Human Resource Management Report: Merrill Lynch Firm

This report examines the human resource management (HRM) practices at Merrill Lynch, focusing on the role of HRM, recruitment and selection methods, and their impact on employee productivity and profitability. It explores the functions of HRM, including training and development, recruitment and selection, and employee relations, highlighting the importance of both soft and hard skills in managing employees. The report analyzes the strengths and weaknesses of different recruitment and selection approaches, such as the Best Fit approach, internal and external recruitment, and various selection methods like interviews and application forms. It also discusses how building good employee relations influences HRM decision-making and examines relevant legislation. The report provides a comprehensive overview of HRM strategies, offering valuable insights into the challenges and opportunities faced by organizations in managing their human capital.

Human Resource
Management

INTRODUCTION
Human resource management is explained as practices of hiring, enlist, training,
monitoring, selecting etc. of employees and turning them into valuable assets for the company. It
is important to perform continuously in the working premises as it assist to gain productive
results as compare to competitors. The top level management is liable to make changes in the
HRM practices as per the requirements. Human resource management in an organization is a on-
going process and goes on and on. Inaccuracy in HRM policies affect the overall workforce
efficiency of the staff members to a large extent. The assignment is based on Merrill Lynch Firm
which is situated in central London. Individual is hired for the post of human resource assistant
whose job it to assist all HR activities of the firm (Analoui, 2018). This firm is a American
investing and wealth management division of bank of America. The project covers purpose and
function of HRM. Also, strength and weaknesses of the recruitment and selection is studied.
Moreover, how HRM practices affect the productivity and profitability ratio is examined.
Additionally, how building good relations influence HRM decision making process is analysed.
Various legislation laws are studied to understand their pros and cons.
TASK 1
P1 HRM function and its purpose
HRM (Human Resource Management) is a effective approach in which all the activities
are managed and monitored by human resource department in an administration. This includes,
hiring, training, ,monitoring, recruiting, conducting orientation programmes etc. for employees
so that they easily adjust with the new environment and job profile. The scope of this is very
wide in nature and is implemented by every small and big enterprise. By effectively performing
human resource management aspects business administration is able to cope up with the external
environment. Top level management of Merrill Lynch Firm frame strategies by scanning the
dynamic environment as it leads to accomplish set goals and objectives in the set time duration.
It core feature of HRM is to create and manage cordial relations among staff members working
at distinguished stages in a company.
Functions of Human Resource Management:
 Training and Development:Training is provided to new and fresh candidate so that they
can better understand their job profile. By doing so best outcomes can be achieved in the
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intense competitive world. Training is a continuous process and is provided to the skilled
and potential staff members as and when required. Whereas, development is done fore
the section of the employees irrespective of new or old (Boon and Boselie, 2018). The
main function of HR department is to render best training and development sessions to
the workers of Merrill Lynch Firm. As it will raise their capability and abilities towards
work to achieve the set standards.
 Recruitment and Selection: Recruitment is defined as hiring experienced, capable and
knowledgable participant from the number of CV applied for the job vacant. This plays a
significant role in business administration growth and development in long term.
Whereas, selection refers to as choosing the most appropriate and deserving candidate
from the pool of applicants for the vacant position. The main functio0n of HRM is to
hire best qualified and suitable nominee who is able to perform their job responsibility
effectively. In regards to Merrill Lynch Firm Human Resource department study actual
demand of work force within the organization and accordingly conduct recruitment
criteria. This helps to select most deserving participants from numerous applicants
applied for the job profile.
Purpose of HRM functions along with their roles and responsibilities
 Creating and managing relations with employees: To grow the business in the global
market it is important to build strong relations with staff members as it indirectly raises
goodwill in the market. The main purpose of Human Resource Management functions is
to hold-up effective bond between the workers as it eliminates conflicts and boost
employees to work more efficiently and efficiently. In competitive environment the roles
and responsibilities is to involve in decision-making process which will raise their morale
value and assure them that they are a valuable asset for the administration (Bratton and
Gold, 2017).
 Performance appraisal: Organization monitors all the activities of the employees and
accordingly conduct the performance appraisal programmes. This particular act boost
staff members overall workforce efficiency which is a positive mark for the enterprise.
Appraisal is given to the deserving nominee by examining the performance of the
workers in every single aspect. Timely appraising the staffs motivates them to perform
the task more sincerely and accurately.
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SOFT skills: In this step of HRM the employees are treated as the most important in the
company because they can get a competitive advantage to the company and that is a very
important factor for this company. The employees are very important in any organization, and
they are treated like they are very much a part of the company and are appreciated for there kind
of work. The focus is on the employees skills and the plans of the company are made accordingly
and it is done this way because the employees gets to use his developed skills in the industry.
