Defining the purpose of Human Resource Management


Human resource management can be defined as the function with in an organization to focus on the welfare of the employees and management. This comprises of recruitment, management and dealing with the people in an organization. This can be for hiring, compensation, wellness and benefits of the employees. In function is sometimes done by line managers.

Key Functions of Human Resource Management [1]

Recruitment and Selection:- a part that an employee being hired or repositioned in a company

Recruitment can be defined as recognizing a position in an organization to employee someone in order fulfill the needs of it.

Selection is the step by step procedure to choose the right candidate that is suitable enough to fill the required position.

When doing these an organization should take care of some key questions in order to carry on with procedures.

What do we want from the position?

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How can we attract the right candidate?

How can we identify the right candidate?

How can we know we got it right?

Who all should be involved in the process?

Redundancy: - an employee is given proper security when the company needs fewer amounts of resources or retirements. This is usually occurring when an organization does not require the position or the organization itself is going to shutdown.

Industrial and employee relations:-this is a major clause of organization status to be maintained in the industry. From the research done on this, it is widely accepted that if the employee has commitment on the organization due to attitude of organization towards its employees through considerable payment or over payment to motivate them. This is industrially called in several ways like the psychological contracts or by the loyalty of the employee to the organization. The interaction between the individuals is a major part in organizational performance and productivity.

Record keeping of personal data:-keeping details of each and every employee including their work history and present status. This helps the organization to decide and allot the employee to categorize to a specific segment for the ultimate utilization of the workforce. Proper allotment of the people with their skills and knowledge on an area gives excellent outcome in the overall performance.

Employee benefits and compensation:-the organization offers to the employee on situations. This is the security an organization gives to the employee for them to retain. Employees will be more confident to work with security of their job and other benefits that are available for them. This is sometimes goes competitive in order to retain talented and experienced employees to avoid them going to another companies.

Confidential advice to 'internal customers' about problems at work: - this allow the employee to have a communication with the organization in order to deal with the problems they are facing in the work place. The organization also enquire the welfares of the employees so that they should feel themselves that they are also on the eyes of the organization on considerations. Negligence is the most negative part of human dissatisfaction.

Carrier development of employees:- individual development of employee develops and organization. The organizations must be always prepared with the rapid change of the environment. So they always allow employees to attain as much knowledge as they can in order to develop the company performance and standards. This improves individual performance that is the backbone of the organizational overall performance. Organizations always conduct seminars and tests in order to maintain their position in the market.

Competency monitoring (mapping):- work efficiency rating of employees. Organizations always monitor the efficiency of the employees in order to understand the outcome of their productivity. This helps the organization to understand on which all segments they should improve in order to maintain its stability.

Time and motion study:- time and minimal motion gives more efficient and more productive organization. This technique is implemented in many of the organization for better productivity of organization. Time and motion study is how a work is to be done on a given period of time with reduced effective motion of work for attaining high efficiency outputs.

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Performance appraisal: - this deals with the contribution of the employee to the organization. This is the process of obtaining, analyzing and recording of information of the employee in order to understand the contribution of each employee in an organization.

Trends and Influences of Human Resource Management

A business operation is mainly focused on the following major influences.

Demographics: - it can be defined as the characteristics of structure and size of population

e.g.: - age, work class.

Diversity: - it can be defined as the difference between the people in population

e.g.: - race, gender, sexual orientation. Disability, geographic origin

Skills and qualifications: - These are not only about knowledge of an individual, but also the ability of the individual in the organization as an employee.

e.g.: - .rewards, community investments.

Individual responses:- the employee attitudes of different geographical locations.

e.g.: - geographical spread, occupational structure, generational difference.

Framework:-creating a framework for human capital.

Structure: - this enhances individual developments and acquiring targets. Can be incorporate with human resource strategies.

Training: -this develops high level of work of individuals. Training gives more precise to the working environment and the employees get better knowledge and working attitudes with the environment they are coping with.

