Human resource management hires the best employees from thousands of applicants. It provides training facilities and motivates the employees in such a way that they remain with the firm for a longer period of time (Boxall, P. and Purcell, J. 2009). In this report, the human resource management practices of Tesco will be observed. Human resource management of this company facilitates policies for developing the current skills of the employees. The ultimate goal of the human resource management department in line with the core goal of the organization which is maximizing the value of the organization by increasing the value of shares of the company. Human resource management contributes to increasing the value generation capacity of the employees so that they can help the organization to create value.
LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an organisation with talent and skills appropriate to fulfil business objectives
P1: The Purpose and the Function of Human Resource Management
Human Resource Management (HRM)
Human Resource Management has some specific purposes for recruiting the best employees to holding them to the company for a longer period of time. Human resource management facilitates actions for developing the level of skills and capacities of the employees (Mondy and Gowan, 2005). Human resource management contributes to increasing the value generation capacity of the employees so that they can help the organization to create value. Some specific functions of human resource management are: recruitment function, hiring and selecting function, training and developing function and managing function. In order to complete these functions appropriately, the management has to do some other functions.
Purpose of Human Resource Management
As a human resource manager of Tesco, I have to follow certain actions based on my purposes. The most relevant purposes are given below:
- The human resource management department ensures better facilities to the employees so that they can do their best job of achieving the organizational success. It provides training facilities based on the demand comes from the changing environment. As the employees are the most important resource for the company, they should be managed properly otherwise the ultimate goad of the company which is maximizing the value of the company may not be achieved (Gennard and Judge, 2010).
- There are some specific laws and guidelines that should be maintained properly from time to time. The human resource management focuses on identifying the gap between current laws and regulations and the company’s activities with the human resources. There are some laws protecting the human resources’ rights. For example Age Discrimination in Employment Act 1967, Equal pay act of 1963 etc.
- The human resource management seeks the ways for developing the employees current level of skills by providing them enough care and support (Armstrong, M. 2002). The management believes that if proper communication can be built employees, their problems can be captured and proper feedback can be given timely. The overall performance of the employees actually helps the organization to achieve its goals.
- If a proper communication channel can be created, the communication gap among the employees can be eliminated quickly. As the human resource manager maintains a diverse workforce, it is very necessary for them to create an environment where the employees can share their ideas freely.
The function of Human Resource Management in Tesco
The achieve the purposes, the management follows these functions that are given below:
- It observes the department goals and provides sufficient human resources to achieve these goals so that the ultimate goal of the company can be achieved (Grensing-Pophal, L. 2010).
- Another function of the company is to retaining the best employees and providing them attractive compensation plans so that they remain with the company for a longer period of time.
- The human resource management listens to the opinions of the human resources so that they can provide better supports and feedbacks which is necessary for increasing the employees’ motivations and skills (Harrison, R. 2000).
- Another important function of human resource management is preserving the employees’ rights so that any potential conflicts can be minimized.
P2: Strengths and Weaknesses of Different Recruitment Approaches
In order to select the best employees from thousands of applicants, the human resource management has to follow some different types of recruitment approaches (Boxall and Purcell, 2009). For example: interviewing the candidates, having selection parameters, giving promotion to the best employees, considering employee referrals, arranging campus recruitment etc. However, following these recruitment processes has both strengths and weaknesses of the management which are given below:
Strengths and Weaknesses of Promotions
- The employees of Tesco become motivated when they see that better skills really pay-off to them. So, they are trying to increase their current level of skills to achieve this.
- The employees do their best on the job. As a result, better performance may come from the employees.
- The return from the training program can be significant as the employees of Tesco take it seriously.
- Most of the elderly people from Tesco don’t like this approach as the chance of getting a promotion is lower for them (Gennard and Judge, 2010).
- Sometimes the biased and subjective judgemental approach of management may hinder the chance of getting promotion of the talented employees.
