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Purpose and Functions of Human Resource Management

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INTRODUCTION

Human Resource Management is practice of recruiting, hiring, developing and managing an organisation's employees. It is basically defined as process of managing, hiring, training and development and motivating employees in an organisation (Foster, 2014). Moreover, it is a way in which a firm  hires new employees so as to ensure effective utilization and maximum development of human resource, satisfy both individual and organisation. In this report, chosen organisation is HSBC Bank. It is a British multinational banking and financial services holding company as well as 7th largest bank in world. HSBC is organised within four business groups that is commercial banking, global banking and marketers, retail banking and health management and global private banking. This report is going to analysis purpose and function of human resource management, strength and weakness of different approaches in selection  and recruitment  process. Moreover, importance of employees relations influencing HRM decision making and impact of employees legislation is defined. Further, application of human resource practices in a work related context is discussed in this project.

TASK 1

P1Purpose and function of HRM, applicable in workforce planning and resourcing an organisation.

Human resource management is an strategic approach to effective management of an organisation that help both employees and firm to gain competitive advantage. (Pattanayak, 2018). The human resource management function is  concerned with hiring, motivating people in an working environment of an organisation. In organisation context of HSBC, employees are  consider as life bone for an organisation. There are some purpose and function of human resource management are as follows:

Purpose:

It is management process effective in development of employee's work related skills, knowledge and experience. Moreover, to work together in order to improve performance and meet organisational goals and objectives.

  • Internal employee engagement: Human resource management has various key purposes as productivity of an organisation directly result with quality of employees. HSBC human  resource management implements purposes and policies that are necessary to attract its employees and retain a quality workforce.
  • Staffing:The main purpose of staffing is employee's recruitment, screening and selection performed within an organisation or business in fulling job openings. This process help mangers of HSBC, to select the right candidate for right job. Further, it is beneficial for both individual as well as organisation to meet its goals and objectives respectively.
  • Cultural sensitivity:Human resource management maintains cultural awareness among employees as responds to needs of an individual and multiple division (Armstrong and Taylor, 2014). The employee's of HSBC are  form different regions, state and city. They are conducting effective session and activeness that employee's feel comfortable in working environment without any difficulties.

Functions:

Human resource management function are  applied for acquiring, developing, maintaining and providing remuneration to its employees. It function are  designed to carried out order to maximise both employees as well as organisation.

  • Recruitment and selection: Recruitment and selection process is very important function of every organisation. It is process of captivating, screening and selecting potential and qualified candidates. HSBC implement this process very effectively for selecting right candidate for right job for fulling goals and objectives of an organisation.  
  • Orientation: Orientation is the fundamental function of an organisation as it helps new employees to feel comfortable in working culture. HSBC, provides this program that includes goals and objectives of organisation to employees in order to achieve long term and short term goals of respective firm. Further, it helps an individual to know is rights and duties of their job position.
  • Maintaining good working condition:It is basic and important responsibility of human resource management to provide good working condition to its employee. HSBC, provides good safe and comfortable working environment to their employees to carry out their work effectively (Bratton and Gold, 2017). Moreover, they motivate their employees to tackle new challenges and opportunities and contribute their best to achieve organisation goals.
  • Managing employee's relation: Employee's are pillar of an organisation. Managing employee's relationship is crucial task of human resource department. HSBC, human resource management are managing employee's relationship very keenly in order to reduce conflicts and misunderstanding among employers and employees. Well panned employees relation will promote a healthy and balanced relationship within an organisation. Thus, it is key for an organisation to success in competitive edge.

Nature and scope of strategic  human resource management

Strategic management is well defined approach that is based on effective principles and process to recognise corporate objectives of an organisation. Its process and beliefs are determined to control affiliation in vibrant environment. Moreover, its describe approaches and procedures  to help management  to attain its objectives and strategies.

Hard and Soft HRM

Hard HRM is very instrumental and practical approach, in which employees are consider a resource of an organisation. It also help to control resources and achieve best possible profit and competitive advantage.

Soft HRM emphasises on individual and their self direction and places, commitment, trust and self regulated behaviour. More over it treats employees as most important resources in business. Thus, both soft and hard HRM are beneficial for HSBC

P2 Strength and weaknesses of different approaches to recruitment and selection process

Recruitment is process of identifying needs to appoint an individual for post arrived in an organisation. Selection is a process of selecting right and qualified candidate to fulfil suitable post in an organisation (Briscoe, Tarique and Schuler, 2012). The recruitment and selection process is one of most important aspect of running existing and new established business. Managers of HSBC has applied this process in order to attain a deserving candidate for right job position in their organisation. That is beneficial for their organisation as well as help to fulfil need of an individual respectively. Recruitment and selection process is divided in two parts:  

Internal recruitment: Internal recruitment process is method of identifying and attracting candidate's within an organisation. This method is usually used by large organisation where in any one department of employees are not aware of opportunities in an organisation through informal modes of communication (Brewster and Hegewisch, 2017). From this recruiting method HSBC will have certain benefits over recruiting from outside, also have some critics.

