Unit 03 Human Resources Management

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Table of Contents
Introduction.................................................................................................................................. 3
LO1 Explain the purpose and scope of Human Resource Management in terms of
resourcing an organization with talent and skills appropriate to fulfill business objectives...........4
LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organization................................................................................................................................. 9
LO3 Analyze internal and external factors that affect Human Resource Management
decision-making, including employment legislation....................................................................12
LO4 Apply Human Resource Management practices in a work-related context.........................16
Conclusion................................................................................................................................. 18
References................................................................................................................................ 19

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Introduction
HRM is the function of maximizing the employee's performance level and draws a
linkage between the individual and organizational goals. How employees are being
treated by the employers is the parameter of their potential input and expected the
outcome in return. And in the modern business world organizations are mostly
concerned about the wellbeing of the employees to make them contributing to the
organization willingly. So that in return employees also can contribute their best.
HRM department ensures the practices of the organization with each & every
employee. Alfred Dunhill Limited (A leading UK based clothing brand). They recruit
the best employees for their organization as they can achieve their target. So that
they follow some significant HR policy to recruit & operate their organization. Along
with they investigate the strengths and weaknesses with HR objectives,
organizational policies and procedures and key elements for a wide picture of HRM
in the real practice.

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LO1 Explain the purpose and scope of Human Resource Management in terms
of resourcing an organization with talent and skills appropriate to fulfill
business objectives.
P1 Explain the purpose and the functions of HRM, applicable to workforce
planning and resourcing an organization.
The HR department is an essential part of an organization (Bach and Edwards,
2013). The effective work output of the entire organization is highly dependent on the
proper functioning of the HR department. The HR department keeps other
departments oriented toward the goal of the organization. Human Resource
Management & Human Resource Department helps the organization to recruit best
employees for organization & use them with the best way to achieve the target &
fulfill the mission & vision of the organization (Arthur, 2009). The main purpose of HRM
is to focus on the employee’s right and ensure there right throughout the
organization. Human Resource Management (HRM) is the function of maximizing
the employee's performance level and draws a linkage between the individual and
organizational goals. How employees are being treated by the employers is the
parameter of their potential input and probable outcome in return. HR department is
an important part of any organization and this paper encompasses all the aspects of
the HRD. The report describes the aim, job function, and responsibilities including
the recruitment criteria of the HR department. The structure of the HR department
and the rules and policies maintained by higher authorities in the department are
discussed in this report. Alfred Dunhill Limited provides rewards to boost the
performance of their employees, for example, an employee is rewarded when the
sales target is reached. Alfred Dunhill Limited defined some main purpose &
function of Human Resource Management such as Productivity increasing,
measuring human capability, Workforce Planning, Training, and Development. So
the purpose is:
Training and development: The employees undergo training sessions which
develops better skills and make the job easier in the organization. The training builds
up their confidence and makes them more responsible for their job (Bratton and Gold,
2017). The Alfred Dunhill Limited ensures the employees are properly trained for
the development of their performance. Training help to make an employee more
effective and efficient compared with the previous situation. There are many areas in

