Introduction
Human Resource Management (HRM) is practice of coordination, management and allocation of employees or human capital with an aim to achieve organisational goals. It focuses on development and investment of employees along with ensuring their integrity, wellbeing and safety. HRM is significant in organization as its primary role is to enhance organisational productivity and efficiency. Scale of HRM empowers different sectors towards effective workforce management by providing comprehensive and structured database. It is considered as significant as it offers centralised platform for storage and access information of employees such as their personal details, training records, performance evaluations and management of their leaves and rewards. HRM bridges the gap between strategic objectives of organisation and employee’s performance among different sectors, leads to enhance chances of success and growth. This essay discusses about key elements of HRM, comprises of recruitment and selection, training and development, performance management, compensation and benefits and employee relations. In addition to this, it outlines HRM key principles based on strategic alignment, legal and ethical Considerations, diversity and inclusion and employee engagement.
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Main Body
HRM Key Elements
Recruitment and Selection
It is the primary key element of HRM and its process is divided into six steps. First step is related to creation of detailed and clear description of job role (Abdalla Hamza et al, 2021). Second step is role advertisement on different social media platforms, such as LinkedIn, job sites or company official career sites. Third step is related to screening candidates through their resumes to analyse their skills and requirements. Fourth one emphasizes on scheduling and conducting interviews to get better understanding about capabilities and skills of candidates. In 5th stage focus is placed on carrying assessment and tests of their qualities and skills through knowledge test, personality test, assessment of technical skills and psychometric tests (Miao et al, 2022). Last step focuses on candidate selection by reviewing their assessment and tests. In addition, strategy of utilization of employee referrals plays a vital role in process of recruitment and selection process as it allows the organisation to expand their connections through referral of existing employees. On contrary, this process involves strategy of providing professional support helps HR professionals to identify ideal candidates for particular job role.
Training and Development
HRM’s key elements are concerned with the facilitation of training and development to employees as it helps the organization to retain top talents, improves productivity and performance of employees and enhances their morale and job satisfaction (Monish and Dhanabhakyam, 2022). In addition to this, development and training programs are important as it enhances knowledge, abilities and skills of employees by acquiring updates knowledge. There are multiple development and training methods such as Apprenticeship programs and technology based learning. Apprenticeship programs of training focuses on enhancing practical skills of employees by providing real business scenarios. For example: Morrison’s, one of the leading retail sector business of grocery and food in the UK, offers training through apprenticeship programs to enhance logistic and operational skills of its employees (Morrisons, 2024). On the other hand, training based on computers (CBT) enhances skills and knowledge of employees through organising computerised training.
Performance Management
System of performance evaluation is a comprehensive way of evaluation of employee’s performance towards the achievement of organisational objectives. With this system, performance of employees are evaluated, leads to identify improvement areas (Klimovskikh et al, 2023). With the establishment of criteria and goals of performance and their strategic alignment with organizational objectives as KPI, performance of employees can be evaluated against these established criteria. In addition, with the collections of overall performance data of employees, their performance is evaluated against established standards and helps in identify and minimize errors, leads to improve performance of employees (Urbancová et al, 2021). These systems of setting performance criteria and collection of performance data, key areas of development were highlighted during evaluation, results in improving employee’s performance.
Compensation and Benefits
Structure of compensation is designed with the establishment of value for reach job role and by considering the competitiveness of organisation (Olusanya, 2023). Along with that, skills and nature of job plays a vital role in structuring of compensation design within organizational HRM. Compensation structure is effectively managed by strategic analysing and determining benefits, incentives and salary paid to employees. For example: compensation management within manufacturing sector, such as Unilever in UK is based on the system of fair wage to identify the appropriate level of standard wage and certifies it annually to maintain framework’s standards (Unilever, 2024).
Employee Relations
HRM plays a pivotal role in handling grievance of employees by ensuring the proper implementation of grievance procedure and organizational policies (Riyanto, Endri and Herlisha, 2021). Further, HRM ensures fair and equal treatment of staff and handles grievances of employees in straight and formal manner by providing immediate response to their complaints. Apart from that, HRM is responsible to maintain positive and supportive work culture with the cultivation of integrity, values, diversity, respect and trust. This results in improvement of job satisfaction and morale of employees, leads to improved performance. Besides this, HRM ensures strategic compliance of legal regulation, laws and policies of labor law for the maintenance of wellbeing of employee’s and to avoid legal disputes or penalty for non-compliance. For example, HR of NHS, a public funded healthcare sector in UK ensures safety and occupational health of its medical or care professionals as per the standards of The Health and Safety at Workplace Act, 1974 (NHS, 2024).