Company also focuses on the needs and wants of the employees because the employees are in the
company because of that purpose. In context with M&S the employees are treated equally and
fairly because they are the backbones of the company and the company makes strategies which
the employees of the company can fulfil the expectations of the company and the employees and
the communication in the industry is two-way which is between the employees and the
employers.
HARD skills: In this approach of HRM, Employees are treated as resources within business
organisation like machinery and building. Employees are controlled in a way that they work as
per their potential and desired goal is achieved. In this, there is strong link with corporate
business planning just like what resources are required, how to get that resources and how much
will they cost. The concentration of HRM is to identify workforce needs of the business and
recruit and manage accordingly (Brewster and Farndale, 2018).
Human resource of Merrill Lynch Firm adopts Soft skills in their working premises.
Merrill Lynch Firm top-level management is benefited by Soft skills as it assist to overcome any
kind of resistance, conflict, chaos etc. occurring within administration.
Significance of HR in acquiring Talent:
Human Resource aid in acquiring talent in a firm by systematically recruiting and
selecting staff members who have greater ability to perform work in proper manner. Along with
this aid enterprise to meet company goals and objectives. Here, HR selects appropriate candidate
and provide them training facilities which would help them to perform effectively. This provide
the advantage of attaining higher profitability and productivity.
P2 State strengths and weaknesses of various approaches to recruitment and selection
Best Fit approach: This approach lays focus on that organization make use of that methods which
can improve their culture. This approach can support firm in improving the efficiency of
employees.
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Strength:
HR strategies like this can help firm in making organizational environment better.
Weakness:
This approach needs lots of time to get implemented.
Recruitment: It mentions to as short-listing, appointing, attracting and picking up the
most appropriate participants for job position within business administration. By hiring suitable
nominee for job vacant best results can be attained by Merrill Lynch Firm as compared to
rivalry. In every administration this is the main task which is effectively performed by human
resource department. Negligence in these approaches leads a company into great lose which
leads to the share reduction of efficiency and profits in the market. There are two types of
recruitment which are explained as follows:
Internal recruitment: Deserving candidate is hired from within the business administration in
open global market. Candidate is recruited on the basis of their work performance, promotion,
transfer etc. for the next post vacant. It directly saves time and cost of the company.
Advantages:
1. Best staff is hired for the vacant job position.
2. Less legal formality is required to be filled. As they are existing employees of the firm.
3. Less time will be spend to make them understand the working culture and job profile as
selected candidate is well aware about the company working style from earlier.
Disadvantages:
1. Increases conflict and misunderstanding among the team members.
2. Decreases workforce efficiency of other staff members (Chelladurai and Kerwin, 2018).
3. The working environment get more adamant in quality.
Exterior enrollment: In this appointing employees are recruited through the exterior sources
such as campus recruitment, advertisements, etc. Lot of time and money is needed to hire the
deserving nominee. Due to which business function is affected to some extent as more time is
consumed in this process.
Advantages:
1. Motivates other employees to perform better so that set goals and objectives can be meet
on due timer period.
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2. Working environment become more flexible in nature as new person with creative idea
has become the part of the firm.
Disadvantages:
1. Incur huge cost and time while recruiting from external sources.
2. More off legal formalities is to be performed as well as cross-verification is done before
allotting the position.
Selection: It can be explained as choosing the most deserving candidate from the pool of
applicants applied for the post vacant. There numerous types of selection types are discussed as
follows:
Interview selection methods: There is a proper sequence to conduct interview round to
select best candidate for the job position. Effectively applying this methods make the work easily
and saves time and resources to a large extent.
Advantages:
1. In the set time period skilled and experience nominee is selected.
2. Any misunderstanding and mistake can be rectified easily in an interview. Because the
interviewer and interviewee physically present before the interview board.
Disadvantages:
1. This method is a part of incomplete process has suitable candidate can not be selected by
interview only. The written test is more important than the interview (Debroux, 2017).
Application Form methods:
Advantages:
1. This ease comparison for employers
2. Applicants complete details can be gathered without any difficulty.
Disadvantages:
1. There are chances that personal information can be leaked in wrong hands.
that Merrill Lynch is currently using notice board and internal company website for
advertising the job vacancies available within organization. These methods are used by various
companies for internally advertising the job vacancies.
Company’s Portal.
Company is placing the job adverts on the official website of company that is for internal
use of company such as portal or mail. Through this, company provides information to staff
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about job available within the firm. This in turn enables employees to provide information to
their friends, family members about the job available.
