Running head: ROLE OF HRM

Understanding the role of HRM in an Organisation

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Role of HRM

Table of Contents
1.

Introduction........................................................................................................................4

2.

Task 01 - 2.1 To understand the difference between HRM and personal management.....4

3.

4.

5.

2.1

Understanding the difference between HRM and PM.................................................4

2.2

To assess the HRM functions......................................................................................5

2.3

To evaluate the line managers responsibilities in HRM..............................................6

2.4

To analyze the impact of regulatory and legal framework..........................................6

Task 02 To understand how employees are recruited......................................................7

3.1

To analyze the reasons for HRM at Harrods...............................................................7

3.2

To outline the stages which Harrods may adapt while planning HR recruitment.......7

3.3

To compare the selection and recruitment procedure with other organizations..........8

3.4

To evaluate the efficiency of recruitment and selection procedures............................8

Task 03 To understand how employees are rewarded.....................................................9

4.1

To assess the connection between motivation theory & the reward............................9

4.2

To evaluate the procedure of job evaluation and various factors................................9

4.3

To assess the reward systems effectiveness..............................................................10

4.4

To monitor the performance of Harrodss employees...............................................10

Task 04 To know the mechanisms of employment cessation........................................11

5.1

To identify the reason behind cessation of employment...........................................11

5.2

Employment exit procedures.....................................................................................11

5.3 To consider the regulatory and legal framework on cessation of employment

arrangements........................................................................................................................12
6.

References........................................................................................................................13

Role of HRM

1. Introduction
In this competitive business era, the role of Human Resource Management (HRM) is
very essential for any kind of organization. Human resource management day by day is
turning out to be as an integral part of the studies. Human resource management means that it
is a procedure of developing, selecting and recruiting individuals at work. HRM can be can
be differentiated from personnel management (PM) in some main activities of
managers(Townley, 2014, p.92).Human resource management greatly pays attention towards
the purposes of organization.
Some of the common role of HRM that is very essential for any organization such as,
motivation. Employee benefits, labor collective bargaining and relation, performance
management system, employee development, training and recruitment etc. at present.
Strategic implication of HRM environment is a typical concern for every kind of
organizations(Huselid, 1995, p.669). For practices of HRM there is an ethical and legal
perspective which is important and should be followed by supervisor of an organization.
HRM significantly benefits the organization and we have considered Harrods which is an
amazing example for this assignment.

2. Task 01 - 2.1 To understand the difference between HRM and personal

management
2.1

Understanding the difference between HRM and PM

HRM is mainly concerned with employees or people working in an organization.

HRM can be seen in two ways, first staff of HRM in any organization is those who support
functions and their commitment towards assisting the worker or line managers who are
involved in production or other activities in an organization(Bartol & Srivastava 2002, p.68).

Role of HRM

Secondly HRMs role is to evaluate the job of managers and if one manager is failed
performing the activity they can hire another one who may perform it better.
On other side personnel management which refers as the discipline or system of
growing and hiring employees. It also includes incentives, compensation, salaries,
determining wages, recruitment, planning personnel needs and job analysis. (Gruman & Saks,
2011, p. 132). Difference between human resource management and personnel management
is comprehensively found in some factors such as types of decision making, operation
running in an organization, employee motivation, involvement, employee turnover rate,
workers thinking regarding their career for long term in future. It can be seen that personnel
management (PM) is a part of HRM.
The company like Harrods has many employees. Harrods needs to categorize their employee
in various sections in order to perform the different responsibilities. Harrods management is
much concerned towards employee controlling, reputation, turnover and motivation. Their
management is categorized by line manager, staff manager, middle level manager, top level
manager etc. Harrods has fair and specific corporate governance which managers the entire
activities running in an organization(Babu & Kumar, 2015, p.120).

