HR Management Practices Analysis: Rolls Royce Case Study Report

This report provides an in-depth analysis of Human Resource Management (HRM) practices at Rolls Royce. It begins with an introduction to HRM and its significance, followed by an examination of how Rolls Royce adapted its HR strategies using strategic management principles, particularly in response to the COVID-19 pandemic. The report analyzes the impact of environmental factors, such as competition, legislation, and internal policies, on the company's culture and HR planning. It then explores the Guest HR model and its value creation for the organization, differentiating between HRM and personnel management using Storey's 27 points. Furthermore, the report discusses job design strategies, including job rotation, enlargement, simplification, and enrichment, and examines Rolls Royce's hiring and firing strategies. It concludes with corporate examples of good HR practices, recommendations, and references.

HR Management Practices

Table of Contents
INTRODUCTION...........................................................................................................................3
How HR Strategies were changed by the firm by using concept of Strategic management. .3
Analyse the impact of environmental factors on culture and HR plan of Firm.....................4
HR Model and value created by Organisation.......................................................................5
Difference between HRM and Personnel Management.........................................................6
Job Design Strategies.............................................................................................................8
Hiring and Firing Strategies of Organisation.........................................................................9
Corporate Examples of firm using good HR Practices and literature..................................10
CONCLUSION..............................................................................................................................10
RECOMMENDATION.................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource is a key element for any business as they are the one who perform
functioning and activities of Organisation in order to gain success and increase the growth of
firm. Human resource management is a practice which is used to perform the routine work of
human resource in Company like staff development, compensation management, employee
staffing, performance management and encouraging employee involvement in decision making
process (Andonova, 2019). The Human resource management in Organisation plays various
roles for creating an excellent team which helps in achieving business goals and objectives. But
for making a team they have to conduct several activities such as recruiting, selecting, training
and development, performance management, succession planning or compensation and other
benefits (Luu, 2018). The report is based on human resource management practices in which the
human resource strategies, concept of strategic management, impact of environmental factors on
HR planning, Human resource models, difference between personnel management and HRM, job
design strategies, hiring and firing strategies and corporate strategies used in HR practices is
discussed. The Organisation which is selected for accomplishing the project is Rolls Royce; it is
a luxury automobile company which is situated in England, UK. The Firm was founded in 1998
in UK which deals in motorcars products such as Phantom, Cullinan, Ghost, Wraith and Dawn.
How HR Strategies were changed by the firm by using concept of Strategic management
The Human resource Strategies of Rolls Royce is changed due to the impact of COVID 19
on Organisation. The Brand is facing a huge loss due to which they have shut their factories
temporarily in order to reduce the other cost and expenses. Rolls Royce has make changes in
their human resource strategies so that they can sustain in Market at the time of pandemic. The
Changes which is made by firm by using some concept of strategic human resource management
are as follows:
Remote Work Schedules
The Organisation has implemented the remote working strategies to maintain the social
distancing and focusing on reducing spread of disease. For creating an effective remote working
strategies, Human resource department and IT department are working together in order to make
smooth transition to remote work scenario. The Human resource management of Rolls Royce has

