Human Resource Management Report: McLaren Technology Group

This report delves into the Human Resource Management (HRM) practices of McLaren Technology Group, a British conglomerate. It examines the core functions of HRM, particularly workforce planning, recruitment, selection, and employee training and development. The report evaluates the strengths and weaknesses of different recruitment methods, comparing internal, external, and third-party sources. It further analyzes the advantages of effective HRM for both employees and employers, highlighting how HRM practices can increase organizational profit and productivity. The report also explores the importance of employee relations in HRM decision-making and the impact of employment legislation on HRM practices. The conclusion synthesizes these findings, offering insights into the critical role of HRM in McLaren's success. The report emphasizes the significance of employee engagement, training, and fair compensation in achieving business objectives and maintaining a productive work environment.

Human resource
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Functions of HRM applicable in workforce planning..........................................................1
P2. Evaluating strengths and weaknesses of different types of recruitment and selection
process.........................................................................................................................................2
TASK 2............................................................................................................................................5
P3 Advantages of HRM for both employee and employers.......................................................5
P4 HRM practices for increase organisational profit and productivity.......................................7
TASK 3............................................................................................................................................8
P5 Analyse the importance of employee which influence HRM decision making.....................8
P6 Element of employment legislation and impact of HRM decision making...........................8
TASK 4............................................................................................................................................9
P7 Evaluate HRM practices in work location.............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human-resource-management is considered as one of the most important functions
performed inside an McLaren. It acts as the backbone of any firm. It is a process in which
employees are managed in a proper manner. It includes processes like recruitment, selection,
placement, training and development, motivation, compensation and many more. It performs
functions of improving productivity and performance of employees inside the firm. Various
types of HRM practices are applied by the company through which they try to improve employee
relations, increase productivity profitability of employees as well as the company. . HR
professionals are hired by company to perform these activities and they are responsible for
maintaining healthy relations at workplace (Alfes, 2013). Company which will be referred here
is McLaren technology group. It is a British based conglomerate firm working in various sectors
like technology, consumer electronics, formula one, food and restaurants, etc. In this report,
purpose and functions of human resource management in McLaren will be studied along with the
key roles and responsibilities of HR functions, benefits and effectiveness of HRM practices,
importance of employee relations and key elements of employment legislations will also be
included in the report.
TASK 1
P1. Functions of HRM applicable in workforce planning
Human resource management is a process of bringing employees and McLaren together
so that each of their goals are met. It helps in improving employee’s performance and also in
satisfying the needs and demands of customers. It is considered as an important factors which
helps in solving employee issues and making sure that these issues will not arise again. HRM
helps in managing all the activities of management and improving employee’s engagement in
McLaren. McLaren; being one of the top most conglomerate companies in UK is having many
subsidiary companies and hence, they will need big HR department i.e. with many employees to
handle so many subsidiaries they are having (Armstrong, 2014).
Purpose of human resource management:
1. It supports McLaren in achieving the business objectives.
2. It helps in developing a way of thinking that will be applied in McLaren while any issue
is evolved.
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3. It makes sure that HR practices are properly followed by employees McLaren in
McLaren and are being mutually accepted by them.
4. It also helps in improving the productive contribution of people McLaren in McLaren in
various ways that are strategically, ethically and socially responsible (Bloom and Van
Reenen, 2011).
Functions of HRM:-
Main functions that are performed by human resource management in McLaren group
are:-
1. Manpower planning: - It is one of the most important functions that is performed by
HRM McLaren in McLaren because manpower is very important for conducting
activities McLaren in McLaren (). If employees will not be there then work will not be
completed in McLaren. It helps in determining the manpower requirements inside the
company and the means for meeting those requirements also is determined by them. If
this planning is done properly then it will lead to reduction in employee’s turnover rate
and reduce absenteeism in McLaren as well.
2. Recruitment and selection of employees: - Recruitment is conducted by organization to
hire the best and qualified candidates for job vacancy. It is very important for McLaren
for McLaren to recruit right person at the right job and also, at right time. In this process,
applications are brought in by HR department and ends with selecting of the best
employees. Recruitment can be done by internal sources and external sources.
