Major Functions and Purpose of HRM in a Industry like H&M


  • Unit No: 3
  • Level: Undergraduate/College
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  • Paper Type: Assignment
  • Course Code: Y/508/0487
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Organization Selected : H&M


Human resource management is a main function of a company which comprises with several factors like planning, organising, managing and controlling the organisation. In this regard, HR managers takes various responsibilities in order to design workplace of an enterprise. They used to recruit best employees in associations and make them able to do work as per requirement of business (Salvendy, 2012). This report entails the major functions and purpose of HRM in a industry like H&M. It is a multinational company of UK which deals in retail industry and offers various types of fashionable clothing products in 62 countries. Currently, it has more than 4500 stores in the world with near about 132 thousand of employees. This assignment is divided into two parts in which first task entails role of HR managers in workforce planning as well as their functions and purpose behind it and various approaches used by them in recruitment & selections. While second task describes importance of employee relations and key elements of employment legislation.


P1. Importance of HRM in planning workforce of a company along with its major purpose and functions

In a company, HRM is a main function in which managers are used to design organisational structure and workforce in a proper manner. Workforce planning refers to recruit best people in premises and make them able to work in an effective manner. In this process, managers use various techniques like to identify need of human resource in different-different departments and make documents accordingly (Rousseau and Barends, 2011). As H&M deals in retail business so, to provide best services to customers and gain their retention for long-term profitability is its main aim. In this process, major purpose and functions of HR managers can be described in following manner:-

Purpose of HRM: This part shows the motive of employers in a company behind performing various functions. It entails with usage of techniques in order to get right work of employees working in an organisation so that objectives and targeted goals can be completed on time. Some major purpose of HR managers in H&M are:-

Best Fit

Best Purpose

Through this technique, HR managers cab develop policies and strategies of enterprise. Therefore, this approach emphasises more on internal structure, external environment, stages of development of firms and more.

This approach implies with interconnection of HR practices with performance of business. Therefore, it is associated with high commitment of management in a company. Therefore, in this manner, HR managers used Best Practice approach for enhancing performance level of company.


Hard Model of HRM

Soft Model of HRM

In this model, HR managers used to treat employees as a resource of business by focusing more on needs of company. So, in this manner, managers used to make little communication with staff members and pay enough to retain them in company.

Through this approach, managers used to take workers as most valuable resources as well as source of winning competitive advancement. They treat employees equally as employers and plan strategies accordingly. In addition to this, they focus more on every need of staff members and complete the same in order to get their retentions. Thus, H&M use this approach most for achieving its objectives.

Functions of HRM: This part reflects operational activity performed by HR managers of a company used to design proper workforce which includes:-

Recruitment & Selections: It is one of the major functions of HR managers in which they used to identify needs of staff members in a company (Iles, Chuai and Preece, 2010). They used various approaches of recruitment and selections in order to hire people in workplaces. In context with H&M, this firm has large organisation so, thousands of workers are working in various stores belongs to different category.

Employee Relations:In order to improve relationship of employees, managers of this firm used to engage them in group task. In this process, employees of different background can share their views, opinions and skills with each other which help in making strong bond among them.

Payroll Management: The main function of HR managers in a firm is to introduce payroll system at workplace. In this process, they used to make proper records of workers related to wage, salary payment, tax withholdings, deduction from pay-checks and more on regular interval of time.

Types of labour market: It is a mixture of physical, mental and social effort used by HR managers to transfer raw materials into finished products. Therefore, in this manner in H&M Company, managers used to find labour on contract who are ready to work on small wages.

P2 Different approaches for recruitment and selection process along with strengths and weaknesses

H&M has operated its business in many countries so, this firm focuses more on hiring such candidates who have gained high skills and knowledge in retail business (Hobfoll, 2011). In addition to this, to gain competition from M&S, TESCO, ALDI and more, HR managers used to recruit experience employees more.

Recruitment:It is a process of hiring people in enterprise by using various approaches as per requirement of business. It provides two sources for companies i.e. internal and external source of recruitment which can be explained as:





Internal Source of recruitment

This process is simple to use in which managers can hire employees who are already working in their an organisation. They provide job to workers by giving them promotion or demotion, transfer and more on the basis of merit-cum performance concept.

  • Internal source method is easy and simple to fulfil vacant position in a firm which takes less time and cost also.
  • It helps in boosting morale of employees as well as giving high satisfaction to them. Through this method, managers can motivate employees to work proper manner by giving them opportunity to achieve high position in workplace.
  • This process fails to provide choice to managers for choosing a best candidate to fulfil a position in a company (Shuck and Wollard, 2010).
  • It gives rise to conflicts among employees as well generate feeling of high competition between them which can impact of their performance too.


External Source of recruitment


This source is used to hire candidates from external environment by giving advertisement in newspapers and other media. In addition to this, it provides various methods like college placement, consultancy agency, online applications and more for getting list of eligible applicants as per need of business (Tarique and Schuler, 2010).

  • This process is mostly used by companies who are operating their business in at big level. As today, most of the people used to do job in reputed company so, they used to give their resumes on job portals and other online applications. Therefore, from these sources, managers can get long list of applicants suitable for a specific position.
  • It will help in introducing fresh face who aid firms in achieving targeted goals by giving intellectual ideas and efforts.
  • This process needs various documentation which will take much time and money to conduct further operation of recruitment. Thus, for small enterprises, this method has no use.
  • It demotivate morale of existing employees.



