HRM Report: Purpose, Functions, Practices, and Legislation

This report provides a detailed analysis of Human Resource Management (HRM) practices within Lotus Cars. It begins by outlining the purpose and functions of HRM, emphasizing its role in staffing, employee development, and creating a positive work environment. The report then evaluates the strengths and weaknesses of different recruitment and selection approaches, including internal and external methods. It further explores the benefits of various HRM practices for both employers and employees, focusing on how these practices contribute to increased productivity and profitability. The importance of employee relations in decision-making and the impact of employment legislation are also examined. Finally, the report concludes by discussing the application of HRM practices within Lotus Cars, offering insights into how the company can optimize its human resource strategies for improved performance and competitive advantage. The report covers topics like recruitment, training, employee relations, and the impact of employment legislation on decision making, concluding with the application of various HRM practices in the enterprise.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of HRM........................................................................................1
P2. Strengths and weakness of various approaches of recruitment and selection..................4
TASK 2............................................................................................................................................6
P3. Benefits of various HRM practices for employer and employee.....................................6
P4. Effectiveness of various HRM practices in terms of raising profit and productivity of
organisation............................................................................................................................7
TASK 3............................................................................................................................................8
P5. Importance of employee relations in influencing decision making.................................8
P6. Key elements of employment legislations and its impact on decision making................9
TASK 4..........................................................................................................................................10
P7. Application of various HRM practices in an enterprise.................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management, is said to be a unit of an organisation where administration
of every individual of company and evaluation of their performances is being done (Albrecht and
et. al., 2015). Here, HR manager is the one who takes decisions which are related to staffing,
managing, coordinating, leading, controlling of employees of firm. By this, targets can get hit in
an efficient time manner. Management of this department should be effective in nature so that
better determinations can be made in order to improving brand image and goodwill at
marketplace. Lotus Cars is an automotive manufacturer which has been taken under this report.
Functions and purpose of human resource management of Lotus is being mentioned in
assignment. Along with this, assessment is also putting light on strengths and weaknesses of
various recruitment systems and importance of employee relations which helps in bettering
working environment of Lotus. Lastly, management applying HRM practices at working areas is
also being enclosed under this report.
TASK 1
P1. Purpose and functions of HRM
Working of staff members in an appropriate and effective way may lead firms to hit their
desired targets. Here, human resource management can help in many ways by recruiting
candidates, by giving training and development programmes and through creating favourable
policies for employees at work place. Away from this, it is also for them create an healthy
environment at workplace so that staff members can work with interest. By this, they will work
with enhanced morale and confidence. Profits can be maximised if management will recruit
talented people (Armstrong and Taylor, 2014). Along with this, manager should enlist right
candidate for correct job at workplace. With the help of this, Lotus cars can attain their goals and
objectives in a shorter period of time.
Purpose of HRM:
It has been located that there are ample number of purposes of HRM and some of them are as
follows:
 Staff member's performances can get improved so that they can serve to consumers in
better way.
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 Profit can be attained at maximum level by enhancing skills and knowledge of manpower
of Lotus.
 HRM's aim is to make healthy relations in between employer and employee of Lotus. Giving tasks to individual as per his/her capabilities so that actions can get finished in an
appropriate time frame.
Functions of HRM: Plan: Goals and objectives can get attained by making proper plans. It is duty of HR
manager to formulate a proper plan in order to bring out favourable outcomes. Away
from this, customers satisfaction level can also get enhanced if proper planning is being
done which is related to their needs and wants. Along with this, managers can also create
policies and make regulations in order to boost up effectiveness of subordinates (Human
Resource Functions, 2016). On the other hand, planning is much needed when a firm is
looking forward to attain desired goals and objectives. Here, it is duty of managers who
takes initiatives in order to take company to a level where it can give good competition to
its rivals. Control: One of a major sort of element of human resource management where managers
of Lotus looks into various aspects so that corrective actions can be taken if plan is not
going on correct path. Failure into this, process may lead Lotus cars to pull out less or
maybe useless outcomes. Apart from this, it has been analysed that if Lotus Cars is not
going in a right way according to the plan then it is may be possible that firm may not
grab attention of consumers high in numbers. Staff: If a manager will recruit talented candidates who have innovative ideas, it may be
possible that implementation what they are suggesting can enhance both productivity and
profitability in both effective and efficient way of Lotus cars. Away from this, continuous
evaluation of performances that staff members are giving may help them in making
training and development programme in order to improve their skills and knowledge.
