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Importance of Human Resource Management In Organization

459 Downloads1 I Published: 29 Nov ,2019

Introduction

Human Resource Management (HRM) is a function which lies within organisation. It focuses on recruitment, management and providing guidelines to employees of company. It deals in staff of organisation for compensation, safety, performance, hiring, benefits, training, wellness and motivation (Kehoe and Wright, 2013). This is a premeditated approach for managing people and work culture. There are various functions of HRM such as operative, advisory and managerial for running business effectively and efficiently (Human Resource Management (HRM): Definition & Functions, 2019). The given assignment is based on Squire's Garden Centres which is medium sized family business. It was established in 1936 as landscaping firm and expanded in 1964 as garden centres. There are 15 garden located in South East of England. This report covers various purpose and functions of HRM and strength and weaknesses for recruitment and selection. There are some benefits of HRM practices and their effectiveness in raising profits and productivity. It also discusses about employee relations, employment legislations and application of HRM practices in work related place.

TASK 1

P1 Purpose and functions of HRM applicable to workforce planning and resourcing organisation

Human resource management is seen as the approach through which employees are managed and controlled in the company. Effective HRM practices also helps company in gaining competitive advantage at marketplace (Jiang and et. al.,  2012). In context to Squire gardens, it has been analysed that this company is handled and managed by owners and its family. Thus, it is required by them to enhance their knowledge on HRM, its purpose and functions so that they can easily track that whether their HR manager is performing their work in effective manner or not. Along with this, it will also help owner of Squire Gardens in understanding that how HRM contributes in workforce planning and resourcing in the company. Some of purpose and functions of HRM applicable to workforce planning and resourcing organisation are as follows:

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Purpose of Human Resource Management

The main purpose of Human resource management is to develop positive relationship between employee and employer in order to obtain organisational goals and objectives in effective manner (Jackson, Schuler and Jiang, 2014). In context to HR manager of Squire Gardens, it can be said that they mainly formulates strategies and policies in effective manner which directly influences interest of employees and also persuades them to sustain longer in the same company for longer period of time. There are few basic but core functions of HRM of Squire Gardens which are defined as below:

HRM functions

Recruitment and selection:

It can be seen as the first and foremost HR function of company. In this, HR manager of Squire Gardens, recruits and selects candidates on the basis of their skills which meet with vacant positions in company. The main purpose of this function is to fulfil workforce requirement in the company who could work together for the common goal. This function plays an essential role in business growth of the Squire Gardens as HR managers recruits best talent for company who works effectively at workplace.

Planning: 

It is considered as the important function of human resource department. In this function, HR manager mainly evaluates different departments of company in order to identify actual requirement of specific skills which are mandatory for them to be developed for executing their job responsibilities in effective manner (Harrison and Lock, 2017). In context to Squire Gardens, it can be said that HR manager of this company is required to plan each and every activity in effective manner for quick achievement of goals. The main purpose of this function is to identify requirement of training and development sessions in the company which contributes in improving performance of employees. The importance of planning function of HRM can be seen in the form of identification of future trends and requirements of employees which also guides them in hiring workforce effectively for company.

Training and development: 

Another important function of HR is to develop skills and knowledge of employees by providing them effective training according to the requirement of their specific job role. In context to HR manager of Squire Gardens, it can be said that the main purpose of this function is to gain competitive advantage by having highly skilled and knowledgeable employee (Fine, 2012). This will significantly improve performance of employees and also influence them to sustain longer as they are getting opportunity to develop themselves. It will also develop positive brand image among employees and helps them in becoming employer of choice.

On the basis of above specified HR functions, it can be said that HR manager of Squire Gardens can achieve their predetermined goals and objectives in quick manner. Along with this, the company can will also grow rapidly with the support of employees.

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P2 Strength and Weaknesses of various approaches to recruitment and selection

Recruitment is defined as a process through which a company finds and hires qualified personnel from within or outside the organisation. For this purpose, various organisations use different methods by which they aim at finding a suitable candidate as per the stipulated needs and requirements of enterprise. In this regard, HR manager of Squire’s Gardens Centres possess an optimum communication channel situated within each unit or department through which they determine the needs (Drucker, 2012). Selection refers to a process through which appropriate individual can be selected for the vacant position in company. This tends to create differences between job applicants who come for the purpose of selection and aims at filtering and then hiring those personnel who match the requirements and objectives of organisation.

