Human Resource Management Report: Merrill Lynch, HRM Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Merrill Lynch. It begins with an introduction to HRM, its functions, and purposes within the context of Merrill Lynch, including maintaining good working conditions, managing employee relations, training and development, and total rewards. The report then delves into the nature and scope of HRM, differentiating between hard and soft HRM approaches. It explores the strengths and weaknesses of various recruitment and selection methods, including internal and external recruitment strategies such as promotions, retired employees, advertisements, and direct recruitment. The report highlights the merits and demerits of each approach. The document examines HRM's role in staffing, performance appraisal, law compliance, and recruitment. The report concludes by summarizing the key HRM practices and their impact on organizational success at Merrill Lynch. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Function and the purpose of HRM..............................................................................................1
Strength and weaknesses of several approaches that are required for recruitment and selection
.....................................................................................................................................................3
TASK 2............................................................................................................................................5
HRM practice in an organisation which provide benefits to employee's and employers...........5
HRM practices that help an organisation to increase in profit and productivity........................7
TASK 3............................................................................................................................................8
Importance of employee relations in order to influencing HRM decision making.....................8
Elements of employee legislation and its impact on decision-making of HRM.........................8
TASK 4............................................................................................................................................9
Application of HRM practice for a work related context...........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management introduces as an effective practice of hiring, selecting and
managing an organisation's workers. The main agenda to implement HRM in an organisation is
to recruit the skilled and capable employee's through the process of recruitment, selection and
training. This present report is written from the perspective of Merrill Lynch Firm which is
situated in central London. It offers services for making an investment and wealth management
for the customers. Moreover, it also provide services for brokerage as well as security dealings
(Wright, Sturdy and Wylie, 2012). This project highlights purpose and scope of human resource
management along with internal and external factors. Along with this they key elements of
human resource management will be covered in this report. At last practices for human resource
management and internal and external factors that impacts on workforce of organisation is also
discuss in this report.
TASK 1
Function and the purpose of HRM
Human resource manager is the person who is responsible to manage the work-force of
the organisation. For attaining organisational goals, HR manager develops effective process of
providing training, recruiting and developing the skills of the employee's. Moreover, it is a set of
regular activities or practice which assist employee's to understand the nature of their work. With
implement of effective HRM approaches, an organisation develops different goals due to which
it is easy to regulates all departments of the Merrill Lynch. Some function and purposes of the
organisation are mention as follow:
 Maintaining Good Working Conditions- It is the responsibility of the human resource
management to generate healthy working environment for the employee's. Such as safe,
clean and hygienic environment of the organisation. This also helps them to motivate the
employee's due to which they are able to perform their work with more effectiveness. In
context of Merrill Lynch, HR officer came up with welfare concept in which they
formulates effective HR policy that helps in maintaining good environment at workplace
(Tenhiälä and et. al., 2016).
 Managing employee relations- Employee's are known as the pillar of the organisation
which signifies that they play an important role for completing organisational activities
and attaining objectives. The concept of employee relationship is a broad concept that
derives an HR manager to adopt positive employee relations in the organisation. HR
officer of Merrill Lynch organize different activities like formal meetings and informal

