Human resource management has been defined as an approach towards effective management of people that are present in organisation as they help the business in order to gain competitive advantage (Al Ariss, Cascio and Paauwe, 2014). Further, it has been designed to maximise performance level of a particular individual that later helps in meeting strategic goals and objectives of a particular company. Thus, in the following report, Amazon has been taken into consideration. It is an American electronic commerce and cloud computing that is situated in Seattle, Washington.
Thus, in this report the purpose and functions of HRM has been discussed in detail. And along with these strengths and weakness of different approaches has been analysed. Furthermore, the benefits of different HRM practices and its responsibility in raising profit of Amazon and also increase in its productivity has been explained. In addition to this, this assignment also highlights on various elements of employee legislation and its impact on HRM decision making and applications of HRM practices has been illustrated in this whole report.
P1. Purpose and functions of HRM, applicable to workforce planning and resourcing.
Human resource management is typically refereed to as allowance so that they apply the strategies that aid in bringing out creation, productiveness and skillfulness of organisational workforce (Human Resource Management (HRM): Definition & Functions, 2018). The human resources' management assist in creating bridge between line management and workforce of Amazon and also raising employee performance to their maximum level that is related to their role in a particular administration. Thus, purposes and functions of HRM are discussed as per below context-
- Internal Customer Management- This is the key purpose that has to be fulfilled by HRM. Amazon's productivity trust on the quality of worker they have. They mainly design the process and plan of action and then implement it that is necessary to attract, recruit, and retain a quality workforce (Albrecht and et.al., 2015). They also have direct relationship with the financial performance of the cited company. Further, the importance of customer service to the stated enterprise also starts with HRM. In addition to this, they also serve customers that are involved internally and creates external relationships.
- Metrics- successful HR manager works along the line management and also with active business partner. They mainly use metrics method in order to analyse the cost of resources that helps in creating more efficiency at all levels in Amazon. Thus, HR manager is concerned in measuring the outcomes of performance and conditions that facilitates desired results.
- Cultural sensitivity- To maintain cultural awareness is also the main purpose of human resource management. Central Human resource manager responds to needs of one or multiple divisions, they are called routinely to manage the cultural differences of Amazon. Thus, to hire candidates from various parts of the entire world, human resource manager has to understand about visas, contracts and red tape in detail. Thus, they plan alternate strategies to anticipate delays in offering products and services.
- Human resource planning- this process systematically forecast future demand and supply of employs and also preparation of person with regard to strategic gaols of organisation. It also plays significant role in serving link between human resource management and overall strategic design of cited system. It also assists in determining ability that is required by organisation in order to fulfil needs and goals of organisation and also acquires appropriate people.
- Recruitment and Selection- Recruitment is defined as selecting likely and competent candidates based on objective criteria for a particular position. The main aim of this process is to attract the applicants that are qualified and promote the unqualified candidates to bring out themselves. It is the most challenging task for the HR manager as it requires lots of resources and attention. Amazon uses various methods of recruitment and selection to hire most efficient employees for their organisation such as Internal and external recruitments consisting interview, promotion, transfer etc.
- Training and Development- Training plays critical role in Amazon. This helps in making the employees up to date in their respected position. This also helps employees to easily understand the process and task and work accordingly by putting their full efforts that leads in achieving high profit and long-term success of Amazon. It acts as an attempt to improve current and future performance of employee by increasing their ability by way of educating them and increase their skills and knowledge to a great extent. There are various methods of training used by the organisation in order to performance of their employees, these methods include coaching or mentoring, Group discussions, Management games, On the job training etc.
- Orientation- This is the fundamental functions of HRM in order to help new employee in adjusting themselves with the existing environment of Amazon. This orientation programs help the employees by knowing duties and responsibilities assigned to them as per the position they acquire in Amazon.
- Managing employee relations- Employees play the role of pillars in Amazon. It is a very broad concept and maintaining it becomes very crucial for human resource management (Paillé, Chen, Boiral and Jin, 2014). They must organise activities that may help in knowing the inner and outer level of employees and their attitude towards work. Thus, well planned relation help in promoting healthy and balanced relationship between the workers and managers. It plays a role of key that leads Amazon towards success. The organisations focus on building healthy employee relations through effective communication such as meetings, seminars, group discussions etc that motivate employees.
