Introduction

Now more than ever, effective Human Resource Management (HRM) has been cemented as a
major source of competitive advantage for organisations. HRM may even be the most
important determinant of organisational performance in the long-term. More companies are
realising that maximising employee potential, is the key to increasing the likelihood of
success. Therefore, organisational success is dependent on its ability to attract, develop and
retain employees [ CITATION Ron07 \l 6153 ]. Bratton and Gold (2010) describe the HRM
function as ‘the ‘best’ practices that aim to recruit, reward and manage employees, in ways
that result in high performing systems’. On that account, the focus of this essay is to emphasis
the benefits of the modern HRM approach, as well as detailing the bast practices being
implemented to achieve organisational success. This essay begins by discussing the evolution
of HRM and what it means today. It then introduces and details the best practices for
recruitment and selection, then induction, retention, and finally equality and diversity.

1.1 Human Resource Management

The concept of Human Resource Management (HRM) has evolved over time. Today, it is
understood as the set of functions and processes used to maximise employee and
organisational effectiveness. HRM assists the organisation through the recruitment, selection,
training, and development of employees. Furthermore, motivating employees to increase their
performance level and maintain commitment to the organisation and its strategic objectives
[ CITATION Mur11 \l 1033 ]. The people at an organisation are arguably its most important
resource. People’s attitudes play a huge role in influencing the success of a business
[ CITATION BPP13 \l 1033 ]. HRM has never been more necessary than it is today. They
should be agents of change, that help build up the organisations ability to embrace and exploit
change. Modern challenges such as globalisation, technology, intellectual capital, and the
ability to adjust to change, are key areas HRM can help with [ CITATION Mah10 \l 1033 ].

In the late 19th century, unionisation was increasing, and the industrial revolution was
surfacing [ CITATION Ita17 \l 6153 ]. Some enlightened employers wanted to improve the
appalling work conditions for men, women, and children. They implemented schemes to
improve their workforce as part of company policy. This led to the creation of the industrial
welfare officer position [ CITATION Foo13 \l 6153 ].
The industrial relations were soon replaced by the idea of scientific management, also known
as Taylorism [ CITATION Ita17 \l 6153 ]. Taylorism focused on increasing productivity by
finding the most efficient way to produce items, in selection and in training. The goal was
finding the ‘one best way’ to do a job through the systemic approach of job design,
employment and through pay incentives [ CITATION Car13 \l 6153 ].

The Hawthorne experiments discovered long-term increases in worker productivity have a

continuing effect on management theory and policy to this day [ CITATION Pit81 \l 1033 ].
The experiments began in a Taylorist factory environment, hoping to enhance the production
of lightbulbs. However, the focus of the experiments soon shifted to the analysis of
psychological aspects of work when they noticed increased productivity. Employees that
were observed felt valued and listened to without receiving more wages [ CITATION Ita17 \l
1033 ]. Additionally, the working environment and social cohesion motivated workers. The
human relations movement, highlighted the need for management to create a work climate
that satisfied the social needs of workers [ CITATION Bra10 \l 1033 ].

After World War 2, corporations and employees began to change and the human relations
model changed with them. This marked the beginning of a new idea and the introduction to
the concept of Human Resource Management [ CITATION Ita17 \l 1033 ]. There was an
emphasis on health and safety, as well as increasing need for a specialised role to handle
employee relations. The role of personnel manager became the new spokesperson for many
organisations and they bargained with trade unions and shop stewards [ CITATION Foo13 \l
1033 ]. This led to a rise in status as well as professionalism of the personnel function
[ CITATION Gun17 \l 1033 ].

The role of HR was further strengthened in the 1980’s and 90’s due to several developments.
Firstly, the recession in the 1980’s caused unemployment levels to rise, resulting in more
competition in the marketplace. Emphasising the need for productivity and excellence in
organisation to compete effectively. In addition, there was a decline in traditional
manufacturing industries, and an increase in service industry growth. The shifting
demographics steered toward a 24/7 society, and employees were interested in non-traditional
working hours. Furthermore, technological advancements allowed for employees to step
away from their office desks, but they were also available on-call outside of their 9-5
standard work hours. The HR function was necessary in managing the changing society
[ CITATION Car13 \l 6153 ].
In the 1990’s, the phenomenon and the academic discipline of strategic human resource
management started to thrive. This concept was crucial in aid of advancing the shift toward
HRM, and for the development of people management [ CITATION Kau07 \l 1033 ].

