Human resource management refers to a strategic approach to an effective management of company with an objective of getting maximum support from employees in order to gain competitive advantage and sustain in market for longer period. As employees are the main asset of company whose needs and working behaviour affects the performance of an organisation. Therefore, to think and formulate some an effective policies for the betterment of employees is must in order to gain maximum support from them. The present assignment is based on Rowlinson Knitwear, a UK-based company which is engaged in offering clothing wear products for students and corporate people. The purpose and different functions of HRM along with the advantages of HRM practices are discussed under this report. The project also summarises the importance of employee relation and various employment legislations made by government (Berman and et. al., 2012).
P1: Purpose of Functions of HRM practices applicable to resourcing and workforce planning
Human resource management is formed to determine the needs and requirements of employees while working at workplace. For this, they need to collect feedbacks and suggestions from them which help them in making an effective plans and policies for the betterment of human resource. HRM performs different functions which are determined as below:
Training and development: HR manager of Rowlinson Knitwear is solely liable to identify the needs and interest level of employees at workplace and accordingly organise training and learning programs with the purpose of enhancing their skills and knowledge so that their interest and working behaviour should be minimised (Carter and Liane Easton, 2011).
Performance appraisal: It is important for HR manager of Rowlinson Knitwear to bring motivation and confidence among the employees due to which they perform better than before. For this, compensation and other benefits shall be provided to employees on the basis of their performance so that high and low skilled workers are motivated to work hard.
Compensation and benefits: There are various benefits given by company to their management with the purpose of enhancing their working behaviour ad interest in performing their delegated roles in more effective and efficient manner. Some other benefits includes:
- Flexibility on working hours
- Paternal or maternal leave
- Extended vacation
Planning: Formulation of planning for betterment of employees as well as an organisation is must required by the management with an objective of gaining maximum result in future. Before execution of any business activities formulation of planning is essentially required. Following the some activities which requires suitable planning to execute:
- Recruitment and selection
- Adoption of HRM practices
- Bringing motivation and confidence among Human resource-based
- Establishing communication channel
Human resource management of Rowlinson Knitwear is held responsible to identify the skills and knowledge of their employees so that suitable roles and responsibilities should be allotted to them which in result maximising the satisfaction level of employees (Cox, Arnold and Tomás, 2010). It can be identified through applying Hard and Soft skills approach:
Hard skills: It refers to such skills which can be easily measured and defined such as typing, writing, reading and capability to work on using software programs. Such skills can be developed over a period of time through getting training programs.
Soft skills: It refers to such skills which are less tangible and difficult to quantify such as etiquette, working with others etc. Such skills are in build in an individual by born thus it makes an individual different from others.
Therefore. HR Manager of Rowlinson Knitwear should required to consider such skills while recruiting and selecting employees for their organisation in order to gain maximum advanced for the company.
P2: Weaknesses and Strengths of various approaches to recruitment and selection
Recruitment refers to an actions or practices which is performed to attract and invite candidates to get job in an organisation after analysing their skills through comparing their actual skills with the skills specified in job description and person specification. Recruitment can be done through internal and external source so that more skilled and knowledgeable employees should be hired who are capable to give maximum efforts in achieving desired goals and objectives (Crook and et. al., 2011). There are several factors which need to be determined such are as follows:
Job analysis: It is the process of identifying and determining the details of roles and responsibilities of particular job offered by an organisation. Such analysis is done on the basis of data collected through conducting research on particular job.
Job description: It is the description of job and its roles and responsibilities which help applicants to identify whether they are eligible to apply for vacant job or not.
Person specification: In this, the description of skills and qualification which are required to perform vacant job offered by an organisation.
There are two methods of recruitment which are explained under as below along with strengths and weaknesses:
Internal approach: Through this approach, HR manager of Rowlinson Knitwear approach to the existing employees to apply for the vacant job position with an objective of increasing their interest and working behaviour in an organisation. Basically there are two ways of recruiting under this approach which are as follows:
Promotion and transfer: In this, the existing employees gets an opportunity to increase their position in an organisation through applying for vacant job position. It is suitable for more skilled workers who are capable to bear additional roles and responsibilities (Glover and et. al., 2011).
Employee referrals: Under this, the existing employees are preferring company to recruit their relatives, friends etc. using their referrals. As it is an unethical way of recruitment and may bring disadvantages to company as well.
- It saves cost and time of an organisation as the recruitment process is done within an organisation.
- Encourage existing employees through providing an opportunity to get higher position.
- It may arises conflicts between promoted and non-promoted employees which may brings disadvantage to company.