2.2

To assess the HRM functions

In every organization, there are few functions which address the organizational

purpose. Since HRM is essential and vital issue in any organization which performs functions
like training and development, employee performance and recruitment and selection. The
functions of HRM in Harrods play very essential role(Guest, 1987, p. 518). Harrods has very
specific and fair policy of employee recruitment; they always prefer quality in spite of
quantity as well as they try to select the talent, smart and skilled employees with no
discrimination at all. Such policy of recruitment in Harrods guarantees productive position in

Role of HRM

todays market. Harrods also has expert trainers who provide learning session and effective
training.

2.3

To evaluate the line managers responsibilities in HRM

In todays market Harrods lucrative position and reputation is only possible because

of specific and strong management system. The remarkable factor behind this
accomplishment is responsibilities and roles of line managers. Harrods line managers always
oversee their subordinates properly(Townley, 2014, p.92). They are very responsible when it
comes to help other and to solve their problems in day to day operation of subordinates.In
Harrods culture, there is a solid relationship between the subordinates and line managers.
This relationship always helps the workers to consider as their own company. Also, Harrods
presently at this level is due to this relationship(Kovach, 1987, p.60).

2.4

To analyze the impact of regulatory and legal framework

In 21st century, organizational activities are governed by an effective and specific

institutional regulatory framework. Such framework influence entire activities of an

organization. And, HRM is one of the main issues which influence the regulatory framework.
Harrods is very sensitive and serious regarding discrimination in HRM practice which mostly
concerns the legal and ethical perspective of regulatory framework. Also, Harrods HR
department is influenced by regulatory and legal framework with respect to labor dispute,
employee work environment, compensation, labor rights and organizational attitude towards
the workers etc(Tohidi, 2011, p.1143). The HR department also focuses on the equal
opportunity of employees. So the positive impact of regulatory framework always tries to

Role of HRM

accomplish the best productivity by their dedication to satisfy the regulations and rules of
ethics and laws.

3. Task 02 To understand how employees are recruited

3.1

To analyze the reasons for HRM at Harrods

It has been said that, "the right planning is large portion of done". Planning of HR

refers the determination and processes the needs of human resource in an organization.
Planning is mandatory for every kind of organization. With no proper planning, there will be
no activity perfectly performed in many cases(Purce, 2014, p.67).As HRM is an important
component for an organization and similarly significance of planning for HR is also very
important.
Some of the important reasons for human resource planning in Harrods are discussed
here. Firstly Harrods attempt to make the connection between strategy of organization and
human resource planning. Harrods also need to plan for evaluating current human resource,
and to define demand for labor, foreseeing the future supply of labor, searching or
discovering the required workers, supply for labor and matching the demand.Planning for
human resource helps Harrods to deal with the human resource more efficiently and
effectively(Kovach, 1987, p.60).

3.2

To outline the stages which Harrods may adapt while planning HR recruitment
For HR recruitment in an organization there are few standard stages which can be

adopted. Such stages are mostly common for large and medium size of
organizations.However for availing or achieving the competitive advantaged with respect to
human resource nowadays numerous organizations are practicing in those stages in distinct

Role of HRM

ways.Harrods is famous and very well-known brand in this world of business in terms of the
goodwill of selection process of employee as well as in employer relationship. But Harrods
need to adopt some of the recruitment stages more efficiently and effectively(Gruman &Saks,
2011, p. 132).Harrods two main stages of employee recruitment are meeting the organization
and recruiting sources. At first Harrods is always trying to keep up the recruiting sources
throughemployee referrals, recommendations and internal source, external findings with
employee agency, advertisement, unsolicited applicants, colleges, school and university. And
secondly meeting the organization involves viva voice, some final remark and resumes
collection and at last the recruitment is happened(Purce, 2014, p.67).