Selection method




  • It is simple method used by major portion of companies.
  • It aids managers to determine qualities and judge skills of interested candidates so that best among them can be selected.
  • This process also reduces time and efforts of managers.
  • This process decreases confidence level of candidates which impacts majorly on performance level of interviewer.
  • It requires a proper questionnaire format by interviewers to conduct an appropriate interviews of applicants.


P5 Importance of employee relations as well as they way it influence decision-making process of HRM

Generally large enterprises like H&M take employees as biggest source to gain competitive advantage in a marketplace (Schuler, Jackson and Tarique, 2011). As high commitment, efforts and retention of workers help in enhancing performance level and productivity of business in a higher manner. But such companies have large working organisation where many workers are worked with each other. So, in this manner, it is necessary for managers to develop relations among them. As it is natural that, if many employees are working at same place then it will lead to rise conflicts, feeling of competition and more which will affect their performance too. In addition to this, it will also impact majorly on HRM practices and decision making of managers. So, it is prime duty of employers to develop and manage relations between employees so that right work can be gained. It will help in following manner:-

Profit Maximization: By managing good relations among workers, managers and other people who are associated with business, a company can achieve a great success as well as maximise its profitability. This would help H&M in providing effective services to customers.

Early Achievement of Set Targets: If managers achieve success in managing good relations with employees and others then it will help in entailing them about objectives and aims of business to them (Decker, Riley and Siemer, 2012). It aids in accomplishing set targeted on time as well as increasing productivity of business too in a short period of interval. In retail company like H&M, it would help in improving brand image of business through which sales performance can be increased.

Strategies for good employee relations:

Effective communication: In order to improve relationship with workers, managers are needed to use proper interaction with them. By communicating in an effective way, management can influence workers to work in appropriate manner and provide their efforts in attaining success of business. For this process, they can organise meetings, conferences and seminars to interact with employees.

Counselling: H&M used to introduce counsellors at workplace who will help managers in determining problems related with low performance of workers and identify problems behind it. In this manner, they give proper guidance to workers and give proper direction to them which helps in making their career bright.

P6 Key element of employee's legislation and its impact on decision making process of HRM

Employment legislations is related with a concept of specific laws and regulations established by regulatory bodies of a country (Bulgurcu, Cavusoglu and Benbasat, 2010). These regulations are amendable by all companies work in territorial region of a nation which would help in running their business successfully and smoothly. In context with UK, some laws followed by all organisations including H&M are:-

  • Equality Law 2010: This act is used to eliminate discrimination occur at workplace of organisation. In this manner, companies are required to treat employees equally. They should ensure that no abusive activities and discrimination held with them on the basis of their certain characteristics like sex, gender, nationality, colour and more.
  • Data Protection 1988: According to this act, it is necessary for all enterprise to adhere DPA at the time of recruitment. When they collect personnel data of employees then firms have to manage and store data in confidential manner and do not disclose the same in front of third party.
  • Health&Safety Act 1974:This law states general duties of employers, suppliers, employees and other persons who are engages with same business. It assists a company to introduce safety equipments in workplace as well as must ensure that activities conducted in business will not harm people who are working at there premises.
  • Redundancy, Dismissal & Employment Contracts: It is amendable for HR managers to provide complete information about company policies and strategies to employees at the time of recruitment. They should entails with redundancy, dismissals and employment contracts to workers which helps in giving job security to them.


It has concluded from this report that HR managers play an important role in introducing talented workforce in a company. They perform various functions for managing work of employees and make them able to do task in effective manner. In addition to this, to gain retention of workers and their high commitment they provide training and development, compensation and reward, etc.

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Books and Journals

  • Bulgurcu, B., Cavusoglu, H. and Benbasat, I., 2010. Information security policy compliance: an empirical study of rationality-based beliefs and information security awareness. MIS quarterly. 34(3). pp.523-548.
  • Decker, D. J., Riley, S. J. and Siemer, W. F. eds., 2012. Human dimensions of wildlife management. JHU Press.
  • Hobfoll, S. E., 2011. Conservation of resource caravans and engaged settings. Journal of occupational and organizational psychology. 84(1). pp.116-122.
  • Iles, P., Chuai, X. and Preece, D., 2010. Talent management and HRM in multinational companies in Beijing: Definitions, differences and drivers. Journal of World Business. 45(2). pp.179-189.
  • Rousseau, D. M. and Barends, E. G., 2011. Becoming an evidencebased HR practitioner. Human Resource Management Journal, 21(3). pp.221-235.
  • Salvendy, G., 2012. Handbook of human factors and ergonomics. John Wiley & Sons.
  • Schuler, R. S., Jackson, S. E. and Tarique, I., 2011. Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business. 46(4). pp.506-516.
  • Shuck, B. and Wollard, K., 2010. Employee engagement and HRD: A seminal review of the foundations. Human Resource Development Review. 9(1). pp.89-110.
  • Tarique, I. and Schuler, R. S., 2010. Global talent management: Literature review, integrative framework, and suggestions for further research. Journal of world business. 45(2). pp.122-133.

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