parties that helps management to know employee at personal as well as professional
level. Well designed employee policies help promotes healthy and balanced relation
between employee's and the employer.
 Training and development- It is the critical function of human resource management
that boost the skills, capabilities and effectiveness of the employee's by providing
effective training to them (Renwick, Redman and Maguire, 2013). HR of Merrill lynch
executes this function for all departments as it works as an attempt for improving the
future performance of the employee's. In order to conduct them properly, they provide
training and educational programmes to the employee's for developing their skills
according to their specific roles.
 Total rewards- The HR department of the organisation is responsible for acquiring and
administering an attractive compensation or benefits package for the employee's. Within
the context of Merrill, they attract their employee's through providing high salaries,
insurance, compensation as well as reimbursement due to which it is easy for them to
retain their employee's for a longer time period. Further, it is beneficial because it helps
them to offer effective service package to employee's according to their skills.
Purposes of the HRM
 Staffing needs- Human resource management is known as the department which is
responsible to recruit employee's for the organisation. It includes different function such
as determining job duties, skills, qualification and other activities which are required for
specific position in the organisation. Personnel screen applicants, references check,
administrating test are some of the mandatory aspects which are required for determining
the skills that are needed for a specific position. These all tasks are performed by HRM
department of the Merrill Lynch to ensure that they fulfil the needs of organisation and
employee's in appropriate manner.
 Performance appraisal- It is the responsibility of HRM department to maintain records
of employee's performance through observing their work. It determines that HR officer
is responsible for recording and maintaining the entire performance of the employees. In
every organisation, this process occurs on annual basis (Lasagni, 2012). For Merrill
Lynch, HRM department performs different roles but the main function that is performed
by it is related with performance appraisal. It conduct this process in a simple and
straight method as to conduct them on fair basis.
 Law compliance- All organisations are responsible for the safety and security of their
employee's. Therefore effective policies are formulated by HRM department for ensuring
the interest of their employee's in organisational activities (De Medeiros, Ribeiro and

Cortimiglia, 2014). Therefore, it is the mandatory for the Merrill Lynch to follow all the
rules and regulation of the organisation. An effective human resource department finds a
way for accomplishing organisational goal through creating effective balance between
the needs of employers and the formulated laws.
 Recruitment- This is the formative and universal first purpose of the HRM by which
they hire or recruit effective employee's within the organisation. Internal and external are
two methods by which an organisation recruit or hire skilled employee's. It involves
promotion, transfer for completing process of internal recruitment. While recruitment
agency, exchange of employee's is external method of recruitment. In context of Merrill
Lynch, they hire employee's through internal methods as it helps to select right candidate
at right time (Kramar, 2014).
Nature and scope of HRM
Human resource management is a procedure of hiring people for accomplishing goals of
organisation. It determines that HRM is pervasive in nature and moreover it is presented
universal on all organisation. The main motive of HRM is to focus on result through following
proper rules and practices. In context of scope HRM practices is a broad factor as human
resource is a best asset for organisation that leads them to gain competitive advantage in
organisation.
Hard and soft approach of HRM
Soft as well as hard approach of organisation are two different factors that is used by
organisation to manage employee's. In this soft approach consider flexible nature of employee's
for gaining competitive advantage in market. Points which is focused to fulfil includes needs of
employee's, training, development and commitment towards employee's for motivating them.
Hard approach of HRM focused towards employee's as they are task focused. Points which
determines hard approach includes cost control, strategy to achieve organisational goals and cost
control. For Merrill Lynch hard approach is more effective as it is related with monetary terms
and wealth management.
Strength and weaknesses of several approaches that are required for recruitment and selection
For considering this process in systematic and sequential manner, majority of the
organisation implement traditional methods to attract employee's such as advertisement,
interview etc. Moreover to overcome from workforce problems organisation develops new
department which is recognise as HRM that helps them to recruit capable and skilled employee's
for fulfilling the vacant seats of Merrill Lynch. Some strength and weaknesses of recruitment and
selection process is mention as follow:

Recruitment
Recruitment is a process of searching right candidate for organisation and influencing
them to apply and work for vacant seat in organisation. In easy words recruitment advert to
identify sources by which employee's are selected for organisation.
Internal recruitment
This method or process helps an organisation to recruit employee's from internal
departments. Internal process of recruitment works on the factor through changing the working
environment of its existing employee's. Like HR department of Merrill Lynch approach their
retired employee's, internship students and current employee's that are occupying various job in
the organisation. On the other hand, it is beneficial for the organisation because employee's are
already aware about the goals and objectives of Merrill Lynch.
Methods of internal recruitment
 Promotion- Sometimes an organisation hire or recruit employee's from the internal
methods. It is an effective method for Merrill Lynch as it helps them to fill the vacant seat
of upper level management. Example- If organisation wants to hire new supervisor then
they approach their current staff (Guest, 2017). As they are already experienced and
aware about customer needs as well as organisational functions.
 Retired employee's- The main motive of them is to hire employee's for organisation for
short term and long term basis. It is one of the most common method for internal
recruitment. Like organisation hire more employee's for the complete their work within
specified period. They all are recruited on temporary basis. Therefore organisation has
alternatives to fill their seat from them. As this is based on their performance and also
beneficial for employee's as they get full time job position in the organisation.
Merits of internal recruitment
 Retention- HR officer or organisation is already aware about the candidates behaviour,
ethics, value and approach. It determines that organisation as well as employee's both are
aware about their needs or responsibilities which is fulfilled by them. So it is easy for
employee's to retain for long term in the organisation.
 Continuity- Employee's which are recruited from inside organisation are already aware
about their responsibilities. So Merrill Lynch is able to make continuity in their work
along with this it also reduces cost of training and development. (Fernandez and Rainey,
2017). Moreover employee's will need to perform similar task in the similar organisation.
So this help them to save their time.
Demerits of internal recruitment

 Conflicts- With the implement of internal method in the organisation, they hire
employee's through promotion and transfer. This results that conflict will be raise in the
organisation. Like employee's are not interested to complete their work within other
department of the organisation because of their low interest.
 Limited option- This is mandatory for the organisation to hire or recruit employee's that
are recently completed their education. As they bring update and unique methods to
complete organisational operations. While in context of internal method, HR officer have
small number of option for selecting the right candidate (Evanschitzky and et. al., 2012).
Due to which they has limited ideas to complete their work.
External recruitment
Large pool of capable as well as skilled employee's exist outside that helps an
organisation to recruit effective employee's whose skill match with the requirements of vacant
seat. Moreover, external methods to recruit employee's that are beneficial for Merrill Lynch is
mention as follow:
Methods of external recruitment
 Advertisement- Advertisement is the traditional and most effective methods of the
organisation that assist them to generate large number of needs for the vacant seat. In
context of Merrill Lynch, this method is beneficial as it helps them to advertise their
recruitment applications on a large scale by using social media, print media, radio
channel and many more.
 Direct recruitment- This recruitment process refer to the process of selecting right
candidate at right time in the organisation through directly interacting with candidates. It
determines interview, aptitude and reasoning test of prospect. Direct method or process
work by recruiting qualified candidate from external sources which undertakes collages,
institution etc. Along with this process work as organisation put a notice boards at
several places in order to start recruitment process effectively.
Merits of external recruitment
 Fresh skill- When an organisation executes external method for recruiting employee's
then there is more possibility to identify new or fresher candidate. It determines that they
are capable to found out new skilled employee's. On other side fresh and new candidates
leads organisation towards high position in industry through implementing their skills
and knowledge in operations and functions of organisation.
 Creative ideas- Most of the time HR officer provides opportunity to those candidates
that provides them creative ideas for the organisation. To overcome from this HR officer
of Merrill Lynch take test of employee's in order to complete their effectively.(Daley,