In the 21st century, accelerating global and societal changes impact on the entire business and
management functions [ CITATION Eva11 \l 1033 ]. Firms today recognise employees as
innovative and creative people, whose knowledge is critical for sustainable competitive
advantage because competitors cannot easily copy intellectual capital [CITATION Moh12 \l
6153 ]. Companies are increasingly adopting global performance management policies.
Furthermore, companies are attempting to attract and retain the best talents from the global
employee pool, to increase their long-term profitability [ CITATION Mäk10 \l 1033 ].
Organisations are reaching new levels of efficiency due to global digitalisation, with
developments being made in HR related IT systems [ CITATION Ita17 \l 1033 ]. This
increased use of technology, along with the change in focus of the HTM function, has led to
the HR department surfacing as a strategic partner [ CITATION Moh12 \l 6153 ].
1.1 Recruitment and selection

Bratton and Gold (2010) explain recruitment as the “process of attracting the interest of a
pool of capable people who will apply for jobs within an organization.” The aim of
recruitment is to find the right person for the right job, with the intent of reducing
absenteeism and enabling a stable workforce. The selection process involves utilizing
techniques to gather information on potential candidates and source the most suitable
employee [ CITATION Put15 \l 6153 ]. CIPD 2020, explains how selection “has two main
stages: shortlisting and assessment” and emphasises the importance of selecting candidates
based on relevant skills, abilities and organisational-fit.

The first step in recruitment is job analysis. Studies show that effective job analysis is linked
with better organisational performance. Employees abilities are emphasised. Companies that
regularly conduct job analysis have a greater understanding of the tasks that are performed,
and the time needed for these tasks [ CITATION Sid04 \l 6153 ]. Job analysis leads to
developing the job descriptions and person specification. Job description details the duties
and responsibilities expected to be performed. Person specification describes the
qualifications, experience, knowledge, and skills of a suitable candidate [ CITATION OMe13
\l 6153 ].

Using a combination of recruitment techniques to attract candidates most suitable for the job
required should increase the probability that an organisation will meet their current and future
needs. One effective way to attract applicants is through external recruitment. Advantages to
external recruitment include: ‘wider target audience; applicants likely to possess required
specifications and competencies; external recruits will bring fresh ideas and new skills to the
organisation; and improve the employers image by bringing employment to the larger
community’ (Carbery and Cross, 2013). External recruitment may be a better choice if an
organisation is searching for more qualified candidates for specific roles.

Internal recruitment involves many benefits for the organisation and the individual. It can
help build morale if employees understand good performance will be rewarded with
promotional opportunities [ CITATION Put15 \l 6153 ]. Research suggests that internal
promotion creates better incentives for employees than outside hiring [ CITATION Laz81 \l
1033 ]. For the organisation, internal recruitment is a more cost-effective option. The
employees are already familiar with the culture, products and processes involved within the
organisation, saving the organisation time and money on training and induction [ CITATION
Car13 \l 6153 ].

E-recruitment utilises the internet to attract candidates to an organisation, including using

websites to attract, assess and hire workers [ CITATION Nta19 \l 6153 ]. A survey by CIPD
and OMNI (2020) found that ‘an organisations own corporate website as well as professional
networking sites, where the most effective methods of E-recruitment for an organisation.’
The method is cost- and time-effective and conveys a large amount of information to a high
volume of people. Organisations have access to high quality applicants from anywhere
around the world, increasing the chance of finding a suitable candidate [ CITATION Nta19 \l
6153 ].

According to Carbery and Cross (2013), the selection process consists of three stages - “the
shortlisting stage, making the selection decision, and the post-offer stage.” The main aim of
the selection process is to identify competent candidates that will add to the success of an
organisation. Organisations should use a competency-based approach to selection, focusing
on candidate skills and capabilities.

