- To identify the function and purpose of the HRM
- To identify the effectiveness of the key elements of Human Resource Management
- To identify internal and external factors that affect decision making of Human Resource Management
- To apply various HRM practices
The report commences with a short introduction of a company which into IT industry and is located in UK. The report is completely deducted to the discussion of the role of the human resources in the organization and all the discussion are done pertaining to the organization selected. The HR department makes use of many sources of the recruitment and selection and the benefits and the disadvantages of both are discussed. Then the report has discussed that how HR functions have contributed in increasing the profits of the company. Various factors like the legislations and employee relations are also highlighted which have an impact on the decisions taken by the HR department in the company.
The organization which is being considered for the report is Intellectsoft which is focused on delivering services as per requirement of customers. The entire report is based on this company only. You may also refer to the PPT sample of "importance of business environment"
PI-The functions and the purpose of HRM in relation to the resourcing and the workforce planning
HR management is about the increasing the performance of the employees to the highest possible levels in relation to their role in the organization like Intellectsoft. All the organizations are made of people. HRM is about acquiring the people’s services, developing their skills, motivating them in the gradual process and also making sure that they remain committed at Intellectsoft.
Recruitment and selection: The HR department is responsible for performing both the functions at the organization. Recruitment is the process of screening, capitalization and selection of the qualified candidates based on the criteria’s set for the jobs. The goal of this is to attract qualified applicants to the job and to encourage the unqualified applicants to not apply at Intellectsoft. The HR department also executes proper staffing plan and decide upon the number of employees which they need to hire. The forecasting of employees is dependent upon the annual budget of the organization. this is important part for Intellectsoft as this helps in reducing the costs linked to the engaging the unmotivated, incompetent and underqualified employees in the organization. The hiring of new employees in the organization is an expensive affair (Datta Gupta and Eriksson, 2011).
Orientation: They help to provide orientation to the new employees and help them so that they can adjust to the new surroundings and environment and to new job. The employees get to know about their assigned duties and about their job roles, job descriptions and positions at which they are placed. This provides the employees with clarification regarding their jobs.
Maintaining good working conditions: They make sure that the employees get good working conditions at the workplace and they also keep on motivating the employees of Intellectsoft (Gulzar, 2017). At times it is being found that the employees don’t contribute to the goals of Intellectsoft due to lack of motivation in them. The HR department only provides them opportunity so that non-financial and financial benefits are provided to them at all the times and they also take care of the employee welfare as this is mainly helpful in the job satisfaction for the employees.
Managing employee relations: The employees are the pillars of organization and HR is mainly responsible for maintaining the employee relationships at Intellectsoft. They help in fostering the good relationships and also have the ability to influence the work outputs and the behaviors. The HR department promotes good relationship with the employees and this is a key for the success of all the organizations. The well-planned relations with employees help in promotion of balanced and healthy relationship between employer and employee.
Training and development: Then this is integral part of the function of the HR management. They try to improve the future and the current performance of the employees at Intellectsoft by providing them education and giving them a chance to develop their skills. Related Sample - Travel and Tourism
As discussed above this is the way through which candidates are attracted to the organizations. There are mainly two sources of recruitment which are internal and external sources. The internal sources are those when the people are considered within the organization only (Gavrel, 2015). These can be from employee referrals, present employees, previous applicants or form the former employees at Intellectsoft.
- Increased retention and morale of employees
- Tradition done by employees in minimum time
- Less paperwork involved as the person is already working with the company.
- Probability of animosity among the ranks
- Chances of stagnation in which employees may not show wiliness to change
- Lack of diversity may take place at the organization
External sources of recruitment
This is when the recruitment is done using external sources and not from the company only. There are many external sources which can be made use by Intellectsoft and these are from the advertisements, employment exchanges, professional associations, employment agencies, campus recruitments, word of mouth or nay more sources. This again has its own pros and cons and some of these are stated below.
- Qualified personnel available for filing the vacant positions
- More choice available for making recruitments
- Fresh talent available
- EAC employee brings a competitive spirit
- Can cause dissatisfaction among the existing staff members
- Lengthy process and this may take long time
- Very costly to recruit using external sources and money is wasted on application processing and on advertisements
The selection is the process of the most suitable person for the performing on the job. This selection is done after evaluating all the available options and this aids in getting answers to the best person which may be available for the job. Many methods exist for the selection processes and all of them have their own pros and cons (Pocket Pence, 2018).
- Based on experience: This is an important selection technique and this is valuable for choosing the applicants and has a pro of choosing the most experienced person for the job. But this also has a problem that a candidate with less or no experience may get rejected on this ground even if he possesses the right potential in him.