Along with this, it has been located that sometimes employees that are already working at
workstation and according company's need they gets promotion. Therefore, it is required
for managers to develop proper plan so that to fill vacant seats in an appropriate sense. Organise: Giving tasks to individuals as per their ability is main purpose under this
element. This can help in giving authorities to staff members so that effectiveness of
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company can get improved (Bratton and Gold, 2017). Away from this, they can also
formulate a plan through which proper communication can be made in between employer
and employees. Organising plays an important role when it comes to gain competitive
advantages. On the other hand, if tasks are not being assigned to employees in an
appropriate sense. It is may be possible that Lotus Cars may not grab good position at
marketplace.
 Lead: It is duty of HR manager to keep on motivating their subordinates so that they do
not loose their interests while performing their work. Along with this, Lotus Car's human
resource management should keep on making changes as per their necessities. Leading is
being considered as a main part and as functions as well that is being carried by managers
of Lotus Cars.
Functions of HRM: Recruitment: One of main function of HRM is enlisting candidates. It has became vital
for business firms in today's business environment to select the best and talented
candidates so that goals and objectives can be attained in short period of time with taking
of their talents and capabilities that they have. Training and Development: This function is also consists with many importance at
workplace of Lotus Cars. It has been located that whenever a firm adopts new technology
it is may be possible that employees who are working with previous technology may get
into fear therefore, it is very much required for Lotus Cars to deliver training and
development sessions to both new joinees and workers that are already working with the
company in order to enhance their skills and knowledge. Professional Development: One more vital function of HRM that aid in increasing
capabilities of employees. This can be done through developing various sort of
opportunities like growth, education, and management training and many more. Compensation and Benefits: With the help of this function of HRM, management of
Lotus Cars can fill their employees with full of motivation and through this, retention
level of employees can be increased. Here, HRM administration of Lotus Cars needs to
develop various strategies through which benefits can be given to them.
 Performance Appraisal: Through looking into different aspects it has been analysed that
this sort of function can be considered as an essential one. Examination of performance
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of every single individual needs to be done at workstation of Lotus Cars so that to locate
strengths and weaknesses of them.
With the help of this, Lotus cars can give good competition to its rivals like Volvo, Kia
motors. If managers will give proper training to company's employees it may be possible that
they may start achieving their own goals and objectives. Along with this, proper planning,
staffing, organising and leading of management may help firm in manufacturing cars.
Satisfaction level can be enhanced of consumers in much more effective ways by offering them
cars according to their requirements.
Away from this, training and development programmes that can be conducted by
management when Lotus Cars is making alterations in its operations. By this, staff member's
skills and knowledge can get increased which will directly put impact on their overall
performance.
P2. Strengths and weakness of various approaches of recruitment and selection
It is important for Lotus Cars to have brilliant employees in befitting numbers so that
goals and objectives can get achieved in a specific time of period. In modern era, employees may
come and go as they find better opportunities they switch from one company to another per their
requirements. Here, Lotus Car's human resource management keeps on conducting recruitment
process in order to fill vacant job seats that they have. Under this, interviews can be taken by
managers of various applicants from outsider world. Burden stays on HR managers to enlist best
and qualified candidate so that standards which are related to productivity and profitability can
get enhanced (Brewster and Hegewisch, 2017). Fruitful conditions can be created by human
resource administration of Lotus Cars. In this context some of approaches are given below:
Internal Approach: Under this, HR management promotes the person to an upper
designation who is already working with Lotus Cars. Promotion: It has been analysed that promotion is being considered as the main approach
that is being used by business organisations the most at the time of filling all vacant seats
in an appropriate sense with the people (employees) who are already a part of a company.
For an example: Junior HR manager is promoted as Senior HR manager can be
considered as perfect example under this.
 Transfer: This process takes place when a company decides to send an employee from
one office to another. For an example: Lotus Cars have many manufacturing plants all
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around United Kingdom. There may be possible that firm may transfer an employees
from one to another in order to accomplish desired task.
