Human Resource Management Report: Ocado Case Study

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HUMAN RESOURCE
MANAGEMENT

INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................2
P1, M1 Describing effectiveness of HRM functions in providing talent and skills,
applicable to resourcing and workforce planning..................................................................2
P2, M2, D1 Evaluating approaches to recruitment and selection..........................................3
TASK 2......................................................................................................................................6
P3, M3 Explaining the key benefits of HRM practices within firm for both employee and
employer.................................................................................................................................6
P4, D2 Evaluating HRM practices and their benefits in raising profitability and
productivity............................................................................................................................7
TASK 3......................................................................................................................................9
P5, M4 Analysing the key aspects and importance of employee relations, legislation and
management of its impact on HRM decision making............................................................9
P6, D3 Identifying the key elements of employment legislation.........................................10
TASK 4....................................................................................................................................12
P7, M5 Illustrating application of HRM practices within business using work related
examples...............................................................................................................................12
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
The importance of human resource management is increasing day by day within businesses
that it is important to have skilled, knowledgeable, capable and effective employees to
manage several factors within business. In this regards, the report will cover effectiveness of
HRM functions in providing talent and skills, applicable to resourcing and workforce
planning and approaches to recruitment and selection. In addition, key benefits of HRM
practices within firm for both employee and employer and HRM practices and their benefits
in raising Ocado profitability and productivity will be discussed. Further, key aspects and
importance of employee relations, legislation and management of its impact on HRM
decision making and key elements of employment legislation will be explained. Finally, it
will cover application of HRM practices within business using work related examples.
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TASK 1
P1, M1 Describing effectiveness of HRM functions in providing talent and skills, applicable
to resourcing and workforce planning
Ocado: The business is known for its quality services as the firm has no retail stores in
market and does all deliveries from its warehouse. It is a British online supermarket provides
its services online. The headquarters is located in Hatfield, UK. The revenue of 159.8 cores
last year shows that the firm is achieving its aim effectively in contrast to its main opponents.
Tim Steiner is the current CEO of Ocado. Services include groceries, home appliances and
many others at low prices.
Mission: The mission statement of Ocado shows that the firm is improving the shopping
experience for its users by providing them aa unique and innovative alternative to traditional
purchasing.
Purpose: The purpose of business is to provide a completely new experience in terms of
unique, independent and different to its users to receive home delivery of high quality of
households, drinks and food goods.
Objectives:
 To provide great values in terms of technology, smart and innovative thinking to
customers.
 To deliver quality services with honest and care.
 To become the best choice for customers in terms of quality.
 To ensure environmental sustainability by going green.
It is very important for a business to have an effective HR management that is capable of
developing policies and strategies to maintain the growth and development of organisation
(Bratton and Gold, 2017). HR management is responsible for utilising of business resources
in productive and profitable manner. In this regards, the purpose of HRM within Ocado is to
ensure growth of business by delivering quality services to customers and proper
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management of internal and external environment. Further, HRM functions helps business to
improve its performance in all areas where the management plays a crucial role in making
activities effective.
HR planning: HR management in Ocado is responsible for making effective policies,
strategies and planning to increase their business efficiency to deliver quality services to
customers. In this regards, planning must be strong enough to manage employees and other
floor activities.
Recruitment and selection: This function plays an important role in increasing efficiency of
workforce as HR recruit and selects best employees at right time and place (Chelladurai and
Kerwin, 2018). In this regards, job design, analysis, training etc. are performed by HR.
Employee management: It can be said that there is a great importance of employee
relations, engagement and development in improving performance of operations. Thus, HR
management interact with employees to manage relations, satisfaction, loyalty and
commitment towards job.
In addition, approaches such as Best fit VS Best practice applied by HR management to keep
strategies aligned with market condition and suitable for organisation in different
circumstances. In addition, certain changes are also managed by them within structure,
management and operational activities to gain competitive advantage and to best fit in
business environment. This talent is useful for business in achieving its objectives, mission
and purpose.
P2, M2, D1 Evaluating approaches to recruitment and selection
It can be said that every organisation require skilled, best, knowledgeable and positive
attitude employees to increase effectiveness of their operations. Here, recruitment and
selection of best candidates plays a major role that is performed by HR management though
internal and external approaches.
INTERNAL SOURCES
There are different sources from which the HR management of Ocado can recruit and select
best employees such as through promoting or transferring current employees to higher
position (Taylor, 2015). In addition, former workers can be also a part of organisation again,
referrals given by employees is also an option. These are some procedures from which
management can recruit or select employees as per the requirement.