The first step in selection is the shortlisting stage. The aim of this stage is to reduce the
number of applicants [ CITATION Car13 \l 1033 ]. Sticking with a competency-based
approach to selection, the shortlisting matrix will evaluate each candidate against the
selection criteria that was previously set in the recruitment stage. This creates consistency in
the selection process because each person is evaluated in the same way. Carbery and Cross
(2013) argue that using the “weighting Criteria” method is an effective way of scoring
candidates against the job criteria. They go on to explain how the “outcome of using this
matrix is to create two groups of applicants – those who are suitable and those who are
unsuitable” [ CITATION Car13 \l 1033 ]. Applicants are scored marks for their skills and
abilities, with essential skills for the job being marked with greater weight because they are of
higher importance. To avoid bias, weighting for the criteria should be decided on before the
assessment stage begins. Candidates that score highly in the shortlisting matrix, will be
contacted, and move onto the next stage in selection.

Stage two of the selection process is making the selection decision. Carbery and Cross (2013)
explain ‘the overall aim of the selection decision is to predict the candidate’s future
capabilities.’ While “selections are be made based on the candidate’s ability to perform the
role, contribute to the organisation and their potential for development” [ CITATION CIP201
\l 1033 ], the organisation must also consider diversity and inclusion. CIPD’s report Diversity
and inclusion at work: facing up to the business case (2018), found that diversity and
inclusion are associated with yielding “positive performance outcomes for organisations”.

There are a wide variety of selection techniques used by organisations. The aim is to choose a
method that is valid and reliable in predicting employee performance. Carbery and Cross
(2013) encourage that ‘using more than one method will increase the validity’. The method
you choose will depend on several factors. According to Smith and Smith’s research (2005,
as cited by Carbery and Cross, 2013, p.46) ‘using a combination of structured interviews with
intelligence tests, gives the highest predictive validity score.’ Wernimont and Campbell
(1968, cited by Carbery and Cross, 2013) argue “the best predictor of future behaviour or
performance is present or past behaviour or performance of the same type”. Psychometric
testing or competency-based interviews might be a better indicator on candidate’s potential
abilities and skills.

Structured interviews as a form of selection can improve validity through asking questions
based on criteria. All candidate’s will be asked the same predetermined questions, this
noticeably improves the validity of the interview in comparison to unstructured [ CITATION
Car13 \l 1033 ]. Using the same weighting criteria method from the shortlisting stage,
candidates can be fairly evaluated against the selection criteria. Competency-based interviews
are a stronger indicator of future job performance. Questions focus on the candidate’s ability
to perform the role, by analysing past events. As previously stated, one of the best predictors
of future performance is past performance (Wernimont and Campbell,1968, cited by Carbery
and Cross, 2013).

Along with structured interviews, intelligence tests give high predictive validity (Smith and
Smith, 2005, as cited by Carbery and Cross, 2013, p.46). Carbery and Cross (2013) detail
how psychometric testing measures candidate’s cognitive abilities and indicates “if they have
the skills, or the potential to learn new skills, required to perform successfully in a particular
role.” Gamification is a new method of psychometric testing, in which “organizations provide
psychological assessments to applicants in order to use their scores to predict later job
performance and thus aid in hiring decisions” [ CITATION Arm16 \l 1033 ]. While “no
published empirical studies have explored the validity of gamification in assessing
candidates' skills”, Konstantina, Athanasios and Ioannis (2019) found that by assessing job-
relevant behaviours, “increased prediction of future work behaviors may be possible
compared to traditional psychometric tests.”

The final stage of selection is the port offer stage. To maintain a positive employer brand,
Carbery and Cross (2013) suggest contacting all candidates, including candidates who did not
receive a job offer. All successful candidates should be monitored continuously to assess
performance and progress. This is to ensure the selection methods are valid and reliable in
predicting employee job performance.
2.1 Induction

HR have an important function in welcoming and acclimatising recruits to the organisation.

CIPD (2020) describe induction as the perfect time for an organisation to welcome the new
employee, help them to settle in and provide information and support to enable the employee
to perform their role. This involves a range of activities that acquaint new members with
organisational objectives, ideologies, procedures, history, and communicates applicable HR
policies. A smooth induction programme benefits new recruits through easing any initial
anxieties. It is also important to convey the organisation values continuous learning and
development [ CITATION Mur11 \l 1033 ]. Induction is an important process for both the
employee and the organisation. Research shows that for the organisation, an induction
programme can decrease turnover and increase employee dedication and job satisfaction.
Employees come to understand their expected role in the organisation and the organisational
patterns, while also having the opportunity to feel valued for their individual abilities.
Furthermore, employee’s that were more socialised with the organisation during induction,
can feel more connected and committed to the organisational goals, values, it’s people, and
history [ CITATION Ave11 \l 1033 ]. Subsequently, a well-planned induction rewards both
the individual employee and the organisation regarding performance [ CITATION Mur11 \l
1033 ].