Therefore, extra hard work and performance that has been given by an individual and
some strengths and weaknesses are as follows:
Strengths Weaknesses
Management of Lotus Cars do not require
much cost in conducting interviews for outside
people.
Less productive and demotivated others staff
members can be if they find that management
has promoted a person who was doing same
work as they were.
Promoted employee is already well known
about companies policies and how they work
which will save time of training.
New methods will not come up as the
individual will work with same sort of mind
only.
External Approach: Lotus Cars mostly uses this type of method as people from outside
world or from same type of companies brings many strategies with them (Brewster, Mayrhofer
and Morley, 2016).
 Online Recruitment: These are the agencies who are dealing in online recruiting of
employees for their business operations Employees can update their CV on online
websites and this helps in getting jobs according to their skills.
 Placement Agencies: These are also providing jobs to employees according to their
qualification.
HR management gives opportunities to external people to work with them. This can be done
through various ways and its weaknesses and strengths are as follows:
Strengths Weaknesses
Members that are being selected from outer
world may carry innovative ideas with them.
Managers conducts interviews for applicants
that asks for both time and cost.
One of major strength of this type of policy is
to select an appropriate member which is
fitting for vacant seat.
Giving training to individual as per
requirement takes a while which Lotus Cars
should give to them in an appropriate manner.
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TASK 2
P3. Benefits of various HRM practices for employer and employee
It has been located that, both employer and employees have different responsibilities but
work for same thing for Lotus Cars and that is generating revenues for company (Cascio, 2018).
Away from this, if staff members are not effective in nature then it is may be possible that
company will terminate them. Thus, giving performance has became essential in every single
sector.
Benefits of HRM practices for staff members are given below: T&D programme: Lotus Car's administration keep on making these sessions in order to
hit targets for a longer period of time. In this, updates in techniques and technologies are
being given to employees in order to enhance their knowledge. With the help of this, they
starts becoming effective at workplace. Conflict Resolution: This type of management can help in resolving issues that can be
faced by both employer and employees while working at workstation. In regards to this,
management of Lotus Cars do is suggest techniques to their subordinates by which they
can solve their problems by their own.
 Employee Relations: Under this element, it is essential for Lotus car's staff members to
improve their behaviour with other members. With the help of this, they can give
suggestions to each other and share thoughts in order to make each other more effective
at workplace than they already are.
Benefits of HRM practices for employers are given below: Provide Surplus Welfare: Company's revenue, profit, goodwill and brand image can be
raised if supervisors will make appropriate plans (Delery and Roumpi, 2017). Away from
this, it is mandatory for Lotus car's management to keep on making alterations in policies
and plans so that proper benefits can be gained and create favourable conditions for firm
at marketplace.
 Special Treatment: Employers of Lotus Cars should keep on making policies through
which they can motivate subordinates in an appropriate manner. Increase in morale,
confidence, skills and knowledge can help an individual to become more productive at
workstation.
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Hence, HRM practices aid in various ways in bettering the situations for both employers
and employees. Productivity and profitability can get raised of Lotus Cars by having appropriate
sort of human resource management.
P4. Effectiveness of various HRM practices in terms of raising profit and productivity of
organisation
Heavy quality goods and services can help a company in fulfilling requirement of their
consumers. Here, Lotus Cars should make more fuel efficient cars for people of middle class and
Sports car for persons who loves speed (Guest, 2017). With the help of this, they will keep on
making more profit and can also make positive changes so that better rivalry can be given to
competitors. HR managers can conduct training and development sessions and can give
information to their employees of what new technology they have taken under in manufacturing
department. Alterations are being made by a company in order to become more effective at
marketplace. Some effectiveness can be seen under various HRM practice which are mentioned
beneath:
Training & Development: Management of Lotus Cars adapts changes from time to time
which are related to technology. Therefore, it becomes necessary for executives to train their
staff members in order to improve their skills and knowledge. By this scenario, they become
more effective at workplace once they can get familiar with Lotus Cars.
Flexible Working Hours: It is mandatory, for management of Lotus Cars to give full
facilities to their employees. By this, staff members stays motivated towards their work and tries
to give their best at workplace also, competition can be raised in between workers through many
ways.
