Human Resource Management Report on Chocola Fantastica's Issues

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within the context of Chocola Fantastica, a company facing various HRM-related challenges. The report begins with an introduction to HRM, outlining its purpose and functions, particularly in workforce planning and resourcing. Task 1 delves into the specifics of HRM, exploring the purpose of staffing and employee relations, and the functions of recruitment, selection, and maintaining effective working conditions. It then evaluates the strengths and weaknesses of different recruitment and selection approaches, including assessment tests, reference checks, and interviews, offering recommendations for improvement. Task 2 explores the benefits of various HRM practices for both employers and employees, using Microsoft as a case study, focusing on training schemes, internships, and flexible working arrangements. The report continues with an analysis of the importance of employee relations and key employment legislations, and their influence on HRM decision-making. Finally, the report concludes with an application of HRM practices in a work-related context, providing a holistic view of HRM within the organization.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation of Purpose and Functions of HRM..............................................................1
P2. Strengths and Weaknesses of Different Approaches to Recruitment and Selection........2
TASK 2............................................................................................................................................5
P3. Explanation of Benefits of Different HRM practices for both Employer and Employee 5
P4. Evaluation of Effectiveness of Different HRM practices in enhancing Profit and
Productivity............................................................................................................................7
TASK 3............................................................................................................................................8
P5. Analysis of Importance of Employee Relations in influencing HRM Decision-making.8
P6. Key Elements of Employment Legislations and their Impact on HRM Decision-making9
TASK 4..........................................................................................................................................10
P7. Application of HRM Practices.......................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Human Resource Management refers to the procedure adopted by organisations in order
to effectively retain as well as manage human resources within their companies. Moreover, it is
an essential aspect within firms as it enables directors and managers of the organisation to ensure
growth, development, engagement and commitment of their employees (Al Ariss, Cascio and
Paauwe, 2014). The report below is based on Chocola Fantastica, which is a firm dealing in
chocolate based greeting cards and other present and currently facing a lot of issues related to
Human Resource Management within the company. The report covers explanation of purpose as
well as scope of HRM in context of resourcing the firm with talent and skills essential for
fulfilling business objectives. Moreover, evaluation of effectiveness of key elements of HRM is
also involved within the assignment. In addition to this, the report includes analysis of internal
and external factors affecting HRM decision-making, along with application of Human Resource
Management practices in work related context.
TASK 1
P1. Explanation of Purpose and Functions of HRM
Human Resource Management is an amalgamation of all the processes implemented
within a company in order to attract, manage and retain employees within the organisation. It is a
highly essential aspect to be adopted by a firm, as it allows them to hire and work with
competent individuals, who enhance the productivity levels and profitability measures of the
company. Workforce Planning is a continuous procedure which is utilised by companies in
relation to effectively analyse, forecast as well as appropriately plan the workforce supply as
well as demand, along with evaluating gaps, as well as, determining intervention for talent
management.
There are several purposes and functions of HRM, which are applicable to workforce
planning and resourcing Chocola Fantastica. Some of these specific aspects are described below:
Purpose of HRM: Staffing: Given the current problems of the company, regarding short listing and
selecting employees, the main purpose of HRM within the organisation is to develop a
workforce through adopting effective recruitment and selection methods that are free
1

from bias as well as set an essential criteria for applicants to be selected within the
company (Sparrow, Brewster and Chung, 2016).
 Employee Relations: Another purpose of HRM within Chocola Fantastica is
strengthening relationships within the organisations between employer and employees.
The firm is currently facing a high turnover rate, which requires the company to
implement effective human resource management, to ensure commitment and long term
engagement of employees within the firm.
Functions of HRM: Recruitment and Selection: One of the most crucial aspects of Human Resource
Management is recruitment and selection (Nickson, 2013). This function is related to
attract, recruit as well as select employees that are competent, as well as could contribute
to the company's stability and growth. This function is very important for Chocola
Fantastica, as with effective implementation of this aspect, the firm would be able to
appropriately select appropriate candidate for the vacant job roles within the country, as it
serves appropriate guidelines regarding including employees within the organisation.
 Maintenance of Effective Working Conditions: Another function of HRM is
maintenance of appropriate conditions and necessary environment that ensures a longer
engagement of staff and workers within the company. For Chocola Fantastica, this
function would be reducing the turnover rate of the company and hence, this reflects its
importance with context to the company.
P2. Strengths and Weaknesses of Different Approaches to Recruitment and Selection
As mentioned above, it is very important for a company to recruit as well as select
employees which are associated According to the case, there are several approaches that are
being adopted by the company in context with appropriately select applicants within their
organisation. Furthermore, there are several strengths as well as weaknesses that are associated
with these approaches for recruitment as well as selection.
In context with Chocola Fantastica, these selection approaches are discussed below:
Assessment Tests:
This type of tests are performed by organisation to judge the aptitude as well as
competence of individuals based on certain criteria. Within Chocola Fantastica, these tests are
2