2012). Along with this, it is possibility for organisation to select candidate with new
ideas.
Demerits of external method
 Time consuming- The external recruitment process is very crucial for organisation but
it is time consuming process. Most of the organisation post advertisement for the
recruitment, but if it is not effective then candidates are not interested in it. Due to
which cost and time is increased for the organisation.
 Risk- External recruitment is a complex and time consuming process due to which
organisation faces slow down in completion of their work. On other hand it is not
mandatory that new candidates will retain for longer period in organisation.
Selection
Selection is the process of selecting and choosing potential and skilled candidates for
organisation. In easy words they define methods to remove unsuitable applicants and recruit
those individuals with required education and capabilities.
Method of selection
 Interview- This is traditional method to recruit and hire employee's for organisation by
conducing face to face interview. It is effective method for fulling key requirements for
vacant job position. For Merrill Lynch this process work as panel of interviewers creates
some question and score candidates according to their answers.
Merits of interview method
 It assist an organisation to recruit an candidate that contain essential skill, capabilities and
qualification for job.
 This is a easy approach through which candidates and interviewers approach their
customers according their needs.
Demerit of selection method
 This approach is used implemented by organisation from recent trends but is not effective
as sometimes they contain unreliable and irrelevant information for organisation.
 Sometimes it is not beneficial for organisation because sometime candidates are not able
to deal with interviewers in effective manner due to which they are not able to crack
interview.
TASK 2
HRM practice in an organisation which provide benefits to employee's and employers
This process helps an organisation to observe and control the performance of overall
employee's who are engaged in their operations and functions. It governs that HRM practice

helps an organisation to complete their activities in effectual way. In present scenario large as
well as medium business houses are operating their work at global level. Therefore organisation
are giving tough competition to each other at global as well as international level (Collings,
Wood and Szamosi, 2018). Within context of Merrill Lynch it is essential for HR officer to
follow all HRM practices due to which healthy and positive environment will be developed
inside the organisation. Some type of practices that impacts on the functions or performance of
Merrill Lynch is explain as below:
Flexible working option
In an organisation working practices is a crucial factor that impacts on productivity of
their products or services. As this factor is directly related with the performance of employee's.
The main agenda to develop this practice in all organisation is to make a balance between
professional and personal life of an individual.
Payment and reward management
Employee's are the first person who are benefited with this business practice because it
provides them monetary benefits. In this an employee performance is evaluated on fair and
unbiased bases. Like self-rating, monitoring of their daily activities, measuring of their monthly
performance and so on. On this factors HR manager provides monetary benefits as well as their
management factors (Buller and McEvoy, 2012).
Knowledge sharing
For an organisation knowledge sharing practice undertakes all the activities that helps an
organisation to share their knowledge in all departments of the organisation. In order to consider
them in appropriate manner organisation uses formal as well as informal method to communicate
with employee's in effective manner. Knowledge sharing work as a phase which help to identify,
acquire, create and retain knowledge for the organisation.
HRM practice Benefit to employee's Benefits to employers
Knowledge Sharing In an organisation this practice
assist employee's to increase
the knowledge of all essential
activities that are performed by
them.
Employers are responsible to
delegate all the task that is
decided by management.
Therefore this practice help
HR officer to delegates their
roles in systematic manner.
Payment and reward
management
For employee's this practice is
beneficial as it helps them to
This is beneficial for
employer's as it leads them to

identify the reasons for their
compensation.
provide effective fair salaries.
Flexible working option This practice work as the best
motivation tool for the
organisation. It undertakes
factors such as work from
home, less working hours etc.
For the employer this provides
benefits to the organisation as
employee's are motivated. So
they retain and sustain for
longer period in the
organisation.
HRM practices that help an organisation to increase in profit and productivity
Human resource management is a mandatory department for the organisation which helps
an organisation to control and manage their employee's. It is the responsibility of HR officer to
train their employee's. So they work as an asset for the organisation in the upcoming future
moreover it is also useful for Merrill Lynch because it helps management to match their skill
with the vacant position (Brewster and Hegewisch, 2017). Several types of management practice
are executed in operations of Merrill Lynch that helps them to attain their goals within minimum
time period. On the other hand skilled employee's increases the productivity for organisation
through increasing the value in their products.
Employee's Survey
In recent years work of human resource department is expanded. They are working to
ensure that an employee as well as organisation both are benefited through performing work for
each other. This determines HR officer of the existing organisation work for increasing the
employee engagement in the organisation. It helps them to increase their productivity because
individuals or employee's are motivated towards work.
Inventory
Their are different issue exist in the organisation which generates barrier and issue for
organisation towards attaining their goals. Example- common complaint among employee's are
identified by HR manager and then they are resolved by them for increasing productivity of
organisation.
Performance linked bonus-
This aspect works for the organisation and HRM department for satisfying the needs of
the employee's by providing several benefits to them. For considering this in an appropriate
manner HR department monitor the performance of all employee's due to which it is easy for
them to provide monetary benefits. Whereas it works for organisation as skilled or modified