Strength of internal recruitment and selection process

  • Reduce time to hire: This process will reduce time for hiring and selecting right candidate. Conversely, as internal heir candidates are already part of workplace they are well know about working criteria of respective organisation.
  • employees engagement: Promoting or hiring employee for some other post, it will lead to increase to add value and productive for HSBC. They are providing opportunities to move an employee to other level of position in an respective organisation.

Weaknesses of internal recruitment and selection process

  • Limit of pool candidate's:If the mangers of HSBC are hiring from existing employee for new post. Thus it lead to decrease to bring new opportunities and new ideas in an organisation.
  • Result in inflexible culture:Hiring from internally may result in a stagnant culture for HSBC. Because employees of respective organisation gets extreme level of comfortable with ways of things are done in an organisation. Thus, it may result into problematic in leadership position and may result to bring changes to in current working culture.

External recruitment: External recruitment makes it possible to draw a wider range of fresh talent and provides opportunities to bring new and experience and ideas in an organisation (Chelladurai and Kerwin, 2017). If mangers of HSBC are recruiting from this method it will be beneficial for them.  

Strength of external recruitment and selection process:

  • Increased chances: Increased chances provides better availability of skilled and qualified employees for HSBC  organisation. From this process they will have wide variety of fresh and talented candidate who owns knowledge and ability to handle job position they are appointed.
  • Fresh skills and input:It will help managers of HSBC for having advance opportunities of candidates of delivering new skills and inputs for better performance of their organisation.

Weaknesses of external recruitment and selection process:

  • Internal disputes with existing employee's:If managers of HSBC are considering fresh candidates rather than from existing employee than there may be higher possibility on internal disputes. Eventually, this kind of dispute will lead things completely different from the existing culture of an organisation.
  • High cost: This process complete deals with mainly new process of hiring and selecting candidates. Managers of HSBC  need to come up with high pay scale for selecting right candidate that suits job profile. Further, it turns out things lit bit costly as they are in need of new creative ideas from potential candidate's.

Here HSBC has chosen external recruitment and selection process as to have new fresh inputs foe their organisation. Such as new ideas and innovation from  skilled and qualified employees. But this process to have disadvantages as high cost in recruiting new employees and may also lead to internal dispute among existing employee's.

TASK 2

P3 Benefits of HRM practices for both employer and employees.

It is a planned approach for developing and managing people in organisation for effective performance. It helps in achieving departmental objectives and  enhances productivity. HRM practices are basically concerned with employee compensation and benefits and resolving conflicts among employer and employee (Budhwar and Debrah, 2013). Hence, creating a healthy motivating environment at workplace. HRM have responsibilities in organisation which protects the interest of both employer and employee. For employers HRM practices help in maintaining and managing employee relations  and for employees itprotect their rights ensuring employers operate within scope of employment and labour laws.

Benefits of HRM practices for employees and employers.

Benefits for employees

Benefits for employers

Training and development-Employees are provided training to improve their skills and enhance work performance. It also allows employees to develop a career track and grab further potential opportunities. Mangers at HSBC bank provide training and development needs to its employees to increase their properly, gives guidelines where the employee is not performing functionally which brings back them to track and enhance customer satisfaction at banks.

Analysing benefits and cutting cost- It can reduce company's cost with link to its turnover, hiring and replacement of workers (Buller and McEvoy, 2012).  It helps in recruiting employees with necessary skills and expertise and increasing profits of organisation. HSBC bank should provide employee benefits such as providing  compensation benefits for their extra working hours  which most likely attract and retain them. In turn reduces company's cost of managing employees

Creates pool of information resource- Employees are provided with enough information who feels their rights have been violated. They are provided with information regarding to employee benefits, leave of absence, employee assistance  programmes and other compensation benefits which motivates them to work functionally. Managers at HSBC bank provide information regarding new policies which are benefited to them and also provides information regarding changes in policy or scheme which creates healthy environment at work place (Purce, 2014).

