Human resource management is an integral part of an organization whose main roles and responsibilities are to fulfill the workforce with skilled and talented employees so that maximum profitability can be achieved. For this, different HR practices are adopted such as training and development, recruitment and selection, etc. JP Morgan is an American international company that deals in providing financial services ranked as the largest bank in the United States. You are a newly appointed Human Resources Assistance at JP Morgan and part of your job is to understand HR activities for an organization.
- Determine the purpose and nature of HRM of JP Morgan.
- List out the importance of key elements of HRM for JP Morgan.
- Evaluate internal and external environment to determine the impact on the decision-making of HRM.
- Apply HRM practices in a work-related context to determine the importance of documents used in the recruitment and selection process.
Human resource management can be simply defined as the procedure of selecting, hiring, inducting workforces within an organisation. In broad terms, it is commonly used for describing formal systems which is devised to manage people effectively. Thus, it can be said that HRM plays an important role in running a venture. This can be referred as strategic approach to the efficient administration of company's personnel in order to accomplish competitive edge of firm (Krot and Lewicka, 2012). Therefore, the human resource manager is initially associated with administration of company;s people within firm that highlight on system and policies. Responsibility of HR mainly fall into three categories such as: Employees compensation, staffing, benefits and designing work. Major purpose of HRM is to maximize productivity of company by optimizing the effectiveness of their staff members. This report is based on JP Morgan Firm which is an investment and commercial bank founded in 1871. This assessment will emphasise HRM and strategic HRM along with distinct human resource management approaches such as HARD and SOFT HRM etc. It will also assess distinct recruitment and selection procedure along with their strengths and weaknesses.
What is Human Resource Management ?
HRM is referred as practice of recruitment and selection of staff members, providing orientation and induction, education and training, performance of appraisal, compensation and benefits to personnel within JP Morgan Firm in order to manage workforce efficiently. Apart from this, major role of the same is about managing people in the company and work culture.
Purpose of HRM
The domain of human resource manager generally falls under three main areas that is recruitment, worker recompenses & benefits and defining or designing work. Basically, the primary purpose of HRM is to upgrade the existing level of production of an enterprise by optimising the performance of its personnels (Hendry, 2012). Apart from this, some of the other essential purposes of human resource management are described below :
Utilization of resource : The HR professional of JP Morgan is liable for taking care of issues regrading usage of assets within venture. Employers is liable for examine whether appropriate resources are used for carrying out jobs or not. In case of any mismanagement in the company, HR will rearrange different framework of workplace and provide assurance that each resource are being utilised in effectual way.
Maintaining employee relation : This is very important to create healthy relationship with staff members since they are the only one who help in completing regular chores of a venture. If employees remain unhappy by the terms and conditions of enterprise, then overall work may get hampered badly (Benabou and Tirole, 2011). Therefore, employer of JP Morgan should also focus on generating good relations with personnels so that they can retain them for a long time period.
Staffing : This is nothing but employing worker under an organisation on the ground of some criteria. HR used to carry on identical task of hiring according to the requirement of venture. The major motive of doing so is to build strong as well as skilled work- forces. JP Morgan require to concentrate on this area as without employees a single task can not be performed. Thereby, Human resource manger of this venture ought to focus on duty of staffing in order to perform their work appropriately.
Acting as advisers : HR also acts as an adviser for a company. They generally are having ideas about what should be implemented within association for its upliftment. Ideas associated with wages, professional functions, leave management and many more are presented by them.
Function of HRM
There are few essential functions of human resource management system which are :
Training and development : HR department used to arrange training and improvement sessions for entire workers who are performing within in venture. Those employees may be newly recruited or are already a part of organisation. The primary motto of offering preparation classes to new individual is to make them learn all concepts affiliated with their official task (Bagnoli and Megali, 2011). At the similar time period, old personnels is also being trained so as to improve their current skills and qualifications. This bring a positive environment since people show interest in learning new things because it is beneficial for their personal as well as professional life.
Recruitment and selection : These are two significant functioning of HR division. Managers generally recruit as well as select right individual for particular post. In first process of recruiting, they contribute in determining and making the expected participants to apply for vacant positions. On the other hand, while selecting employers basically choose eligible candidate for that designation.