Strategic human resource management model [2]

From the above Human Resource model we understand that an environmental analysis should be initiated. Then the company has to take care of the mission and goals. This is depended by analyzing the strengths and culture of the organization. Then analyse the strategies adopted by the organization. Choose a number of Human Resource strategies like planning, attracting, placing, developing, evaluating, motivating, rewarding and maintaining human resources. This is done using Human Resource tactical plans and Human Resource systems and procedures.

Harvard map of Human Resource Management [3]

Harvard map (Beer's map) outlines four areas of Human Resource Management

Human resource flows: - recruitment, selection, termination, promotion.

Reward system:- pay, motivation, promotion, recognition

Employee influence:- influence of responsibility, power, authority

Work system: - the way in which people is arranged and defined to work in an organization.

The above walk towards the four C's of Human Resource policies which are

Commitment:- an employee must deliver at its best for the organization

Congruence: - how suitable the employee is for the organization

Competence: - how competent the employee to attain target for achieving organizational goals

Cost effectiveness: - is it economically feasible for the organization to maintain the employee and position.

Key elements of Human Resource [4]

The crucial elements of Human Resource are

Resource plan:- this contains all the Human Resource resources involved in a company. It contains which all human resources used in what all ways and how it is implemented.

Resource breakdown structure:- this is how the Human Resource differentiate according to their function. This gives a detail about how the human resource work on each segment and on each levels like corporate, operational and functional levels.

Responsibility assignment matrix:-here the Human Resource is assigned specific tasks to get responsibility in each branch of function. In this each function has its own responsibility, what all things to do for each individuals and how should it be done

Resource over allocation: - this is the over allocation of Human Resource in order to do more work than in normal time. This is very expensive and needs over times. This is not a usual function. It is done when the company has limited resources and has to utilize well on critical stages in order to maintain and achieve its target on demand. Many organization use this in different ways according to the mode of function and facilities that provide to the employee and also the functional structure of the organization.

Resource histogram: - this is the graphical representation of over allocated resources and makes it easy for the managers to allocate resources. This diagram gives a detail of which all resources is allocated and on what tasks and make the managers to decide the allocation frequency and requirement of each tasks in order to reallocate or schedule the resources.

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Resource dependency:-if a task is dependent a particular resource. In some instances resources are purely dependent to each other. If one of the resource is allocated the whole function will end up.

Resource leveling: - this is the redistribution of Human Resource to avoid imbalance. This is done for improving the distribution of Human Resources to necessary tasks in order to maintain the equilibrium of the functions. This is by identifying the unnecessary over allocations to the task which has highly scarce of human resources.

Critics on human resource management

Critics argue that Human Resource Management does not have theoretical framework. Even with this the efficiency of Human Resource Management still has a very important role in organization development.

Task 2

Human Resource Planning

Human resource planning is the functional part of human resource management. In an organization human resource management is an asset and human resource planning is how human resource management should be properly function like to identify and ensure its resources like manpower, supply, quality and quantity for the effective and efficient utilization of human resource for the high organization performance for maintaining its sustainability and position in the business market.

Human Resource Planning as a system

Human resource planning as a system constraints of a set of planning

Business environment

Overall organization goals

Forecasting of manpower needs

Identifying the supply of manpower

Factors that affect demand and supply of manpower

The following diagram explains the flow of the elements in human resource management system.

Business Environment

Organization Objectives & Goals

Manpower Supply Assessment

Manpower Forecast

Manpower Programming

Manpower Implementation

Control & Manpower Evaluation

Shortage of Manpower

Surplus Manpower

Source: Human Resource Management Notes, Jamnlal Institute of Management Studies

Human Resource Planning-contemporary approach

This can be defined as the one which belongs to the world of ideas rather than action which has the potential to unsettle and can disrupt established thinking and hence practice.

e.g.:- ideas of our own that are not yet fulfilled.