Resolving conflicts in turn increasing productivity-  Good employee relations helps in achieving high satisfaction level throughout workforce. These practices provide support to employees who feels that their rights have been violated. They interpret anti discrimination and harassment laws and  assist employees with legal matters. HSBC mangers should resolve conflict among the employees and the employers or between employees themselves to effectively manage the performance, provide solutions to immediate problems and increase performance and productivity.

Employee Engagement- When HRM practices are followed by respective companies it creates a sense of loyalty in their employees which motivates them to effectively work for the organisation. Employees feel themselves valuable and work accordingly. Management practices at bank should be engaged towards its staff which assures them to work for the organisation to achieve goals and increases their commitment towards their work.

Recruitment and retention- Obtaining qualified workers, providing appropriate training,  encouraging them to further increase their education and awarding them with benefits and compensation drives organisation to achieve success. It help organisation to recruit talented candidates according to job requirement. HRM practices allows HSBC bank to get the knowledge candidates which are required to carry specific job and increase productivity of the bank.

These all practices creates a healthy environment and provides benefits to its employees and employers.

P4 Effectiveness of different HRM practices in terms of raising organisational profit and productivity.

Those practices which enhances ability of workforce, providing motivation to its employees and lead to increase in profit and productivity of its business. These practices are important for organisations to ensure higher organisational performance. There are different HRM practices which organisation adopts to enhance their performance.

  • Payment and reward management- Payment and reward management is concerned with formulations and implementation of policies that provide fair and equitable reward in accordance to value of organisation (Nickson, 2013). It is apay control system which covers salary and other benefits of employee. Main benefits of providing fair payment to employees is to motivate employees to work with great enthusiasm and zeal which in turn increase organisation profit and productivity and sustain it for long term. HSBC Bank providing fair and equal distribution of remuneration along with certain perks and benefits increases dedication of employees towards their work and helps bank to provide better services to its customers and hence increases profit of respective bank.
  • Employee performance management and monitoring-It is an systematic approach which continuously identifies, measures and develops the performance of individual workforce in organisation (Pieper, 2012). Hence it  is both an systematic and integrated process by which overall performance of an organisation can be improved by enhancing  performance of individuals within team work. Monitoring allows managers to review employee performance and provide feedback to employees towards reaching its goals. Performance management and monitoring of its employees hep them to work under supervision of managers which provide them solutions to problems they arise which help them to fulfil their task properly without any problem and helps in increasing productivity of organisation. HSBC bank should monitor performance of its employees by providing adequate training and guidelines and helps in achieving higher profits and target large customer base.
  • Flexible working options-These HRM practices provides creative approaches for completing task and providing balance between work and personal commitments (Kim, 2012). There are flexible work options such as compressed work schedules, job sharing or part time work which offer employee suggestions and helps in managing work schedules with their other personal commitments and which increases employee dedication towards their work and employee feels valuable start enhancing performance which increases productivity of organisation. HSBC bank employees are always burdened with work they should provide some flexible options such as sharing of work between employees to motivate them to complete task completely and achieve higher profits.
  • Learning, development and training practices- Training  is and learning process which involves sharpening of skills and changing of attitudes to enhance performance of its employees (Kehoe and Wright, 2013). On the other hand development is much more a elaborated term, emphasizing on employee growth and development. Organisations involved in providing such services increases productivity and profits by more utilisation of resources. HSBC Bank should adopt such learning practices for its employee to improve their skills and enhance their performance by conducting monthly training sessions for its employees to sharpen their abilities of conducting task effectively and efficiently.

These all HRM practices adopted by HSBC  bank helps to motivate employees by increasing their skills and knowledge which increases its profit and productivity.

TASK 3

P5Analyse the importance of employee relations in respect to influencing HRM decision making.

Employee relation means efforts of company to maintain relationship between employers and employees. An organization which has good employee relationship program gives fair and equal treatment to all employees so that they will committed to their jobs and be loyal to company (Salvendy, 2012). It generally deals to avoid and resolve issue concerning individual which arise in workplace. When an employer involve employees in decision making process, it will contribute in success of the company. In HSBC employer maintain healthy relationship with their employees and involve them in decision making process. There are certain importance of employee relation which influences HRM decision making process mentioned below:-

Productivity:- When superior involve employees in decision making process they achieve professional and personal value in an organization and its overall success. This leads to increase in productivity because by this employees are contributing in various activities of company and want to be succeed overall. It is beneficial for the employees as well,  it provide on the job training to employees which increase responsibilities, expand employees skills set and prepare them for future additional responsibilities. HSBC  involves their employees in decision making by which they get numbers of new ideas which leads to productivity and loyalty of employees toward company.  

