Human resource management holds important roles to perform for the development of workforce of an organisation as their contribution decides the level of growth and success of an organisation. JP Morgan is an organisation deals with offering financial services. It is situated in Central London. You are asked as a HR Assistant at JP Morgan to understand the importance of HR activities for an organisation.
- Determine the nature and scope of HRM of JP Morgan.
- Identify the importance of key aspects of Human Resource Management for JP Morgan.
- Analyse internal as well as external environment to examine the impact on HRM decision making.
- Application of HRM practices in work related context for the purpose of identifying the process of recruitment and selection.
Human resource management is a strategic approach to manage the organization's activity in an effective way. It aid to support the workers in order to gain the competitive advantage. HRM refers as a department of the company which designs a policies to maximise the employee performance with an objective to reach the goals. The HR is responsible to develop the employee benefits policies, recruitment, training and development, performance appraisal and rewarding (Hendry, 2012). They ensures that organization can achieve its targets successfully through hiring the efficient people who are most qualified to attain the prosperity. The report is based on the JP Morgan Firm which is situated in central London that analyses the HR practices for the employee engagement and to sustain the business in competitive advantage. To accomplish these practices the report comprises of HRM definition, strategic HRM, hard and soft skills of human resource managers, strength and weaknesses of recruitment and selections along with internal and external approaches. In addition it also includes the effective HRM practices to raise the organization's profit and productivity, importance of employee relations, employment legislation and application of HRM.
1. What it's HRM
Human resource management is a term that describes the formal system of the management within the a company. In JP Morgan Firm the human resource management put their effort to manage the employee in an effective way that they can be utilise as the most important resources to increase the production that can bring the profit to the organization.
Purpose of HRM
HRM is a separate department in every company that has purpose to conduct such services for the benefit of certain firm. In JP Morgan the human resource professional has core purpose of human resource management that are as follows -
- Establishing culture – One of the most important purpose of HRM is develop a good working environment in the organization because it is essential to provide a good environment to the employees through maintaining decorum of the company (Bratton and Gold, 2017).
- Legislation – The human resource management develops the rules and laws for a JP Morgan that are followed by the employees in any circumstances. This makes the working process smooth and effective that's why the organization can attain the target.
- Internal customer management – HR officer has several purposes within JP Morgan it encourages and motivates the employees because the productivity of the organization depends upon the quality of its workers (Brewster and Hegewisch, 2017). The human resource manager defines and implements the policies and processes to recruit the quality of the workforce by attracting them. It is directly related with the company's financial performance and according to that they forms some policies for employee compensation, benefits and team structure. HR establishes internal customer relationship to serve the best quality of products and services.
- Metrics – Human resource professionals needs to maintain an interaction with all the levels of an organization because a manager aligns all the activities within an organization. The HR management of JP Morgan analyse the operations and activities of the firm and then it needed it hires the employees to attain the goals and objectives. They also measures the strategic matters such as budget plans and performance goals of the company in order to embrace the strength and weaknesses of the company. It needs to recognise to estimate the requirement of human resources which can provide the quality work for JP Morgan.
Functions of HRM
The human resource management has some specific function in JP Morgan firm which support to the growth of the company. The functions are as follows -
- Recruitment and selection – The HR of JP Morgan can recruit the candidates the which are qualified according to the job role. It is process of attracting, screening and selecting potential aspirants according to the designation job requirements. Recruitment attracts the candidates and encourage qualified applicants to serve the best.
- Maintaining good working conditions – It is a one of the major responsibilities of human resource management to develop a good working environment at the workplace. They encourages and motivates the workers of the company to enhance their performance with increasing productivity (Armstrong and Taylor, 2014). It is important because the employees are the main source of the firm to generate profit and therefore, the HR forms a system with a financial and non- financial benefits for the employees that can make make a strong relationship between the organisation and subordinates. This enhances the job satisfaction of the employees and motivates them to work efficiently and effectively.
- Training and development – Training and development has a significance for human resource management because it is an effort to amend the present and future performance of the employees in JP Morgan firm. Training and development improves the ability of the employees through increasing their knowledge and skills.