- Restricted company to enter new talent and innovation within an organisation.
External sources: Through this approach, HR manager of Rowlinson Knitwear approaches among public to apply for the vacant job position with an objective of getting new talent and innovation into company. For this, HR manager published advertisement through Online, pamphlets, newspapers etc. which grabs an attention of large number of applicants (Gruman and Saks, 2011).
- Help company in achieving competitive advantage as they give an opportunity to new employees who are having unique and innovative ways of completing allotted business activities.
- Become easy for HR manager to select skilled and knowledgeable employees due to having large number of applicants.
- More expensive and consumes more time as well.
- Demotivate existing employees which in results decreasing their performance as well.
P3: Benefits of HRM practices within Rowlinson Knitwear for both employer and employee
HRM practices includes training and learning programs, performance appraisal, flexible and an effective management style etc. which contributes maximum in increasing the performance level of employees. Such HRM practices can be adopted by Rowlinson Knitwear as well in order to expand their business to large scale in market. For example, providing suitable training and learning programs for the employees help them in manufacturing wide range of clothing products thus help Rowlinson Knitwear company to provide wide variety of clothing products and achieve huge customer strengths. Various HRM practices are discussed in breif under the below:
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Performance appraisal: It is a kind of appreciation given to employees on the basis of their past performance in an organisation. It can be done through rewarding them in terms of giving compensation, incentives, promoted to high level etc. It will maximises the working behaviour of employees (Lewis, Packard and Lewis, 2011).
Training, learning and development programs: It is essential for HR managers of Rowlinson Knitwear to identify the low skilled workers and their need of training at workplace which help them in organising suitable training and learning programs in order to maximise their skills and knowledge so that they can also compete with high skilled workers and gets promotional chances as well.
Flexible working options: As there are different employees having different nature and working behaviour. For example, some employees willing to work in day shift whereas some are comfortable to work at nigh shifts. Thus it is important for HR manager to identify the need of employees regarding working in what time so that they can perform well and give their best to company. This will improve the performance of employees as well as an organisation.
In addition with this, HRM practices brings beneficial result to employees as well as employers which are briefly explained as below:
Benefits to employer:
Helps in building team: Adopting HRM practices will bring motivation among employees to work in a team and give combined efforts to achieve desired goals and objectives. As HR managers are liable to identify the skills and knowledgeable employees and according groping them together to achieving profitable output (Pfeffer, 2010).
Creating positive work environment: HRM practices enable employers to maintain healthy environment at workplace which brings positive impact on the performance of employees. Providing training and development programs for the employees improves their morale and satisfaction level thus help in creating good atmosphere at workplace.
Help in making future decision: HRM practices can be adopted only after identifying the needs of employees at workplace and thereafter the HR managers are in good position to make an effective decisions and plans for the betterment of an organisation.
Benefits to employee:
Enhance employees performance: HRM practices includes training and development which can be implemented with an objective of improving the overall performance and contribution of employees in achieving organisational goals.
Personality development: HRM practices improves the areas of weaknesses of employees due to which their overall personality should be developed. It makes employees more capable of doing different task due to which they get promotional chances as well in future in an organisation (Ployhart and Moliterno, 2011).
Improves standard of living and satisfaction level: HRM practices includes rewards, compensation, bonus salary etc. which should be given to the employees on the basis of their past performance thus it improves standard of living and satisfaction level.
Link among motivational theory and reward
There are number of motivational theories such as Maslow's theory, Herzberg theory etc. which need to be adopted by Rowlinson Knitwear in order to bring motivation and confidence among employees which in results increasing in performance. Both motivational theories and reward systems encourages employees to work hard and contribute maximum efforts in achieving desired goals and objectives. Therefore they both are interrelated with each other.
P4: Effectiveness of various HRM practices in terms of raising profits of organisation
Every organisation currently exist in market operated their business functions with an aim of earning huge profits so that they can sustain in market for longer period of time. Therefore, Rowlinson Knitwear which is a small sized company of UK also operated business operation which a hope of generating huge income so that they can expand its business operations on large scale. It can be achieved only with the help of getting maximum support from their Human resource. Due to which, HRM practices are required to be adopted by an organisation on continuous basis so as to improve skills and knowledge of employees in order to get more efforts from them in achieving competitive advantage (Sirmon and et. al., 2011). Such HRM practices includes training, development and learning programs, rewards, compensations, performance appraisal, flexible working options etc. These all bring motivation and maximises the working behaviour of employees due to which the Rowlinson Knitwear can achieve huge profits. For example, if organising training and learning programs for employees improves their knowledge about proper utilisation of resources which in result reduces wastage of resources. Due to this, Rowlinson Knitwear can able to produce quality clothing products at an affordable prices so that maximum number of customers are attracted and gain huge profits as well.