Teamwork:- If employer involves employees in decision making it gives them opportunities to say their opinion and to share their knowledge with others, it improve relationship between superior and subordinates which leads to strong sense of teamwork among  workers. Through this every co worker open with each other and present individual strength to a project. For respective company it is good way to gather information about employees and effectiveness to work in a team environment and to whom training is necessary, all of this leads to increase in effective good teamwork and performance of HSBC.

Internal Resources:-  An organization must use their employees in decision making process rather than outsource, it save money, time and give company corporation well person which assist them in long term (Drucker, 2012). Outsourcing from consulting firm is expensive and time consuming for company. HSBC aware their employees about these process which motivate subordinates to participate in decision making process.

Improving Moral:-  Many organization delegate powers between management and workers, actively participation in decision making low gap and open lines of communication between superior and subordinates (Harrison and Lock, 2017). Employees of HSBC participate in decision process and understand that their ideas  are play important  contribution in their company. All these power influence result of their work which leads to maximise  job sanctification and positive attitude towards their position and  respective company.

Conflict Resolution:- If an organization involves their employees in decision making process, through it they will understand each other and feel free to discuss any problems to higher authority and management which create friendly and effective working environment in an organization, it will reduce situation of conflict in workplace. HSBC maintain good working surrounding which leads to less conflict. To maintain this superior delegate tasks to employees so that they concentrated on tasks which is in their hand it help in arise  productivity because happy workforce is a productive workforce.

Trade Union :- Trade Union are important because they create standard for education, skill levels, wages, working condition and quality of life of employees or workers. They basically represent the workers in front of employer and negotiates on behalf of them to secure better wages and working conditions.

P6 Identify the key elements of employment legislation and the impact it has upon HRM decision-making.

Employee legislation is the law which govern employees, employer and management who work within workplace and it affect employer, employees and unions directly. Main aim of employee legislation is to maintain relationship between business and its employees. By various relevant legislation both employers and workers can ensure their process of hiring, dismissal process and other workplace law to maintain fair surrounding for everyone. The rules and regulation that are adopted by HSBC are mentioned below:-

Sex Discrimination Act:- This is an Act of the parliament of United Kingdom establish in 1975, it protect men and women from discrimination on basis of sex or marital status. This Act concerned about employee employment, training, education, harassment, provision of goods and services and disposal of premises. Managers of HSBC make such HRM practices in organization related to sex discrimination, that no one discriminates anyone on basis of sex and if anyone do so they must get some strict punishment.

Disability Discrimination Act:-  This Act is establish in year 1995 and it deals with discrimination on basis of person's disability in employment, education, access of goods, services and premises (Salvendy, 2012). This Act is created to promote right of employee with disabilities and confirm that they are not suffer from discrimination due to their disability. To protect rights of disables employees HR manager of HSBC created  rules and law so that they feel protected and safe in respective organization. Manger should done some HRM practices for disables people to motivate them so they feel connected to the organization.

Holiday and Pay Act:- This law is enable by Minister of Labour in 1938 and it tells about paid holidays such as government announced holiday, maternity leaves or sick leave off in an organization. According to this employees eligibility criteria to receive holiday pay start as soon as they become employees of company, there must be no waiting period as it is commonly the case of vacation pay. HR manager of HSBC must fix holidays criteria and number of days to their employees so that their will be no confusion should be on the basis of leaves and pays.

Minimum Wage Act:- It is establish in 1998 across the United Kingdom and from 1April 2018 it was £7.83 per hour for workers whose age is over 25, £7.38 per hour for workers whose age is between 21 to 24 and workers whose age is between 18 to 20 they will get  £5.90 per hour (Drucker, 2012). HSBC HR manger decide their employees payment or salary according to the law so that their  will  be no discrimination is done on basis of salary.

Equality Act:- This Act is established in 1970 and revised in 2010, the purpose of this act is treat equal to every employees in organisation, their must be no discrimination on basis of age, disability, gender, marriage, race, religion or belief and civil partnership. It is responsibility of human resource manager to make reasonable adjustment at their workplace to overcome barriers experiences by disable people. HSBC must create different department which take care of all rules and regulation in their organization and who also solve problems of employees who is suffer from discrimination and punish the person who do so and do HRM practices or activities  in which they aware workers about all the rules and regulation of the workplace.

TASK 4

P7 Illustrate the application of HRM practices in a work related context, using specific examples.