Advantages
 It helps in informing employees about job vacant within the firm.
 Website of company is seen by every employee of company who are working with
organization that creates awareness among them (Valeau and Paillé, 2017).
Disadvantages
 Limited reach as through this company provides information to specific personnel or
group
 It does not help in attracting candidates within specific time period
Notice board at entrance
Another method used by company for job advertisements is placement on notice board at
entrance. This is a traditional method and is used by companies for years. But there are
advantages and disadvantages of this method.
Advantages
 The placement of notice board is very right as it attracts attention of each and every
person entering or leaving the company. Therefore, placing the job advert on notice board
helps company to attract good employees from within the organization.
 The notice board helps to give important information to every person who is concerned
with the organization therefore company is placing job vacancies on notice board of
company (Florén, Rundquist and Fischer, 2016).
 The advantage of advertisement tool is that notice board are placed by company for
giving knowledge and information about the current requirement of company and is
acknowledged by every person.
 Company has made it a habit of company to check notice board at least once in a day. As
result information about job vacancy will flow in entire organization.
 Placing it on entrance is not only making internal people aware but also the external
visitors about the job vacancy in company. Notice board is helping company to get quick
responses from company (Hashim, Ismail and Hassan, 2016).
Disadvantages
 Notice board are not given importance by employees when it comes to job vacancies.
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 The tool does not provide about the vacancy in detail requirements and specifications.
 The employees who are working in outside cities will not get information about the job
vacancies arising in other cities.
TASK 2
P3 Benefits of HRM practices
The effectiveness of key elements of HRM in a business concern is discussed as follows:
Learning, development and training practices: Organization is adopting HRM
practices in their premises as it leads to gain productive results. Learning, training and
development are never ending process and goes on and on. Through this aspects both employer
and employees are benefited which are explained as:
Advantages to employer and employees:
Advantages Employees Employer
Goals achievements The key factors of HRM such
as, learning, developing and
training in an organization
helps employees to attain their
personal and professional set
objectives (Delery and
Roumpi, 2017).
By effectively adopting HRM
practice in an organization
capable employees can be
retained for longer time
duration.
Dis-advantages Employees Employer
Productivity By lacking behind in training,
development and learning
aspects it directly or indirectly
decreases productivity level to
a large extent.
If the over all workforce
performance decreases then the
set goals and objectives can
not be attained in intense
competitive world.
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Flexible working options: As staff members are provided with flexible timing in the working
place it results in best outcomes in global market. Merrill Lynch Firm key elements of HRM is
to provide flexible timing to the workers they are able to gain competitive advantages against
rivalry. By doing so both employer and employees are benefited which are discussed as follows:
Advantages Employees Employer
Satisfactory level raises As firm provide flexible
working timing to the staff
members that aid them to work
hard and boosted them to meet
the set benchmark. Along with
this indirectly it raised the
satisfactory level of
employees.
In the era of hectic schedule
employer are introducing
flexible working timings which
directly pull potential and
skilled workers towards their
firm which is a positive mark
for the company.
Disadvantages Employees Employer
Mis-management in working
place
Due to flexible timing there is
no proper management of
work that leads in chaos and
conflict among team members.
As mis-management in
working place occur the ratio
of employees turn out ratio
raises (Lussier and Hendon,
2017).
Employee performance management and monitoring: The HR department of Merrill Lynch
Firm monitors workers performance management so that changes can be done respectively.
Continuous monitoring aid the company to retain skilled and capable workers for longer time
period.
Advantages Employees Employer
Able to create tough
competition
The performance of workers
are examined regularly which
assist in gaining competitive
Monitoring of staff's working
style aid firm to make
necessary improvements in
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advantages against rivalry. their policies. Which aid to
create tough bench mark for
others.
Disadvantages to employees and employer:
Advantages Employees Employer
Market value decreases Negligence in monitoring of
workers performance leads to
unproductive outcomes which
reduces market value in the
open market place. Which
reduces their salary package
and incentives.
Avoidance of this HRM
practices brings huge monetary
loss to the firm which affect
business administration's
goodwill in intense
competitive world.
Payment and reward management: To hold back the capable staff members for long time
duration it is essential to reward the staff members it directly or indirectly enhance the overall.
The payment affect the management it raises the overall performance on regular basis (Mondy
and Martocchio, 2016).
Advantages Employees: Employer
Boost employee's Payment and reward method
boost staff members overall
productivity which directly aid
them to perform better as
compare to other team
members (Ferraris and
Bresciani, 2019).
This act assist the organization
as they are able to hold back
their capable workers for
longer time period. It helps the
grow and flourish in
international market.
Disadvantages Employees Employer
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