3. Employee’s education, training and development: - It is the process of learning
programs of McLaren that will help in improving knowledge and skills of employees for
performing a particular job. Normally, training is provided to employees who are newly
employed in an McLaren (Boxall and Purcell, 2011). They are being taught ways in
which they have to perform their tasks. Proper instructions, coaching and guidance is
given to them so that they can handle their jobs effectively.
4. Compensation and benefits: - Compensations are the form of remunerations that are
received by employees in return of contribution that they give in McLaren. It is
considered as an important part of human resource management because it helps in
motivating employees and improving McLaren effectiveness.
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5. Training and Development – This department s responsible for providing good training
to the employees who have just joined the office. This is done so that the employees gain
all the skills that are required to be in them for giving good performance in the company.
This helps in increasing the productivity of employees as they are getting to learn new
skills . So, if in McLaren any new employee is joining the office then they should be
given proper training development so that they get ready for the job.
P2. Evaluating strengths and weaknesses of different types of recruitment and selection process
Recruitment and selection process is one of the most essential processes conducted in
McLaren in McLaren . It is a process in which the best candidates are selected from the pool of
applications received by McLaren for a particular post (Bratton and Gold, 2012). Most of the
managers things that conducting selection process is one of the critical decision functions in the
McLaren . Here, managers actually tries to m,arch the knowledge and skills of employees with
the requirements of job and the one which is perfectly matched is selected. There is no single
selection process that is considered perfect for an organisation as there are variety of processes
available.
Various approaches that are used to recruit and select employees in McLaren are:-
1. Internal sources: - In this approach, employees are selected from within the McLaren.
Various ways in which internal recruitment can be conducted are like Job posting and
bidding, promotions and transfer, employee referrals and re-recruiting former employees.
This method helps in improving the morale of employees and this will help company in
assessing the abilities of existing employees in a better way. This method is considered to
be cheap.
2. External sources: - It is a method in which candidates are selected by using external
tools of recruitment. Few of them are like through campus recruitment, newspaper article,
media sources, etc. Through this method, company employs fresh talent who do not hold
any experience in the job for which he has been selected. It is considered as a costly
process because here, proper training is required to be given to employees to enhance
their skills.
3. Third party sources: - In this, placement agencies and head-hunters are given with the
responsibility to find qualified candidates for the job positions available. They use
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various tools and techniques to find the perfect candidate for company (Buller and
McEvoy, 2012).
Strengths and weaknesses can be described as :-
Approaches Strengths Weaknesses
INTERNAL
RECRUITMENT
4. It helps in reducing the
cost of employing new
employees in the
organisation .
5. Here, the correct view
of candidate's skills is
known to company so
there is no need to
further investigate
6. The employee becomes
more committed in their
work because of this
promotion,
7. Less training is required
by these employees.
8. Through this,
employee's performance
is also upgraded because
of the satisfaction they
have got after promotion
reflects in their work.
9. The applicants who did
not get through feels bad
and dissatisfied,
10. It is generally for limited
no. of candidates so
everyone cannot grab
this opportunity.
11. It stops entry of new
talent in the organisation
which is not good
because every company
needs new ideas.
12. Sometimes, the post
which is vacant is not
suitable for the
employees currently
working so internal
recruitment is not
possible .
13. Nepotism and
favouritism is very
common in this method
of recruitment which
does partiality with
other employees.
EXTERNAL  In this, new blood enters  It demotivate the
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RECRUITMENT the company which is
very good because they
come with lots of new
ideas can be useful for
organisation's growth.
 This method is very
simple and adoptable
without any issues.
 In this type of
recruitment, large no. of
candidates can apply
which gives the
companies more options
to choose the best
among them .
 Here, generally the job
profile and type is
prescribed therefore the
candidates select and sit
in interviews as per the
profiler itself.
 It helps in avoiding
ripple effect in the
employees which means
that the employees who
are working currently
will not get promoted if
there is vacancy .
 It also helps in
expanding knowledge
base of the company
internal employees
because they feel that
they did not get the
opportunity to grab this
job.
 It is a costly process for
organisation because
lots of activities are
conducted in this
process of recruitment.
 The company doesn't
know anything about the
employees which is a
risk which the company
takes while recruiting
the person.