- Managing employee relations – Employees are the major pillars of an organization and they are foremost resources that performs the activities to attain the goals. Management needs to organize such activities that can be helpful to know an employee on personal and professional level (Briscoe, Tarique and Schuler, 2012). JP Morgan should organize the events which can boost up the relationship between the employer and employee.
Roles and responsibilities of HRM
The roles and responsibilities falls in to three major categories such as staffing, employee compensation and designing or defining the work. Through all of these three responsibilities they fulfil the purpose of human resource department role at JP Morgan firm as they contributes to increase the productivity and profit by optimizing the effectiveness of employees. Along with these there are some other roles and responsibilities that are mentioned as :
- Payroll management – Human resource management look after the compensation and benefits and it conducts the research to analyse the salary trends and pay practices in the current market for the formulation of strategies and compensation plans. It prepares the strategies for provident fund, gratuity, medical insurance, tax deductions, reimbursements, bonus, incentives, etc. All of these are covered in pay roll and modifies according to the government rules.
- Conflict resolutions – In JP Morgan firm there are different types of people who came from diverse background, education qualification and culture. Because of that there are chances to arise conflicts among the employees. It is a duty of the human resource map the solutions of the problems that has the possibility to rise between the employees and employer (Daley, 2012). The managers ensures that there is no discrimination among the employees and none of the activity of the organization will become a reason of employee disappointment.
- Appraisal and performance management – Human resource management timely gives appraisals to the employees according to the policies of JP Morgan. In order to give appraisals they evaluates the performance of the employees, feedbacks and suggestions then they generate the reports and report to the administrative authority and then promotes the employees. This aid to support the employees through motivating them to put a step forward to accomplish their goals along with the firm's goals.
2. Strategic HRM
Strategic human resource management refers to link the human resources with the strategic goals and objectives to improve the organization performance and develop the culture which can accelerate innovations, flexibility and competitive advantage. In SHRM an organization involves the HR functions with a strategies to formulate and implement the JP Morgan's strategies through the human resource management activities that includes recruitment, selections, training and development of the personnel (Huselid and Becker, 2011). SHRM can be define as a part of strategic plan which means to define company's plan that matches its internal strength and weaknesses along with its external opportunities and threats that can maintain a competitive advantages. The core focus of strategic human resource management is to differentiate JP Morgan firm from it's rivals.
Purpose of SHRM
There are some basic purpose of SHRM which specifies its need in JP Morgan company and that are as follows -
- The first and foremost purpose is that it is concentrated on actions that distinguish a firm from the others.
- It renders an idea to allocate the organizational resources to the most applicable employees to produce better outcomes.
- It develops a base in the organization in order to attain efficient business benefits, structure, culture, ethical values among the employees and effectual communication strategic plan for human resource management.
- It involves in employee recruitment, hiring and training and development processes (Jackson, Schuler and Jiang, 2014).
- SHRM takes an organization on the new level, integrates HR workflow, defines new goals and it aligns employees to attain the goals and objectives.
Importance of the SHRM
- SHRM aid to support in achieving the cost – effective engagement of its employees through analysing its major resources an activities.
- It enables the firms to meet the changing trends of the market through embracing the existing requirements.
- Strategic human resource management clearly sets the goals and gives the direction to attain the goals with the future expectations.
- The SHRM can help JP Morgan in planning and executing organizational changes in activities.
- One of the major significance of SHRM is that it ensures optimum utilization of organizational resources (Guest, 2011).
Characteristics of strategic human resource management
Strategic HRM has some characteristics that are stated below -
Recognition of the outside environment - There are some outside factors in the environment which offers some opportunities and threats to JP Morgan firm and that aspects can be define as laws, economic conditions, social and demographic change, domestic and international political forces and technology. These external factors can impact on the organization in both positive and negative manner and therefore, strategic human resources strategy identifies the threats and opportunities in every field. It focuses on enhancing the opp and reducing the effects of threats.
The impact of Competition: Competition has a significant impact on the JP Morgan through captivating, rewarding, and utilizing the employee. The competition forces plays an important role in the local, regional and national labour markets. Strategic human resource management decision can be affected by labour markets dynamic situations that includes wage rates, unemployment rates, working conditions, benefits levels minimum wages legislation and competition.