This is mainly based upon two ways of sources

Post-modernism:-it highlights the significance of discourse which in turn explained as a set of images, representations, meanings, metaphors, stories etc that can create a series of events.

New science:-it derives from the new developments in natural sciences that challenges some of the key assumptions

Armstrong modified the traditional approach to a more enhanced approach in order to cope up with the circumstances. He introduced some specification to outline his approach

Retention of employees and attracting appropriate skilled workers having expert and competence for the requirement of the organization.

Compensating surplus or deficits of people.

Developing organization performance by developing well trained, flexible workforce.

Efficient utilization of resources with flexible arrangement of system of work.

The contemporary approach explains the above in a detailed explanation with the following way of categorization.

Business Strategy

This can be divided into deliberate and emergent strategy. Deliberate strategy can be explained as rational evaluation of external and internal situations and to do the idea way to go forward with competitive advantage.

Resource Strategy

This type of strategy is by enhancing to better resources than its rivals for competing with them.

Scenario planning

Organization does this in order to supplement more traditional supply towards demand forecasting.

Labour turnover

One of the key factors that show the performance of a company is the labour turnover. If the labour turnover is high then the management should understand that there is something somewhere wrong. It has to be rectified and has to trigger some initiative to avoid the occurrence in future.

Human resource plans

Human resource plans are taken from a range of strategy. This is mainly divided into resourcing, flexing, downsizing and retention.


This is about resourcing the people with in the organization and plans to use the resource effectively in the organization.


This allows the organization to do the work with great flexibility with the workforce and resources with proper utilization. This can improve the skills and capabilities of the employees in turns reduces the employment costs and increased productivity


This is used by most organization to retain their employees. This can be implemented by proper communication and involvement. The skills in human resource line managers to maintain the employees. An improved selection technique retains the employee in the organization.


Downsizing is another word of layoff which is the most toxic decision of an organization in order to save its life. This can be a temporary or permanent termination of employee from the organization. The planned downsizing keep the dignity of the organization and can maintain its stability. Unplanned downsizing can adversely affect the organization performance and effectiveness as well as the image of the organization and also lead to self destruction.

Human Resource Planning-traditional approach

The main concern of traditional Human Resource Planning is concerned with balancing of supply to demand. There are a number of key features in traditional approach

Investigation and Analysis:- this stage is not explicit u all models, but arguably those responsible for human resource planning need to know something about the current situation in order to assess the extent to which it is likely to alter or be affected by future development

Internal labour market:- this deals with turnover, profiles skills audits

External labour market:- this deals with quality, availability, sources, prices, variation of demands

Corporate capability:- this is concerned with performance, productivity, structure, technology, skill change, rewards, promotions

Corporate strategy:- this is about growth, opportunities, key objectives, work methods, improvement plans

Forecasting: - this is regarding supply, demand and qualitative and quantitative imbalance of Human Resources., future plans

Planning: - this consists of working patterns, organization structure and development, rewards, recruitment and selection, managing diversity performance management, training and development, employment relations.

Implementation and control: - this concerns about using HR techniques, utilizing technology, reviewing polices and practices.

Advantages of Human Resource Planning

Setting strategic directions:-this is to direct Human Resource Planning according to company needs and objectives

Designing human resource management system: - structure Human Resource according to the directed strategy according the structure and flexibility of the organization

Planning the total workforce:- align the workforce for Human Resource Planning to implement according to the strategy adopted to achieve the goals of the organization.

Generating the required human resource:-if the plan needs more human resource it has to be acquired. This can be executing overtimes, reallocate adequate human resources to specified tasks,

Investing in human resource development and performance:-this increases the efficiency and effectiveness of Human Resource. Employee hiring on temporary or permanent contact with the effectiveness of performance in order to cope up with the organizational needs.

Disadvantages of Human Resource Planning

It is expensive and time consuming: - the organization cannot concentrate more on human resource planning as it may be more interested to invest on it goal than in planning more time and money.

