Human Resource Management Practices at Merril Lynch

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HUMAN RESOURCE MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................8
Task 3.............................................................................................................................................12
Task 4.............................................................................................................................................16
Conclusion.....................................................................................................................................24
References......................................................................................................................................25
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Introduction
Human Resource Management is defined as controlling, organising, directing, planning,
compensation, maintenance, separation and integration of human resources so that the
organisational goals are achieved.
Merril Lynch is an American Company dealing with investment and wealth management
working under the Bank Of America. It also deals with security dealings and prime brokerage. It
is located in New York, founded in 1914. It has a potential employee of 15,100 with a revenue of
13.8 billion US dollars. It provides its services worldwide. It has several divisions comprising of
Merril Lynch wealth management, private wealth management, and guided investing, (ml.com,
2019).
This report will elaborate on the purpose and functions of HRM applicable to workplace and
resourcing. It will also evaluate the advantages and disadvantages of various approaches to
recruitment and selection, considering the various HRM practices and the key aspects of
employer and employee relation. It also considers the laws associated with the same, namely
equality protection, health safety.
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Task 1
P1 Explanation of the purpose and the functions of HRM applicable to workforce planning
and resourcing an organisation
 There have been several developments in the nature and scope of the HRM, and it has
expanded over the years.
 Nature of HRM: HRM refers to the management function such as planning, selection,
recruitment, development, and control of the employee in an organisation. The
application and principles of the management functions such as development
maintenance, acquisition, and providing remuneration of the employees in an
organisation constitute an important aspect of HRM. An effective organisation such as
Merril Lynch which provides security and better results to the customers, thereby
attracting more customers to their organisation.
 Objectives of HRM- The primary objective of the HRM is to ensure the availability of
the potential workforce. There are four-fold objectives, including organisational, personal
societal, and functional.
 Organisational objectives - In recognising the role of HRM in bringing about
organisational efficiency. It is not an end but a mean of achieving the effectiveness of a
company. For instance, in the case of Merril Lynch, the HRM plays a vital role in
fulfilling the organisational objectives by managing the human resource. Personal
objectives: HRM department of any organisation has the responsibility to fulfil the
personal needs of their workers. In case of the company considered above, the emphasis
is given on the fulfillment of the needs of employees, contributes in achieving business
sucessSocietal objectives: Ethical and social responsibility plays a vital role; the needs of
the society are also considered in achieving the HRM goals like achieving the goals of
the organisation. The organisation considered uses its resources as the people for
benefiting the society and the organisation morally by ensuring that no money laundering
business is carried on while achieving its goals (Ngwenya and Aigbavboa, 2017).
 Functional objectives: To ensure that the contribution of the department fulfills the
organisational needs the functional objective of the HRM plays a crucial role. Resources
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are wasted if the HRM is not clear about organisational needs. For instance, regarding
investment to be made in Merril Lynch, the HRM should be very clear regarding the
process of investment; otherwise, it can be a loss for the company.
Scope of the HRM activities
 The scope of HRM includes Union Labour Relations, Benefits and compensation,
Personnel research and information system, and so on. The functions include:
 Planning: The HR plans of all the works that need to be done by the subordinates for
achieving its goals (Jørgensen and Becker, 2017). Research is the core function of the
HR, that helps in collecting, analysing and identifying the needs of the organisation.
 Merril Lynchincludes the involvement of the employees at the different organisational
level for achieving its goal.
 Controlling: Controlling plays an important role in maintaining the decorum of the
organisation towards its organisational goals (Cascio, 2015 ).
 Organising: Integration of the members towards achieving a common goal is also
important towards achieving organisational goals (Sarvaiya et al., 2018).
P2 Explanation and evaluation of the strengths and weaknesses of different approaches to
recruitment and selection.
Best practice approach- The best practice approach is based on several HRM practices which,
when adopted, leads to better organisational performance. In the case of this company, it can be
said that the employment security of the employers of Merril, Lynch has a direct impact on their
working capabilities towards the organisation.
Best fit- It deals with the HR strategies that should be taken into consideration and those should
be in congruence to the available resources and circumstances available before the organisation
(Banfield et al., 2018). The HR in the organisation considered tries to bring in innovate ideas
towards reaching the goals (Malik, 2018).
Hard, soft model of HRM- It is a management system where the workers are viewed as
resources that need to be controlled for achieving the efficiency of an organisation. It allows the
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considered company to employ part-time employees, thereby giving a chance for the freshers
(Michael, 2017).
Soft model of HRM-It focuses on the long term business strategies by focussing on the
employees. This approach considers the employees as assets, thereby giving them the needed
importance. In it, the company considered focuses on team spirit for achieving organisational
goals.