conducted for judging English Comprehension and Mathematics. Furthermore, the firm has also
set passing criteria of 50% marks in order to get selected for further stages.
Strengths: Accuracy: One of the most evident strengths of assessment tests is that it allows the firm
to judge the aptitude as the answers are very much objectives, that reflects accuracy and
removes the notion of ambiguity.
 Comparison: Another strength of this approach is that its results are judged on
quantifiable basis, which effectively assists the organisation in comparing results of
different applicants quite conveniently.
Weaknesses: Lack of Future Orientation: One weakness associated with assessment tests is that it
lacks orientation of future growth or ability for development. Aptitude tests refrain the
company from judging other qualitative or quantitative capabilities within an individuals
that could contribute in future development of the organisation. Fairness: Another disadvantage of this approach is that the criteria for passing within the
tests might not seem fair to applicants as reflected within the case of Chocola Fantastica.
Reference Checks:
Another method which is adopted within the organisation is reference checks. This
approach is implemented within the recruiting process of Chocola Fantastica in order to acquire
more effective information about the applicant. Moreover, it also helps the company in assessing
whether the information provided by individuals coming for recruitment is true or not. Several
strengths and weaknesses associated with the same are discussed below:
Strengths: Strong Base: One of the biggest advantages of this approach is that it provides a firm
piece of evidence regarding the background of employees, which allows the company to
gain a perspective about whom the selected applicant has worked with.
 Uncovering Strong Claims: Another advantage of reference check is that it enables the
employer to effectively assess if there are any embellishment claims made by the
applicant. Furthermore, this also enhances the scope of clarification within the process.
Weaknesses:
3

 Authenticity Errors: One major weakness associated with this approach is that it is not
necessary that references are always authentic. This means that someone could present a
glowing recommendation for an individual who might not be that good as they are being
projected (Noe and et. al., 2017).
 Reluctance: Another weakness associated with the same is that applicants might advice
against acquiring reference from their current employers as chances are there that they
haven't supposedly informed their employers about searching another job.
Interview:
This approach refers to face-to-face interaction between employer and employee, which
allows a spontaneous questioning and answering, along with exchange of crucial information
regarding the job profile.
Strengths: Spontaneity: Interviews require a spontaneous answer to the questions asked by the
employer or interviewer. This allows the latter to obtain rightful answers that eradicates
the scope of lies or wrongful projections.
 Depth and Clarity: Another advantage within the same is that it allows the employer to
gain a better understanding of the candidate, along with ensuring clarity by acquiring
spontaneous feedbacks.
Weaknesses: Bias: Interviews could be bias as applicants might be judged on several factors like caste,
creed, background, etc., which might make their responses invalid despite being
appropriate for the job.
 Time Taking: As reflected in the case, interview process of Chocola Fantastica takes
around 15 minutes, which is very much long in order to gain an understanding of
candidates, their knowledge and personalities. Thus, this could affect the mindset of other
applicants who wait for their turn for more time than what is essential.
However, there are several improvements that Chocola Fantastica could implement
within their selection process to make the same more sound. Recommendations for the same are
mentioned below:
4

 In order to ensure effectiveness within their selection process, the organisation could
improvise the judgement criteria of their tests, wherein, they must appropriately ensure
industrial guidelines for a specific job role to set their passing criteria (Smith, 2016).
 Another recommendation for the same is that the firm could also ensure that an external
interview panel is assigned to take multiple interviews of candidates which would remove
any scope of bias or time consumption.
TASK 2
P3. Explanation of Benefits of Different HRM practices for both Employer and Employee
There are several HRM practices that are implemented within an organisation in a way,
which have benefits for both employer as well as employees. Furthermore, analysis of the same
is quite necessary in context with effectively and essentially understanding the extent of their
positive impacts on both the entities (Chelladurai and Kerwin, 2018).
Microsoft is an organisation which deals in technical and mechanical offerings along with
software development. Within the organisation, there are certain HRM practices that have
specific benefits prevailed in the company that are discussed below:
Training Schemes and Internships:
Microsoft offers several training schemes and internships to graduates within their
company. These internships along with training schemes provide individuals to indulge
themselves with real projects of the company which ensures enhancement in their education as
well as competence (Students and Graduates, 2019). They have a range of training scheme
which includes graduates to learn software development, working with advanced technologies
like Automation and Artificial Intelligence and learn different aspects of mechanical engineering.
Benefits of these training schemes and internships are mentioned as below:
Benefits to Employer: New Talent Discovery: One of the major benefits of internships and training schemes to
employer is that with these programmes within the company, employers at Microsoft
tends to find new talent and competent individuals for the organisation. Furthermore,
these new people who enrol themselves for these schemes, tend to enclose the skills gap
within the company.
5