 It is a very long process
which takes much time
of the employer for
selecting, interviewing
and finalising the
candidate for the job.
 Candidates who are
selected sometimes
takes time in adjusting
inside the company.
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which acts as a positive
factor.
Some of the Negative impacts of Internal Recruitment are -
 In this type , same employee is getting g promoted again and again so other employees
feel dejected and dissatisfied. This reduces their creativity and interests of performing
good inside the company.
 Another negative impact is that the employee who is transferred to different department
will have to be trained again and again , it increases the work of company and also
pressure on employees.
Some of the Negative impacts of External Recruitment are -
 In this the negative point is that the candidates who are hired from outside can not be
ttrusted all of a sudden and company can not share any confidential information with
them as they have a fear that it can be leaked.
 This method involves huge cost as it is a lengthy process but there is no guarantee that
employee will leave the company as soon as they are hired. There are many cases when
employee gets hired but they leave the company as soon as they join it. This brings huge
loss to the company.
TASK 2
P3 Advantages of HRM for both employee and employers
There are various practices that are used by human-resource-managers for conducting
activities of organisation in an effective way. These activities helps in improving business
operation and achieving target goals of the company (Guest, 2011). It also takes care that proper
employee relations are being maintained in an organisation or not These practices provides
various types of benefits to McLaren and its employees as well (Han, Chiang and Chang, 2010).
BENEFITS TO MCLAREN: Benefits of HRM practices for the organisation are as follows:-
1. Developing employees : HRM practices tries to satisfy employees and encouraging to
contribute in the activities that re being conducted in an organisation. If employees will
be satisfied then their productivity will be improved which will benefit company by
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increasing their competitive advantage. So, in order to increase he efficiency of company,
they will try to improve skills of employees.
2. Promoting positive behaviour : After implementing HRM practices in an organisation, if
employees are happy and satisfied then a positive environment is created inside an
organisation. A successful organisation always tries to maintain a positive working
environment in an organisation and McLaren being one of them is doing the same in their
company.
3. Building flexible workplace : HR managers always tries to maintain a flexible work
environment in an organisation for the employees by priovidingt them good facilities,
flexible work schedule, smooth work teams perfect work location and good
communication structure. If workplace is flexible then employee retention can be reduced
and it will be considered as benefit for the organisation.
4. Motivating workers : Managers are hired by company to manage workers of company
effectively. The HRM practices that are implied by these managers will motivate
employees and make them realise their actual worth and capabilities so that they perform
well in an organisation (Han, Chiang and Chang, 2010).
BENEFITS TO EMPLOYEES OF MCLAREN:
1. Conflict Resolution : HR managers helps in solving conflicts that have been arise in an
organisation , whether between employees or between employees and company. These
practices define the policies and procedures that are to be followed in workplace. They
also help in solving issues that have been arise due to the behaviours conducted by
employees .
2. Training and development : HR managers also helps employees by providing them
proper raining an development . They organise special training programs for them so that
they are able to learn new skills and knowledge that will be helpful in performing their
work easily.
3. Employee relations : HR managers always support those employees who have a feeling
that their rights have been violated in an organisation (Huselid and Becker, 2011). Major
issues that are arise in companies are related to discrimination or harassment. HR
managers takes care that such situations should not be arise in company again. They do
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this by implementing various types of laws like anti-discrimination law and harassment
laws etc.
4. High Salary – If the employees will get good salary then they will feel satisfied and
company will be able to reduce the employee turnover rate . In this way, high salary
packages acts as a motivating factor.
5. Healthy Environment – It is the responsibility of the HR manager to maintain good
environment inside company. This will help in bringing positivity inside company which
will further develop creativity.
P4 HRM practices for increase organisational profit and productivity
There are several benefits that McLaren and its employees are getting by implementing
HRM practices in organisation. Main purpose of any organisation in to increase profits and
productivity of company. A company needs capital in order to make a place in market. Human-
resource-manage helps company in making strategies and plans which aims at increasing profits
and providing benefits to company. Plans which are made should aim at providing good products
and services at minimum prices.