P5: Importance of employee relation and their influence in HRM decision making
Maintaining healthy relations with employees is must required by management of an organisation so that maximum support should be taken from them in order to make an effective decisions and suitable policies for the betterment of an organisation. A healthy relationship can be maintained with the employees through helping them in performing delegated roles and responsibilities in more effective and efficient manner (Storey, 2014). Getting feedbacks and considering their ideas and suggestions in order to make an effective decisions will help management to make good relation with them. It will brings many advantages to company as well which are briefly described as below:
- Maintaining good relation with employees help in getting feedbacks from them easily in regular basis due to which the managers are able to make an effective decision after considering their issues and problems with the purpose of resolving them in an effective and efficient manner (Surroca, Tribó and Waddock, 2010).
- Easy work performance: If the employees are much comfortable in working with direction given by the managers due to hiving good relationship then it will maximise the performance of employees which also brings beneficial result to them in professional career.
- As if employees and managers work together to achieve desired goals and objectives, then the working environment should also be improved due to which the outcome will also be received in positive manner.
- Helps in getting knowledge about the skills and abilities of employees which help managers in assigning roles and responsibilities so to achieve best possible result in near future.
- Increasing loyalty and commitment of employees with an organisation due to which the company can get services from them for longer period of time.
P6: Key elements of legislation act of employees
Employment legislation: It is the law which governs an organisation to give all valuable rights and beneficial services to an individual attaining legal employability of company. It consists of several acts and laws which are introduced by government with an objective of protecting the interest and working behaviour of employees. Example, Equality Act, 2010, Health safety act etc.
Therefore, it is essential for Rowlinson Knitwear to adopt such Acts within an organisation if they want to sustain in market for maximum period of time. Such employment legislation includes various Acts which are described as below:
Employment Right Act: It is the Act which determines that every employees attaining legal employability are having rights to get basic facilities provided by an organisation and should not be make differentiation between employees having higher and lower position in company (Human resource management, 2016).
Minimum Wage Act: It is the act which determines the minimum wages that should be given by employers to their employees for the services they are getting in return. It should be applicable to Rowlinson Knitwear as they are much liable to pay minimum amount prescribed under this act to their employees for their contribution to company.
Workers Discrimination Act: It is such an act which directs companies to give equal treatment to their workers and should be differentiated on the basis of their religion, caste, colour etc. This will maximises the satisfaction level of employees which increases the commitment of employees towards an organisation.
Equal Pay Act: It is such an act which determines that the company are held liable to pay equal amount to employees attaining same position in company. If inequality in payment are found then it will demotivate workers as well as the company also faces lots of fines and charges implemented by government due to non-compliance of such act.
Working Time Directive: It is such an act which determines the working hours which should be completed by employees who are attaining legal employability of company. The employees should required to work at least 48 hours in a week. If not completing such minimum working hours, then the employees are not eligible to get other beneficial services given by company (Vörösmarty and et. al., 2011).
P7: Different application of HRM practices
Rowlinson Knitwear is a small-sized manufacturing company of UK which is engaged in providing quality clothing products to students and corporate people (Functions of HRM, 2017). As there are different issues and problems which may comes in the process of executing business activities such as shortage of manpower, increase in number of complaints etc. Therefore, in order to resolve such issues, it must required for Rowlinson Knitwear to apply HRM practices which are further described as below:
Manpower planning: It is the responsibility of HR managers of Rowlinson Knitwear to first identify the requirements of workforce and accordingly make recruitment programs in order to fulfil the space of employees in an organisation.
Training and development: It is important for an organisation to have skilled and knowledge human resource who are contributing maximum efforts in achieving desired goals and objectives. Therefore, training and development programs should required to be conducted on regular basis so as to enhance the skills and knowledge of employees.
Create vision and mission: Human resource management should required to direct and guide employees to perform in right direction so that the company can achieve its mission and vision.
Maintain quality of products: Having proper knowledge and skills of employees helps in reducing wastage of resources thus help company in producing quality products and services at minimum cost of production. This will help company in providing quality products at an affordable prices due to which maximum number of customers are easily attracted.
It has been concluded from the above project report that it is necessarily required for every organisation to make an effective decisions and policies in order to maximise the performance of employees so that maximum contributions should be get from them in order to achieve desired goals and objectives. Rowlinson Knitwear also willing to expand their area of operation so that the HR management should required to adopt various HRM practices through which they can able to maintain healthy relations with the employees.
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