Their are numerous of HRM practices done by Manager in HSBC to maintain smooth running of an organization (Harrison and Lock, 2017). It involves all things from recruiting  right person to managing all other  things like exit interview, employees engagement, motivation etc. Some major practices done by Manager of HSBC are describe below:-

Job Description:-  It is written statement which contain essential components of job which include summary of work to be  performed, primary duties, responsibilities, minimum qualification, salary etc. It is summary which is derive from analysing of job. HSBC publish Job specification for Finance Manager that is given below:-

Company:- HSBC

Job Details:

Job Title:- Finance Manager

Department:- Finance

Reporting To:- Head of Financial Management & Planning

Job Type:- Full Type

Salary:- £63,240 per year

Location:- London

Job Purpose:

· To lead team of Finance Manager and Assistant Finance Managers.

· To responsible and leads for monthly reporting of income and expenditure.

· Support Financial Manager and Assistant Finance Manager in creating Cash Releasing Efficiency Scheme (CRES) and financial modelling.

· Support the Head of Financial Management and Deputy Chief Financial Officer in delivering corporate task. 

Responsibilities:

· Manage and handle whole finance team .

· Assign and get work done through team and solve their problems.

· Collecting, interpreting and reviewing financial information.

· Predict future financial trends.

· Prepare and present financial reports related to budget, account payable etc. to head of financial department.

Interested candidates kindly send their resume at hr@HSBC.com or contact on given number.

Thanks & Regards,

XYZ,

HR Manager,

HSBC, London

08870754379

Person Specification:- It is a description of individual qualification, skills, experiences, knowledge and attributes which required to perform the job duties. The job specification is derive from job description and forms foundation for recruitment process. Personal specification of Senior Finance Manager create by HSBC is mentioned below:-

Personal Specification:

PERSONAL SPECIFICATION

JOB TITLE:- SENIOR FINANCE MANAGER

Experience

Necessary

Demanding

Working experience as a Financial manager or executive

3-4 years

Minimum of 3 Years

Skills/knowledge/cognition

Necessary

Demanding

Skills and certification in computer technology

Certified diploma  in  accounting software

A Grade

Qualifications needed in educational sector

Necessary

Demanding

· Graduate (Accounting & Finance)

· Masters in Business administration (Accounting & Finance)

· Chartered Accountant, Company Secretory

· Advance diploma in finance

Minimum working should be in Accounting & Finance

A Grade

Personal skills

Necessary

Demanding

· Excellent knowledge of taxation, policies, norms, auditing etc.

· Knowledge of accounting software (Essential)

· Experience in Computer fast accounting.

 

Candidate should have know different communicating languages so that they can communicate with the students from different countries.

English(UK),(US) and (AUS), Spanish and French.

 Interested candidates kindly send their resume at hr@HSBC.com.

Time of reporting: 10:00 am to 07:00 pm

 Curriculum Vitae:-  It is a written document which contain all essential information about candidates who is going to apply for job such as education, personal details, experiences etc. CV of a person who is going to apply for Senior Finance Manager at HSBC is given below:-

Curriculum Vitae

Name:- ABC

Contact Number:- 05178969312

Email Id:- abc@gamil.com 

Address:- 27 Old Gloucester Street, London

Position:- Senior Finance Manger

Strategic leader with excellent interpersonal skills who build and maintains strong relation while motivating teams and complete projects successfully.

Key Skills:

· Financial Analysis & Forecasting

· Research & Data analysis

· Risk & Portfolio Management

· Creative thing and problem solving

Professional Experience:

Company :- SCOTIA BANK

Duration:- 2nd Feb 2015 to present

Position:- Senior Financial Manager

· Manage and handle whole finance team .

· Assign and get work done through team and solve their problems.

· Collecting, interpreting and reviewing financial information.

Educational Qualification:- Masters ( Finance & Accounting)

                                                University of College London

                                                Year- 2014

CONCLUSION

From the above discussion it has been concluded that human resource management plays very effective and crucial role for an organisation. It helps human resource director to know importance of purpose and function applicable in workforce planning and resourcing. As well as  strengths and weakness where they were lacking behind in recreating and selecting  a right candidate for right position in order to achieve is gaols and objectives. Moreover its also help HSBC to  know different practices of HRM that is beneficial for both employers and employees as well as evaluating organisational profit and productivity. Thus, human resources management department is lifeblood of an organisation 

REFRENCES

  • Foster, E.C., 2014. Human resource management. In Software Engineering (pp. 253-269). Apress, Berkeley, CA.
  • Pattanayak, B., 2018. Human resource management. PHI Learning Pvt. Ltd..
  • Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
  • Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
  • Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management: Policies and practices for multinational enterprises. Routledge.
  • Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource management: The Price Waterhouse Cranfield survey. Taylor & Francis.
  • Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation. Human Kinetics.

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