Assignment of jobs : HR also play the role of in – charging suitable duty to specific member on the basis of their past records, experiences, skills, educational qualifications, abilities & so on. It is to be noted that if designation of job is not done accurately, then it may negatively impact on productivity of association (Bloom and Van Reenen,2011). Therefore, this is considered as most complicating task which is being provided by HR management only.
Orientation : This is treated as one of the vital functioning of human resource department. Employer used to create a perfect surrounding for freshly employed personnels as it is difficult for them to adjust in a new environment. So, for feeling them stress free, supervisor try to make arrangement of attracting orientation programmes wherein introduction from rest members is being done. The main aim of carrying out this is to settle workers in appropriate manner so that working would be started afterwards.
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Strategic Human Resource Management
Strategic human resource management can be outlined as linkage of human resources with strategical aims and objectives. This is generally done for improving the business performances and developing better organisational culture that helps in fostering innovation, flexibility and competitive benefits. In an enterprise, SHRM means including and accepting functions of HR as a strategic partner in the creation and execution of firm's strategies via several activities like employing, selecting, grooming and rewarding workers (Boxall and Purcell, 2011).
JP Morgan should also introduce similar concept in their business action as this will assist them in gaining predetermined goals. By the implementation of this practice, management of JP Morgan should focus on rewarding, developing, attracting and retaining staff members for the benefits of both personnels and organisation overall. Human resource department which practice Strategic HRM don't work independently they interact with other divisions also for understanding their ambitions and objectives. Hence, this can be proclaimed that strategic HRM of JP Morgan firm include typical personnel determinants such as discipline, recruitment and payroll along with performing with worker in adequate and collaborative manner in order to emphasise retention, improvise work experience and quality as well as enlarge the employment benefits for both employer and worker of company.
Approaches of SHRM
This has been found that strategical human resource management majorly includes two approaches. These are mentioned below :
- It primarily emphasizes HR activity with competence based performance actions.
- It focus on connecting HR activities with bringing profitability to the enterprise.
Features of Strategic Human Resource Management
There are various key characteristics of SHRM which are listed following :
- It give significance to HR participations and interventions. The reason for giving importance is that issues occurring within corporation could be resolved in a easy going way.
- There is a relationship between practices or policies of human resource system and the entire ambition of company.
- Most of the liabilities of higher management are delegated down the line.
Importance of SHRM
In this modern and digital era, competition is touching the level of sky and is continuously increasing day by day. Therefore, companies are now concentrating on programs related to human resource since these are focused on long term goals.The major aim of HRM is to enhance the productivity of staff members by centralising on the exterior as well as interior obstructors. But this is to be noted that strategic human resource management not only concerns with the attainment of corporation-al goals, on the other hand also give importance to the entire improvement of manpower. This mission is completed by offering unique training classes to freshly joined as well as already existed workers (Brewster and et. al., 2016). In addition to this, hereby while taking final decisions on important subjects associated with commerce, contribution or involvement of personnel is also done. Besides this, management of games is also being carried out so that people feel relax and learn to balance their mental level. Thereby, it can be depicted that overall worker feel to stick with the venture and henceforth they work hard for enhancing net production of corporation. In SHRM, employers working under department of human resource used to play an essential part. They aid in identifying main HR regions whereby strategies could be executed for long run. Additionally, it also emphasize on the communication amongst member present in up-most management and HR. This in turn assist in getting aware about the requirements of the employees along with inspiring them also.
Advantages of Strategic HRM
Some of the benefits of SHRM are described below :
- SHRM helps in determining and analysing extraneous possibilities to develop and threats of human resource management. Through understanding and analysing upcoming menaces, JP Morgan Firm can prepare themselves properly to avoid further problems and struggles. At the same time, identification about golden opportunities aid them in expanding their current business. Therefore, it can said that, company can easily achieve a clear commercial scheme along with vision for the future.
- On the basis of vision, managers can recruit, inspire as well as retain persons within their workstation (Budhwar, and Debrah,2013). This would impact positively on the entire performance of organisation. Thus, employers working under JP Morgan should hire personnels on the ground of mission or vision of corporation. Afterwards, it is the duty of HR professional to motivate workforce in order to contribute best in attaining the ambitions efficaciously.