Taking a new perspective on employee induction, Carbery and Cross (2013) emphasis the
benefits new employees bring to the organisation. Employees are a source of fresh thinking,
new skills, and knowledge for an organisation. The goal of having an effective employee
induction programme is to get new hires as productive as possible as soon as possible. This
information should be communicated in a variety of different ways, while ensuring “a
positive and engaging experience for the new starter” [ CITATION CIP203 \l 1033 ].

Taking a relational approach to induction is effective in getting new starters to feel like they
belong and are part of the organisation [ CITATION Car13 \l 1033 ]. Partner programmes,
also referred to as the ‘buddy approach’, offer a one-to-one relationship between a new
employee and another worker from the same department. The partner helps ease the transition
for the recruit through answering questions, offering encouragement, and providing support.
The new employee now has access to someone that is ‘familiar and comfortable with the
organisations culture and expectations.’ The partner programme benefits everyone involved.
The new hire gains an understanding of the organisations working, the partners gains
recognition from the organisation and leadership skills, while the organisation has a stronger
team advantage [ CITATION Art15 \l 1033 ].

Carbery and Cross (2013) argue that ‘successful companies strike a balance between
information delivery and relationship development, in terms of induction’. The information
provided on the first day should be simple and relevant, as to avoid overwhelming the
inductee [ CITATION CIP203 \l 1033 ]. Information should be introduced over a period to
allow the employee to settle. The most important information should be delivered first, such
as, geography of the building and introductions to supervisors and colleagues the recruit will
work with frequently [ CITATION Foo13 \l 1033 ]. Carbery and Cross (2013) deduct a
strategic approach to introduction is the most effective method. They recommend identifying
who the new employee will interact with early on and strategically target them for
introductions.

During an ongoing Covid-19 pandemic, new challenges are arising regarding employee
onboarding. There is increasing need for induction to be efficient and effective so that
employees can connect with the organisations culture. It has been observed that engagement
during physical induction is higher than that in the online format. Currently, induction has to
be conducted online, therefore constant interaction with new employees is more important
now than ever before [ CITATION Yad20 \l 6153 ]. Armstrong and Landers (2018)
recommend using gamified and interactive onboarding modules. Using social networking
within the organisation can help boost the effectiveness of the online induction process. It
encourages employees to learn and stimulates interaction. Also, the buddy system can be
easily replicated in the online environment. Where the new recruit is assigned a mentor to
resolve any queries [ CITATION Yad20 \l 6153 ]. Moreover, the personal identity
socialisation approach makes onboarding more personalised. In turn, improving employee
engagement and adaption to the culture. This approach encourages new hires to demonstrate
their unique perspectives and showcase their strengths. This focus helps employees feel better
connected to their work and their colleagues, which in turn makes them more likely to stay
(Cable et al., 2013).
3.1 Retention

Retention is the organisational ability to retain high performing employees, who are critical to
achieving objectives. It involves the policies and practices that reduce the loss of critical
skills [ CITATION Nta19 \l 6153 ]. A strategic approach to employee retention is vital in
keeping high performing employees engaged, which makes them more likely to remain
productive and happy working for an organisation [ CITATION Car13 \l 1033 ]. According
to the HR practices in Ireland Survey (2020), 51% of organisations view employee
engagement as a top priority for HR. Effective talent retention measures remain an important
source of competitive advantage or organisations. Keeping employees engaged and motivated
can guarantee greater productivity and future achievement. There are several methods
organisations can use to reduce employee turnover and increase talent retention.
Compensation and benefits packages, reward and recognition, measuring employee
satisfaction, mentoring programmes and career planning are some of the corporate retention
programme used [ CITATION Art01 \l 1033 ]. A well planned and coordinated retention
strategy is the best way to manage high performers. There are three areas where organisations
should implement retention strategies: Selection and orientation; training and career
development; motivation and compensation [ CITATION Gar99 \l 6153 ].