developed and share the guidelines for employees and superiors which they have to follow while
working remotely.
Safety Initiative and Employee Wellness
Rolls Royce has also taken the safety initiative and focusing on employee wellness by
regularly communicating with their Staff on their mental and physical health. The Organisation
is encouraging their employees to maintains social distancing and also avoid handshakes and
other physical interactions. The Organisation is also working on activating wellness program in
which they will provide detailed information of the health and safety measures which staff has to
take in order to prevent from disease.
Reconsider policies and leaves
The Company has updated their leaves and policies by monitoring the changes in new
employment legislation. Rolls Royce is also working on modifying the policies and practices so
that they can address the emergencies due to COVID 19. The Human resource management has
also communicated the changes so that employees can know about the policies.
Communicate deliberately and over communicate if necessary
As in the time of pandemic employees are working remotely so many faces come when
they are not able to understand the things and perform their take effectively, it is the
responsibility of human resource management to ensure that there must be proper
communication between the staff and superiors.
Analyse the impact of environmental factors on culture and HR plan of Firm
There are various impacts of environmental factors on culture and HR plan of Roll Royce, it is
necessary to assess the external factors that could influence the performance and productivity of
business. A successful human resource plan helps in achieving the mission and goals of
Organisation (Chang, Wang and Cui, 2019). Rolls Royce must manage and monitor the internal
and external environment factors in order to increase the recruitment and retention strategy and
minimise the issues related to employees.
Effect of Competition
It is one of the environmental that creates an impact on culture and human resource plan.
There is a huge competition in Market for recruiting talent employees, attracting more people
towards brand and offer high salary to Staff. The Organisations are demanding top talent that can
contribute their best in making business successful. Rolls Royce is also focusing on candidate

that can give their best efforts in improving the business performance and productivity (Kang,
Croft and Bichelmeyer, 2020). So competition in market influences the culture and human
resource plan as they have to develop strategy according to the Market demand.
Impact of Legislation
Impact of legislation is another environmental factor that must be assessed by Firm as it
affects the human resource plan and culture. There are various laws which must be followed by
Organisation in order to run the business smoothly. The Human resource management of Rolls
Royce has to follow the laws which are related to the employees and Company to stay away
from any legal conflict as it influences the performance of firm. HR must consider the all the
laws and develop an effective human resource plan so that they can follow it appropriately. For
example, due to COVID 119 new act was passed for employees like Family First Coronavirus
Response Act for the benefits of Staff.
Internal policies and Employee relation
Internal policies and employee relation is also an environmental factors which can
influence the culture and human resource planning of Organisation. The Human resource of
Rolls Royse must ensure that the employees should follow the internal policies which are set by
Superiors and HR manager for working comfortably and smoothly in Company. It is the
responsibility of human resource department to ensure that how many Staff is eligible for
retirement and number of candidates required in Organisation. Rolls Royce must focus on
maintaining a harmonious relationship with their employees by providing them better benefits
and compensation (Lee, Batt and Moynihan, 2019).
HR Model and value created by Organisation
The human resource model which must be applied by Organisation in its business activities
is Guest Model. It is a model which is developed by David Guest in 1997 and he also claims that
it is superiors from other models. The Guest model determines that Human resource manager has
a specific strategy that includes certain practices and result in better outcomes; it could be
financial rewards, behavioural and performance-related. The Guest model includes six
components they are HR practices, behavioural outcomes, financial consequences, HR strategy,
performance results and HR outcomes. The Financial results of Rolls Royce depends on the
performance of employees as if they give their best efforts in making target achievable it results
in better results and make business profitable. The Behavioural outcomes is gained when Staff is

committed towards their work and also results in quality and flexibility. It is important for the
human resource management to align the HR Strategies with HR practices that must be further
linked with Organisational strategies (Brockbank and et. al., 2018). The Guest model helps in
increasing the morale and employee satisfaction so that they can commit towards their goals and
objectives. The Organisation implements the model in order to increase employee participation
and motivation level of Staff in order to improve their efficiency and performance in Company.
The Value of Rolls Royce can be created by maintaining the positive environment and focusing
more on employee’s capability and performance so that they can give their best output in
increasing the profitability and growth of business. The Value of Company can be increased
when they focus on employee’s safety and health in the time of COVID 19, it is a time when
Staff required the need and help of employer. Rolls Royce is fighting with COVID 19 by taking
a precautionary action and maintaining a social distance so that employees may get safe while
working. The Value of Organisation is also created when they have environmental responsibility
and focus on increasing the growth of employees so that they become happy while working in
Company.
Difference between HRM and Personnel Management
Human resource management mainly focuses on development and implementing the
employee’s strategies that are linked with Organisational strategies. The Human resource
management also ensures that value, culture and structure of Company and motivation,
commitment and quality of Staff must be contributed in order to make business successful (Park,
Bae and Hong, 2019).
Personnel management is one of the functions of management that helps in promoting
and increasing the development of advancement and work effectiveness of Employees in
Company through planning, organising, coordinating, directing and controlling the functioning
and activities which are related to the Staff. The Personnel management helps in developing the
relationship with Staff as they improve the employee engagement and team work.
By using Storey’s 27 points of differences between HRM and Personnel management which is
practised by Firm is as follows:
Basis of Difference Personnel Management Human Resource Management
Contract The Personnel management in
Rolls Royce have a written
The Human resource
management aims to go