Strengths and Weaknesses of Employee Referrals
- Employee referrals provide the right employees for the right job as the current employee already know the required skills and knowledge for the job (Mondy and Gowan, 2005).
- As the current employee is liable for the new employee’s performance on the job, the human resource management department can ask the existing employee if any gap created.
- The current employees may be biased for recruiting their near and dear ones. So, unskilled employees may be hired for the vacant position.
- The benefits from the diversification of the workforce may be reduced by this approach.
Strengths and Weaknesses of Direct Recruitment
- In this approach, Tesco can get the best employees for the current job from a diverse source of the workforce.
- In this approach, the employer can get the right employee for the right job.
- Under direct cost recruitment, the cost of the selecting the best employees is high.
- The employees are not familiar with the current tradition of the organization. For this reason, the management has to waste some time for giving practical knowledge to them.
Strengths and Weaknesses of Campus Recruitment
- The new employees collected from campus recruitment are technically advanced. So, they don’t have to incur that much cost for training them.
- Huge level of employees can be collected at a little time. So, it requires fewer efforts for the company.
- The employees do not have practical experience about the organization. So, proper training facilities are required for them (Mondy and Gowan, 2005).
- The new employees may shift from one job to another job. So, the cost of training of the employees may lose.
LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an organisation
P3: Benefits of Different HRM Practises
The benefits of different HRM practices are given below:
Conflicts Solution: Conflicts may arise in the course of business. The practices of HRM reduces the potential conflicts among the employees. For example, the human resources of Tesco are compensated on an objective basis so that any conflicts related to compensation can be minimized.
Reduce Employee Turnover: The human resource management of Tesco follows some policies for minimizing the Employee turnover by proving them better care and support. If the employee turnover ratio is high, the cost of firm related to hiring and training the employees will be high and the performance of Tesco will be low.
Improve Employee Performance: The performance of the employees is a vital source of competitive advantage of Tesco. Ongoing training facilities and feedback increase the overall job performance of the employees (Armstrong, M. 2002). The human resource management of Tesco provides newer and updated information and training facilities to its employees so that their contribution to the firm increases.
Help to Control Budget: A proper Human resource management policy also contributes to controlling the budget. The budgetary plans of Tesco are finally executed by the employees (Mathis and Jackson 2003). As the employees control other resources, they are provided with better facilities so that they use these resources perfectly.
P4: Effectiveness of Different HRM Practises in Terms of Raising Organizational Profit and Productivity
- The Effectiveness of Different HRM Practises of Tesco in Terms of Raising Organizational Profit and Productivity are given below:
- Tesco provides ongoing training facilities and supports in different forms so that the employees can do their best in the respective jobs. For example Tesco provides real-world scenario of the current problem, simulation training using sophisticated tools, the information about the test and preference of the customers and the business environment, new ways for increasing the productivity etc (Boxall and Purcell, 2009). These facilities increase the organizational productivity and profitability.
- Tesco provides different varieties of compensation plans and benefits so that it can retain the employees in the organization for a longer period of time (Gennard and Judge, 2010). So, the cost of hiring new employees and providing training to them can be minimized which will actually increase the company’s profits by minimizing the cost.
- The human resource management of Tesco set goals to the individual employees and team members (Harrison, R. 2000). The compensation packages are updated from to time by analyzing the current scenario of the business environment. The employees of the organization become motivated to work hard and follow the training program seriously.
- In Tesco, the human resource management manages and organize the employee in such a way that in enhancing the relationship among the employees (Grensing-Pophal, L. 2010). As the employees share their ideas to others, it creates an opportunity to increase the knowledge in the related fields.
LO3 Analyse internal and external factors that affect Human Resource Management decision-making, including employment legislation
P5: The Importance of Employee Relations with Respect to Influencing HRM Decision Making
Employee relation is crucial for Tesco as the employee finally execute the plans. However, before making any final HRM decision, the human resource management should contact with employees so that the execution of the decision become successful. A proper environment of trust and care should be developed between the employer and the employee to engage them in the decision-making process (Mondy and Gowan, 2005). The employees will be motivated to take part in the execution of different HRM practices if they understand that they are considered in the decision-making process.