Long range focus : The strategic human resource of JP Morgan should be pivoted on long term goals cause strategic human resources policies should support to the future objectives. Because it is not easy to modify the strategic human resource policies that's why it is essential to take care the policies for long time.
Choice and decision-making focus : The strategies focuses on problem solving as it concentrates on questions such as 'what should an organization do and why'. This is an action orientation process which requires a decision should be made and carried out (Marler and Fisher, 2013).
Thinking of all personnel: The traditional human resource management pins on hourly employees whereas strategic HRM approach considers about the entire workforce of the JP Morgan not just on the hourly employees of the firm.
The key concept of strategic management is to coordinate the entire resources of JP Morgan firm which also includes human resource management. All the activities should be carried out in a strategic manner to reach towards the aim.
Difference in HRM and SHRM
SHRM comes out as a branch of HRM with some extension of purposes and functions and that can be define as -
Human Resource Management
- HR or human resource management governs the organization employees in a structured manner to carry out the task.
- Human resource management is reactive in nature (Cascio, 2018).
- The HRM responsibilities lies with staffing, recruitment, training and development.
- Human resource managers comply with the fragmented approaches which stresses on management principles to manage the people in organization.
- It emphasizes on employee relations, employee motivation along with the necessary laws to run JP Morgan successfully.
- It supports to achieve the short term goals.
- They pursues the transactional leadership style as they plays a role of change follower.
- Whereas the SHRM directs the employees to put their effort to attain the goals with a framed HR strategies.
- On the other hand, the SHRM is a active management function.
- In SHRM managing the task force is endows in the line managers.
- But the SHRM follows an integrated approach which involves the strategies and HR practices of the JP Morgan.
- Conversely, the SHRM centered to the partnership of internal and external legislations.
- Strategic HRM aid to meet the long term goals.
- It is a change leader as it is an imitator that seeks for transformational leadership.
The strategic human resource management plays an important role in JP Morgan as it relates the practices and policies with integration for the growth of the company.
3. What is Hard HRM and Soft HRM
HRM is an essential and important function for an organizational success. There are two kinds of skills in HRM that comprises of hard and soft HRM. The hard HRM comprises of manpower planning, job analysis, selection and recruitment, compensation and benefits, performance evaluations, contract negotiations and labour legislations. Whereas the soft skills includes organizational development, conflict management, human resource education, leadership development, organizational culture, and developing relationship (Albrech, 2011). The hard and soft HRM both are plays an important role for the growth of JP Morgan firm.
Hard HRM : The hard human resources can be define as employment management system that considers the employees as a assets and resources which needed to be controlled to the expected profit and competitive advantage.
Soft HRM : On the other side, soft human resources management system in which workers are considered an important resource for the company development. They look after the employees and improve the knowledge and skills of employees.
- Human resource measurement has hard metrics which are used as quantitative data points in order to evaluate their assigned work on the daily basis to measure the completion time of the task.
- It treats employees as a resource such as machinery and land that are the core assets of the company. The purpose to treat the employees as resource because it generates the output that is valuable for the company.
- The hard skills are strongly related with the corporate business planning which refers to what kind of resources JP Morgan would be needed and in order to gain this it requires to identify the cost which needed to be spend.
- The core focus of HRM is to recognize the workforce needs for the present conditions. They can recruit train the employees according to the requirements (Renwick, Redman and Maguire, 2013).
- It key features includes the short term changes within the employees such as they can recruit and fire the employees when it is required during some specific circumstances. For an example, when JP Morgan needs some employees for the particular project at that time they can hire the employees but in some circumstances if the employees found guilty according to the rules of the firm then they have the right to dismiss the employee.
- Hard HRM's appraisal system focuses on the judgement of the employee performance, knowledge, skills and behaviour while working in JP Morgan.
- On the contrary, soft HRM uses the soft metrics which pins on the qualitative measurement which depends on the subjective data and interactive responses in order to determine employee effectiveness. It forces on the affect of human capital on the business outcomes. The core purpose of soft HRM is to focus on the employees who have skills and satisfaction that creates a productivity and healthy environment for the employer and employee.