Recruitment
A major role of the HRM includes Recruitment and selection. The process by which new
employees are brought in the organisation to increase its efficiency is known as recruitment. The
recruitment process has various stages. The candidate has to pass all those levels to become a
part of the organisation.
 External recruitment
The candidates are recruited from outside the organisation. The HR manager posts a job
advertisement to attract candidates. The job advertisement is sent to various colleges where the
organisation can recruit fresh talents. The job advertisement has job analysis, description,
personal specification, and competency framework. There are various other platforms where the
job advertisement is posed to attract candidates.
 Internal recruitment
This is the process by which an employee is selected from the organisation according to their
performance. The organisation can take an exam or interview for internal recruitment or the
person can be directly promoted for the vacant post. This motivates the employees in the
organisation.
Selection
The candidates who pass the screening process are selected and offered the job. The candidate is
given a formal offer letter where are the terms and conditions of the organisation are mentioned.
The offer letter also specifies the salary that the new employee would receive at the end of the
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month. The new employee is under observation for various months. This is done so that the
employees can judge whether the employee can live up the orgnaistaions mission and vision.
Onboarding and induction are also called the orientation program. The organisation recruits the
employees and keeps him or her under observation for 90 days — the observation period differs
from organisation to organisation. If the recruited employee performs well in the observation
period, then he or she becomes the permanent employee of the organisation. The advantage of
the induction period is that the employee becomes efficient for the organisation. This saves a lot
of time and money for the organisation(Chen, 2016). The disadvantage of this process can only
be that if the person doesn't perform well in the induction period, he or she might be terminated
from the job.
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Task 2
P3 An explanation of the benefits of different HRM practices within an organisation for
both the employer and the employee.
Using a table prepare a report explaining the benefits of both the employees and your Merill
Lynch firm
Employer Employee
The essential role of the employee includes
selection and recruitment. After this process,
the company gives proper learning,
development, and training to the new
employees. Training is a prime opportunity for
employees to widen their knowledge. The
work environment is completely different from
theoretical knowledge. Training and
development are beneficial for new employees
in any organisation.
The learning is the initial process where the
employees get a brief knowledge about the
work they are going to perform in the
organisation. This is essential for the employer
as the employee would have proper knowledge
of their job role in the organisation. The
training process is a type of teaching the
subject of the job role in the organisation. Thus
the employees would produce effective results
for the organisation (Noe et al., 2017).
The employee benefits a lot from the learning,
development, and training. The training and
development help the organisation to improve
its performance. Providing requited trianing
sessions is beneficial for the employees to
perform well in their job.
The training builds confidence in the employee
so that they can work effectively in the
organisation. Continuous training helps the
employee to look up their skills. The learning
procedure helps the employee to meet the
expectations of the organisation. This method
helps the employee to gain positive feedback
from the employer.
Table 1: Learning, development, and training
Employer Employee
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The flexible work hours helps the employer to
boost up the employee's morale. The employer has
various targets to meet. Thus, this helps the
organisation to increase punctuality of the
employees. The employer can allow the work hours
according to their convenience. This helps in
framing a good image of the organisation. The
employer benefits a lot from the flexible working
hours as it increases the chances of attracting able
employees who are ready to work in odd hours.
The employer can thus increase the production of
the organisation (Timms et al ., 2015). There main
aim of the organisation is profit maximization by
customer satisfaction. There are various customers
in different countries. The employer benefits from
the employees who are ready to work in flexible
hours. This expands customer satisfaction from all
over the world.
The employees benefit from the flexible timings as
they can fulfill the family needs. An individual can
choose the timings and work according to their
preference. The employees who prefer to work in
odd timings will not face traffic — Therera re
various jobs which require employees in odd
timings, especially late night or early mornings.
Various efficient candidates work very efficiently
in the late hours. The flexible work hours,
employers can take breaks according to their wish.
The flexible working options is beneficial for the
candidates who are insomniac. They geta chance to
earn money when they are awake. This increases
the officiant of the employees as well as the
organisation. The employees would get a chance to
work according to their preference. This helps the
employee tom look after their employee.
Table 2: Flexible working options
Employer Employee
The employee performance must be checked as it
helps the employer to understand the efficiency of
the employer. The employer feedback helps the
employee to understand the work and the area of
conflicts. Performance management includes
allocating the task to the employees. Dividing the
task would help the employer to achieve the target
on time. Proper monitoring would create fewer
conflicts in work. The production and service from
the organisation would be of standard quality. This
will attract more customers and increase the profit
The positive feedback from the employer would
benefit the employee. The positive feedback will
motivate the employee. The employees would stay
dedicated to the organisation. The organisation
aims at profit maximization motivating the
employees would help the employer to achieve the
target. Frequent monitoring would help the
employees to make fewer mistakes. The problems
would be solved in the initial stage. This would
save employees time and energy. If the employee's
work is of standard quality, then the organisation
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of the organisation (Jeske and Santuzzi, 2015). would benefit
Table 3: Employee performance management and monitoring
Employer Employee
The positive way to keep the employees loyal
towards the organisation is by rewarding them. In
the organisation, the employer monitors the
performance of the employee. The employer
rewards the employee based on their performance.