Principles of HRM
Strategic Alignment
HRM strategically aligns with objectives and goals of organization as it is responsible for the execution of strategic plans related to increased productivity, efficiency and competitiveness. It aligns its efforts by way of improved employees performance and engagement to accomplish organizational objectives (Sanders and De Cieri, 2021). In addition to this, HRM is responsible for the evaluation of performance measurement of employees as it understands the objectives of business and helps organisation to achieve it in effective and efficient manner. For example: HRM department of Finance sector, such as Barclays, UK align with objectives of organization as it is responsible for utilization and maintenance of standard performance of employees to ensure increased operations of lending money and investment (Barclays, 2024). In addition, it plays a vital role in motivation and training of employees to ensure increased chances of goal achievement of Barclays related to generation of long-term financial returns.
Legal and Ethical Considerations
Legal frameworks of HRM comprises of The Equality Act, 2010, Employment Rights Act, 1996 and National Minimum Wage Act, 1998 within UK. The Equality Act, 2010 imposes legal obligation on Organizational HRM to prevent discrimination and harassment at workplace (Harney and Alkhalaf, 2021). On Contrary to this, Employment Rights Act, 1996 covers employee’s right in specific situation of leaves, redundancy and dismissal. National Minimum Wage Act, 1998 sets the legal frameworks for HRM to ensure fair payment and set a minimum wage to be paid. This legal framework demonstrates legal practices required to comply by HRM to uphold streamlined and effective business operations. On the other hand, HRM is responsible for the maintenance of ethical practices of inclusion and diversity with the creation of inclusive workplace and through implementation of inclusion and diversity programs (Ochmann and Laumer, 2020). In addition, ensuring fairness and transparency in work operations is another ethical practices implemented by HRM within organizations.
Diversity and Inclusion
HRM plays a vital role in fostering Inclusivity and diversity at workplace as is important for the establishment of sense of loyalty and belongingness among employees towards organization, leads to enhance their productivity towards achievement of organisational objective (Abdalla Hamza et al, 2021). Along with this, inclusive and diverse workplace helps to develop emotional connection between employees and organisation, leads to motivate and encourage them to put their extra efforts. It encourages employee’s engagement by making them feel respected, valued and fair treatment to enhance morale and job satisfaction of employees. For example: Marriott International, a multinational hospitality organization promotes inclusion and diversity in work culture to meet the needs of diverse base of customers (Marriott International, 2024).
Employee Engagement
Strategy of effective two-way communication adopted by HRM helps business organization to improve satisfaction and engagement of employees. In addition, HRM needs to foster a feedback culture at workplace to ensure the successful implementation of communication strategy; helps employees to feel engaged and satisfied (Miao et al, 2022). Another strategy is related to reward and recognition to employees as it helps them to feel recognized and valued with the facilitation of rewards and appraisal for their contribution, this strategy will motivate and encourage employees to enhance their engagement towards business operations and make them feel satisfied. Strategy of offering voluntary opportunity for team-building also improves satisfaction and engagement of employees as it strengthens mutual trust and loyalty mong employees with development of strong and positive relationship (Monish and Dhanabhakyam, 2022). This leads to enhance their work engagement and job satisfaction by supporting each other towards achievement of shred goals.
HRM Sector Scale
Global vs. Local HRM
|
HRM Practice |
UK |
India |
|
Incentive Compensation |
Offers incentive plan of share acquisitions and option plans |
Offers Statutory bonus, Recognition and profit sharing |
|
Work culture |
Values employees and their rights, high professionalism and compliance of regulations and rules. |
Emphasises on promotion of work culture based on diversity and inclusivity (Klimovskikh et al, 2023). |
Industry-Specific Variations
HRM varies across the different sectors such as in retail sector, HRM acts as interlink among employees and management. Its primary role is to train employees for delivery of positive experience to its customers by satisfying their needs and expectations (Urbancová et al, 2021). In addition to this, HRM within retail ensures about creation of positive and supportive work culture to enhance their performance. HRM evaluates retail employees performance through application of KPI such as sales per employee, average transaction value, customer retention and cost of goods sold.
On the other hand, HRM within Hospitality sector has different role, starts from searching of right personnel, onboarding or hiring along with providing training sessions for their skills development (Olusanya, 2023). Besides that, HRM ensures efficiency and productivity of hospitality sector by offering administrative support and responsible for performance management among with maintaining employee’s satisfaction. KPI for performance measurement in hospitality sector are identified as average daily rate and Revenue per available room.