In this regard, Squire’s Garden Centres is a medium sized enterprise which adopts a recruitment and selection process which consists of a sequence of steps which are defined below:-

  • The vacancies are first posted within each garden centre, company’s website and also within newspapers.
  • The applicants have to respond to a set of questions which ascertain if they are allowed to execute the formal application process or not (Kim, 2012).
  • The applicants who pass this stage have to then fill an application form and post that upload their CV.
  • At this stage, applicants are reviewed and a list of shortlisted candidates is then made in accordance with the qualifications as well as experience of candidates.
  • The candidates who clear all the before mentioned stages have to then undergo an interview round with two managers of company.
  • The applicants who clear the interview are then finally selected and hired by the enterprise.

Advantages:

This is a formal and well structured recruitment and selection process where the stages that applicants have to undergo before selection are already specified (Manvi and Shyam, 2014).

Disadvantages:

This is a time consuming process and generally requires high costs for the purpose of advertisement.

Some of the other recruitment and selection approaches that are being used by organisations in corporate world are described below along with their strengths and weaknesses:-

Internal Recruitment-

It is the method through which company fills vacant seats within existing workforce. These comprise of word of mouth, promotions, employee referrals, email advertisement etc. In this method, new joinees already possess knowledge about the culture and policies of organisation effectively (Daley, 2012). The strength and weaknesses of internal recruitment are given below:

Strength: 

This internal recruitment reduces time for hiring as candidates are selected within an organisation. It provide advantage for shorten on boarding times as new hire take times to adjust and learn new role where existing can easily on broad than externals.

Weaknesses:

It creates resentment among managers and employees because staff can transfer from one to another job role which leads uncomfortably situation for top level (Nickson, 2013). This leads to limit pool of application if organisation hire for new division where existing may not have sufficient skills.

External Recruitment-

It is the assessment of acquired pool of job candidates rather than existing employees of organisation. These consist of techniques such as job portals, walk-ins, campus recruitment, talent hunt agencies etc. This is process where firm search outside staff for given job profile. The strength and weaknesses of such method are as follows:

Strength: 

This helps in giving opportunity to outside employees with which firms can find right candidate for the given job profile (Chelladurai and Kerwin, 2017). It helps in bringing fresh talent through external sources which motivates the current employees to also perform well.

Weaknesses: 

It take long period of time as well as cost required is more than internal as hiring takes place from outside the organisation. It can reduce employee morale as current employees feel less chance of getting promotion that leads to decreased morale and productivity.

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M1 Assess how functions of HRM can provide talent and skills appropriate to fulfil business objectives

It has been analysed that there are three main function of human resource department which influences the function s of an organisation, namely recruitment and selection, training and development and planning. In relation to planning, HR functions ascertain the need to equip existing employees with training facilities and the requirement to recruit new candidate (Buller,  and McEvoy, 2012). In context to training and development, HR function focuses upon enhancing their the existing knowledge of employees to ensure achievement of business objectives in timely manner. With regards to recruitment and selection  HR functions renders opportunity to personal outside the company to join Squire Gardens and contribute towards the accomplishment of set targets.

All the above functions of HRM benefits Squire garden to set best targets evaluate and control employees performance as to accomplish organisational objectives in best effective way.

M2 Evaluate strengths and weaknesses of different approaches to recruitment and selection

As per the evaluation of recruitment and selection procedures followed by Squire’s Garden Centres and other companies, it has been ascertained that these methods and approaches have their own strengths and weaknesses (Budhwar and Debrah, 2013). In this regard, the procedure of Squire’s Garden Centres is formal and structural but it is found to be very time consuming. Further, internal recruitment approaches are cost effective yet they restrain the entry of potential candidates within the enterprise. The external recruitment approaches assist in hiring fresh talent yet requires huge cost to be incurred on this process.