3.3

To compare the selection and recruitment procedure with other organizations

Recruitment and selection procedure is the main issue of HRM. The ultimate

achievement or failure greatly relies on recruitment & selection procedure in any

organization. This process of recruitment and selection varies country to country and
organization to organization. Few distinctions are seen between Harrods andSalisbury, M&S
and John Lewis. From the Harrods background it has been realized that Harrods follows the
fair procedure while recruiting and selecting the employees(Guest, 1987, p. 518). Corporate
administrations are completely following this. Next to that it attempts to select the dynamic,
brilliant and communicative individuals. Their procedure begins with advertisement and
finishes with demo or practical session. The critical contrasts are analyzed between Harrods
and other three organizations mentioned above with respect to their internal selection and
recruiting individual for final process of selection.

Role of HRM

3.4

To evaluate the efficiency of recruitment and selection procedures

If we evaluate the efficiency of recruitment and selection processes we can analyze

that by comparing Harrods with other three organizations, Harrods recruitment and selection
technique if exceptionally effective contrasted with others. Harrods follow the techniques
which selects the required and suitable employees.But for three organizations, their internal
selection techniques result in below performance level.
Harrods never lean toward nepotism which guarantees the efficiency and effectiveness with
regards to the organizational performance. However, there are few issues that Harrods is
facing in this time, as it has been observed that viva and test methods are not always working
well(Becker & Gerhart, 1996, p.780).

4. Task 03 To understand how employees are rewarded

4.1

To assess the connection between motivation theory & the reward

Typically there is a solid relationship between motivation and the reward system.

Motivation is originated from numerous ways and one of them is proper reward system.This
case study has analyzed that the employees intrinsic need results in strong motivation. The
intrinsic needs basically are the individual needs(Tohidi, 2011, p.1143).Generally human
beings, have various psychological needs which include the need that employees can feel that
they can do something great, the need of being a part of the team, the need for encouragement
and respect others.All these needs may originate from certain issue such as performing
variety of tasks, decision making, promotion and contribution towards team etc(Dohmen &
Falk, 2011, p.566). Harrods is an organization which has the strong commitment in order to
meet these needs through involvement of employees while making decision, employee
engagement, job rotationwhich always makesa strong connection between employer and
employee.

Role of HRM

4.2

To evaluate the procedure of job evaluation and various factors

There is this close relationship between payment and job performance. But over the

world the payment strategy varies country to country and organization to organization. In few
organizations job evaluation or performance is the only criteria which determine the
payment.However, in large size organizations different components with job performance are
considered as an essential issue that identified the compensation or payment
methods(Dohmen & Falk, 2011, p.566).
In Harrods, this has been analyzed that there are three process of job evaluation which
are, ordering process also called as ranking method and it is consisted by both employee
representatives and management and arranging job roles from the highest to the lowest
orders(Kovach, 1987, p.60).
4.3

To assess the reward systems effectiveness

As indicated by the experts of HRM, four kinds of reward systems have been analyzed which
organization are practicing. Consecutively they are intrinsic reward versus extrinsic reward,
non-financial versus financial reward system, issues in work place: job performance and
enrichment reward system based versus membership reward system(Tohidi, 2011, p.1143).
The goal and motive of every organization is different. Therefore one reward system can be
effective for only one organization.
Harrods reward system can be analyzed that they are following intrinsic reward system,
which is effective for the organization. The employees working in this organization are very
satisfied with this reward system(Becker & Gerhart, 1996, p.780). Features or characteristics
of intrinsic system are quite useful for their workers as this kind of reward system involves
participating in making decision, highly freedom in job, more responsibility and various

Role of HRM

10

activities, personal growth opportunities and more interesting work. All these features are
useful to retain and motivate the workers of an organization.

4.4

To monitor the performance of Harrodss employees

When we attempt to look at the techniques embraced by Harrods to screen worker's

performance few questions might be useful to analyze it. The questions are (1) is the methods
or systems are performed well? (2) Is there any more effective productive techniques than the
previous one? (3) How really is functioning well? From the practical scenario we can get all
the desired answers and we should look are the Harrods approach towards it. We have seen
that Harrods is extremely eager to connect with its workers in making decision to job
enrichment and so on(Huselid, 1995, p.669). The Harrods purpose is being accomplished by
adopting that strategy. Presently we think if the Harrods take other methods to screen or
monitor their workers then what could be the genuine situation? The answer could be
extremely skeptical. Therefore it can be seen that the system which Harrods follow is
working to support for it.