- The soft HRM is the most crucial resources for JP Morgan and a source of competitive advantage.
- In JP Morgan with soft HRM all the employees are treated as individual person and their needs are also taking care of according to the plan.
- Soft HRM look after their employees through caring about their needs, roles, rewards and motivations because they are the prominent part of the organization achievements. Employees are putting their efforts to attain the organizational goals and objectives and that's why they are libel to get the reward for their support.
- The key feature of soft HRM is that it solely focused on the long term workforce planning with a strong and two way communication.
- Its appraisal system concentrated on recognizing and addressing training and employee development requirements.
4. About Global Context
With the globalization, every organization whether it is small or big were ceased be global but now they all have become global (Nickson, 2013). The globalization has increased workforce diversity and culture sensitivity. All of these things developed the need of global human resource management. This is beneficial for those organization that were considered as immune for the transactions beyond the geographical boundaries but now they are connected across the world.
Objectives of global HRM
- The core objective of the global HRM is to create a local appeal without compromising upon the global identity.
- The second objectives of the global HRM is to create the awareness for cross cultures among the managers and staff. Culture sensitivity is required to balance the culture in the organization when employees are hired across the geographical boundaries.
Strategic role of Human resources Management
There are some strategic role of Human resources Management in a such a way which ensures HRM policies support with the firm's strategies, structure and controls. There are some factors that impacts on the global context and that are as follows -
Decision making : There is specific degree of centralization to operate the decision making. When it is compare with the international strategy then the core competencies are centralized and the remaining are decentralized.
Co – ordination : There is a requirement of coordination for the cross culture sensitivity and therefore, there is need of culture control.
Global HRM and the Staffing Policy
There is no difference in hiring the workforce for the organization. The hiring process is still focused on the requirements of particular job role, like skills, knowledge and qulaifiacation. The organization can hire the individuals according to their requirement of job description. The fundamental need for recruitment is common across the glob the only thing which is changed is culture (Budhwar and Debrah, 2013). Besides that the organization can select any of the below policy to hire the aspirants according the global policies -
Ethnocentric: Ethnocentric is the act to judge another culture which is based on the thought that are found in values and standards of one's own culture.
Poly centric: In poly centric staffing policy refers to the host country manages the subsidiaries whereas the headquarter position are held by the parent company nationals.
Geocentric: In geocentric policy the employer can hire the employees irrespective of their nationalities. It builds a strong culture across the boundaries with strong bond to produce high productivity.
Global HRM is very challenging with respect to the HRM, if one of can strike the right chord in designing structures and controls then it is near to achieve.
5. What it's recruitment and selection? about weaknesses and strengths
Recruitment – it can be define as searching and obtaining large number of desired candidates along with skills, experience and knowledge. For allow an organisation for select best appropriate candidate for fill job vacancy for right position. In this, the main motive of recruitment process is to identify best applicant among mass of the people and select suitable candidate regarding job designation.
Advantages – With the help of recruitment process, company can easily select capable employee who have high skill and knowledge.
Disadvantages – It is very time consuming process while hiring candidate for the specific job position within an organisation.
Selection – It is the process where company select right candidate who are most appropriate for the vacant position within an organisation. In simple words, selection is that procedure in which HR taking interview of recruited candidates and evaluating their skills, experience and qualities that are required for particular job and selecting that candidate for specific position.
Advantages – This will help in selecting appropriate candidate who have ability and skill to deal with all business issues and problems.
Disadvantages – It has more qualified applicants and additional work for HR staff members will occurred. There are various candidates which are not seriously searching employment.
6. Internal and External recruitments, advantage and disadvantage
The human resource management recruits the employees to enhance the productivity of the firm. There are two process to recruit the employees in the JP Morgan firm that is internal and external.
Internal recruitment : Before going to outside the organization the human resource management hires gives the opportunities to the in house employees to grow in their career. To attain this they will inform the in house resources about the vacant positions. If the employees are willing to get promotions then they can prepare for and appear in the interview to get promotions but there are some advantages and disadvantages of it and that are given below -
Advantages – This is cheaper and quicker approach to recruit the employees and people are already familiar with the business and operations. The management does not need to provide training to them as they are already aware about the work. It offers huge opportunities for promotions and motivation to retain the employees within the firm.