D1 Critically evaluate strengths and weaknesses of different approaches to recruitment and selection

Employees acts as the most effective tool for an organisation in order to accomplish company’s objectives in the best possible way. Squire’s Garden’s HR manager utilise both internal and external source of recruitment to hire skilled and potential candidates and take advantage of various selection methods to select best from a large pool of candidates (Briscoe, Tarique and Schuler, 2012). These processes of internal and external source of recruitment have separate zone of strengths and weaknesses. In internal recruitment, Squire’s Garden recruit employees within organisational structure by taking help of transfers and promotion which somehow help in boosting their morale but sometimes it creates negative sense of competition at workplace. In selection, Squire’s Garden takes advantage of interview and testing method to select best possible candidate. It benefits Squire garden to bring fresh blood and idea in workplace although it is a time taking process and requires huge cost.

TASK 2

P3 Benefits of various HRM practices in organisation for both employee and employer

In every organisation human resource management practices are carried out such as training and development, recruitment and selection and so on. HRM practices are considered as an instrument that assists in accomplishing the objectives of department as well as increase productivity (Pattanayak, 2018). So, some of the HRM practices of Squire's Garden Centre are mentioned below:

Training and development:

Training and development are considered as a subsystem of firm that emphasise on the development of performance of individuals as well as team (Chelladurai and Kerwin, 2017). This is provided to both employees as well as employers of the company.Manager of Squire's Garden Centre is organise events for their employees to acknowledge them about its duties, roles and so on. Also, increase the personal skills of workers that is needed by company. The main aim of this is to flourish is present skills of their workers to next level.

  • Benefits for employees- This HRM practices is benefited for the Squire's Garden Centre employees to enhance its knowledge regarding the activities and functions of business. Also maximised the motivational level as well as minimised the employees turnover (Brewster and Hegewisch, 2017).
  • Benefits for employers- This HRM practices is benefited for employers of Squire's Garden Centre in various manner such as enhanced productivity, minimise errors, talent pool, reduced turnover and absenteeism, shows the potential for employees, required less supervision, increased consistency, knowledge about the weakness of workers and many more.

P4 Effectiveness of different HRM practices

HRM Practices are very much beneficial for both employees and employer in many ways. With the aids of this practices company can enhance their performance as well as profitability. There are various  practices like implementing a range of rewards and benefits that are available to staff (Bos‐Nehles and et. al., 2013). These are the more effectual for Squire's Garden Centre to motivate employees to give their best and retain a talented workforce for longer period. This would help in reducing the staff turnover rate and getting high contribution of workers towards success of business. A range of such HR practices run within respective company can be described in following manner:-

  • Long service entitlement: Under this plan, workers of Squire Garden will receive long service entitlement with 1, 3 and 5 days leave in each month after completion of 1, 3 and 5 days full year service. This would help in retaining employees for longer period of time within a business.
  • Variable pay: Pay for performance or variable pay refers to a compensation program under which employees get one-time award for accomplishment of a major project. They will get a range of bonus programs such as stock options, good incentive pay packages and more (Bratton and Gold, 2017). Thus, it will help HR managers of Squire Garden to motivate workers to give best performance and engage in business for longer period.
  • Profit sharing: It refers to a strategy for creating a pool of monies by taking a percentage of company's profits, to be disbursed to workers. Here, objective behind profit sharing is to reward staff for their high contribution in achievement of business goals.

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M3 Different methods used in HRM practices to support evaluation within Squire Garden

HRM practices are the most important part of an organisation that helps in increasing employee engagement and productivity of workers (Bamberger, Meshoulam and Biron, 2014). It includes different methods like training and development, a range of reward and compensation, flexible working hours and more. Through these methods, HR managers of Squire Garden can achieve high commitment of workers towards success of business. This would also help in reducing employee turnover and getting retention of talented workforce for longer period.

D2 Evaluate HRM practices and application within organisational context

HR department within organisation engage in effectively recruiting skilled and potential candidates as to fulfil company work force requirement (Bailey and et. al., 2018). HR manager of Squire garden perform different types of practices as to take company towards growth prospective:

Training and Development-

HR resource manager in Squire garden provide best effective training and development programmes like apprenticeship to its employees. As per views of Jackson, Schuler and Jiang (2014), providing such type of training would help in raising the level of effectiveness of workers as well as maximise knowledge and skills of them. This benefits Squire garden to accomplish their goals and objectives with more effectiveness and reach towards best growth.

Compensation and Benefits-

According to Renwick, Redman and Maguire (2013), it has evaluated that for encouraging workers to work more hard and give best performance, it is essential for a company to provide proper reward and compensation. In this regard, HR managers of Squire garden provide non-monetary and monetary compensation and other various types of benefits to raise their motivation and encourage them effectively to raise and company performance on a simultaneous way.