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Figure 1 Internal approach to Recruitment and Selection
Advantage and Disadvantage: There is a great advantage of this approach as it allows
business to provide growth and development opportunities to employees so that they can
better use their talent. In this way, management save cost and time of organising external
provides. In addition, it also helps in motivating employees to become loyal and committed
towards their work and with firm (Brewster, Chung and Sparrow, 2016). However, there are
some drawbacks of this approach that the management does not have much choice to select
the worker as per the requirement of role and responsibility. It also discourages opposition
and can create conflicts between workforces.
EXTERNAL SOURCES
Apart from internal sources there are some external sources from which the business is able
to recruit and select best employees to improve efficiency in their operations (Mondy, 2015).
In this regards, management can contact to employment agencies which can provide a list of
quality employees. In addition, the most famous and successful source advertisement which
is costly but effective as well to attract target candidates. Further, deputation is also a way
where the employees are transferred to any other company for a limited time to improve
further.
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Figure 2 External approach to Recruitment and Selection
Advantage and Disadvantage: The approach is very effective in attracting number of
qualified, skilled and suitable candidates as per the requirement of business. In this
competitive world, HR management through its skills can select best employees for the job
(Brewster, Mayrhofer and Morley, 2016). This allows them to have understanding of the
ability of person to perform tasks. However, there are some drawbacks of this approach such
as it requires too much time and cost. In addition, there is a great negative impact on
employees working with business in terms of de-motivation.
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TASK 2
P3, M3 Explaining the key benefits of HRM practices within firm for both employee and
employer
HRM practices provide so much benefit to organisation in terms of increasing overall
performance. In addition, it is also very beneficial for employee and employer working with
Ocado that it helps in managing an effective relation between them to work collaboratively
and effectively to achieve goals (Mbwayo, 2013). Job satisfaction is required to both to
enhance business opportunities. In this context, HRM practices and its benefits to an
employee are described below:
Figure 3 Employee relationship
Employee improvement: HRM practices helps in improving employee’s behaviour, skills,
attitude, and knowledge and attributes to keep them trained towards tasks. This helps in
improving their performance which helps in gaining competitive advantage for business.
Flexibility: It is very important to have flexibility within workplace to manage changes
according to the requirement (Wilton, 2016). In this regards, employee satisfaction,
compositions, effective communication, loyalty etc. are provided by business to their
workers.
Motivation: Motivation at workplace promotes synergy and morale of employees so that
they can perform their services well. It is important for them to understand importance of
their roles to become committed and responsible towards work. In this regards, rewards and
incentives are provided to them to increase their performance.
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The benefits are not only for employees as HR practices are also useful for employers to
manage their roles and responsibilities effectively.
Training and development: It is very important for business to improve their employee’s
skills and knowledge to perform in more creative and innovative manner. In this regards, HR
practices conduct training and development program so that employer can improve efficiency
of employees.
Employee satisfaction: Job satisfaction is one of the most important things that motivate
employee and employer to perform their roles effectively. HR practices by addressing their
needs such as minimum wages, salary, working environment etc. helps to motivate them and
provide job satisfaction effectively.
Minimise employee turnover: HHR practices helps in providing job satisfaction which
reduce the chances of employee turnover within business (Jabbour and de Sousa Jabbour,
2016). This helps in saving cost and time for recruitment and selection activities and increase
efficiency of existing workers.
In addition, HR practices also provide several benefits to both such as compensation, training
and development, work-life balance and satisfaction towards job.
P4, D2 Evaluating HRM practices and their benefits in raising profitability and productivity
HRM practices is useful within business that it helps in severing a lot of benefits and
opportunities for business in order to improve its productivity and profitability. In this
regards, it helps in managing people within Ocado in a productive and efficient way. It
increases satisfaction, loyalty, commitment and positive behaviour and attitude of employees
so that they can become responsible towards form and their job. This helps in improving
operational activities of business to provide quality services to customers. In this way,
organisation can achieve its purpose, mission and objectives which will help in raising profits
and productivity. Implementation of several HR practices such as training and development
program, recruitment and selection, incentive and rewards, transparency, compensation and
other factors will help business to ensure proper development and growth.
