Effective Management Of Employees Within An Organization


  • Unit No: 3
  • Level: Undergraduate/College
  • Pages: 8 / Words 1971
  • Paper Type: Assignment
  • Course Code: Y/508/0487
  • Downloads: 2862
Organization Selected : Liverpool Victoria


Human Resource Management is determined as a strategic approach to the effective management of employees within an organization so that they assist businesses in gaining a competitive advantage in the market. The overall purpose of the HR department is to ensure that the enterprise is able to attain success through people. In the present assignment, the given organization is Liverpool Victoria which is the largest insurance company in the United Kingdom that offers a wide range of products (from life insurance to retirement and investment solutions) to customers. This report covers the purpose and scope of HRM in terms of resourcing a firm with skills and talent to attain business objectives. It also includes the effectiveness of key elements of human resource management as well as internal and external factors that affect the decision-making of the firm. Lastly, employment legislation, its significance, and the action of HRM practices in a work-related context is defined in this project.


Purpose and Scope of Human Resource Management

HRM is an essential process which includes orienting and training, evaluating performance, providing incentives and benefits, and communicating with entire workers at all levels. It is important for the company to reduce employee turnover as well as gain competitive advantages. There are some functions of HRM which are followed by the HR department of Victoria Liverpool. These functions are explained below:

Managerial Functions: In a company, the manager has different roles and managerial functions including planning, directing, controlling and organizing. Planning is supported in identifying the goals and objectives of an enterprise and recognising the procedures and policies in order to reach those goals and targets.

Operative Function: There are various operative functions such as development, employment, integration, compensation and maintenance of workers in an enterprise. Employment covers placement, selection, recruitment and many others. Compensation covers monetary and non-monetary systems. In the case of development that includes training programs which help the entire workforce to maximise their skills and knowledge.

Selection and recruitment: It is another important function which is performed by the manager with respect to organising interviews so that a knowledgeable candidate can be recruited for performing the particular operation. HR departments need to evaluate the performance of candidates in the period following and then choose the talented from them to increase the performance and profitability of Victoria Liverpool in order to fulfil the entire needs and wants of customers.

Purpose of Human Resource Management: The main and foremost purpose of HRM is to recruit and select knowledgeable and talented candidates from a large pool. There are some purposes of HRM which are determined below:

Improve productivity: HRM is identified as an effective and significant process which supports the business manager to improve the productivity and performance of the organisation. In this administrator of the Victoria Liverpool provides training and development programs to their all workforce. It supports them to maximise their knowledge base and skills as well as easily deal with hard situations effectively.

Improve quality of life or work:In order to improve work or life quality, the human resource manager of the company plays a vital and effective role by avoiding micromanaging, recognizing good work, improving employee productivity and many others. It helps the business entity to maximise its reputation in the marketplace.

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Application to workforce Planning and resourcing in the organisation: It is a continual process used to align the requirements and priorities of the enterprise with those of its employees to see if it can meet its production, services, regulatory and legislative needs and organisational objectives. It helps the business to maximise its turnover and attain the long-term goals and objectives of a company in a given time period. There are certain benefits of this which are explained below:

  • Apply a workforce planning program that assists financial objectives and future business plans.
  • Effectively manage and forecast your workforce headcount, annual labour costs and job families.
  • Systematically plan as well as address future accomplishment and resourcing priorities
  • Create talent management programs and succession planning that modify bench-strength
  • Determine and pro-actively code long-term manpower composition and demographic challenges

Different approaches and recruitment and selection: There are some methods of recruitment and selection and their strength and weaknesses are determined below:

Internal source: Under this, a suitable candidate is found within the organization only via promotion, transfer etc. Following are the strengths and weaknesses of this approach:-


  • Less costly and reliable method as selected candidates is already oriented towards the company.
  • Promote employee motivation & morale
  • Improves employer's brand


  • Limit the number of talent & potential applicant
  • Lack of fresh blood in the company
  • It could cause internal conflicts


External Source: In this method, suitable employees are selected from outside the company mainly through direct recruitment, walk-ins, employment exchange programmes, advertisements, factory gates etc.