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the organization that needs people working, HRM divides proper works among
employees, coordinates them. Training is a program that helps employees to
develop a particular skill and do it better than others. Alfred Dunhill Limited
organizes a different seminar, schooling, grounding etc. to give training to its
employees that help them to do their job efficiently.
Recruitment and Selection: This the major stage of HRM functions. By recruitment
and selection process, HRM attracts, screens, and selects potential candidates as
per the job required. It is a very important part of a business. The right employees in
the right position can help to reach the company’s goal, on the other hand, the wrong
ones can turn the business down. Alfred Dunhill Limited hires employees and
places them which is fit for each other.
Motivation: The Alfred Dunhill Limited keeps their employee motivated by
complimenting their performance and providing bonuses for excellent performances.
Most of the organization motivates their workers in a similar manner by giving
monetary bonuses or rewards (ELIOT, 2019). Compensation is the internal types of
motivation for employees. People generally attracted to handsome compensation
and benefits provided by an organization. Alfred Dunhill Limited handsome
compensation to the employees in order to keep employee turnover rate down.
Employees of Alfred Dunhill Limited are also provided with many external benefits
that generate motivation for employees.
Managing Employee Relations: It is very important to run a business today. It
means to maintain a healthy relationship between employers and employees. As a
result, employees remain committed to their jobs as well as loyal to the company.
The employees of Alfred Dunhill Limited are committed and loyal as the company
maintains good employee relations. The progress of a company is highly dependent
on its employees (Evans-Martin, 2010). There should be a friendly work environment in
the organization for the employees to work properly. If they are not satisfied with
their jobs their work will not be fully effective.
Productivity increasing: Motivation increases productivity. The employees are
needed to be motivated so that they can work with the full potential. So motivation is
another purpose and a major function to carry out for the organization. If the
employees are not happy with their job this will affect them negatively. They can be
motivated by improving their salary condition, ensuring their safety, wellbeing
requirements.
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Measuring human capability: An organization is consisting of some significant
employees. Every employee’s ha some sort or potentialities (Arthur, 2013). In other
sense, all the employees are not equal (Ivancevich and Konopaske, 2013). Everyone is
not expert in every section of duties. So identifying human capability helps the
organization to insert the right people to right duty. Monitoring is very important to be
ensured that the persons hired are suitable for the job. So this is an important
function for HRM that is applicable to workforce planning and resourcing an
organization.
Customer Management: Internal customers refer to the employees of a company.
HRM focuses on recruiting skilled and quality workforces for the company. To
accomplish this purpose, Alfred Dunhill Limited’s HRM implements a strategy to
attract, recruit and retain a workforce for the company. It also deals with financial
performance such as Employee compensation, benefits etc. HRM creates a link
between the management and human resources. In a small company, it is easy to
interact with managers and subordinates but It gets complicated in a large
organization.

Figure 01: Functions of HRM (Lindblom, 2002).

P2 Explain the strengths and weaknesses of different approaches to

recruitment and selection.

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HRM uses different methods to recruit and select employees for the organization.
Each method has some advantages and disadvantages. The process by which an
organization position employees & later that select for their organization’s purpose is
called recruitment. The organization creates the recruitment form which the applicant
has to fill up. After these, the process of choosing the suitable person for the job is
known as selection. The recruitment process is internal recruitment and external
recruitment (Mathis et al., 2017). In an internal recruitment, the organization takes place
candidate as their employee from inside the organization & in external recruitment
organization selects candidate an employee from outside the organization. In this
part, a brief discussion about the methods and the advantages and weaknesses of
those methods are given.
The strengths and weaknesses of internal recruitment: Under the situation of
crisis, this source is very helpful with the lowest cost. Unfair recruitment is an issue
and a small majority of recruitment is possible only. The external source is useful for
higher levels posts and for lower levels posts. The employees know the business
and they grow the business. As a result, the worker already understands how the
organization operates and they have experience with the work culture and day-to-
day tasks. An organization is consisting of some significant employees. Every
employee’s ha some sort or potentialities (Arthur, 2013). In other sense, all the
employees are not equal. Everyone is not expert in every section of duties. So
identifying human capability helps the organization to insert the right people to right
duty. Monitoring is very important to be ensured that the persons hired are suitable
for the job (Shivarudrappa, Ramachandra and Gopalakrishna, 2010) . So this is an important
function for HRM that is applicable to workforce planning and resourcing an
organization. They also know how their co-workers are. Recruiting expenses saved
for the company but the company lags behind to get fresh meat in the company.
The strengths and weaknesses of external recruitment: Vast majority of
potential candidates for the job can be recruited. The external source is useful for
higher levels posts and for lower levels posts the internal source is the best. It is a
process recruiting employees from the outside of the company such as job boards,
newspaper advertisements, and trade publication announcements. Alfred Dunhill
Limited hires employees through a job board and newspaper advertising which is an
external sourcing. External sourcing helps to Gain new perspectives, a larger
candidate pool and Increase branding (Stevens and Streatfeild, 2003) . New employees
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bring a new way to complete a task which is sometimes very effective and efficient
for the company. It is a matter of high cost to bring employees from external sourcing
although it is time-consuming. There are several problems also such as limited
understanding of the company, Internal disputes with existing employees, Agencies
are not trusted, Invites unsuitable applicants etc.