Having a proper balance of employee relation is a tough task as it requires continuous understanding, trust and belief between the employer and the employees. So, the employer should need extra care and support to manage the status of employee relations in the organization. When there is a good employee relationship existed in the organization, the HRM policy implementation becomes successful. Tesco company makes different HR policies to remain competitive with the other firms by utilizing its most important resources which is human capital.
As employee relation management has a lot of complex issues, the management always focus on these issues because it will increase the working environment in the organization. The workers are coming from different sources, so the probability of miscommunication and conflict is very high. So, the management should work on this are so that there is a peaceful environment in the business. If the level of relation among the employees increase, they will help one another in any cases. And, the overall performance of the business will be increased from this practice.
P6: Key Elements of Employment Legislation and the Impact They Have on HRM Decision Making
There are some laws and regulations that help the common employees to become a part of any organization in where they can contribute by providing their services (Armstrong, M. 2002). These laws and legislation reduce the discrepancies in selecting the employees for the job. Tesco company also follow these laws and legislation in making HR policies. These laws include the following:
- Equal Pay Act. 1963
- Privacy Act. 1974
- Uniform Guidelines for Employee Selection Procedures 1978 etc.
- Race Relations Act 1992
- Sex Discrimination Act 1995
- Race Relations Amendment Act 2000
- Equal Pay Act 1970
- Disability Discrimination Acts 1995
- Employment Act 2008
- Work and Families Act 2006
- Employment Relations Act 2004
- Data Protection Act 1998
Tesco follows these laws in making a decision regarding HR policies. There are some special orders from the provincial government for the HR policies that also taken into consideration (Mathis and Jackson 2003). For example It is stated that the employer should recruit a number of people from underdeveloped areas. So, Tesco has to follow this guideline while recruiting the new employees.
LO4 Apply Human Resource Management practices in a work-related context
P7: Application of HRM Practices in a Work-related Context
The HRM practices are applied in every part of business process. Technologies are increasingly used to apply the HR practices effectively. Some possible application of HRM practices are given below:
Social Media Recruitment: Social media recruitment becomes very common for every organization (Armstrong, M. 2002). Like other business, Tesco uses LinkedIn and Facebook profile to get the idea about its new candidates. Interview through video calling is also done to reduce the cost both of the employer and the employee.
Tracking System of the applicant: By using this tool, the recruiter of Tesco can easily track the required applicants by scanning the resumes provided by them (Gennard and Judge, 2010). This tool is very much useful for the employer as it needs little time and effort for selecting the best employees from thousands of resumes consisting a variety of information.
Mobile Recruiting: Mobile recruiting is a useful tool for the recruiter of Tesco, as it is very common device and almost all of the candidates use this device (Harrison, R. 2000). Under this system, the potential employees can be tracked easily. The common tactics under this tool are mobile browser, mobile apps, text via mobile phone etc.
There are some other tools and techniques of HRM that contributes to the proper implementation of policies and practices in the organization (Grensing-Pophal, L. 2010). For example Tesco has child care facilities in its premises. For this facility, the employee can work continuously without any disruption. Tesco also provides flexible working hours for its employees. As a result, the employees can choose their desirable working hours and perform their activities perfectly. These HR practices increase the employee’s loyalty to the organization.
Human resource management plays a vital role in achieving the organization’s goals. It identifies the best employees from thousands of applicants. It provides necessary training facilities and motivates the employees in such a way that they remain with the firm for a longer period of time. In this report, the human resource management practices of Tesco have been observed. From the above discussion, it is clear that the policies of human resource management are widely used in every aspect of the organization (Boxall and Purcell, 2009). Several aspects of human resource management of this company has been considered. Employee relation, different types of HR policies are evitable for the organization’s success. Human resource management contributes to increasing the value generation capacity of the employees so that they can help the organization to create value.
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