P2. Strengths and weaknesses of various approaches to recruitment and selection for amazon.
Impressive recruitment and selection of nominee is a science as well as art. Institution approach recruiting in reactive and also in proactive method, that response quickly to new job vacancies of candidates that are qualified before new positions open up (Armstrong and Taylor, 2014). Thus, the strengths and weakness of different approaches to recruitment and selection has been discussed as per below context-
- Internal recruitment – It is a most commonly used method of recruitment and selection in an organisation, it helps in hiring employees within the organisation. It includes methods such as promotion, transfers etc. The internal recruitment is very time and resource consuming method therefore it is highly utilised by most of the organisations.
- Job descriptions- the hiring policy begins with the proper and accurate job descriptions that includes all the information regarding job, salary, task, responsibilities and all additional terms and conditions that are involved in Amazon. The main strengths of this is that it helps candidates in order to measure their interest more accurately in various positions. They can also provide sensibility into which person would be more satisfied and fully utilised in special roles of a special line. The major weakness of this is that it is very much challenging to create job description in start-up state. Worker of a start-up find themselves in taking on range of duty outside their average job report often. Amazon must note all this in their first job description.
- Skills inventory- this is the approach to find perfect nominee. They have to first collect the list that represents the set of skills that employees acquire in each job position. This will help Amazon in finding the most likely candidate from the pool that will help in succeeding the business (Sargeant, 2016). This approach mainly helps when there is minimum requirement in a cited company. In this a company may list a bachelor's degree as a demand for a particular job and may choose masters in order to engage for a particular or stated position.
- Job posting Strategy- this is the part of tabular recruitment and selection procedure in Amazon. Thus, job posting outlets helps in producing ideal candidate that the cited company is seeking or looking for. These outlets help in determining nominee that are needed for empty place in Amazon. It is also referred as job advertisement that includes posting advertisements related to a specific job role to recruit employees.
- Multi step recruitment- it is a organized process that provides the shallow insight into the candidates that are actually curious in job. And those who meet the skills that are required in terms of a particular position or recruitment. This is the most difficult procedure for the business that don't have human resource manager and direct directing manager to cooperate. Thus, it is a very time-consuming activity.
M1. Functions of HRM providing talent and skills appropriate in fulfilling business objectives.
HRM functions role is to provide the needed support in issues that are being faced to line employees (Australian Human Rights Commission, 2016). Or those who are involved directly in producing goods and services in organisations. This department handles different functions in Amazon as they are mainly responsible in order to hire and fire the employees, train workers, maintain or build the relationship between employees that are involved in the stated company. This all functions helps in providing skills and talents that are required by the company in order to fulfil targeted goals of a particular enterprise.
M2. Evaluating strengths and weakness of different approaches to recruitment and selection.
The major strength of various type of formulation is that the members can standard their interest and accordingly prefer position. This helps in motivating employees to perform their interest work accordingly that later leads in achieving long term prosperity and profitability in Amazon. Further it also assists in finding appropriate candidate for the selected position with help of list of skills they have.
As it is said that every positive aspects' comes along with some negative aspects with it. Therefore, this approaches also has negative aspects that they are time consuming because they don't have supervising manager with the cited company. Further, to create a job description, it acts as a very challenging task for Amazon.
P3. Benefits of different HRM practices for both employer and employee in Amazon.
HRM practices predicts the execution of a particular firm. It helps in enhancing workforce ability, need and chance that leads in achieving high performance in organisation and high gain (An Introduction to HRM Practices, 2017). Thus benefits of HRM practices has been discussed in following-
- Retaining qualified employees- Amazon provides easy way and flexibility in the benefits of their members. This will benefit them by staffs that are extremely qualified. Thus, with help of these staffs they can carry off risks and burdens of the cited organisation easily without any trouble (Soutphommasane, 2015). Therefore, HRM practices is very important in order to retain qualified employees in a firm that helps in improving or enhancing overall performance and productivity of the organisation.