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LO2 Evaluate the effectiveness of the key elements of Human Resource
Management in an organization.
P3 Explain the benefits of different HRM practices within an organization for
both the employer and employee.
HRM department is created for the better management of human resources. It helps
to solidify the working condition for both employer and employee. The benefits of
reward management and benefits of training and development are most important for
HRM. Human resource management is the challenging part for an organization to
oversee effectively as the effects of HRM is the combination if several processes
usually right after the recruiting competent workforce for the organization. A good
HRM practice is very important for a company to become successful in the market.
Benefits of workforce planning: Being a reputed company in the UK with the well-
planned payroll system, Alfred Dunhill Limited gets a good response for vacancy
posts. However, some issues must be considered by the organization which includes
both external and internal sources can provide candidates for recruitments such as
in an organization like Alfred Dunhill Limited But the internal labor market provides
the path for crisis recruitment. The requirements of the employee are determined by
turnover rates which must be monitored regularly during workplace planning (Storey,
2007). The report describes the aim, job function, and responsibilities including the
recruitment criteria of the HR department. Polices and legal rules should be firmly
followed without any discriminations. The duty of performance management is to
evaluate the performance of an employee and reward the good performers.
Benefits of Training and development: The employees undergo training sessions
which develops better skills and make the job easier in the organization. The training
builds up their confidence and makes them more responsible for their job (Albion,
2008). The Alfred Dunhill Limited ensures the employees are properly trained for the
development of their performance. Training help to make an employee more
effective and efficient compared with the previous situation. There are many areas in
the organization that needs people working, HRM divides proper works among
employees, coordinates them. Training is a program that helps employees to
develop a particular skill and do it better than others. Alfred Dunhill Limited organizes
a different seminar, schooling, grounding etc. to give training to its employees that
help them to do their job efficiently.

9
Benefits of Reward system: Alfred Dunhill Limited provides rewards to boost the
performance of their employees, for example, an employee is rewarded when the
sales target is reached. There are two types of rewards available to offer to the
employees, extrinsic and intrinsic reward that one is to tinder the spirit to work with
motivation and another one is to continue the effort day by day. Reward
management system develops the efficiency of the employee.
Benefits of Training and Development: Employees of Alfred Dunhill Limited is the
most important asset for the organization. The organization cannot run without its
employees as it is impossible to manage the business without them. For progress,
they need more skillful employees (Armstrong, 2007). So different training and
development programs are arranged by Alfred Dunhill Limited for its employees.
With these program skills of the employees will be enhanced and they will become
more productive. With this, more skilled employees company will progress a lot.
Training and development system helps to enhance the skills of the employee. Along
with training and development helps to increase the productivity of the firms.
Benefits of Performance Management: Performance management measures the
relationship conditions between employer and employee. It starts with the definition
of the job and ends with the leave of the employee. It is related to the measurement
of an employee’s performance on the given task as well as an improvement the
working condition (Cadwell, 2000). There are such things related to the performance
management which are developing a clear job description, providing training etc.
Alfred Dunhill Limited can identify the weakness of its operations and take necessary
actions to solve those problems through performance management. Performance
management creates a good environment where an employee can contribute his
best.

P4 Evaluate the effectiveness of different HRM practices in terms of raising

organizational profit and productivity.
Different HRM practices that are very effective in terms of raising organizational
profit and productivity. HRM plays an important role for Alfred Dunhill Limited since
the implementation of HRM in the company takes place. it has achieved huge profit
and productivity from the following perspective. HRM approaches differ based on the
timeline, situation, culture, suitability. Raising organizational profit and productivity by
well maintaining different human resource practices is one of the major objectives of
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HRM. Different Human resource management practice can have a different impact.
Learning, development, and training have made an impact on Organizational profit
and productivity.