  • Promote Competitive Spirit
  • Better Growth
  • Fresher Input and Skill
  • Generation of creative and unique ideas


  • Longer and Expensive Process
  • Chances of conflict are high
  • Problems of Maladjustment

It is the responsibility of human resource professionals to manage the human capital of the company and emphasize executing policies & processes.


Significance of employee relations:

Employee Relation can be defined as the relationship that exists between employee and employer. Employees are those people who exceptionally contribute in the achievement of the firm, without them, no organization will achieve. Thus, it is essential for managers to keep up sound relationships among management and the workforce. Great worker relationship guarantees a solid work environment and a fulfilled workforce. Some of its benefits are listed below:-

  • The interest of employees in the exercises of the firm is maximised. As a result, all business activities of Liverpool Victoria will be carried out in an effective manner.
  • It ensures the growth and sustainability of the firm go a longer period of time.
  • Help the company attain a high competitive edge.
  • Firms should take normal input from their labourers in regard to their work with the goal that upgrades can be made if required.

Key elements of employment legislation:

There are different enactments made by the government which characterize the rights and obligations of the business and in addition workers. These directions help with characterizing relationships among them and the duties of labour in the work environment. Key components of work enactment are as per the following:


Benefits of HRM practices for both employee and employer

The process of controlling and managing people in a business enterprise in a structured and thorough manner is termed Human Resource Management. This includes providing training & development, setting of pay and perks, retention of people, performance management etc. Such practices not only provide benefits to employees but also provide extensive advantages to employers as well. Discussed below are some common practices of HRM adopted by Victoria Liverpool that give vast benefits to both employees are listed below:

Benefit to Employee:

  • Developing Employees: HRM practices provide satisfaction to employees & inspire them to contribute effectively towards the intellectual assets of the company. Knowledge and skills of personnel lead to increased competitive advantage of Victoria Liverpool. Adequate resources are provided by the company to its employees to give them higher training and education and chances to utilise and share knowledge.
  • Motivating Workers: The prime responsibility of the HR manager is to improve employee performance. Chances of generating a higher profitability ratio increase when employees are motivated and their work or contribution is valued by the company.

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Benefit to Employer:

  • Training and Development: This HRM practice not only helps employees but also plays a significant role in improving the overall performance and productivity of the employer. It has been believed that if manpower is skilled they are able to achieve organizational goals and objectives in more better & effective manner. This will ultimately lead employers towards high growth and success and administer competitive advantage in the market.
  • Building a healthy and positive workplace: The work environment of any company is directly proportional to employee performance. Workers feel motivated when they work in a healthy and positive environment. Unhealthy workplace surroundings have a negative impact on personnel productivity.

Effectiveness of different HRM practices in terms of raising organizational productivity and profit

  • Innovative and High-Performing Employees: Victoria Liverpool promotes an innovative work environment and motivates their workers by providing them with better facilities which ultimately leads to improving the overall productivity of workers. With effective and efficient manpower, the company can maximize its revenues and attain a high competitive edge in the market.
  • Effective rewards drive performance: The performance of an employee is directly tied to monetary rewards. Worker gets motivated when management values their work and in return, provides fair compensation and benefits on the basis of their performance. Effective rewards help in retaining employees for a longer time period and also encourage them to work incredibly hard towards achieving business goals and generating higher revenues.


As per the above-mentioned report, it has been concluded that HRM is a strategic approach in which effective management of manpower is done so that businesses are able to gain a competitive advantage. Various functions and purposes are associated with the human resource department such as hiring, training and development, employee compensation, performance appraisal etc. The main motive for performing all these functions is to motivate the workforce and encourage them to perform well so that the objectives of the company can be accomplished in a successful manner. Internal and external approaches are used by firms for recruiting and selecting competent and skilled candidates that help increase their profitability & performance. Good employee relation assists in increasing the engagement of manpower in activities and operations of company. Application of HRM practices provides various benefits for both employer and workforce in terms of improving performance, high level of satisfaction, conflict resolution etc.

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