The paper "Audit of HRM Practices in Company X" is a good example of a human resources case study. Human Resource Management (HRM) is one of the most important strategic functions in any organization. This function is concerned with the management of employees, who collectively and individually contribute to the achievement of business goals and objectives. At its core, the HRM functions play a tactical and strategic role in maximizing returns on an organization’ s investment in human capital, and in minimizing employee-related operational and regulatory risks. Although the HRM function is expected to operate as an independent unit, its activities and influence touch on all aspects of operations in an organization.
For this reason, most organizations recognize the significance of HRM and structure their operations to fit into the strategic HR plan (Pfeffer 2005, p. 95). The paper that follows presents an audit report on HRM practices in a major British organization. The name of the company has been disguised in accordance with the company’ s confidentiality policy. Company Background and History Company X is a medium-sized retailer and grocery firm in the United Kingdom.
The company has been operating in the UK for several decades and has expanded over the years to become a notable player in the British retail industry. The company’ s stores carry a wide range of products including apparels, groceries, electronics and home dé cor. The stores and retail outlets are strategically spread across major British cities and towns. The company endeavors to offer high-quality products at low prices. To this end, Company X seeks to develop and maintain strong competitive advantages over its rivals in the industry. Description of the HR Department’ s Role in Company X The HR department is one of the several functional units that were established as soon as the company was formed.
Since the company’ s mission is to offer goods and services in a manner that is convenient and efficient to customers, its human resources directly influence the company’ s business performance. Therefore, the HR department is responsible for maximizing employees’ performance to increase sales and brand equity. Human resource planning, job design and analysis are the main components of the HRM function at Company X. Human resource planning helps the HR department in attracting and developing talented and motivated employees.
Through job design and analysis, the HR department develops proper job specifications and descriptions for its employees. Because of its wide branch network and a large number of employees, Company X has adopted a hybrid system of HR management. This system combines decentralized and centralized HR activities and responsibilities (Youndt & Snell 2004, p. 337-343). Under this system, each store employs its own staff but the HR department at the head office retains centralized overall responsibilities. Essentially, each store under Company X brand is headed by an HR manager who is appointed at the head office.
The main responsibility of these HR managers is to translate and implement the company’ s general human resources plan as developed at the corporate head office. Store managers may implement different interpretations of the HR plan. The variations are as a result of the unique circumstances surrounding each store’ s human resources and also the nature of each store’ s interactions with the target market. This means that the company’ s HR policies in Wales may be different from those in Scotland.
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