Human resource management is an integral part of an organization that is responsible to manage a skilled and talented workforce by adopting various HR practices such as training and development, rewards and compensation, flexible working practices etc. JP Morgan firm located in central London in order to assist human resource of an organization. It is a commercial and investment banking which is founded by JP Morgan nearly 1871.
- Demonstrate the purpose and nature of HRM within JP Morgan.
- Explain the importance of key elements of HRM for JP Morgan.
- Analyze internal and external environment to examine the impact on decision-making of HRM.
- Apply HRM practices in work-related content of JP Morgan.
Human resource management is systematic planning, development and controlling interrelated that defines an expression of beliefs in employee for the success of an organisation. This includes HR planning, forecasting, job design, staffing, recruitment, training and development to improve the overall performance of a business firm (Hendry, 2012). Also, it will support maintaining respect and dignity among the existing business enterprise. Human resource management is necessary for each and every business firm to deals with people as complete individuals, provide opportunities for growth and development, rewards should be earned and many more.
As an HR Assistant at JP Morgan firm in central London to assist in human resource activities of an organization. It is a commercial and investment banking which is founded by JP Morgan in nearly 1871. This project covers the purpose and function of HRM, different approaches related to recruitment and selection, benefits of different HRM practices for employer and employee. This also includes the effectiveness of different HRM practices of JP Morgan company limited.
P1 Purpose and functions of HRM
In general terms, human resource management is a function of a business firm which is designed to maximize the performance of employees in service sector against strategic goals. It refers to learning of managing the people and other actions of a business organisation in extreme efficient and helpful manner (Bratton and Gold, 2017). This is the most effective source that can place employees in jobs in less period of time. As, it plays a crucial role in a business firm such as JP Morgan which required HR assistance for their organisation.
Scope and nature of HRM
HRM involves management scope and nature which helps in to attain goals of a business enterprise. These are discussed as below:
- Human resource management is an inherent part of every management level because the manager wants their best out his people. This will assist them in motivating, training and appraise their subordinates in a business organisation.
- HRM involves various functions concerned with managing people from work force, planning, recruitment, placement, training and appraisal to compensation of employees.
- Using of audit of personnel policies, procedures and practices of business firm.
- Motivating the employees by providing sufficient or proper financial and non- financial benefits (Brewster and Hegewisch, 2017).
Hard and Soft approaches of HR assistance
There are variety of ways to approach management of HR in a business firm. Hence, there are two broad approaches to human resource management are explained further below as:
- Hard HR: This type of HR treats their employees as a resource of a business firm such as machines or premises. The main focus of this type of HR is to identify labour force needs of a business and their recruitment. It includes short- term changes in employee recruitment, minimum communication regarding issues or discussing about something or other from top to bottom. They pay enough to recruit and retain staff by paying minimum wages. They prefer autocratic leadership style.
- Soft HR: This type of HR treats their employees as a most essential resource for a business and concentrate on the needs of employees, their roles, rewards, motivation, etc. It focuses on longer term man- force planning, they create two- way communication and uses democratic leadership style (Armstrong and Taylor, 2014). Soft HR employees are empowered and encourage to seek delegation and takes responsibilities.
Therefore, JP Morgan should adopt soft HR approach which help them in improving their relations with customers as well as business person which can create their wealth to obtain desired objectives regarding business firm.
Purpose of HRM
- Remuneration and reward: This is a foremost purpose to remunerate human resources of a financial industry. HR provides best remuneration to their staff as per their eligibility, experience and job role. To perform better to best performance they motivate through rewards while effective performance. This can be done by providing bonus, incentives, offering trip for holidays and so on.
- Resources planning: It is a foremost purpose of HRM to make plan for manpower. For example, if employees required in JP Morgan, planning is necessary for these aspect to be done by HR manager of this company. Moreover, when resources are contributed employees get motivated for learning new things related to business (Briscoe, Tarique and Schuler, 2012).