The employee engagement and retention process begin in the selection phase. A good
employee organisational fit, reduces the likelihood of employee turnover and increases job
satisfaction and commitment. Research shows that a bad organisational fit is the biggest
cause of employee turnover, therefore organisations should adopt a selection strategy that
focuses on employee values and mindset [ CITATION Gar99 \l 6153 ]. Using behavioural
based selection interviewing can investigate how well employees’ personal values are
consistent with that of the organisation. A better organisational fit increases employee
retention [ CITATION Car13 \l 6153 ]. According to MacLeod and Clarke (2011), leadership
that provides a clear strategic narrative about the organisation is one of the key enablers of
engagement. Employees understand where their work fits in with the narrative of the
organisation. Hence, they can relate to the organisations vision and values, and may
experience a better organisational fit.

The labour market today is increasingly competitive. For an organisation to compete

effectively they must retain their top talent. This means companies should utilise data and
employee feedback to retain employees. Employers should invest in training and
development to compete in the labour market [ CITATION Clo15 \l 6153 ]. Employees
recognise the need to continually update their skills and develop with the market needs. Often
employees expect their employers to provide training and development opportunities to allow
their skills to stay current [ CITATION Gar99 \l 6153 ]. MacLeod and Clarke (2011) further
emphasise the value of an empowered employee voice as another enabler of engagement.
Employees that feel heard have a greater sense of belonging and value their organisations
more. Garger (1999) describes that for the organisation, providing training and development
not only increases retention, it also increases job satisfaction and commitment. Companies
should provide a variety of learning programmes and growth opportunities to accommodate
to different learning styles.

Another key element to attract and retain staff is the reward and compensation provided by an
organisation. Several factors, such as the economic situation and demographic changes,
require companies to be flexible with their pay and reward incentives. The older generation
of workers value benefits and bonus payment as incentives to keep them motivated and loyal
[ CITATION Foo13 \l 1033 ]. Hytter (2007) reached the same conclusion, expressing there is
a link between retention and reward. However, it may be more effective to use non-financial
rewards that stimulate involvement and encourage feelings of achievement. Many employees
now seek more meaningful work and show higher levels of commitment and retention when
they feel valued. Since employees’ have different values, conducting employee attitude
surveys is a useful way to understand what employees want. The organisation may provide
employees with the opportunity to choose from a selection of rewards. These flexible benefits
incentives are more likely to satisfy the needs of individual employees [ CITATION Car13 \l
1033 ]. To improve long-term retention compensation should be coupled with quality of work
life [ CITATION Shi01 \l 6153 ].

Another useful predictor of employee well-being, work engagement and burnout, is the job
demands-resources model. The model suspects management should increase job resources as
a measure to predict positive work engagement. Job demands are the physical, mental, social,
and organisational aspects of work that are often associated with negative responses, such as
burnout or anxiety. The job resources are intended to reduce the burden of job demands,
while also being essential to work and beneficial to employees own personal growth
[ CITATION Bra11 \l 6153 ]. Bakker and Demerouti (2007) suggest that organisations that
provide high job resources along with either high or low levels of job demands, have
increased motivation and engagement.
4.1 Equality and Diversity

The areas of diversity and inclusion often go hand in hand. To receive the benefits of a
diverse workforce, organisations must foster an inclusive work environment. Implementing a
diversity and inclusion strategy, along with legislative measures, will “add value to an
organisation, contributing to employee well-being and engagement”[ CITATION CIP206 \l
1033 ]. CIPD 2020 describe diversity as recognising people’s differences and using their
range of perspectives in decision making. Also acknowledging the organisational benefits of
having a workforce that is representative of a diverse customer base. Inclusion is different
than diversity. Inclusion seeks to make employees feel valued and accepted for their
differences, without having to conform. An inclusive workforce implements policies and
practices that allow for a diverse workforce to work together effectively and where their
differences are used to enable everyone to thrive at work [CITATION CIP206 \l 1033 ].
Designing an effective and inclusive diversity strategy acknowledges the value in having an
inclusive working culture and environment. Managers may have unconscious bias that
negatively impacts on their ability to make decisions. Judgement is often influenced by
colleagues or their own predetermined opinions. Tackling such issues, to enable an
environment where everyone feels valued and appreciated, makes for a more happy and
productive workforce [ CITATION Fro16 \l 1033 ]. Research conducted by CIPD found
several evidence-based measures they recommend for effective diversity management.