- Encouraging positive behaviour- along with easy access and flexibility, Amazon also provides positive working environment and favourable benefits for employees through practices that are undertaken by HRM by motivating them so that they can be more productive. But if there would a negative environment it can create dissatisfaction in employees that would later affect the growth of the selected firm. Human resource management also plays an important role in motivating employees by offering rewards to their employees such as bonuses, promotions etc for their good performance.
- Developing good relations- HRM practices helps in developing and building good relationship with employees of Amazon that later helps employers to track the progress and access the performance, so that they can take necessary actions to control them by drafting business and marketing plan for the stated company. The various HRM activities for example group discussions, group activities etc helps the employees to interact with each other and develop healthy relationship promoting good employee relation in the organisation.
- Building flexible workplace- this practices that are undertaken helps in maintaining flexibility in organisation. As today's workers are more diverse so they have top maintain flexibility by providing flexible workplace along with designs of work environment, assignments or location. This helps employees to customise aspects of their job that suits their lifestyle so that they can lead in achieving long term success.
- Motivating workers-Amazon provides HRM practices in order to help employees to increase their thinking as being unique one in their position and help employees in positive way. Thus, it will help employees who are working under positive manager to feel more motivated and will result in high productivity that will be done automatically after they start thinking as the most unique and innovative person on a particular position.
Thus, from the above points we can find that HRM practices are beneficial for both employees and employer of Amazon.
P4. Evaluating effectiveness of different HRM practices in terms of raising organizational profit and productivity.
The term HRM practices are defined as an approach that is planned to manage people to perform well in an effective manner (Bratton and Gold, 2017). Thus, good practices are instrumental that aid in achieving departmental goals and raising productivity. HRM practices have been effective for both employers and employees in terms of raising organisational earnings and ratio. Since the implementation has been taken place in Amazon it has benefited them with huge profit and productive that has been discussed with help of following context-
- Innovative and high performing employees- HRM promotes the environment that is innovative and even motivate the worker of Amazon with better facilities. Thus, this type of initiative helps in increasing the productivity and profitability of a selected company. This also leads in achieving high brand image.
- Effective direction setting and execution- Leaders and managers of Amazon has to set and achieve individual as well as team goal by setting effective direction, purpose, priorities, goals and roles of the workforce. This practices aid in fledgling the manager that are proper for the place or place that is chosen. This helps them in leading a Amazon to the first-rate place with high net profit and ratio.
- Effective rewards drive performance- Amazon must reward the employees according to the performance that will drive them to perform particular task that has been allocated to them more seriously (Storey, 2014). This will help Amazon to achieve long term success and profitability as they tied monetary rewards directly to the performance.
- Team and individual goals with effective communication- Amazon has to change the process of communication in effective way so that it helps in setting and attaining and achieving both individual as well as team goals. So, the HRM of the cited company must provide effective mode of communication to employees so that it leads in making the company to reach the boost.
- Sharing and collaboration- this plays an important role in making the cited company a successful one. Thus, the productivity and profitability will improve directly when others feel free to collaborate tools and share ideas that are best for the growth of Amazon. This practice will help the company in developing formal methods in order to increase way of collaboration and sharing process.
- Updating employees’ skills- the HRM of amazon company has to update the skills of employees with proper and effective training so that they can cope up with global competition that is faced by them. They have to identify the person with less optimal skills and update it accordingly to the meeting needs and wants to face the competition.
Thus, from above context it can be clearly understood that the HRM practices plays critical role in raising the profitability and productivity of Amazon over competitors.
Evaluation: HRM promotes the environment that is innovative and even motivate the worker of Amazon with better facilities. While, Effective direction setting and execution practices aid in fledgling the manager that are proper for the place or place that is chosen. This helps them in leading a Amazon to the first-rate place with high net profit and ratio. On the other side, Effective rewards drive performance help Amazon to achieve long term success and profitability as they tied monetary rewards directly to the performance. Apart from this, it has been also evaluated that Sharing and collaboration will help the company in developing formal methods in order to increase way of collaboration and sharing process.