Thus, it can be said that HR practices are crucial for both employee and employer to manage
their roles and responsibilities and also for organisation to improve its profitability and
production with the help of managing internal and external environment (Guest, 2017). In
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this regards, some HR practices are given below to manage business functions to improve its
performance and growth:
Training and development: HR practices conduct training and development program so that
management can improve efficiency of employees to improve their skills and knowledge to
perform in more creative and innovative manner. This helps in producing quality services and
raising sales.
Recruitment: Recruitment and selection of best candidates plays a major role that is
performed by HR management though internal and external approaches in order to hire
skilled and best employee for work and to achieve goal.
Time and attendance: HR practices include effective time management of employees
through HCM, ADP and SM techniques that are capable of recording attendance and time. To
determine the working hours, biometric system can be used by management.
In this way, HR practices are beneficial for business in order ot raise their sales to improve
profits (Shen and Benson, 2016). Further, there are number of HR practices can be applied
within business according to the requirement such as effective leadership, planning towards
budget, sales and resources etc. these are effective in improving business overall performance
to achieve goal and objectives and to raise profitability.
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TASK 3
P5, M4 Analysing the key aspects and importance of employee relations, legislation and
management of its impact on HRM decision making
It can be said that the success of every business depends on the hard work contributed by its
staff, employees and management. An effective relationship between employees,
management and other people within business helps to understand the purpose of
organisation to work accordingly. In this regards, HR management is responsible for
managing relations with employees to make them loyal towards brand.
Employee relations: It is very important to have an effective relation between management
and employees to understand things better to deliver quality services. HR management
implement several programs to manage relations that it helps in improving efficiency in
operations. This helps in delivering quality services to make customers loyal towards brand.
Communication: Communication between management and staff is required to manage
several activities. It helps in understating the roles and responsibilities and also have impact
on HRM decision making (Brewster, 2017). In this regards, communication skills must be
possessed by employees after making quality relations with each other to increase satisfaction
and teamwork.
Employee involvement: An effective relation between employees and management helps in
increasing involvement and engagement of employees so that they can participate in business
seminars, meeting and decision making process. This helps in enhancing effectiveness of
operations to deliver high quality services and satisfaction to customers.
Employee welfare: Employees are the crucial asset for Ocado that the HR management must
consider welfare activities such as improving motivation, providing a peaceful working
environment and addressing their requirements. In this way, organisation is able to manage
an effective relation with workers to make use of business resources in a profitable and
productive manner.
Hence, business requires effective management of relations with employees in order to
ensure proper development and growth in operations, productivity and profitability. It helps
in accomplishing the desired goal and objectives of business and also provide motivation to
employees by providing them with effective working environment. This helps in delivering
quality services to consumers.
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P6, D3 Identifying the key elements of employment legislation
Every organisation operates in a political and government regulation criterion in order to run
their operations without any interruption smoothly (Baum, 2016). Government has
formulated rules, regulations and laws that have impact on business operations and HRM
decision making if not managed well. In this regards, the employment legislations and key
elements are described below to secure employee rights within a business;
Equality act 2010: The act helps employees to ensure that the organisation is treating them
equally in terms of wages, gender, race, sex, age, religion etc. Thus, it is very important for
Ocado to manage equality within business to reduce conflicts and disputes effectively. The
act is a combination of discrimination and race relation two acts. The UK government is able
to terminate business operations.
Employment safety act 1978: The act provides several benefits to employees in terms of
securing their working hours, salary structure, commencement, compensation and pension
etc. In this regards, HR management is responsible for addressing these benefits of
employees to ensure proper growth.
Health and safety act 1974: Every organisation must have safety and security measures in
order to ensure that the employees are working in a safe and secure environment (Tung,
2016). It is important for them to monitor safety from different elements such as heavy
machineries, tools etc. In addition, safety training must be provided to workers to increase
safety standards.
Minimum wages act 1998: The organisation is responsible for providing minimum wages
apart from the salary to employees according to their roles and responsibilities within firm.
This helps in enhancing motivation in employees and also ensures equity to increase valuable
contribution and commitment towards work.
Data protection act 1998: The act helps employees to ensure that the personal information
and other data provided by them to management is kept safe and secure. The management
without permission of employee is not able to disclose it to any other. Hence, it helps
employees to ensure that the information provided by them is in safe hands.
Employment and dismissal contracts: It can be defined as an agreement made for both
employee and employer if they want to leave their job (Wehrmeyer, 2017). They are able
terminate their roles with the help of dismissal and resignation process. HR management
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