Before developing a diversity and equality strategy, organisations should map their issues and
then explore what works.

CIPD (2019) recommend that organisations collect and analyse high quality diversity data to
aid in diversity management. It is essential to collect data that represents the workforce to
make more informed people management decisions. CIPD recommend getting employees
consent when collecting data and to protect their data in line with legal requirements.
Employers should communicate how and when the data will be used. The data is necessary in
setting strategy, identifying effective practices and to make a case in aid of workforce
diversity [ CITATION CIP19 \l 1033 ].

Achieving buy-in from senior managers will let employees know that diversity and inclusion
is a priority in the company. Research suggests that senior management support and
appreciation of diversity and equality is needed for progress to be made. To secure buy-in
across the organisation, diversity and inclusion must be established as a core part of
operations. Managers require time and resources to support diversity and in turn incentivise
employees. To make diversity and inclusion progress, managers must be held accountable for
their behaviour and performance. Employers should create a strategy that allows everyone to
take part, not only senior managers. In this way all levels of the organisation should
understand the need or diversity and inclusion [ CITATION CIP19 \l 1033 ]. Employers
should link diversity goals with the business and strategic goals in place. Creating awareness
of the legal reasons and the business case approach to diversity, and emphasis the importance
to act immediately on these areas [ CITATION Car13 \l 1033 ]. Organisations should use
marketing and communication to influence people’s mindsets so that the recognise diversity
as the norm. Furthermore, to help employees understand diversity creates a “more inclusive,
effective and innovative environment” [ CITATION Fro16 \l 6153 ].

Another recommendation to manage diversity in the workplace is to root out bias in the job
specification and the selection process. Bentley (2006, cited in Foot and Cook, 2013) stresses
the importance of communicating employee expectations, especially during the induction
stage. However, it is the employer’s responsibility to effectively manage a diverse work
group to obtain the advantages of a diverse workforce. The recruitment phase is a major
source of diversity for organisations. Adopting a broader approach to recruitment enables
employers to attract a full range of diverse candidates. Foot and Hook (2013) recommends
taking positive action to allow underrepresented groups to compete. For example, ………….
Furthermore, taking proactive measures to adjust recruitment and selection to enable access
for people with a disability. CIPD (2019) recommends organisations stress-test the job
description, ensuring they don’t contain bias. To allow for diversity, person specifications
should focus on relevant characteristics, and avoid using words that are gendered, racialised
or class related. Furthermore, organisations may interpret person-organisation fit as hiring
people who are like the rest of the team. This could undermine diversity, instead
organisations should focus on complementary-fit or even anti-fit. These roles highlight to
unique capabilities of candidates, or even deliberately hire candidates with different
characteristics to the rest of the team [ CITATION CIP19 \l 1033 ].

Human resource management is a strategic, integrated and coherent approach to

the employment, development and well-being of the people working in
organisations (Armstrong, 2016:7).

Write a project that highlights the benefits of taking a more modern HRM
approach and recommend what you think is best practice in the following
problem areas:  Recruitment and Selection, Induction, Retention, and Equality
and Diversity.

Conclusion

The evolution of HRM has led to the focus shifting to the employment, development, and
well-being of the people working within an organisation. This focus should be emphasised
throughout every HR function. In the recruitment stage, a variety of techniques should be
implemented to not only attract the best candidates, but also to make the application process
accessible to all people, including people with a disability. Subsequently, the likelihood of
reaching current and future organisational needs is increased. Management should utilise a
competency-based approach to selection, emphasising candidates’ skills and abilities. When
it comes to induction, HR should aim make the new employee feel welcomed and ease the
settling in period. Taking a more informal approach, that balances information delivery with
relational development is key to successful induction. To retain high performing employees,
Hr should implement a strategic approach that engages their staff. Providing training and
development opportunities increases job satisfaction and commitment. In addition, offering
flexible benefit incentives is more likely to satisfy individual workers. Employees that feel
engaged, are more productive and happier at work.
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