contract with Organisation. beyond contract as they
believe to work effectively
and Efficiently in Company to
increase its profitability.
Managerial Task The Personnel management of
Rolls Royce monitors the
performance and functioning
of employees and business
activities of Company.
Human resource management
in Rolls Royce focus on
nurturing the performance of
employees by providing them
training and development so
that their performance and
efficiency level increases
which helps in giving
productive outcomes.
Key relation They mainly focus on labour
management as the role of
personnel management is to
monitor and ensure the
performance of Staff.
The Human resource
management maintain a
healthy and positive
relationship with customers in
order to satisfy their need and
demand. They also focus on
creating strong customer base
for company so that the
profitability and growth of
Rolls Royce increases.
Communication The Communication takes
place indirectly with personnel
management as they not
communicate effectively with
their employees.
The Employees and human
resource manager can directly
communicate with each other
if they have any issue and
problem related to the work in
Organisation. The Human
resource management ensures
that their Staff many not face

any issue while working in
Company.
Job Design Strategies
Job design is an activity of creating jobs that helps in achieving the goals of Organisation
while rewarding and motivating the employees. Rolls Royce must create a well designed job
leads in order to increase the productivity and quality of work and also increase the job
satisfaction among the employees which helps in creating low employee turnover and lower
absence. There are four job design strategies which help in increasing the motivational potential
of job (Molina and et. al., 2019). The Job design strategies are Job rotation, job simplification,
job enlargement and job enrichment. The Rolls Royce also uses these job design strategies in
order to develop potential jobs for employees.
Job rotation
It is an activity which is used to move the employee in between jobs in Company which
means changing the job position of Staff in order to achieve various human resource objectives
like training employees, preventing job boredom, orienting new employee and enhancing career
development. The purpose of job rotation is to reduce the boredom and explore the hidden
potential of Staff.
Job Enlargement
Job enlargement is a process of adding additional activities in existing job role which
means that employee will perform more and different task in their job role. The Job enlargement
activities help in increasing the knowledge and skill of employees and also it gives the
accountability, autonomy and reasonability to Staff.
Job enrichment
The Job enlargement aims in adding extra task but job enrichment focuses on adding
motivational dimension. Rolls Royce focuses on job enrichment in which they add motivators to
current job roles. For example, adding opportunities to receive feedback, creating natural work
units and establishing client relationship to increase the significance of task (Nishii and Paluch,
2018).
Job simplification