These rewards include incentives, bonus, and
others. It is believed that employees will work hard
only if they are happy. It is the task of the employer
to motivate the employees so that the target is
achieved on time.
The employees are motivated when they receive
rewards based on their work. The rewards and
payment motivate the employees, and thus, they are
ready to work with more enthusiasm. This makes
the employees loyal towards the organisation. The
employees work hard to gain those rewards. The
rewards given by the employer are a bonus,
incentives, others (Paauwe and Boon, 2018).
Table 4: payment and reward management
P4 An evaluation of the effectiveness of different HRM practices in terms of raising
organisational profit and productivity leading to an exploration of the different methods
used in HRM practices; providing specific examples to support evaluation within an
organisational context.
The roles and responsibilities are important for organisation growth. The HRM is one of the
essential department in the organisation which has to work effectively to meet the goals. The
above mentioned are the essential roles that the HRM department performs to meet the target of
the organisation. Learning development and Training is essential for organisation growth and
development. An effective training is given to the new employees so that the target is achieved
on time. It is the initial stage for the new employees where they lean the work done in the
organisation. This reduces conflicts and increases the efficiency of the employees. The training
and development help the organisation to gain standard and efficient employees. The flexible
working options help the organisation to get more employees who satisfy the customers residing
in all over the world. Every organisation has a different working style. In some organisation, the
employees are allowed flexible working hours. This is a benefit for both the employer and the
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employee(Cascio, 2015). The employee would work efficiently, and the production or the
services of the organisation is not affected. The flexible working hours help the employees to
earn and look after their family. The flexible work timings help the organisation attract
employees who are ready to work at odd timings. This increases the productivity of the
organisation by hiring employees who are ready to work in odd hours. This benefits the
organisation and help in its growth and development.
The essential role of the employee is to monitor the work done by the organisation. This would
reduce the conflicts in work. This organisation would benefit organisations production. The
employee's management and monitoring help the employees to stay loyal towards the
organisation. The employer monitors the performance of the employee and appreciates so that
they stay loyal towards the organisation. The positive feedback increases the employee's
efficiency, which benefits the organisations. The organisation's productivity increases when the
employees working are efficient. Frequent feedbacks would help to create fewer conflicts in
work. After analysing the work, the employee is given rewards for their work. These rewards act
as a motivation for the employees. The employees are attracted to the organisation when the
workplace has an employer who treats their employees effectively. The payment and reward by
the employer are to motivate the employees to work efficiently in the organisation. The added
payment is the benefit of the employee, and the efficient product is the benefit of the employer
and the organisation.
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Task 3
P5 Analysis of the importance of employee relations in respect to influencing HRM
decision- making and further identify the key elements of employment legislation and the
impact it has upon HRM decision- making
Employee relation is essential for the smooth functioning of the organisation. The relationship
between an employee and an employer should be mutual and respectful. As it is the role of the
employer to recruit a candidate and bring them into the organisation, thus the employer must
solve the queries if the employees and keep them satisfied in the organisation. Employers
benevolent behavior satisfy the employee and prompt fruitful result. It is observed that the
employees do not ask questions from the employer to maintain the hierarchy. The main aim of
the employer and the employee must be to achieve the goal on time. The employer can be
friendly or bossy; it is completely the employers choice what kind of relationship he or she wants
to maintain with other employees(García et al., 2017). The employer and employee are depended
on each other. The employer assigns work to the employee and to fruitfull achieve the task from
the employee, is the responsibility of the employer. The employee must maintain a good
relationship with the employer.
A healthy relationship with the employee will improve organisation growth and development.
The employer must communicate with the employees to understand their ideas to execute a
work. This will build a healthy relationship between them, and the target won't be affected. The
employer must be approachable so that the equity of the employee is solved in the initial stage of
the work, and the finished product or service is of standard quality. If the employer is friendly
with the employees, then the employees would find the work environment suitable to work. The
target of the organisation is only to maintain its brand image and earn profit by customer
satisfaction. The employer-employee relationship is one of the essential steps towards
organisational benefit.
P6 Evaluation of the key aspects of employee relations management and employment
legislation that affect HRM decision-making in an organisational context. (600)
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