employee's complete their work in effective manner which directly increases the profits for the
organisation.
TASK 3
Importance of employee relations in order to influencing HRM decision making
Employee's are the best asset for the organisation that provides competitive edge to them
which is not able to match by any other competitor. Human asset works for organisation through
under taking different aspects of the organisation that is related with human activities. Like
hiring or recruiting new employee's, salary payment of workers, transfer and promotion.
Therefore it is the responsibility for HR officer to maintain healthy and positive relationship
between employee's and employer.
 In context of Merrill Lynch better relations between employee's and employers helps an
organisation to complete their goals within minimum time period. As they both are
effectively connected with each other.
 Better relations between employee's also helps them to complete their work with more
efficiency and effectiveness. In respect towards an effective HR manager communicate
their goals and policies with employee's so they perform their work in systematic and
sequential manner (Alhawari and et. al., 2012).
Elements of employee legislation and its impact on decision-making of HRM
Employee's or human are the most valuable asset of the organisation without the
engagement of employee's in the organisation. In order to engage employee's effectively in
organisation operations. Governments as well as other institution works for employment
legislation in UK formulates effective laws and legislation for protecting the interest of the
organisation. Along with this law also distinguish between employee's and employer. Some of
the acts that defines employment legislation is mention as follow:
Health and safety at work act, 1974
This act undertakes all duties, actions, operations etc. that are performed by all
employee's of the organisation. It determines that all employee's from lower level to upper level
are included in this. In respect to Merrill Lynch this practice is implemented by HR officer for
providing healthy working conditions, clean environment, safe and secure inventory that is
involves in organisation to complete their goals within minimum time period. This helps the
organisation to protect their employee's from accidents and other harmful issue.
Data protection act, 2004
This act is defined by the organisation through which they are able to ensure the safety of
their data. An organisation gather specific and relevant information in order to make their

information confident way. Everyone of the organisation is responsible for using personal data is
to make data protection principles. This is legal protection to make sensitive information race,
ethnic background, political opinions etc. Under data protection they are used to be informed and
access personal data that secures training as well as skills of the employee's that are engaged in
organisational goal.
Equality act, 2010
This act is also known as anti-discrimination act which was modify in the year 2010. this
act states that it is essential for organisation to protect their employee's from discrimination. This
act that is employed by organisation to protect the interest of their employee's from their age,
gender etc. it helps employee's to protect the interest of their employee's. For Merrill Lynch it is
important for them to secure interest of their employee's through providing them rights and
making effective policy.
TASK 4
Application of HRM practice for a work related context
In present scenario majority of the business's organisation sustain their business's at
multi-national level. For this it is mandatory for them to retain their employee's for longer period
in the organisation. To gain the profitability performance management technique is implemented
by the HR department of Merrill lynch. The agenda to implement this application helps the
organisation to evaluate the performance level of its employee's. For attracting large number of
candidates HR officer is focusing to develop specific job document which is mention as below:
Job specification document
Administration: Merrill Lynch
Section: Human resource department
Job Title: - Supervisor HR
Job location: 14 north street, London
Job summary
Organisation is searching for recruit a person that contain compulsory skill, qualification,
knowledge for the vacant seat. Job is open particularly for the human resource department so
that the management of employee's inside the organisation is done with systematic and
sequential manner. This job undertakes all aspects that are related with human resource
department.
Role: -
Formulating the policies and strategies for performing organisational activities and operations.