- When company wish to observe closely the performances of their workforce, they are advised to implement SHRM. From this, manager can keep close eyes on working of employees and cater them suitable training and development programmes for own welfare.
- By generating correct strategical techniques with the assistance of SHRM, a venture can provide satisfaction to expected consumers.
Barriers of SHRM
This has been found from an investigation that there are different obstacles to the implementation of successful strategical human resource management. The major one is nothing but the absence of growth scheme and the failure to execute one. There are few other barriers which are described below :
- Higher resistance due to the lack of coordination from lowermost line.
- Limited resources, revenue and money.
- Vulnerabilities to legislatives alterations.
- Instant as well as rapid structural changes.
- Economical and market pressure impact on the adoption of strategic HRM.
What is Hard and Soft HRM ?
Human resource management is considered as administration of a company's personnel and people. The division is liable for selection, attraction, rewarding, training and assessment of worker along with ensuring employment laws compliance within a workplace. In regard of managing the workplace issues and disputes, this is fundamental for organisation to adopt numerous methods and ways of HR management which are available and are accessible according to the firm's nature and structure. These approaches are academic in nature and Henceforth, this can be claimed that basically there are two broad approaches to human resource management i.e. elaborated as below:
Hard HRM : This is a human resource approach in which personnel are treated as resources of business organisation such as buildings and machinery (Dalal and et. al., 2012). This is strongly associated with the planing of corporate business understanding what are the required resources of company, how can firm reach to them and how much it will cost.Focus : the major focus of Hard HRM is to identify the demands and requirements of workforce of business along with managing and recruiting as per it.
- Key Features : Main features of human resource management is to accomplish short term changes in numbers of worker and consider minimal communication. The main communication structure of such companies are from higher to lower level.
- Pay : Such organisation who employ Hard HRM optimise minimum wage standard and are enough capable to hire as well as retain their employee as per their requirements.
- Appraisal Framework : Main focus over appraisal system is concentrated on creating judgements in relation of staff whether it is bad or good.
Hence, this is basically the typical style of human resource management which often contains taller structure of organisations and suits autocratic style of leadership when it comes to directing and leading people of organisation. For example,
Soft HRM : It is an approach of human resource management whereby employees are treated as most important resource within commerce and is also considered as a source of competitive advantages (Fine, 2012). It is to be noted that treatment of personnels is done as an individual and their necessities are planned consequently.
- Focus : Here – in, the major focus of HRM is on the basic requirements of workforces, their roles, encouragement along with motivation , giving rewards & so on (Ford and Richardson, 2013). In aspect of time scale, soft HRM takes a long term perception since employees are prepared well for attaining the prolonged aims and objectives of company.
- Key features : Workers are inspired and empowered for seeking delegation and taking responsibility.
- Appraisal structure : In this system of appraisal is also focussing on addressing and determining need of training & development of entire workforces.
- Pay : This comprised of competitive pay framework along with appropriate rewards affiliated with presentation. For example, sharing options, profit shares.
In the context of globalization, an enterprise whether it is small or large have been stop from the order of local government and they have became global and it has been enhancing workforce diversity and make sensitive culture which emerged in current time period. These factors are lead an organization towards development of international human resource management. Along with this, such organization are mainly consider through unaffected for transaction in all over the wide network at global level(Hendry, 2012). It is the one way and it is depend on organization which does not heard about this in better way. There are some interdependence which occur among corporations in different functions and areas. HR are facing various issues and problems at global level in effective manner. There are such issues and problems involved in global level such as global competition for goods and services, risk and privacy, issues related to culture, challenges regarding leadership, also managing all international project by the human resource manager. Many of the HR abilities and competencies apply to local human resource practitioners, incremental global skills which are required for human resource to deal with some major issues or disputes. HR manager need to enhancing their business in other location.
What is recruitment and selection ?
Recruitment is considered as an eminent part of HRM. This is not carried out without correct strategic planning. It can be defined as a procedure that offers the corporation with a pool of skilled job participants from which to select.
