivity so
they can become more valuable to company.
Training and development allow workers to do
a task in less period of time and in a more
effective way.
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P4 Effectiveness of different HRM practice in increasing profits and productivity
The work done by HR team make a huge positive impact on complete performance of
organisation because it does not only manage human resource, it also focus on enhancing profit
and productivity of firm. Below is the evaluation of effectiveness of various HRM practice:
Learning and training practices – When an organisation concentrate on development of
workers, they get success in developing a quality workforce. JP Morgan is operating at
worldwide level. Training and development programmes play crucial role in giving competitive
advantage to the firm. It does not only help in fighting with rivals, it affect company's position in
a positive manner (Jiang and et.al., 2012). Training events are very effective in terms of
improving productivity of employees and whole organisation. Profits of an enterprise also go up
when efficiency of their workers enhances.
Flexible working hours – If an organisation has loyal employees then there is high
probability that they are growing to achieve their target without facing much hurdle. JP Morgan
successfully adopted flexible working system because they have trustworthy employees.
Company have faith in their employees and this is the prime reason that they have allow flexible
working options to the employees. They understand that workers are not going to misuse this
flexibility which is a part of HRM practice. This HRM practice does not only increases
productivity of workers, it also improves net profit of this firm. Suitable working hours and
location enhances productivity of employees because they get favourable working environment.
They are very effective in raising profits of JP Morgan.
Performance management and monitoring - Their is no doubt that flexible working
option make organisation more flexible. HR division is responsible for overall growth of
employees. Monitoring progress of employees help company in finding the flaws which are
present in employees. When company provide them training and allow them to overcome their
weaknesses then their productivity enhances. Performance management motivate employees to
increase profit of company because their incentives are based on it. JP Morgan used monitoring
and performance management for increasing profit and productivity. This HRM practice is
beneficial for both, employees and company because growth of organisation means growth of
workers (Kehoe and Wright, 2013).
Work-life balance – JP Morgan provide various kind of services to their clients. Their
employees has to work more than 100 hours per week which did not allow them to spend some
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time with their friends and family members. HR team started a new practice in the organisation
where they allow workers to take regular leaves and make holiday packages for them. Creating
work-life balance made a positive influence on worker's productivity. When employees work
with free mind, they produce better results. It ultimately increase profit per person and improve
productivity of workers. This practice is giving great results to JP Morgan which shows that it is
very effective.
Job rotation – JP Morgan transfer and promote their employees so they can learn job
responsibilities of various positions and get all the necessary skills which are required to become
senior manager. Job rotation ensures development of workers and it help them in enhancing their
productivity in long run. Enhanced productivity means increment in net profit because JP
Morgan save cost of recruiting new person for a higher position. Job rotation is very effective in
terms of finding future leaders for the organisation. Profit and productivity, both are dependent
on leadership of company (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
TASK 3
P5 Analysation of the significance of employee relation in decision making process
The effort which are made by organisation for keeping good relationship between
employee and employer is refereed as employee relation. HR department of every firm has to
take various decisions which are related to salary of employees, their promotion and other
policies of the firm. Below are few factors which affect employees relation:
Recognition and appreciation – Employees do not only want money, they also seek
appreciation for the work which they have done for the company. If an organisation recognize
and appreciate performance of worker then it improve relationship between employer and
personnels.
Monetary benefits – If a company is earning huge amount of profit then it is their
responsibility to enhance monetary benefits to the employees (Renwick, Redman and Maguire,
2013). Employer can easily keep fine connection with their workers if they dispute profits in
appropriate manner. This made a positive impact on employee relation.
Safety and security – If employers assure job security of workers then they can easily
seek desired cooperation from employee's side. This factor is ignored by many MNCs, but
assuring safety at work and job security do play a crucial role in affecting employee relation.
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Significance of employee relation in HRM decision making
Improved results – With the development of effective connections between employees
and the human resource the overall productivity level of the organization increases. It is due to
the fact that than there will be less disputes and work will be carried out through mutual
understandings and collective efforts. It will further develop the skills of an individual in the long
run.
Teamwork –In an origination it is important that targets are met on time for which group
efforts are required. By raising good relations productive teams can be formed which are helpful
in raising the efficiency level of the enterprise.
Raise morale – By establishing good connections the difference between the employees is
reduce which is important to control the turnover rations. Apart from this open communication
also helps in understanding the work culture in more detail and hence accordingly better and
effective decisions can be taken. Once the ideas of other employees are considered they find
themselves recognized in the institution and hence feels motivated which reflects on their
performance (Wright, and McMahan, 2011).
Control overall cost – Improved relations leads to felling of belongingness among the
employees and therefore they use the resources of the institution to their full capacity. It helps in
minimizing the total cost of firm which results into growth of overall profit margins for the
referred to organization.
Relevance and significance of trade union
Trade unions are losing their charm with time because every company, whether big or
small, has HR division who is now doing the work which was earlier done by trade unions. Their
was a time when unions in UK were very important but now their work is done by HR
department like human resource manager raises the concerns of workers in-front of management.
In this ear, importance of trade unions has gone down and they are not relevant for multinational
firms like JP Morgan.
P6 Identification of main components of employees legislation and their affect of decision
making
Employees legislations are developed by government for removing the confusions
between employees and employer. It's main aim is to improve employee relation and tell both
sides about their rights and duties at workplace (Alfes and et.al., 2013). The legislations made by
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