Table of Contents
Learning Outcome: 1.
P1. Explain the purpose and the functions of HRM, applicable to workforce planning and resourcing an organization.
P2. Explain the strengths and weaknesses of different approaches to recruitment and selection.
M1 Assess how functions of HRM can provide talents and skills appropriate to fulfill business objectives
M2 Evaluate the strengths and weaknesses of different approaches to recruitment and selection.
Learning Outcome: 2.
P3. Explain the benefits of different HRM practices within an organization for both the employer and employee
P4. Evaluate the effectiveness of different HRM practices in terms of raising companies profit and productivity
M3 Explore different methods used in HRM practices, providing specific examples to support evaluation within an organizational context
Learning Outcome: 3.
P5 Analyze the importance of employee relations with respect to influencing HRM decision-making
P6 Identify the key factors of employment legislation and the impact it has upon HRM decision-making
P7 Illustrate the application of HRM practices in a work-related context using specific examples.
According to Mathis and Jackson (2015), Human Resource Management (HRM) is considered as one of the key functions for a business organization that concentrates on recruitment and selection, direction and planning, and management and guidance of employees who work in an organization. The HR department of a business organization is responsible to create effective organizational culture (Fletcher, 2017). I am newly appointed as the Human Resource Assistant at Merrill Lynch Firm in central London. This firm engages with prime brokerage as well as different security dealings. This paper, first, describes the purpose and functions of HRM and focuses on how human resources and planning can be applied in the workplace. The second part of this paper explains the strengths and weaknesses of HRM along with its effectiveness in business organizations. The last part of this paper discusses the importance of staff relationships, employee legislations, and their application in business organizations.
Learning Outcome: 1
P1. Explain the purpose and the functions of HRM, applicable to workforce planning and resourcing an organization
Definitions of HRM
Armstrong and Taylor (2015) stated that HRM refers to a process that focuses on different staff-related activities including hiring and firing people, training and developing people, performance measurement, and management of people. In addition, HRM deals with different issues such as performance management, compensation, health and safety issues in the workplace, organizational development, employee benefits, employee motivation, and training and development. It plays an important role in organizational culture as well as the environment. Effective HRM can contribute to accomplishing the organizational goals along with its objectives and purposes.
How purposes of HRM are employed by an organization
HRM mainly aims to increase the organization’s productivity by raising employees’ effectiveness (Fletcher, 2017). The purposes of HRM are employed by an organization in different ways. First of all, it is essential to have a thorough understanding of the aim and objectives of an organization because it can articulate both short and long-term plans for the growth of HR personnel. Secondly, a business organization can evaluate the capacity of its HR to meet HR purposes (Mathis and Jackson, 2015). Thirdly, a business organization can analyze the current HR capability in light of the organizational goals and objectives to meet the HRM purposes properly. Fourthly, an organization can estimate the HR requirements for the future to achieve the purposes of HRM. Finally, organizations can implement HRM strategy at the workplace to meet the HRM purposes.
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Functions and activities of HRM in Merrill Lynch
Merrill Lynch practices effective HRM in its business. The main functions which are performed by Merrill Lynch are given as follows:
Benefits and Compensation: Benefits and compensation are a significant aspect of HRM because this supports an organization to keep the workforce motivated (Beardwell, 2016). Merrill Lynch provides both monetary, non-monetary extrinsic and intrinsic benefits as well as different compensations to its employees. According to Sansone (2017), extrinsic benefits for the employees are usually financial benefits such as pay raises, bonuses, and others. On the other hand, the intrinsic benefits for employees are promotional offers, praise, trophies, and others.
Establishing good relations between employer and employee: Effective HRM system of a business organization helps to motivate the employees at the workplace. The organization with good practice of HRM knows how to manage the employees and motivated employees know how to work properly at the workplace (Beardwell, 2016). Thus, effective HRM plays a significant role in Merrill Lynch to establish a good relationship between this organization and its employees. The trade union of an organization including Merrill Lynch plays a significant role to maintain good relations between the employer and employees. According to Chaudhari (2017), a trade union’s key purpose is to collectively negotiate with employers over working hours, wages, and other terms that are related to employment. If any conflict is made between employer and employee, then trade unions will be worked as a way to analyze the conflict between employer and employee by establishing good relations.
Development of Human Resource: Good practice of HRM is the key to HR development. Human resources are an important element for a business organization to run the business successfully. If HR is not developed properly, then the organization becomes unable to bring success (Beardwell, 216). Merrill Lynch focuses on different initiatives to develop its HR where the initiatives are giving proper training and development to the employees, providing effective benefits to the employees, giving better compensation and salaries to the employees, and others.
Human resource planning, recruitment, and selection: Effective HRM can help a business organization to plan and manage the employees. Beardwell (2016) said that the Good practice of HRM also supportive to hire suitable people. Merrill Lynch focuses on the effective recruitment and selection process to maintain its employees as well as plan the employees for different tasks. According to Faremouth (2016), the good methods of recruiting an organization are inclusive job advert, internal recruiting, social media job advertising, job advertising on the company’s career site, and others. However, different bad recruitment systems should be avoided such as pre-employment tests, outdated interview practices, discrimination when recruiting, and others…………………..