Job and workforce design: To increase employee participation of an organization

is to ensure job and workforce design, Willingness in employee participation will help
to increase the overall productivity of the organization (Crittendon, 2002). Effective job
design will also help to improve the profitability of the organization.
Reward system: Alfred Dunhill Limited provides rewards to boost the performance
of their employees, for example, an employee is rewarded when the sales target is
reached. There are two types of rewards available to offer to the employees,
extrinsic and intrinsic reward that one is to tinder the spirit to work with motivation
and another one is to continue the effort day by day. Reward management system
develops the efficiency of the employee.
Employee relations and employee engagement: There are three essential factors
that influence decision making in Alfred Dunhill Limited. An excellent employee
engagement is essential to ensure effective communication among the members of
an organization (Delaney, n.d.). Both external and internal sources can provide
candidates for recruitments such as in an organization Alfred Dunhill Limited Career
development occurs through good employee engagements that help in effective
decision making. But the internal labor market provides the path for crisis
recruitment.

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 Figure 02: Effectiveness of HRM (tutor2u, 2018).

LO3 Analyze internal and external factors that affect Human Resource
Management decision-making, including employment legislation.
P5 Analyze the importance of employee relations in respect to influencing
HRM decision- making.
Employees are the main assets of the organization. The progress of a company is
highly dependent on its employees. Employees are very much keen to work for the
employer. That’s mean an employee will not end his career for the company before
the end of his career. It is wanted by every employer. If Alfred Dunhill Limited adopts
this strategy, the employees will be fully satisfied with their job and will be dedicated
to the company. There should be a friendly work environment in the organization for
the employees to work properly. If they are not satisfied with their jobs their work will
not be fully efficient (Halachmi, 2005). In Alfred Dunhill Limited a mutual relationship
among the workers exists in a friendly environment. Various decisions are being
taken by discussing with the employees, listening to their ideas. This gives
motivation to the employees to work properly for the organization. There are different
stages of decision making in Alfred Dunhill Limited. Decision taking is required only
when there is a problem. So for HRM decision making firstly the problem is analyzed
thoroughly. The good decision comes only after that. A good mutual employee
relation makes this easier. When the identification of the problem is complete, finding
the solution for the problem is the next task for the employees. People work better
and give his best when there exists a healthy environment. In a work-friendly
environment, employees can talk, discuss, and share their thoughts about the
problem. This will help in finding the solution easily. The importance is:

 There are always verities of solutions. That means a problem can be solved in
a different way. If there exist good relation among the employees they share
their thoughts about the solution, compare with each other, discuss the
outcomes and its efficiency (Hutchinson, 2013). After the evaluation of all the
alternative solution, the best one solution to the problem is selected. As the
solution is chosen based on the opinions of the employees.

 After selecting the solution, comes taking necessary steps for the
implementation of the solution.

 After the implementation of the solution for the identified problem, it should be

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 monitored to check whether it is working properly or to measure its
effectiveness. If any problem is found with the implementation it should be
taken care properly by the employees together, which is only possible if a good
relation among the employees exists in the organization (McKenna and Rinehart,
2004). In Alfred Dunhill Limited the employees take care of any problem
together taking effective measure. So in HRM decision making good mutual
relations among the employees is very important.

 P6 Identify the key elements of employment legislation and the impact it

has on HRM decision- making.
HRM follows the employment legislation while recruiting the new. Legislations, laws
and other regulations such as employment rights, equal pay, sex discrimination etc.
which play an important role in decision making of HRM. So there are some laws &
legislation for employment that is used in all businesses. Valid rights, responsibilities
of the employers and the employees are mainly major facts. The main aim of this is
to ensure, giving safety about people’s valid rights, give them what is rightfully theirs.
It also monitors the relationship exists between the employees and the employers
(Mitchell, 2007). In Alfred Dunhill Limited these employment legislations are commonly
used for the betterment of both the company and the workers. There is a very good
impact of this employment legislation on HRM decision making. These key elements
are:

i. Employment relation act: The law is founded in 1970. Healthy work

environment and god mutual relationship between the worker of the
company is a must need for the advancement of the company. This act
ensures that employees and employers can build and maintain good
relations. The success behind Alfred Dunhill Limited is highly dependent on
this.

ii. Race relation act 1976: There exist different types of races based on
religion, color, nationality etc. With this act, all the discrimination because of
the difference between races is eliminated. In Alfred Dunhill, Limited different
races are working together hand in hand.

iii. Equal pay act: Equal pay act also founded in 1970. There was a good
amount of discrimination between male and female worker when it comes to

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 payment. With this act, this discrimination was mitigated and equal pay for
both male and female was ensured.

iv. Work and families act: In 2006 work & family act demonstrated. Sometimes
some emergency may come for the workers from the family that needs his or
her assistant such as in the time of maternity etc (Performance management,
2014). Under this act, employees can take the necessary leave from work to
take care of certain matters in his or her personal life.

v. Disability discrimination act: There are many people who have some sort
of disabilities. In the past they were neglected, discriminated. With the
implementation of this act, this discrimination is eliminated.