Significance of recruitment : Recruiting plays a vital role in building strong worker base. A large number of unemployed people having best skills are available in United Kingdom. With the help of similar process, company can attract those persons by providing them proper information about the vacancies and salary (Huselid and Becker, 2011). By this way, employer of specific venture can attain desired employees. This in turn aids in improving productivity since personnels which are chosen may contribute a lot in development of quality based products and services. On the other side, recruiting is chiefly intended to upgrade the quality as well as quantity of applications for a designation. This is done for improving the possibilities of getting a suited person for the job.
There are commonly five steps involved in the process of recruitment of JP Morgan are following :
- Recruitment Planning
- Strategy development
- 4.Evaluation and control
Strengths of recruitment procedure :
There are various types of process of recruitment such as internal and external which play important role in fulfilling particular vacancy of organisation (Krot and Lewicka, 2012). Manager consider in-sourcing or outsourcing for find most suitable candidates for a specific post of business. There are some major strengths of recruitment process such as:
- Recruitment is essential in filling vacant post or job by appointing suitable candidates.
- This process help in attracting more applicants towards organisation for the purpose of fulfilment of job requirements.
- Company use recruitment process that support to find, shortlist, select and appoint talented people so that task or work be completed.
- J.P. Morgan has considered various methods of recruitment and selection process for attracting fresh talents and experienced persons who are able to perform any critical task and achieve goals with appropriate way.
- Recruitment is one of the best way to brings new innovative ideas and creativity by selecting skilled individuals among various applicants in an adequate manner.
- This process creates large pool of candidates who have better qualities, skills, knowledges and abilities to work hard and complete targets.
- It is beneficial in finding best candidates for JP Morgan which facilitate to select them for fulfilling particular job within time frame.
Weaknesses of recruitment process :
Besides strength, there are some weak factors of recruitment process. These are mentioned below:
- It is a lengthy procedure since examination of appropriate candidate take long period of time.
- This is expensive in nature, thus, JP Morgan have to invest high sum of money.
- It is very confusing as there are so many options present in nation and world too. Hence, hiring of correct nominee creates difficulties for mangers.
Selection process : This can be defined as the activity of putting correct applicant on right designation. This is playing crucial role in development of an enterprise as without worthy personnel, quality work could not be done (Marchington and et. al, 2016). This leads to dissatisfaction of consumers which ultimately give negative complications on whole business. Thus, it is important for each and every association to arrange effectual selection procedure. JP Morgan can involve following steps while selecting employees :
- Giving invitation to applicants
- Receiving applications from those people
- Arrangement of written test
- Taking psychological exam
- Personal interview
- Final selection
Advantages of selection procedure
- It help in recruiting appropriate candidate for correct post without any confusion.
- Quality standard may get higher when talented personnels work for the association.
- Company can easily satisfy their clients as candidates employed would give best efforts in manufacturing goods and services.
Weakness of selection process
- This consumes more time since candidate have to go through step by step procedure after passing each level.
- Sometimes discrimination happens during final selection on the ground of sex, age, colour, religion, etc. This create depression in other eligible participants since they were prepared a lot for similar examination.
Internal and external recruitment
Recruitment is basically done in two ways i.e. internally and externally. When an enterprise seems to fill their vacant posts by hiring people within its own workstation, it is called internal recruiting. On the other hand, in case of external candidates are searched from outside the business for filling vacancies.
Methods of external recruitment :
Some of the methods of internal sources are following :
- Transfers : This include shifting of individual from existing job to other identical job. Herein, there is no alteration in the ranking, duties and prestige.
- Promotions : This is the process of moving the position of a worker from lower level to higher level. It also increases the responsibilities, image as well as wages of that person (Meredith Belbin, 2011).
- Present employees : The current workers of a concern are provided information regrading probable vacant places within organisation. Thus, these personnels are commanded to suggest their relatives, friends or other candidate who are known to them.
Advantage of internal recruiting
- It helps in improving the moral of workers.
- While selecting people from inside venture, no fault may occur since mangers know each and every employee personally.
- This also assist in promoting loyalty amongst workforces.
- Minimum investment is required since there is no need of travelling here & there. Thus, travelling cost get saved effectively.
Disadvantages of internal recruiting
- This creates discouragement in capable candidates from external environment as they are not permitted to join here.