Recruitment and Selection: HR managers and some executives makes a plan in which
they decide which type of person is going to be recruited for vacant seat (Kramar, 2014). This
can be done through various interview types like, face-to-face, online chat, on call, video calls
and etc. Managers should enlist a worker which is talented as by this only market share can get
raised in an appropriate manner.
Motivation Tools: Making profit is every organisations aims, this can be achieved only if
they have brilliant groups or individuals at workplace. Lotus Cars chooses only one approach
from many by which they motivate their employees and that is by giving bonuses or extra
monitory from their fixed wages.
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Lotus Car's HR managers are much motivated towards their work and performs their
tasks in an appropriate manner. Looking at their staff member's performances and evaluation
may aid them in locating issues that became as a barrier which stopped them to become more
effective at workplace. After doing this, they try to resolve issues. Some tools and techniques
which can be used in this context are mentioned beneath:
 T&D programmes may help in bettering performances of staff members.
 Awards and money can be given to employees who did best performance so that they
become more effective at workplace.
TASK 3
P5. Importance of employee relations in influencing decision making
In modern era, if company is looking forward to hit targets than it is essential to have
proper employee relations (Oke, 2016). HR managers should know about every single staff
members capabilities and talent and assign them task as per abilities by this only management
can hit targets for a longer period of time at marketplace. Effective management can also help
firm in giving competition to their rivals by making different policies or giving training to staff
members through which they become brilliant at their jobs.
Some values which are related to employee relations are being comprehended below:
Early Achievement of set Targets: Proper relation in between staff members may help
them in taking effective decisions in order to hit their own goals and objectives. Proper
information that are related to a company should be given to every single individual so that
he/she can understand what exactly firm is doing and what their aims are. Here, employees do
realize their position and their duty which directly puts positive impact on their productivity
level.
Ability to Reduce Risk: It has been analysed that, Lotus Cars faces issues that are related
to updates in technology. Away from this, market is much dynamic in nature (Paillé and et. al.,
2014). Thus, researcher of Lotus keep on locating risks involvements if firm adapt some new
technology at workplace. Here, executives can also take help of employees while determining
alterations.
Increase in Sales: Effective workers of Lotus Cars will helps in various ways like,
manufacturing product as per trends and requirements of consumers. Away from this, long term
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relations can be made with customers so that they purchase goods from their company's
store/showroom only.
Profit Maximization: Employees are well known asset for every single organisation.
Profitability and productivity of a company totally depends on them. Thus, fulfilling requirement
of them and giving them motivation are some of elements which should be done by manager in
every quarter so that benefits can be gained.
Therefore, Lotus Car's employees should maintain a healthy environment at workstation
and share their problems with supervisors. By this, company can hit their targets in effective
ways and better determinations can be made (Pindek, Kessler and Spector, 2017).
P6. Key elements of employment legislations and its impact on decision making
In today's world, United Kingdom's government has made some laws and regulations
which should be followed by every single company whether it is small, middle or large in
number. With the help of this, employees can switch their jobs from one to another without
facing any sort of issues. Some of legislations are mentioned beneath:
Minimum Wages and Hours Act: Under this type of act, government has given a
description that gives opportunity to companies to give suggestions to employees as per their
qualifications and so on. Away from this, every single firm fixes time frame in which they
increase salary if an individual completes that time span. Lotus Car's are using this this so that
employees will be provided minimum wage thus they can easily fulfil all their needs and wants.
Health and Safety Act, 1970: Under this, management of every single firm should set
standards which are related to health and safety for staff members while working at workstation.
These standardisation, can be done by government as well which should be followed by Lotus
Cars and other companies as well. Failure into this organisations can face many sort of penalties.
Lotus Car's ensures health and safety of all their employees and this is an important factors in
order to enhance overall productivity of business.
Anti Discrimination Act: This type of act was made by Government of UK in regards to
remove or reduce discrimination at workplace of enterprises. Discrimination can be done in
between employees of their colour, religion, caste and so on. Thus, it is essential for management
of Lotus Cars to remove prejudice as it has been examined that reduction into this, may create
favourable conditions at marketplace (Reiche and et. al., 2016).