 Fostering Leadership: Another benefit which employers could obtain through training
schemes and internships is that they could foster leadership within their current
employees, as they would be in charge to guide interns and employees enrolling
themselves within training schemes of the company. Such responsibility is better for their
performance as well as that of the company.
Benefits to Employee: Appropriate Work Experience: Employees who participate in these programmes within
Microsoft, get an opportunity to work with employees of the company along with being
an active member within their projects. Such aspect enhances their work experience and
allow them to expose themselves to new and practical application of theories and
concepts which they have only been studying.
 Skill Development: This benefit is effectively associated with development of competence
as well as skill that is possible through their active engagement with day to day activities
of the company, which would help them in understanding functioning and working of the
organisation, hence, adaptability of required skills and aptitude (Armstrong and Taylor,
2014).
Flexible Working Arrangements:
Microsoft effectively provides its customers with flexible working arrangements, tools as
well as programmes, that allow employees within the company to attain Work life balance.
Within the company, this is attained through providing employees with essential access to
referral services, extensive resources, leave policies and so forth (Microsoft: We're taking action,
2019). Benefits associated with these arrangements are mentioned below:
Benefits to Employer: Productivity Enhancement: One major advantage to employers at Microsoft with flexible
working arrangements is that, with implementation of such arrangements, employees tend
to work with more enthusiasm as well as focus, that tends to contribute to enhancement
of productivity in the company.
 Reduced Absenteeism: Another benefit prevailed by employers is that with flexible
working hours, employees become more dedicated towards work and engage themselves
in a better manner with the company. This reduces absenteeism as employees are
provided with enough flexibility to smoothly conduct their operations.
6

Benefits to Employee: Empowerment: With flexible working arrangements, employees usually feel more
empowered, as they have the authority to pick their own working hours. This further
enhances their self worth, which improves their performance in the organisation.
 Reduced Stress: This is perhaps one of the major benefits of flexible working
arrangement for the company. This means, that due to flexibility in their time, employees
could use manage their unofficial tasks, along with maintain their health standards well,
which reduces stress levels within these employees.
P4. Evaluation of Effectiveness of Different HRM practices in enhancing Profit and Productivity
Microsoft implements different HRM practices which are appropriately subjected
towards enhancing the organisation's profitability and productivity. There are several
departments within Microsoft Corporations, which require distinct individuals having a set
standard of competence. Job roles for these departments within the company are designed in a
way which enhance its functioning, operations as well as outcomes. For instance, each job role,
along with its requirements, are first analysed. Further, each individual is evaluated based on
their competence and skills which are essential for the job. Thus, individuals which contributes
most to position's requirement is hence selected (Shaw, Park and Kim, 2013). Apart from this,
there is an effective role of motivation within a specific job role within Microsoft. After
evaluation of individuals, aspects of their weaknesses become evident and thus, there are times
where a person's competence in context with a certain job role could be improved. Thus,
motivation plays a crucial role in ensuring efficiency within individuals regarding that specific
job role. Hence, with training, appreciation or rewards, motivation helps in enhancing
competence within a person to deliver their duties appropriately. Another role of motivation is
guiding an individual towards operating as per the set standards of their job role and that of the
company. Doing so, it becomes more evident to the company that which individual is appropriate
for the job role, along with an active implementation of motivation.
In terms of designing the job role, this aspect helps the firm in enhancing its productivity
and profitability. This works on a causality basis, as the most competent person is selected to
perform duties of a particular job. This enhances their productivity as they are trained and skilled
enough to perform duties effortlessly and perfectly. Moreover, achieving such perfection
7