It needs specialized consultant may be outside the organization:- organizations has to seek the help of specialized personal or organization of human resource planning in order to do it in the right manner.

Organization may not be always ready to some opportunities before it comes into scene and to allocate resources according to Human Resource Planning

Task 3

NatWest Plc

From the history of NatWest Plc the origin is traced its roots from the foundation of Smith's of Nottingham almost 400 years ago. The commencement of NatWest bank of its modern banking is done about three decades earlier by the merging of National Provincial Bank and Westminster Bank. The company is has its short form from National Westminster bank

Performance appraisal

This is one of the key factors that is being monitored for the performance of an organization. Performance appraisal can be defined as the assessment of individuals of an organization in a systematic way for analyzing the overall performance of the organization.

Personal performance

This can be said as the general performance of an individual in an organization has qualities like initiative, leadership, dependability, team spirits

Professional performance

This can be defined as the performance of an individual in an organization as a professional. This is regarding the performance on his knowledge in job, work experience, output performance etc.

Organizations use different criteria to measure the performance. This can be of a number of processes.

Setting standards and objectives for the performance

Designing different steps and levels of appraisal programs in order to analyse according the level the employee can carry out.

Arranging performance interviews

Record the performance and appraise according to it

Keeping records of the performance data

Recognize key performance variables

Performance appraisal can be divided broadly into two

Past exhibited methods

Future oriented plans

Past Exhibited Methods

The methods that is being implemented by the past experience of the organization and the dealings that is being implement on that methods. This can be good or bad effects on the decision made on that past time.

Check-list:- this includes the history of the employee's performance, administration procedures, HR company regular routines etc. The main advantage of this is less training requirement, company standardization follow ups and economic feasibility. On the other side the disadvantage of this process is the organization cannot rate the quality of weight ness of Human Resource department.

Critical incident method: - this is to record the positive or negative incidents which happened abnormally that affected the normal function of the organization. The main advantage of this that the organization can take necessary procedures in order to deal with incidents in future and also it make the organization to analyse the job behaviour. The main disadvantage is the incidents may get priority or can be forgotten upon time.

Confidential reports:- this is usually popular to government sector. This is given as annual confidential reports supported on the criteria. The main disadvantage of this is the report can be biased depends on the person who is dealing with it.

Performance test and observations: - this is done on the basis of knowledge the employee possess. Observations are done according to the skills they are exhibiting on the presentations using some written or actual interviews. The main disadvantage of this is the performance depends on the circumstances the employee is observed rather than its routine procedures.

Future oriented plans

This is a forecast method that is being planned by company for its goals and future plans. This is a very highly strategic management plan to be implemented with high value of forecast capability. This can be done on a number of ways. This depends upon the themes and circumstances on which the organization is implemented

Management by objectives: - this is done according the objectives achieved by the employees on the basis of management tasks. This is a mutual agreement between the employee and the management. Transparency, accuracy and direct to the point is the main advantage of this.

Physiological appraisal: - this gives importance to the employees potential for future performance than their past performance. Interviews, psychological tests, discussion reviews and physiological tests are done in order to access the performance.

360 degree feedback: - this is a very popular way of feedback that is being introduced in recent time. In this way the feedback of all levels of people the employee interact. This helps the organization to assess the overall performance of the employee in the organization and the contribution of the employee towards the associated people to the organization. This helps the organization to improve interpersonal skills, high customer satisfaction and to build up team skills.

Essentials of performance appraisal

standardization in performance appraisal

bench marking

no biased and uniform in performance appraisal

appraisal based on job analysis

consistency in maintaining documents as records

demographical discrimination should be strictly restricted.

All these essentials should be thoroughly maintained in order to have a good employee performance and satisfaction for the overall performance of the organization.


NatWest plc has to maintain its position taking consideration of environment that affect the internal and external to the organization to maintain its plans to keep track of its future plans on the human resource in the current situation of recession.