Job simplification is an activity of reducing the additional task in order to make employees
more focused towards the work (Singhvi and Sharma, 2018). The Purpose of job simplification is
to improve the work methods through which output can be maximised and expenditure can be
minimised. The Job simplification helps in increasing the operating efficiency due to which the
employees can be connected with the job by reducing the extra task which also helps in
increasing the productivity.
Hiring and Firing Strategies of Organisation
Hiring means recruiting the staff in Organisation to perform the business activities and run
the Company effectively by following the rules and regulation. Hiring is a positive attribute in
which Organisation selects the talented employees in Company so that they can contribute their
best in making business successful. Firing means reducing the number of staff from Organisation
as they are not able to perform their duties and roles effectively and efficiently. It is a negative
process as in this employee gets fired from the Company. The Hiring Strategies is created when
company assess the specific needs and get the job description right. After right job description,
the firm must identify the effective place to look out the candidate and plan for conducting the
interviews and lastly the Organisation must prepare for closing the deal (Traeger, 2017). The
Effective hiring strategies which is used by Rolls Royce is using social media sites,
implementing employee referral programs, check resumes posted online and consider past
candidates. The Human resource management of Rolls Royce focuses on hiring the new talent by
putting advertisement on social media sites that attracts people to apply for the vacant job
position even the candidates can also apply on the official website of Organisation. Rolls Royce
also considers the past applicants resume and give them a chance for interview so that they can
find the hidden talent and potential of Applicant (Stirpe, Profili and Sammarra, 2021). The
Company also organises employee referral program in which the existing staff can share the
information of their known candidate and employee who are looking for a job. The Existing Staff
will get the reward and extra benefits for sharing the details of the applicant. The Fours strategies
which is used by firm in order to fire the employees is taking decisive action, retains people
dignity, know the nuts and bolts of firing the Staff and handle termination with worst case
scenarios. The Firing strategy helps in lowering business risk and preserves the dignity of
employee.

Corporate Examples of firm using good HR Practices and literature
The Corporate Examples of Organisation that use good Human resource practices and
literature is Jaguar Range Rover, it is a luxury vehicle firm that produces sports utility vehicles
and premium vehicles. The Company uses various human resource practices for their employees
and fir in order to run business successfully and effectively (Marescaux, De Winne and Brebels,
2021). The Human resource management of Jaguar Range Rover focused on improving the
morale and motivation level of employees at the time of pandemic so that they may not get
affected by the disease and work their best in achieving the business goals. The Organisation is
also supporting their staff during tough time of COVID 19 by providing them an opportunity to
work remotely by maintaining proper social distancing which helps in preventing from disease.
The Human resource of Jaguar Range rover has developed a HR practice in which Staff can
work remotely at their home without facing any issue. Even the company has made the changes
in its policies and plans in order to stay updated and follow the legislation which is passed by
government.
CONCLUSION
From the above information it is being concluded that human resource management plays an
important role in Company as they recruit and select the staff which can give their best efforts in
making business goals achievable and also they provide training and development opportunities
to their staff in order to improve their skills and knowledge. The Human resource department is
responsible for improving the performance and efficiency of employees by providing them
effective training. They also evaluate and measure the performance of Staff so that they can
know the dedication and contribution level of employees in Firm. Due to COVID 19, HR
practices and policies has been changed for surviving with the pandemic and work accordingly.
The Human resource of Organisation is implementing new practices so that their employees can
work effectively without facing any problem and issues. Mostly Firms are working remotely to
sustain in Market and earn profit during pandemic. It is the responsibility of human resource
management to make effective human resource policies and plans that helps in working
efficiently and effectively.

RECOMMENDATION
From the above information it is being recommended that the organisation must focus on
encouraging the motivation level and morale of employees so that they can give their best at the
time pandemic and work with more dedication and contribution. The Human resource
management of Organisation must promote the positive environment of working and also
encourage leadership to respond accurate, clear, consistent and timely communication between
the employees in order to run the business smoothly and effectively. At the time of COVID 19
people rare disappointed with their work and can’t perform their best in this difficult time so it is
necessary for Firm to encourage the motivation level of their staff so that they can give
productive outcomes. It is the responsibility of company to protect their employee create safe
working environment for their Staff after the pandemic with enhancing the hygienic measures
and providing personal protective equipments that helps in preventing the employees from
disease. The Organisation must also focused on open and two way communication in which they
can share their problems and issues without getting nervous and also human resource manager
can provide the information related to the new policies and practices which must be followed by
the employees at the time of pandemic. The Human resource manager of firm also focus on
improving the performance and efficiency of employees remotely by providing them training and
development opportunities which helps in increasing their confidence and morale so that they
can give better results. The Manager must also focus on the areas in which employees are
lacking so that they can improve the performance of Staff.

REFERENCES
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