5. Task 04 To know the mechanisms of employment cessation

5.1

To identify the reason behind cessation of employment

As it was mentioned earlier there are various reasons behind employment cessation

such as labor dispute, unfair treatment with employees, terminating the business operation
and reducing the labor costs (Townley, 2014, p.92).In Harrods case, this was analyzed that
employment cessation rate is very low. In maximum case Harrods employment cessation was
occurred for highest absenteeism and fraud of employees. Other than that the employment

Role of HRM

11

cessation was observed in the organization because of bad performance when dealings with
customer and badly maintained the relationship with the customers.

5.2

Employment exit procedures

The next step in employment cessation is the exit procedure.The exit procedure of employees
must be specific and very fair and their rights must be clearly ensures by organizations. As
per the labor laws the organization should guarantee the fair treatment of exit procedure with
employees(Dohmen & Falk, 2011, p.566).As compared to other organizations, Harrods
employment exit procedure is exemplary. They first formally inform their employees about
their cessation after that they give time to their employees to place their argument against the
cessation. If the employee couldnt place the argument in the favor, the organization will
formally ask him for the final step. Then Harrods complete all the procedures or requirements
payable to their employees(Huselid, 1995, p.669). After that the cessation card is posted in
the given address of employee.
Talking about the comparison, we consider the Wall-Mart example. As many retail business
doesnt fit with the process that Harrods follow. Wall-Marts exit process varies from Harrods
in small ranges.

5.3

To consider the regulatory and legal framework on cessation of employment

arrangements
At the time of employment cessation maintaining the regulatory and legal framework

is very important for organization in this business world. Every organization must need to
follow the conditions of exit procedures and cessation of employment(Purce, 2014, p.67).If
we consider in Harrods cessation procedures of employments, it matches every requirement
of the legal issues. Harrods has never violated any conditions or terms got from legal

Role of HRM

12

systems. Harrods has also never skipped any provision and articled of labor rights and labor
laws with regards to the procedures of cessation.

Role of HRM

13

References
Babu, B. S. S., & Kumar, P. A. (2015). HUMAN RESOURCE MANAGEMENT: THE
CHAMPION OF MANAGEMENT. Editorial Board, 4(4), 120.
Bartol, K. M., & Srivastava, A. (2002). Encouraging knowledge sharing: The role of
organizational reward systems. Journal of Leadership & Organizational Studies, 9(1),
64-76.
Becker, B., & Gerhart, B. (1996). The impact of human resource management on
organizational performance: Progress and prospects. Academy of management
journal, 39(4), 779-801.
Dohmen, T., & Falk, A. (2011). Performance pay and multidimensional sorting: Productivity,
preferences, and gender. The American Economic Review, 556-590.
Gruman, J. A., & Saks, A. M. (2011). Performance management and employee
engagement. Human Resource Management Review, 21(2), 123-136.
Guest, D. E. (1987). Human resource management and industrial relations [1].Journal of
management Studies, 24(5), 503-521.
Huselid, M. A. (1995). The impact of human resource management practices on turnover,
productivity, and corporate financial performance. Academy of management
journal, 38(3), 635-672.
Kovach, K. A. (1987). What motivates employees? Workers and supervisors give different
answers. Business Horizons, 30(5), 58-65.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Tohidi, H. (2011). Teamwork productivity & effectiveness in an organization base on
rewards, leadership, training, goals, wage, size, motivation, measurement and
information technology. Procedia Computer Science, 3, 1137-1146.
Townley, B. (2014). Selection and appraisal: reconstituting. New Perspectives on Human
Resource Management (Routledge Revivals), 92.