Application of practices of HRM will help organisation in improving trust of employees
on organisation because if employees will feel safe and secure inside company then a trust is
build between employee and company. This will compel employees to work well in the
organisation will will eventually increase profits of company. Few of the effective HRM
practices that are helping in increasing profits of company are:-
 Training and development:- This practice is conducted to increase knowledge and skills
of employees who are newly appointed and to those who are already working in an
organisation but requires to learn new skills to improve the performance of employees. It
is an effective process because here overall growth of employees is considered. It will
increase productivity of employees which will later on increase organisational profits.
 Reward management:- Giving reward to employees is also on effective HR practice
because through this employees will feel good and motivated after which they will
perform more in a better way. Rewards can be in both monetary and non-monetary form.
Employers can give monetary rewards to employees if they feel that employees are in
need of them (Jiang, 2012). Through this company's employee will feel that company is
very much concerned about them and then they will also feel loyalty in organisation.
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Non-monetary rewards are like giving recognition to an employee, motivating them ,
expecting m,ore from them as compared to other employees. These also acts as an
important and effective HRM practice (Renwick, Redman and Maguire, 2013).
 Job Design:- This HRM practice helps McLaren in making employees learn different
types of work which is done in the company. This makes employees efficient therefore in
case of unavailability of the senior management staff, middle level managers can handle
the situation and save the company from losses. In this way the productivity of employee
is increased and company is also able to make huge profits.
 Sharing and Cooperating – This HRM practice is effective because it is helping the
company in bringing in coordination between the management and the investors or other
third [parties of the company. In this way, sharing of ideas , thoughts , reviews are taken
and given.
 Communication process – There should be effective communication process between
the management and the individuals working in the company. It is the responsibility of
HR manager to make sure that there is good communication in the company.
TASK 3
P5 Analyse the importance of employee which influence HRM decision making
Employees are considered as a very important part of organisation. They are like an asset
which will be there with organisation for a long time . So company has to take care that they are
properly taking care of employees and they are happy while working in company also. Along
with this, managers of McLaren should try to influence their employees to participate in various
activities that are being conducted in an organisation. Because of this , employees will come
more in contact with the senior team of company and by talking with them employee will fell
more confident and motivated.
Employers should include employees while taking decisions of company. This will make
them feel their importance in company and they should be given equal importance like other
members in the company. Also, in order to maintain healthy employee relations in an
organisation, McLaren should conduct activities and programs in organisation , this will create
an informal environment in company and in this environment employees will feel free to
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communicate with each other and with senior people as well. A transparent relationship between
employer and employee will help employees in sharing ideas and thoughts and issues easily.
If employee relations in an organisation are strong then work environment in an
organisation will become more pleasant and wonderful (Schalk, Timmerman and Van den
Heuvel,2013). McLaren knows very well that investing time and money in implementing
employee relations will be profitable deal because it helps in increasing productivity of
organisation and improves decision making process. So, high performance of employees will
help McLaren in competing with issues arising outside the organisation.
P6 Element of employment legislation and impact of HRM decision making
There are various types of issues that are arise either inside the organisation or outside .
HR manager of company is responsible to resolve all these issues on time and in a correct way.
But it is not possible that managers are having solution of each and every problem so
government has introduced certain laws that are compulsorily to be mentioned in company's
policies and should be implemented also (Vaiman, Scullion and Collings, 2012). Acts that are
introduced by government are:-
EQUAL WAGE ACT: This act says that if any type of discrimination is happening in an
organisation in terms of giving salary to employees to employees then that employee can take
use of this act and get equal wages in company. Employees should not be judged on the basis of
their gender, caste, religion and colour etc. The employee have got the right to claim their money
if they are not getting equal payment as that of its members.
MINIMUM PAYMENT ACT: Under this act, government has described the minimum wage
that employee will get as per their job profile in the company. If employees are getting less
payment then that is described then they can claim kit by going against the company. McLaren
has to implement this strategy in their company as it is having various stores al over world and
this act is mainly for workers.
DISCRIMINATION ACT: This act specifies that employees of organisation should not be
discriminated on the basis of their gender. Like it is there in many organisation that male
employees are given more importance than female employees and even if female employee is
more efficient then also male employee will get promoted. This should not happen and the one
who is deserving should only get promoted. McLaren ensures that their company's employees
should not go through this situation and feel comfortable (Van Solinge and Henkens, 2014).
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