M3. Exploring different methods used in HRM practices to support evaluation within Amazon.
The literature and practice of human resource management uses large number of methods and various techniques that is mainly coming from mathematics, management, statistics (Brewster and et.al., 2016). Thus, it also plays important role to use these methods for human resource management redesign process. One of the methods that is included in performance appraisal which is a systematic process and also helps in evaluating an individual’s performance in terms of productivity with respect to set of objectives that are pre-determined.
P5. Analyzing the importance of employee relations in respect to influencing HRM decision making.
Human resources are the most valuable and unique assets that are available in an organisation. The successful HRM is an exciting, dynamic and challenging task specially when economy of the world are in state of flow (Collings, Wood and Szamosi, 2018). Thus, every person in Amazon shares particular relationship with their fellow workers, because there is a need to talk and discuss with others to draw perspective of decision. Thus, importance of employee relations in respect to influence HRM decision making are discussed as per below context-
- Work becomes easy- there is an importance to maintain the relations among the workers involved in Amazon that will later lead increasing chance of productivity. Thus, if works or tasks that are allotted to a particular person if shared with all the members that are involved will help the whole team in accomplishing the desired task within a particular time that has been assigned to them. If the staffs have good relations with all the members of team, they will gain an ability to assist those who need and make a particular task easy.
- Discouraging conflict among workers- Good relations among the workers of Amazon will help in reducing the maximum chance of conflict and fight that may occur among them. This will also help them in trusting each other and assist in performance that may lead in fulfilling goals and objectives. Thus, productivity of Amazon increases due to this that later helps HRM in taking better decision for cited company.
- Loyalty of employee- If amazon has pleasant and interactive environment that will create the loyal employees. They will be feeling motivated in order to perform particular task that has been assigned and leads the company towards great success by providing great efforts. It will also decrease the rate of employee turnover in Amazon that helps in reducing cost of recruiting new employees to the enterprise.
- Ensuring equality by communicating effectively- effective communication will help the cited company to ensure that there is no discrimination in company that will make them feel motivated and perform in effective manner. This will lead in achieving desired goals that has been set by a particular enterprise. Thus, proper communication will later helps in taking proper decision that too on time.
Thus, having good relations in employees will help HRM of Amazon in effective decision making.
P6. Identifying key elements of employee legislation and impact it has upon HRM decision making.
The term employment legislation is defined as measures of all kind that are incidental to to employment security that includes measures in terms of protection , court rulings, conditions that are collectively bargained of employment or customary practice (French and Strachan, 2015). Thus, key elements of employment legislation within which Amazon must work are discussed as per below context-
- Disability Act, 2016- There are more that one billion people in the whole world that are suffering from physical and mental disabilities and has top face number of challenges on daily basis. Amazon must adopt this rights so that it will help the one who are suffering with these challenges by ensuring them that they also have equivalent right to rights and opportunities like another has. This will help ion decreasing the employee holding in Amazon.
- Equal Pay Act, 2010- It has been set in terms of equality in an organisation. This act protects both man and woman in terms of sex discrimination or pay rates. Amazon must adopt this Act as it will lead in increasing women employees and also increase efficiency. This is adopted when women are paid less than man for similar role. This act is a labour law of UK that prohibit the secernment of work against anyone at-least 40 years of age in United States. This act considers security on basis of age to employees and applicants in terms of hiring, promotion, discharge, compensation or privileges of employment. The one who is elder is being helped with many facilities on Amazon due to this Act.
- Minimum Wage Act, 1998- It aid in fixing minimum rate of wages in certain employments. Here, they are set to pay minimal wages for both skilled and unskilled class. This act will assist Amazon to increase working class that may lead in high productivity and great success of the respected business.
Thus, these acts are important in order to regulate relationship between business and employees that are involved in Amazon. By this, both employers and employees can ensure that their process of hiring, dismissal and also their workplace as a whole are very fair for each and every type of individuals.