- Company may lack in innovational and creative ideas since old employee might present improper strategies.
Methods of external sources :
- Advertisement : Company generally give advertisements in newspapers, journals, TV channels, etc. for seeking attention of large number of people towards the vacant position.
- School, universities and colleges : In this method, employers visit various educational institutes and arrange placement programmes for the purpose of selecting eligible candidate (Nielsen and Randall, 2012).
- Former workers : In this case, those personnels who have been left the organisation due to some genuine reason, then they might be taken back when they are concerned for joining.
Advantages of external recruitment
- Accessibility of suitable persons : Extraneous sources give a wider choices to management. Thus, correct person could be hired according to the criteria of specific designations.
- Bring fresh ideas : By the involvement of new civilians within company, innovational constructs may be developed. In addition to this, suggestion regarding doing something new might be presented by them.
Limitation of external recruitment
- Economical : This technique of recruiting is proved to be economical for corporation since it is necessary to offer training to new workers. Thus, require more money in arrangement of such session (Purce, 2014).
- Issue of maladjustment : By the introduction of newer candidates, vulnerability of mismanagement would increases as they may not adjust in that environment. Thereby complications occurred for employers.
P3 Benefits of various HRM practices within organisation for both employers and employees
Human resource management practices are being used in JP Morgan since it is proved to be beneficial for both managers as well as workers. This can be better understand by following mentioned points :
Benefits for employees
Profit for employers
P4 Effectiveness of HRM practices in terms of raising organisational profits and productivity
JP Morgan are taking use of various practices of HRM for making improvement in their existing production and net profit. Some of the activities used by them are listed below :
- Learning, development and training practices : Company is catering several option for preparing to sub- ordinates. Innovational techniques of learning are being arranged so that people may become more skilled and talented. This will directly help in upgrading overall productivity and profitability of venture.
- Payment and reward management : JP Morgan is implementing various reinforcement and payment methodologies in order to increase the devotion of associates towards work . In this context, their main motive is to raise manufacturing capabilities as company wish to attain predetermined goal of earning high amount of money.
- Employee performance management and monitoring : Supervisors are having responsibilities to monitor working or presentation of group members so as to show them correct path if they would choose incorrect one. This will also contribute in increasing entire income of JP Morgan since quality of production may improved. When customers receive better standard of services, then they get completely satisfied and as a fruitful result prefer JP Morgan while looking for using bank and finance related facilities. Thereby it can be said that sales level of this firm get increased which provide high profits to them.
P 5 Importance of employee relation in respect to influence HRM decision making
Employees are considered as soul of every organisation since these individuals because almost all of the business operations are performed by them only. Workers of JP Morgan are attempting to reach each mission and vision of corporation by giving their best. Thus, it is necessary for managers to maintain healthy relationship with staff members. By doing so, venture can seek attention of more and more person towards workstation. This assist in rising attendance of associates as they feel satisfied by receiving a positive environment. It is to be noted that improvement in employee relations will also impact optimistically upon the process of decision making of referred organisation which is mostly managed by HRM department. Workers feel their importance when they receive the opportunity of taking part in creating significant decisions. On the other hand, productivity of venture may be hampered if employees would not present in determining or giving appropriate conclusion in context to commercial activities. Some of the strategies utilised by JP Morgan in improving engagement of workers are describe below :
- Setting challenges : Team leaders of company is creating particular challenges for staff members so that they show interest in facing them. This will automatically raise participation of workers in achieving aims and objectives of venture.
- Reward management : Managers are giving rewards to those persons who are working appropriately at JP Morgan in the form of compensation, support, additional holidays, certificates, etc. This is attracting personnels in doing better work as an outcome.
- Permitting employees to work from home : In order to rise involvement of workforces, JP Morgan is also giving permission to workers to finish their official chores from homes also.
Besides above mentioned techniques, Trade unions is also assisting in increasing engagement as well as building positive relationship with work – forces. The primary goal of trade unions is to play the role of negotiator within organisation. They basically negotiate with managers regarding the matters associated with employees and other associates. In addition to this, people present in specific trade union also stand for requirements and political interest of those personnels who are not receiving their fundamental rights. Thus, it can stated that significance of entire workforce is being presented by these associations. This is beneficial for overall venture as from this, relationship amongst employers and workers get more strengthened which optimistically impact on production of company.