All these practices not only aid employees to perform their functions in best way but also benefits Squire garden to maximise their overall productivity and profitability.

TASK 3

P5 Importance of employee relations in respect to influencing HRM decision making

Employee engagement can be defined as an extent under which workers feel satisfied from their job role in a company. They give full commitment to work well and support higher authorities in achievement of business objectives (Pieper, 2012). Therefore, it drives best performances and workers also understand their role and importance for accomplishment of common goal. In this regard, by encouraging flexibility, taking regular feedback of staff members, clarifying goals and motivating to give best performances, help HR managers of Squire Garden in increasing employee engagement. Employee relation is one of the vital elements that only improves employees but also helps organisation to raise their level of productivity and profitability (Kehoe and Wright, 2013). Mentioned below there are some importance of employee relation which will effectively influence decision making in HRM:

Improves Productivity-

Employees acts as a most important asset for an organisation. Therefore, Squire garden effectively focus on effectively encouraging friendly relation relationship with their employees in whom it is easy to resolve any kind of miss understanding and problems in employees mind. This will effectively aid Squire garden to stimulate their rate of productivity and maximise their overall base of profitability.

Reduces Conflicts-

In order conduct organisational functions in smooth and effective way it is important for Squire garden to resolve workplace issues. This will aid company to provide a healthy and positive working environment which helps employees to raise their productivity (Jiang and et. al.,  2012). Company regularly conduct team mates in each of the necessary organisation function and conduct get-together on a timely basis in order to reduce conflicts.

Increased Morale-

Stimulating healthy relationship with employees not only facilities organisation to strengthen their internal and external working structure but also raise overall productivity of company. Squire garden effectively encourage smooth communication in their working place and opts a policy of no to favouritism as to encourage equality in their workplace. This will aid in increasing morale of employees and stimulate fast phase growth.

As per the discussions it has been evaluated that effective and positive employee relation benefits Squire garden HRM to formulate effective decision and conduct their function of decision making in smooth and effective way. It will result in long term productivity and profitability.

P6 Key constituents of employee’s legislation and their effects on decision making process.

For carrying out organisations functionalities which include different operations, it is necessary for management to formulate policies (Armstrong and Taylor, 2014). In this regard, to develop employment procedures, policies and more, HR manager of Squire Garden has adhere entire laws and legislations by which they attain their goals, without hindering any governmental law. They follow certain laws which  are mentioned below:

Employment Right Act-

This act was designed to safeguard rights of employees from being getting extra work pressure, heavy redundancy and discharge (Kim, 2012). Furthermore, this law also states that employees can take leaves as per their requirement and work in appropriate flexible manner. Thus, this would aid HR managers of Squire Garden in taking decisions to frame employment policies as per legal laws, through which practices related to working hours flexibility, reward and compensation, pay scale and more can be made appropriately.

Equality act 2010-

This act states that all employees must be treated equally without any kind of discrimination in terms of age, sexuality, salary, colour, nationality and many other factors. It is the right of employees to work as per their capabilities and get salary accordingly. Therefore, this act impact directly on HR practices of Squire Garden and assist managers to provide equal salary to workers and treat them equally within workplace.

M4 Key aspects of employee relations management and employment legislation that affect HRM decision making in Squire Garden

As employee engagement is most crucial part of an organisation that directly impact on profitability (Alfes and et. al., 2013). Therefore, for improving this process HR managers make proper decisions related to implement effective practices like developing employee relations, providing working hours flexibility, giving opportunities for increasing skills and knowledge etc. Apart from this, legal laws like Equality Act, Minimum Wage Act and more, affect

D3 Critically evaluate employee relations and the application of HRM practices that inform and influence decision making in an organisational context

According to Pieper (2012), it has evaluated that proper relation with employees within an organisation is a result of strong strategies and activities that is required to be performed by an organisation. Squire garden, by implementing formative process of communication and by boosting working attitude can effectively develop positive employee relations. Along with this it is important for company to implement best practices in their workplace such as, employment laws and labour laws so as to strengthen employee right (Nickson, 2013). It will result in effectively improving working relationship and provide workers a sense of satisfaction. This will benefit Squire garden to conduct their process of decision making in best possible way and resolve such matter that create dissatisfaction in workplace. It will help company to maximise their productivity and profitability.