enhances the scope of profitability within the company, due to enhanced effectiveness in
performance.
TASK 3
P5. Analysis of Importance of Employee Relations in influencing HRM Decision-making
Definition of Employee Engagement:
Employee Engagement refers to a procedure which focuses upon working relationships
between an organisation as well as its employees (Employee Engagement, 2019). This aspect
emphasises on both qualitative as well as quantitative factors in terms of determining the nature
of this relationship.
Importance of Employee Engagement:
Employee relations are important within a company to drive the firm towards
sustainability as well as growth. Moreover, the thing which positively influences these relations
is employee engagement (Kavanagh and Johnson, 2017). It is a very crucial aspect within
Microsoft and certain pointers reflecting its importance are described below: Retention: One of the most evident importance of employee engagement in Microsoft is
that it helps the firm in retaining its effective employees. Moreover, the firm understands
the value of its existing workforce, and thus, employee engagement is quite imperative
for the organisation in retaining these competent individuals. Positive Culture: An engaged workforce contributes towards maintaining an effective
working environment within the company. Furthermore, such environment enhances
positivity within the company where employees are usually cheerful, happy and highly
productive. Such culture is very effective in promoting ethical values within the
company.
Critical Evaluation of Key Approaches to Engaging Workers:
As per the case, Microsoft held an employee engagement summit, in which there were
several approaches which were discussed by the organisation in context with engaging workers
(Employee Engagement Summit, 2019). Thus, critical evaluation of some of these approaches is
mentioned as under: Infinite Connection: One of the major approaches which the company implemented in
terms of engaging individuals within their organisation is by focusing on building
8

effective connection amongst employees. The idea behind this is to create a network
where each individual is directly linked with the other. For this purpose, Yammer was
used by the firm, which would contribute the firm in instilling transparency, creation of
effective communities and appropriately crowdsourcing. Major advantage of this
approach is to effectively enhance communication through keeping everyone in the loop
and building effective communities. However, it still lacks in providing employees the
element of privacy and confidentiality which is essential for employees' engagement. Teamwork: Another approach by the company was to create a hub within the company
for teamwork. Through digital media, the firm implemented Microsoft Teams, which
allows individuals to form group which creates a workplace for individuals to operate on
and share their effective ideas within the team (Berman and et. al., 2019). Most effective
aspect regarding the same is that here one can customise the workspace according to
convenience and ensure inclusion of tools which help them to form effective teams.
However, this approach still limits its operations when it comes to planning. Each time
employees would have to include new tools in order to plan some new project and ensure
that the message is correctly spread within the team. Constant Information Exchanges: This approach within the company uses intranet,
wherein an employee could connect themselves in the workplace effectively and could
share applications or resources on portals. This is very much advantageous in context to
bringing efficiency in information sharing. Moreover, with personalising, it could also
ensure effective search and exchange of important information across the company.
 Communication: Digital communication is an approach adopted within the organisation,
where employee engagement would be achieved through streaming videos to them which
would help them gain enhanced knowledge as well as training (Cascio, 2015). This
ensures collaboration of employees in order to ensure personalised growth and
professional development. Moreover, this also contributes in remotely managing tasks
within teams and individuals within the company.
P6. Key Elements of Employment Legislations and their Impact on HRM Decision-making
There are several employment legislations, within the UK which have an effective impact
on the human resource management decision making within Microsoft, in terms of carrying
9

different HRM practices like recruitment, training and development and rewards appropriately.
Some of the key legislations are discussed in detail below: Equality Act, 2010: One of the major acts which has an impact on HRM decision making
is equality act, which holds organisations under obligation to treat each and every person
equally within as well as outside their premises (Equality Act 2010: guidance, 2019).
This protects the interests of employees, as well as safeguard them from any sort of
differential or discriminatory practices on basis of their cast, creed, sex, etc. This
influences HRM practices of Microsoft such as recruitment, wherein the firm is required
to invite all applicants irrespective of their social or cultural origin. Moreover, they also
mention equality within their brochures and push notifications whenever they advertise a
job offering. Employment and Training Act, 1973: Under this act, Microsoft is required to arrange
essential and effective training arrangements for existing as well as new employees, in a
way, which contributes in their personal and professional growth. It influences HRM
practice of the firm in regards with providing training and development. Therefore, the
firm employs latest technologies and better simulation systems to ensure that each
employee within their company is trained effectively (Paillé, and et. al., 2014).
 Equal Pay Act, 1970: This act within the UK government protects employees against
wrongful distribution of pay (Equal pay and equality legislation, 2013). Thus, Microsoft
is required to provide equal pay to each of its employees on the basis of the preset
amount based on the job profile. Moreover, this influences reward system of the company
and the firm implements equal opportunities and reward systems, along with incentive
schemes that is distributed within the firm equally.
TASK 4
P7. Application of HRM Practices
There are several HRM practices within an organisation which are essential to manage
and maintain its human resources. However, it is important for first appropriately analyse the
current HRM practices within the organisation. Some of the practices are implemented as well as
assessed as under:
Person Specification:
10