- Categorization: Intellectsoft also selects the employees by categorizing them to various categories and this actually becomes problematic when they grow up. This way also the worthy employees may not get selected.
- Interviewing: Cited company increasingly make use of the interviewing method for selecting of the people. Some candidates are not able to bear with the pressure related to the interviewing processes and their performance in them may not be appropriate. But still this is considered as a good method for assessing the strengths and weaknesses of the employees.
- Instincts: At times the employers make the selection based on the instincts which is also the gut feeling. This employee selection tools provides advantages of responding to the general five senses and but at many times this is not a good technique of making selection as many times this is not based on concrete information as this may be based on deceptive information.
- Organizational culture: The organization culture is the set of the working rules, values, traditions and vision which the company like Intellectsoft has adopted in the years. The HR department helps in propagating the organization culture in the organizations. They establish the procedures, standards and the guidelines and help the employee learn about the behaviors which are acceptable in the company. Like policy related to punctuality helps Intellectsoft in promoting time management (Wickramasinghe and Samaratunga, 2016). So the HR department only make sure that the employee follows and maintain the cultures of the organization.
- Planning for change: The changes constantly happen at Intellectsoft and the HR team has to make sure that they stabilize the company for the changes taking place. This is rightfully done by the HR department by the company. They help them to plan for the changes and that these things can’t be ignored at any times. This helps the employees of Intellectsoft in understanding the roles by seeing bigger picture of the organization. They build bridges in the mangers and departments and help people deal with changing situations. They make use of the information and develop a management plan for the changes taking place in workflow and for making sure that the employees in the times of alarming changes.
- Development and training: This is for the benefits of the employees and employers as all the employees which even includes the highly skilled and qualified employees need training at all points of time. This is due to the fact that all the organizations like Intellectsoft perform their functions in a different manner. The procedures and policies have to be conveyed to all the staff members and this is required as a part of the boarding process of the company. All the employees working require to work on same wavelength. The employees are also involved in the employee development (Rmi-solutions.com, 2018). This way the education keeps the employees unto date and this aids in bringing modern and original ideas to the organization.
- Safety and health: The HR department at the concern also plays an important role in the safety and heath of the employees at Intellectsoft. They achieve through the procedures the policies or the organization and the HR department make sure that all the employees know about the risk present in any work. In case when something is risky at Intellectsoft, then HR department talks about such situations to the employees. This eventually reduces the possibility for occurring of any accidents and so the legal actions on the company also reduces and they also get benefitted.
- Retention and recruitment: This is also the area in which HR department benefits the employers and the employees. They recruit candidates, select the best one, encourage them to get more education, award then compensation and benefits and this is considered as the internal part of the HR department. This has resulted in decreasing the turnover rate of the employee’s as they feel more motivated to perform their jobs. They have carefully able to identify that what important roles have be done by them given by Intellectsoft.
P4- Effectiveness of HRM practices
The HRM department has definitely led to increase in the organizational profits as they have reduced the turnover rate in the organization. If the turnover rate of Intellectsoft is high, then the organization would have to send more money on the sources of recruitment to attract various candidates to the job. More money would be wasted on their selection processes, induction to the work. All these cost have resulted in saving so much money of the companies and this eventually has led to increase in the profitability of the company. Even this has increased the productivity levels the organization as they keep on motivating the employees of the company. The motivated employees tend to work harder and contribute better for the goals of Intellectsoft (Offong and Costello, 2017). So HR department had made sure that the employees remain motivated at all times and they have taken care of each and every single responsibility about which they have towards the employees.
Then they have made the onboarding process easy for the employees by providing them training facilities at all the times. They have taken various steps to make sure that the new horse gets the right training and also that they’re able to perform to the best of their abilities. They solve all the issues which may arise between Intellectsoft and employees in a proper manner. This way the employees don’t thing about taking legal action against the employer and so the chances of the litigation by the company reduces. So they have reduced the chances of getting involved in the lawsuits (Chowhan, 2016). They have paid a considerable attention to the employee relations and to comply with all the regulations and the laws. They even have developed a program so that they are able to solve the issues of employees before they become serious problems and this ultimately indirectly in related to giving the organization profitability boosts.
This way it is quite evident that HR functions has aided the organization to perform their functions in a proper manner and this way they have been able to increase the profitability of the company and have acted as a catalyst for the growth of the company. They have provided the companies flexible environment for increasing the employee engagement and morale and they perform all the functions and have helped the organization to improve their profits and profitability.