M4. Evaluating key aspects of employees relationship management and employment legislation affecting HRM decision making in Amazon
Employee relationship management system is a system of information that mainly supports the relationship between company and their employees (Marchington, Wilkinson, Donnelly and Kynighou, 2016). The main components of this system is to achieve goals of assisting employees in the whole life cycle of activity and company. Thus, employment legislation that includes the acts that has to be adopted by the cited company that is Amazon so that the employees involved in that may feel equal and are motivated to perform well in organisation that helps in achieving long term success and high profitability. This also helps the HRM of selected company in decision making process in a positive way. Thus, the company has to adopt this process that will later leads to make company reach the boost and employees to work with enthusiasm.\
P7. Illustrating application of HRM practices in work related context.
HRM practices is defined as an approach which are planned in order to manage people towards high level of performance in effective manner. Thus, good HRM practices are instrumental in order to help in achieving various objectives related to departments and also in enhancing productive ratio (Al Ariss, Cascio and Paauwe, 2014). Amazon is a successful company, which shows that they have a good human resource management team that performs different practices in an effective manner. These include:
Recruitment and selection
Amazon follows a stern process of recruiting and selecting employees, as they need competent individuals to manage tasks. Due to operations across different countries, there are a wide range of HRM present and this practice helps them in choosing best available candidates that can increase revenues and profits of the organisation (Armstrong and Taylor, 2014). They choose for outside methods of enlisting, generally through college placements and advertisements of job vacancies.
Job details: Responsible for all the products manufacturing
Qualification: Post graduation
Experience: 2 year experience in Alix Company
Can do work in any condition and also make my extra efforts for the sustainability of the work
Training and development
HRM practices include training and development of worker within an organisation. Amazon's managers study and determine theories that can be used for programs that can increase skills of workers (Ogbonnaya and Messersmith, 2018). They guarantee that they choose the best available leaders that can guide employees, to bring out their best potential. There are certain strategies that have been created by Amazon's HRM, which have been successfully implemented within the organization.
Management of performance
Management of performance is another HRM practice that has been successfully adopted by Amazon. The regular monitoring and evaluation of employee performance helps in ascertaining what improvements are needed to be made, so that work can be done in an effective and efficient manner (Collings, Wood and Szamosi, 2018). It also aids in implementing motivational techniques, so that employees are motivated to work better. Amazon ensures that their employees are encouraged to perform tasks while using their full potential, which enables them to achieve organisational goals.
Appraisals or compensations have to be made by HRM and this practice is followed very strictly. It is necessary to reward employees for the work that they do, as it leads to job satisfaction. There is also a decrease in employee turnover, as Amazon is able to effectively compensate their workers (Vanhala and Ritala, 2016). Without appraisals, no one would be encouraged to work and this organisation's HRM ensures that there is complete satisfaction of employees.
M5. Providing rationale for application of specific HRM practices in work-related context
Amazon has been successfully running business operations around the world and the practices adopted by HRM shows that they have taken correct courses of action to ensure that there is a smooth functioning of their business. They are able to recruit and select competent individuals, which has helped them in completing tasks in an effective manner. The methods through which training and development programs have been created, shows that HRM practices have been successful (Human Resource Management (HRM): Definition & Functions, 2018). While management of performance helps Amazon in ensuring that employees are continuously motivated and encouraged to perform better as it leads to increase in revenues and profits. Finally, HRM practice of compensation shows that proper plans have be utilised for rewarding employees for their hard work.
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Thus, from the above report, it has been concluded that HRM plays very significant role in achieving business objectives of Amazon as it helps in bridging the gaps between line management and workforce. It also leads in increasing the performance of employees by motivating them to put their effort in the selected position. Furthermore, various approaches has been discussed in this assignment that helps in analysing the strengths and weakness of them. Thus, various employment legislation act has been illustrated that has a great impact on decision making process of HRM. In addition to this, it has also been analysed in this study that Amazon must adopt various legislation acts that will help them in motivating employees to perform well with enthusiasm and achieve great success in business that leads in earning high volume of profits.