Disadvantage: It limits the potential applicants and therefore, it does have new talents and innovations . It creates the vacancy for the previous designation of the person who get the promotions.
External recruitment: This can be described as method of hiring employees by utilising several outside sources such as campus drives, other than existing staff etc. it will help to gain more talented and fresh skilled people in an organisation. New people welcomed in company and they are helpful to provide certain new innovative idea. Thoughts or concepts which are supportive to launch fresh product with creative thought properly, this will help to grab more profit share of market. It is necessary to hire more effective and capable person so that they will fulfil roles or duties of particular job position which are supportive to attain growth business concern properly.
Advantage - when business goes externally to recruit people then they find large applicant which increase the chance of getting right person for the job. It provides fresh view on the industry to remain it in competition. Fresh talent motivate current employees for producing more and perform well so that they can grab next promotional opportunity.
Disadvantages – It has long process of recruitment and it is expensive due to advertisements.
P3 Benefits of different HRM Practices within organization for employer and employee.
There are various practices of human resource management in JP Morgan Ltd because the HR professional put their effort for the benefits of employee and employer. The HRM practices can be defined as -
Personality development and skills – An employer get eminent skills and personality when they work with JP Morgan and their knowledge also increases because a regular practices makes them perfect in their area of work (Bratton and Gold, 2017).Training and development – Human resource manager hires according to the requirement of JP Morgan company and then they provide them training improve their efficiency to work. It increases the profit of the company as the workers are trained enough to work in effective manner.
|Confidence – When an employees gets trained then they feel more confident to attain the task in an effective way and it also increase their performance (Hendry, 2012).
|Establishing employee relationship – The HR manager should effort to establish a good relation with their existing employees. As the organization growth is dependent on their effort and that's why it is essential to make them happy by giving them reward for hard work.
|Security – An employee seeks for the firm which can give them a safety and therefore, the HR manager of JP Morgan develops some policies to protect there personal information and it also provide them health safety that can prevent them from the difficult situation while working.
|Maintaining culture – In JP Morgan there are a lot employees and they came from a diverse background so it is HR responsibility to maintain the culture among them and their dignity in the workplace (Brewster and Hegewisch, 2017).
These are the benefits of HRM practices for the benefits of both employer and employee that develops a strong bond between the organisation and employees and it also aid to raise the profit of the firm.
P4 Effectiveness of different HRM practices to raise the profit and productivity.
The human resource management has several practices which raises JP Morgan's profit and productivity. In order to achieve the predetermine productivity of the firm the manager needs to understand several things which can also increase profit of the organization. The HRM practices can support to give a hike to the profit and productivity of the company and that can define as -
Learning, development and training practices – As being a HR assistant in JP Morgan Ltd it has been experience that a learning leads to increase the productivity and performance of an employees. It can be define as if an employee has a zeal to learn new things then they enhance their skills and it will also give them an opportunities to grow in their career and enhance their ability to attain the new tasks. An employees also needs to get trained to improve their existing skills after recruitment. This will increase their confidence to achieve their goals and objectives.
Flexible working options – It is necessary to provide flexible working hour to the employees as there are several women are working and they needs to take care of their personal and professional responsibilities. So flexible working hours supports them to give them hundred percent performance. Whereas there may be need of part time employees that can help the JP Morgan to attain such task that can only done by them such as the technical engineers or contracted employees. It can enhances the productivity of the firm (Armstrong and Taylor, 2014).
Employee performance management and monitoring – It is essential to monitor the employees performance because it support them to know the capabilities of an individual. The manager keeps tracking of the employees raising and decreasing performance as it tells them about the strengths and weaknesses of them to identify the area of improvements. So that they can be amend through providing training (Briscoe, Tarique and Schuler, 2012).
Payment and reward management – After tracking the performance of the employees they will be a part to get the rewards for their hard work. The company should recognise their efforts and importance towards the company and therefore, they needs to be get reward in terms of bonus, appreciation and increase in the salary.
If JP Morgan adopt all of these practices then they can raise the profit and productivity of the company as it is essential to make the employees happy because a firm is growing with their efforts.