Impact of Technology
There is vital impact of automation and technology on the functions of HRM in multiple ways. Process of recruitment and selection has positively impacted with the application of automation and technology by leveraging social media platforms and online job portals (Riyanto, Endri and Herlisha, 2021). This enables HRM to easily search and review profiles and resumes of large number of candidates. In addition, modern HRM automation enables HRM to streamline operational tasks ineffective manner and minimizes chances of errors or repetition. Therefore, automation leads to save time of HRM, results in improved performance of employees and manages time for discussions and performance review. Automation software leads to collect and track data of employee’s performance, assist organization in decision making by accessing work efficiency and determine changes in process optimization within HRM.
Conclusion
It was concluded that HRM played a pivotal role in providing strategic planning of workforce, ensures performance management and helps in creation of strategies for development and retention of talent. This essay reflected importance of HRM key elements to ensure recruitment and selection of right talent and are responsible for the creation of responsible work culture, aimed to boost employee retention and engagement along with improved performance. Apart from that, multiple HRM key principles were outlined and termed as crucial to improve strategic management of organisation with improvement in work culture through fostering inclusion and diversity. In addition, these principles guide organization for implementation of ethical practices and legal compliance with policies and regulations of HRM. Scale of HRM was expanded at global level, within different sectors of organization located in multiple countries. Multiple contemporary organizations strategically implemented HRM process to bridge the gap between organizational objectives and performance of workforce. Employee Analytics, inclusion and diversity and Automation are the emerging trends of HRM. These trends were suggested for future research as they reflect dynamic workplace nature along with the identification of evolving needs of employees and organization.
Refreneces
Books and Journals
Abdalla Hamza, P., Jabbar Othman, B., Gardi, B., Sorguli, S., Mahmood Aziz, H., Ali Ahmed, S., Sabir, B.Y., Burhan Ismael, N., Ali, B.J. and Anwar, G., 2021. Recruitment and selection: The relationship between recruitment and selection with organizational performance. Hamza, PA, Othman, BJ, Gardi, B., Sorguli, S., Aziz, HM, Ahmed, SA, Sabir, BY, Ismael, NB, Ali, BJ, Anwar, G.,2021. Recruitment and Selection: The Relationship between Recruitment and Selection with Organizational Performance.
Harney, B. and Alkhalaf, H., 2021. A quarter‐century review of HRM in small and medium‐sized enterprises: Capturing what we know, exploring where we need to go. Human Resource Management, 60(1), pp.5-29.
Klimovskikh, N., Sekerin, V., Makushkin, S., Kuzmicheva, A., Leontev, M. and Kochetkov, E., 2023. Impact of human resource management on improving the innovation potential of an enterprise to achieve the principles of sustainable development. Journal of Law and Sustainable Development, 11(1), pp.e0274-e0274.
Miao, R., Bozionelos, N., Zhou, W. and Newman, A., 2022. High-performance work systems and key employee attitudes: the roles of psychological capital and an interactional justice climate. In Strategic Human Resource Management and Organizational Effectiveness (pp. 219-253). Routledge.
Monish, P. and Dhanabhakyam, M., 2022. Role of innovative grievance management strategies on workplace justice. International Journal of Novel Research and Development, 7(2), pp.260-267.
Ochmann, J. and Laumer, S., 2020, March. AI Recruitment: Explaining job seekers' acceptance of automation in human resource management. In Wirtschaftsinformatik (Zentrale Tracks) (pp. 1633-1648).
Olusanya, E.O., 2023. Workplace diversity, equity, inclusion. Journal of Business Diversity, 23(4).
Riyanto, S., Endri, E. and Herlisha, N., 2021. Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement. Problems and Perspectives in Management, 19(3), p.162.
Sanders, K. and De Cieri, H., 2021. Similarities and differences in international and comparative human resource management: A review of 60 years of research. Human Resource Management, 60(1), pp.55-88.
Urbancová, H., Vrabcová, P., Hudáková, M. and Petrů, G.J., 2021. Effective training evaluation: The role of factors influencing the evaluation of effectiveness of employee training and development. Sustainability, 13(5), p.2721.
Online
Morrisons, (2024). Talent Programmes. Online. Available through: <https://www.morrisons.jobs/life-at-morrisons/talent-programmes>.
Unilever, (2024). Unilever Framework for Fair Compensation. Online. Available through: <https://www.unilever.com/files/origin/c95e3f7dfc6a2c98912133ea1e60581965fde340.pdf/unilever-framework-for-fair-compensation-2022.pdf>.
NHS, (2024). Employment standards and regulation. Online. Available through: <https://www.nhsemployers.org/recruitment/employment-standards-and-regulation>.
Barclays, (2024). The Barclays way to do business. Online. Available through: <https://home.barclays/content/dam/home-barclays/documents/citizenship/the-way-we-do-business/The_Barclays_Way.pdf>.
Marriott International, (2024). Diversity, Equity + Inclusion. Online. Available through: <https://www.marriott.com/diversity/diversity-and-inclusion.mi>.