- Retention: This is an important factor of HR as people do not feel secure regarding their job or if company pressurized them to do their work. This can lead to increase job retention, absenteeism and that will overcome into labour turnover. Therefore, use of HRM practices in a company can reduces all the above factors related to reduction in absenteeism.
Function of HRM
- Staffing: It can be an effective method which can possess specific position for right person for a right job. This helps in to achieve business goals, human resource management performs various effective functions such as job analysis, recruitment, selection and many more.
- Selection: This is a final systematic process through which a business enterprise identifies best person from pool of individuals that can effectively fulfil requisite criteria. It can be done through performing desired duties in JP Morgan company limited.
- Employee and labour relations: This part deals with unionism of employees which has become popular in recent years. Now it is compulsory by law for its employees to take part in unionism (Daley, 2012). If employees want to join union, business firm cannot pressure them for prevention.
P2 Different approaches to recruitment and selection
JP Morgan is an investment and finance company which needs staff to handle the activities. As it has deals in various kinds of products such as bond trading, brokerage services, capital market services, consumer banking, consumer finance, corporate banking, credit cards, and so on. That's why it needs to hire the staff to manage the activities and banking operations. In order to hire the staff it needs to adopt the recruitment and selection methods that are internal and external recruitment. Jp morgan wants to recruit some proficient candidates in order to gain more profit and increase revenue. Recruitment is a systematic process which is used to hire desired candidates for vacant job position. This can be done through various approaches such as internal and external selection of individuals. Selection is the next phase after recruitment in which they have to face varieties of tests and aptitude for a selecting a suitable candidate for the job position. There are different approaches recruitment and selection which are used by the HR manager of JP Morgan. These are given below as:
Internal approach: This approach deals with internal recruiting process which help employees in their promotion, transferring and employee references. The HR manager initially look for the existing employees who are working well and deserve the promotions. The HR informs about the vacant position at JP Morgan and then tell them to apply for the job role. After getting the information, employees can appear for the interview and the best candidate can get recruitment for the senior designation (Huselid and Becker, 2011). There are various ways to adopt internal approach these are discussed in detail as:
- Promotions: It can be done by analysing the performance of each employee. If they are fulfilling the needs of JP Morgan through enhancing the banking business then they can get the promotion. This method can be applied by improving the performance of an individual to enhance their existing working criteria. It can measure through 360 degree performance appraisal in which employees performance is measured.
- Transferring: JP Morgan can transfer their employees to other branches after recruiting them on a new position or can retain in the same branch. Therefore, HR assistant plays a vital role in transferring employee to other branch as per the requirements for the purpose of fulfilling vacant post
External approach: This can be done by drawing wide range of talent, that helps in to provide opportunities or bring new experience and ideas into a business firm. There are various methods that can be opt by JP Morgan in order to bring new people with a new concept (Jackson, Schuler and Jiang, 2014).
- Campus drive: This method includes to drive students from their colleges which is an effective method to take eligible candidates for the desired post. JP Morgan can hire new talent from B - Schools in order to enhance profit of the firm.
- Factory gates: This method involves walk in interview through which JP Morgan can choose desired candidates for a vacant job position.
- Online sites: This is another method to hire employees through online job portal which help HR assistant to spread out the information for the vacancy and then it can call the desired aspirants for the interview. The HR of JP Morgan can conduct various kinds of interview rounds such as logical, statistical, screening and face to face. If the HR is satisfied by the candidate then they can hire the aspirant for the particular job role.
On the basis
M1 How functions of HRM can provide talent and skills to fulfil business objectives
The function of Human resource management is used to refer learning and adapting the business skills to enhance their performance as well as improve existing working performance by using the skills, abilities and knowledge of an employee (Marler and Fisher, 2013). This can reduce the job insecurity, retention, absenteeism and employee turnover. Training and development is a major function which assist in increasing the performance of employees. This requires huge amount for hiring experts and trainers to fulfil the required needs of a business firm. It includes personal abilities, aptitude, capacity, capabilities and