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P6 Key elements of employment legislation and its impact upon HRM decision making
The main components present in employment legislation are explained below :
Equality : Government of United Kingdom are making legislations for removing the concept of discrimination from corporate world. In this context, they have build Equality Act 2010. The main motive of implementing similar law is to ban phenomenon of partiality which is happening against adults within work - station on the ground of age. It is to be noticed that this norm came into action on 1st October 2012. Afterwards, no one is permitted to discriminate personnels on the basis of age. In addition to this, some of other provisions offered after its enactment are :
- Providing safeguarding against any kind of harassment, direct as well as indirect favouritism, victimisation in companies, educational institutes, services & public functions.
- People can claim if they are facing gender discrimination while attain payments or salary from corporation.
- Presenting new power to tribunals related to employment for giving suggestions in order to empower and benefit the entire workforce.
This is to be noted that above mentioned legislation related to employment is influencing on decision making of HRM. Employers should consider these rules and regulations while treating their team members at JP Morgan. Decisions must be made according to these norms. If managers are going to violate any policy, they would be considered as guilty as per the laws of Equality act 2010.
Health and safety : Legal bodies has made certain principles for providing safe and secure working surroundings to personnels. Health and Safety at Work Regulations 1999 were framed for the reinforcement of similar norms like Health and safety at work act 1974. The motto of this law is to cater basic facilities to workers who are performing at certain organisation in order to earn livelihood. Each and every company is forced to obey all polices which is designed under identical acts. For example, employers are obligated to develop healthy environment by making it free from random accidents. In respect to this, they are also responsible for arranging free medical services like First Aid, allocation of experienced health professionals, etc. at workstation. In addition to this, hazardous substances such as insecticides and pesticides must be kept at out of reach from common civilians, work on danger prone locations is needed to be prohibited for reducing the number of accidents, Beside the same, safety is concerned with assurance of security of job.
This is impacting on decisional making of HRM since they have to follow all such policies for running business in ethical and smooth manner. If they would not abide these norms, company will be declared as culprit since in the eyes of government. Therefore, JP Morgan should take care of these regulations in order to remove illegal activities from their workplace.
P7 Application of HRM practices in a work related context using specific examples
An employer plays an important role in an organisation since they are the only one who is liable to create strategies associated with upliftment of association. They have to hire suitable candidates for filling vacant positions at work station. In this way, management are arranging below listed programmes :
Agenda for training seminar intended for receptionists at Corinthia Hotel London
Interview questions created by employers are following :
Requirement of skilled 'Receptionist' at Corinthia Hotel London
Bachelor's degree from a recognised university
Candidates are needed to upload their request along with CV and current photograph on the authorised website of hotel before by 25th August 2018.
Email address : www.corinthia.com
Contact number : XXXX7062623487
Job specification documents
MBA in Hotel management.
Bachelor's degree from recognised university.
Must have experience of 3 years in five star hotel.
Areas of expertise
Qualification and training
Conveying ability with newly recruited personnels
Capable to execute entire induction procedure.
Rendering best quality services to customers
Stress handling skill
Must have played role related to management.
Skills and knowledge
Good communication as well as interpersonal qualities
Able to develop & generate innovational opinions and strategies.
Proactive, Team leading capabilities, self-confident, optimistic attitude, etc.
Creating definite power and attributes to perform within an organisational culture.
Father's name :
Contact number :
Email address :
By going through above based report, it can be summarized that HRM practices have different benefits for employees and employer. For workers, it provide attractive and essential training as well as improvement sessions wherein they easily develop their professional skills. On the another side, it caters specific jobs to mangers also. In addition to this, opportunities of coming closer to work forces are provided by different HRM practices to supervisors. This assignment has covered all such aspects properly. It is also enlightening that how HRM practices raising profit and productivity of firm. Several methods of recruiting has been described which help companies in attaining correct personnels. JP Morgan should focus on these techniques of internal and external recruitment. Besides this, report is also explaining different types of HRM that is soft and hard along with proper example.