TASK 4

P7 Application of HRM practices in a work related context with examples

Job Description

Job Details 

Post: Customer Services Assistant

Company:  Squire's Garden

Job Purpose 

In Squire's Garden, there is a vacancy of Customer Service Assistant, where main role is to work in efficient manner like sale plants and other products, that comprises with machinery and tools. The person will also responsible to assign further staff members in same team for carrying, loading and delivering heavy goods directly to customers.

Roles & Responsibilities 

· Ensure that planting seeds are properly sown and maintained by timely watering and other procedures. Plants also must be prevented from diseases and pests as well by using pesticides.

· Plants should be kept in various size pots as per requirements of clients.

· Possessed proper knowledge related to use of trolleys in order to remove soil bags and heavy plants.

· Usage of latest technologies for new stock arrangements.

· Resolve customer queries on time.

· Provide outstanding and better consumer services to each consumer to gain their long time retention.

· Accountability related to resister entire information of sales transactions and pending details.

Person Specifications:

Person Specification

Post: Customer Services Assistant

Department: Customer service department

Key:

           (A): Application form, (I): Interview, (R): Role

Attributes

Essential

Desirable

Qualification & Experience

Graduate  in the filed of agriculture/horticulture from an affiliated college. Require at least 3 years of working experience in  customer services department.

 

Experience of working in gardening sector.

 

Skills or knowledge

Good communication  and managerial   skills.

 

Resolve clients problem on time by effective communication skills.

 

 

b) Advert for Customer Service Assistant.

Advertisement

Customer Service Assistant required

Candidates should have possessed knowledge related to gardening tools and machines, as well as ability to provide best customer service

Customer Service Assistant

Eligibility Criteria:-

· Minimum 3 years of experience in customer service management

· Responsible to take care of plants and prevent them by pests.

· Ability to enhance sale performance

· Guiding customers for maintaining plants for longer period

· Salary will be offered as per cracking performance of deserving candidate.

Applicants can send their resumes through e-mail to the following on official e-mail id [email protected]. In case of any query contact at 948039999113

Schedule

Invitation for first round of interview

15-18 April, 2019

Short listing of applicants

28-30 April, 2019

Call for HR round

11-12 May, 2019

Interview date

15-18 May, 2019

 

Recommendation of one other medium to fill vacancy of customer service assistant.

By hiring a consultancy agency, managers of Squire Garden gain benefits to recruit most eligible person in Customer Service Department, in short period of interval (Purce, J., 2014). It will save entire time and cost which may consume by giving advertisement, taking interviews and more. Therefore, it is recommended to this firm to hire workers by registered consultancies.  

M5 Provide rationale for the application of specific HRM practices in a work related context

The job description, Curriculum vitae, interview selection criteria and offer letter are one of the important aspect in recruiting a professional in Squires Garden Centre (Renwick, Redman and Maguire, 2013). These kinds of HR practices, help in hiring talented workforce within workplace, which would help in providing best services to customers on time.

Conclusion

It has been concluded from this assignment that Human resource management is an important function of an organisation. It deals with introducing, planning, organising and managing the entire workplace in appropriate manner. HR managers in this regard, play crucial role in bringing the right workforce and place them on right job within a workplace. For this purpose, they carry out various activities like hiring eligible candidates through various recruitment and selection procedures. In addition to this, to reduce skill gap among existing and new employees, managers provide effective training to them also. They provide various opportunities also like giving different-different job role to workers for enhancing their skills and knowledge in a particular field. This would help in making their career more bright and successful.  

References

  • Alfes, K. and et. al., 2013. The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management. 24(2). pp.330-351.
  • Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers.
  • Bailey, C. and et. al.,  2018. Strategic human resource management. Oxford University Press.
  • Bamberger, P. A., Meshoulam, I. and Biron, M., 2014. Human resource strategy: Formulation, implementation, and impact. Routledge.
  • Bos‐Nehles, A. C. and et. al., 2013. Employee perceptions of line management performance: applying the AMO theory to explain the effectiveness of line managers' HRM implementation. Human resource management. 52(6). pp.861-877.
  • Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
  • Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource management: The Price Waterhouse Cranfield survey. Taylor & Francis.
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