Figure 03: Employee legislation (Thomas, 2005).

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LO4 Apply Human Resource Management practices in a work-related context.
P7 Illustrate the application of HRM practices in a work-related context, using
specific examples.

In this competitive market for surviving a business need to analyze the market, plan
strategies according to this. Different HRM practices play a very important role in
the advancement of the company. Alfred Dunhill Limited is a successful
supermarket chain today; it became possible only for its befitting human resource
management practices. From the beginning of the recruitment of employees, HRM
starts performing and continues until the termination of the organization (THORPE,
2015). HRM is a continuous process that reflects in every managerial decision to
take in with proper analysis and evaluation. The practice of HRM in the
organizational context justifies the competence of available resources, identifies the
gap along with evaluates organization policies. The employers use different
applications of HRM practices for accomplishing organizational goals and objective.
Recruitment Process: Human Resource Management (HRM) is the function of
maximizing the employee's performance level and draws a linkage between the
individual and organizational goals. How employees are being treated by the
employers is the parameter of their potential input and expected the outcome in
return. And in the modern business world organizations are mostly concerned about
the wellbeing of the employees to make them contributing to the organization
willingly. So that in return employees also can contribute their best. HRM department
ensures the practices of the organization with each & every employee. Alfred Dunhill
Limited (A leading UK based clothing brand). They recruit the best employees for
their organization as they can achieve their target. So that they follow some
significant HR policy to recruit & operate their organization. Along with they
investigate the strengths and weaknesses with HR objectives, organizational policies
and procedures and key elements for a wide picture of HRM in the real practice
(Training & development, 2006). Under the situation of crisis, this source is very helpful
with the lowest cost. Unfair recruitment is an issue and a small majority of
recruitment is possible only. The external source is useful for higher levels posts and
for lower levels posts. The employees know the business and they grow the
business. As a result, the worker already understands how the organization operates
and they have experience with the work culture and day-to-day tasks. They also

16
know how their co-workers are. Recruiting expenses saved for the company but the
company lags behind to get fresh meat in the company (Karoly and Panis, 2004). The
vast majority of potential candidates for the job can be recruited. The external source
is useful for higher levels posts and for lower levels posts the internal source is the
best. It is a process recruiting employees from the outside of the company such as
job boards, newspaper advertisements, and trade publication announcements.
Alfred Dunhill Limited hires employees through a job board and newspaper
advertising which is an external sourcing. External sourcing helps to Gain new
perspectives, larger candidate pool and Increase branding (Keeping patients safe, 2005).
New employees bring a new way to complete a task which is sometimes very
effective and efficient for the company. It is a matter of high cost to bring employees
from external sourcing although it is time-consuming.

Selection Process: After shortlisting the suitable candidates from all the interested
candidates, they are asked to take the interview for the job. There are some tests
which are required to pass for the candidates to go further. Failure in these tests will
result in stop from going further. After passing all the tests they go through interview
procedure. After that candidate are called for an individual interview with the HR
team & related personals (Nakaya, 2006). After interview selected candidates name
published in the organization’s website & finally organization select their appropriate
& best candidate. After becoming an employee of the organization Alfred Dunhill
Limited start training the employees. Firstly Alfred Dunhill Limited adapts
employees to their organization's environment, practices, morals ethical behavior
etc. Then the organization sent employees for significant training.

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Conclusion
The assessment is involving of all the related terms of HRM with the use of a
practical example from a business perspective of Alfred Dunhill Limited. The
organization is impulsive to the employee’s betterment and nurture the employee-
oriented policies to keep them motivated and focused to the duties assigned to them.
For standard product and service, the standard practice of HRM is quite helpful for
establishing the brand in the market.

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