P5 Importance of employee relations in respect to influence HRM decision-making.
Maintaining employee relations at the workplace is important because a healthy culture should be established in JP Morgan in order to attain the goals and objectives of the company. Therefore there are several factors that can impact the HRM decision making. There are several reasons which supports to maintain employees relations through employee engagement and that can be define as -
- There should be participation of employees because there may be some circumstances when an individual cannot decide to take an action but if the employees get involved in the activities then their different point of view can help them to grow more. The employees will also feel good and be more proud on themselves to be a part of the organisation.
- When work is distributed among the employees with equal priorities then the work will be managed easily. This will also increase the productivity of the firm and it will also give an opportunities to the HR decision making to establish the new policies to encourage them and if the work is not distributed among the people then they will not be able to finish the task on time and then the manger needs to hire the new workforce to enhance the productivity (Daley, 2012).
- If there is high employee engagement then there are will be less conflicts among the employees because they all are participating equally and this will resolve issues among them. They will also encourage to put their precious time in work rather then the conflicts and disputes. The HR can put less policies to give the solutions of the problem and they can put the policies that can encourage the employees to put their best foot forward.
The employee engagement is needed to maintain the employee relations and improve the HR decision for the better performance of the organization. They can develop the new practices which support to the employees and JP Morgan growth (Huselid and Becker, 2011).
P6 Key elements of employment legislation and its impact on decision-making.
In the United Kingdom there a various employment legislation that mandatory to be followed by the employer and made an impact on the decision making of the firm. JP Morgan is abide to follow the laws that are given by the UK legislation and that can be defined as -
Equality Act 1974 – In the United Kingdom there is a law of equality that states that company cannot discriminate an employee due to cast, religion, race, color, physical disabilities, and gender. The firm has to follow the act because if they discriminate any of their employee then the employee has the right to sue them. This law is established for the protection of the people who are working and may have a risk to passing through these situations.
Data protection Act 1998 – The data protection act 1998 is established to protect the personal information of employees that are stored on the computers. This law gives rights to the individual that they can protect their information from the adversaries.
Health and safety act 1974 – Health and safety act protects the employees who are working in the organization. It states that the JP Morgan firm has to provide the safety from the risk condition while working. They has to provide them all the security measures while working like fire protection and the company cannot force them to work in hazardous situations if they do so then they have to pay the fine for it. The company has to provide all the safety measure shat will not harm them at all (Jackson, Schuler and Jiang, 2014).
P7 Application of HRM.
Job description for Nurse position
Job Description :- Job description is providing a brief requirement for the nurse position including qualification, skills, salary, roles and many more.
Organisation name : Hospitals
Job profile : Nurse
Location : England, UK
Report to : Human Resource Administration office
Required Qualification : B. Sc and nursing trained.
Experience required : 2 to 5 years
Salary : 8 to 10 lac per annum.
Questionnaire 1. Tell me about yourself.2. what are your strength and weaknesses?3. Tell me about the basics of nursing.4. Can you tell me about the skills required in nursing”5. What is your salary expectations?
A curriculum vitae of a photographer for Vogue Magazines can have the following things -
London, United Kingdom
Dedicated and enthusiastic photographer over 3 years experience in customer and specialised photography. Capturing high quality images and organized materials for the photo-shoot with confidence and professionalism. Conversant with distinct variety of photography incorporating fashion, wildlife and underwater.
Areas of Expertise
The above report had concluded that human resource professionals manages the human assets of the company and they are concentrated on policies and processes. It includes to manage staff members of an organisation in proper manner to fulfil desired targets properly. There are various kinds of purposes such as maintaining effective culture, applying required legislation, internal management and so on. It also includes several functions of human resource team like performance appraisal, recruitment & selection, maintaining better working condition and may more. The HR team has certain roles or duties which are necessary to be conducted in more effective as well as efficient manner for gaining better outcomes on regular basis. The HRM may categorise into two categories such as soft and hard according to certain functions and purposes in proper manner. The HRM and SHRM are focus on different aspect such as framing strategies or putting efforts in correct direction to achieve desired goals or objectives successfully.