Human Resource Management (HRM) is a cornerstone of organisational success, which entails the strategic approach to dealing with individuals to attain maximum performance. This blog addresses key areas of HRM, spanning from the distinction between personnel management and HRM to the role of legal frameworks, the significance of human resource planning, and the efficiency of recruitment and selection processes.
Differentiation Between Personnel Management and Human Resource Management
Personnel Management and Human Resource Management, being closely related, differ in orientation and scope. While Personnel Management is administrative in nature and is concerned with employee welfare and relations with labor, HRM is strategic in orientation and incorporates human resources with organisational goals. For instance, at Archipelago Restaurant in London, a personnel management approach might involve regular routines with central decision-making. Harrods, however, employs HRM practices, viewing employees as assets, assigning tasks on the grounds of specialisation, and involving employees in decision-making.
Impact of Legal and Regulatory Frameworks on HRM
Legal and regulatory frameworks play an important role in influencing HRM practices. Adherence to legislation ensures fair treatment, safety, and equality at work. The key legislation that affects HRM is:
Equality Act 2010: Prevents discrimination on grounds of race, religion, age, gender, disability, or nationality, encouraging workforce diversity and equality on merit.
National Minimum Wage Act 1998: Ensures fair compensation, requiring a wage rate for workers aged over 21 years, regardless of gender.
Employment Act 2008: Provides systematic policies on employee benefits, e.g., uniform pay, insurance, and flexible working.
Working Time Directive 1998: Mandates paid leave and imposes working hours to avoid overwork and ensure rest.
Data Protection Act 1998: Guard human and business data, keeping it confidential and secure.
At Harrods, adherence to these laws fosters a fair, secure, and efficient working environment.
The Importance of Human Resource Planning
Human Resource Planning (HRP) is critical in matching organisational goals with workforce abilities. It entails projecting future manpower requirements, dealing with uncertainty, and managing change. The major reasons why HRP is essential include:
Manpower Forecasting: Estimating changes due to retirement, turnover, or demand in the market to maintain proper staffing levels.
Managing uncertainty: Anticipating ahead of time emergencies or unexpected events, such as strikes or technological changes, to ensure organisational resilience.
Skill Management: Identifying skill gaps and setting up training programs to build employee skills.
Manpower Balancing: Having the correct number of employees to meet operational requirements without incurring additional costs.
Budgeting: Allocation of resources effectively to recruitment, training, and developmental activities.
Successful HR allows firms like Harrods to adapt to the marketplace and achieve strategic goals.
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Evaluation of Recruitment and Selection Practices
Recruitment and selection are two key HR activities that affect organisational performance. Successful methods include:
Internal and External Recruitment: Leveraging both internal promotions and external recruitment to introduce new talent and fresh ideas.
Selection Techniques: Using detailed processes such as application screening, group discussions, interviewing, aptitude testing, and psychometric testing to choose the best candidates.
Organisations like Ernst & Young (EY) and PricewaterhouseCoopers (PwC) employ these robust methods, viewing recruitment expenses as long-term investments that increase productivity and loyalty in employees.
Conclusion
Human Resource Management is pivotal to organisational prosperity, encompassing strategic planning, legal compliance, and effective recruitment. With appreciation and implementation of comprehensive HRM practices, organisations are well placed to build an effective, motivated, and compliant workforce, setting them on the path to long-term success. If you require assistance with assignments for this topic or other topics, the experts at Locus Assignments are ready to help. Upload your assignment today and receive expert help within a timely manner.
- A Guide for HRM Assignments | Human Resource Management
- This blog addresses key areas of HRM, spanning from the distinction between personnel management and HRM to the role of legal frameworks and many other things.
- HRM Assignments, Human Resource Management
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