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Management of Lotus Cars can make effective decisions by keeping an eye on these
legislations.
TASK 4
P7. Application of various HRM practices in an enterprise
In modern era, companies gives advertisements that are related to inviting outside people
so that blank seats can be filled with effective candidates (Sheehan, 2014). Under this, there are
many activities that are being done by management in order to select members and these are as
follows:
Job Specification:
Job Specification
Details of Vacant Seat
Position: Senior marketing manager
Area of Function: Marketing
Job Aims
 Making Marketing Strategies
 Executions of plans which are related to marketing sector
 Tasks completion of marketing management
Roles & Responsibilities
 Raise production of marketing department
 Grabbing opportunities at correct time
 Look at areas through which sales can get enhanced
CV:
Curriculum Vitae
Name:
Contact No.:
Address:
Email:
Qualification:
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 Graduation
 Masters in business administration in marketing
 Ph.D in marketing sector
Experience:
Served as a junior manager in Volkswagen Group for almost 4 years
Skills:
 Influencing interpersonal skills
 Great leadership qualities
 Effective decision taker
Preparation of Structured Interview: Notes can be made by manager while preparing to take
interviews.
 Questionnaire
 Evaluation of capabilities
 Match required abilities and talents
 Personality Investigation
 Qualities
Evaluation: This can be stated as final stage of an interview and these are as follows:
 Skills
 Knowledge
 Experience
 Education
 Communication qualities
 Problem solving skills
Hence, by this management can recruit best candidate from ample number of applicants
which will provide better results in near future.
HRM practices of a company should be effective in nature. Thus, it is essential for Lotus
to hit targets in an effective manner (Sparrow, Brewster and Chung, 2016). Profit can be
increased by enhancing skills and knowledge of employees in every single quarter. Planning
helps in achieving set business goals and objectives in desired ways. Directing is an important
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factor by employees will know how they have to carry out their operations thus achieving their
targets.
Some of examples can be taken in context of Lotus Cars in HRM practices are given
beneath: Job analysis: Example can be taken of Lotus Cars, where HRM administration develops
strategies through which performance level can be done of employees. Training and development: In context to this, example can be taken of Lotus Cars as
they keep on adopting new technology and implement it on their cats, here it becomes
vital for them to deliver training and development sessions to employees so that they can
work accordingly. Employee relations: Lunch meetings, seminars and office meetings may of Lotus Cars
that they do on a regular basis through which benefits can be gained. Incentives and benefits: Extra working hours if any employee have given then policy
which has been developed by Lotus Cars is that to pay them double on hour basis
according to their salaries.
 Performance: On a quarter basis it has been analysed that Lotus Car's management
analyse performance of staff members. With the help of this, they get to know about their
strengths and weaknesses and through this development plan is being built through which
skills can be enhanced of employees.
CONCLUSION
Above mentioned report, had clearly comprehended that human resource management
should be more effective in nature. By this, companies can hit their targets in more effective and
efficient ways. HRM practices should be more appropriate of a company. HR managers are the
main executives who recruits brilliant or talented applicants so that benefits can be gained from
marketplace. Away from this, they also give proper training to individuals of a company so that
their skills and knowledge can get enhanced and starts achieving their targeted production in
more effective way. Along with this, government is also supporting organisations and employees
by formulating different sorts of policies. All these functions stays interrelated with each other
which helps in companies to improve its market share at marketplace by achieving goals and
objectives in a continuous manner.
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REFERENCES
Books and Journals
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practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
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management: The Price Waterhouse Cranfield survey. Taylor & Francis.
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management. Springer.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
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competitive advantage: is the field going in circles?. Human Resource Management
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management the next approach?. The International Journal of Human Resource
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performance: An employee-level study. Journal of Business Ethics. 121(3). pp.451-466.
Pindek, S., Kessler, S. R. and Spector, P. E., 2017. A quantitative and qualitative review of what
meta-analyses have contributed to our understanding of human resource
management. Human Resource Management Review. 27(1). pp.26-38.
Reiche, B. S. and et. al., 2016. Readings and cases in international human resource
management. Taylor & Francis.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
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Human Resource Functions. 2016. [Online]. Available through: <https://www.tlnt.com/as-hr-
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