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The Importance of Sustainable HRM for Customer Satisfaction Assignment Sample

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Analyzing HRM Practices at Toyota and Their Impact on Employee Retention and Customer Satisfaction

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In this report a brief discussion about how HRM is important for every type of organization. As in this report, Toyota Motor Corporation HRM plays an important role in the managing and controlling and recruitment and selection and retention of the employees in the organization which helps them to increase their productivity and performance will be discussed. The functions and strengths and weaknesses of selection and recruitment approaches will be discussed. How HRM practices benefits for both employer and employee will be defined. The importance of employee relations and employment legislation influence the HRM decision making will be defined.

The purpose of the HRM

  • Effectively using all the employees in the organization so to achieve all set objectives and goals of the organization.
  • Proper staffing of the employees for the new or old job profile available in the organization.
  • To properly understand and manage the all diversify employees of the organization so the manager can properly utilize the efforts of the employees in the organization so that they can complete their assigned tasks on time and ineffective manner.
  • Making proper compensation structure for all the employees in the organization so that they all get paid for the work they are doing and feel valuable in the organization (Taamneh et al, 2018).

Functions of HRM

  • Formulating proper Job Analysis and Job Design which include defining the job requirements and responsibilities and all the necessary skills and knowledge needed by the employee to complete those jobs and tasks effectively.
  • Proper Hiring and Selection of the capable and quality applicant in the organization so that they can best meet the right person at the right job and at the right time.
  • Making different development and training program for all the employees of the organization so that they can build further skills and knowledge related to their work and achieve new goals.

Recruitment and Selection Approaches Strength and Weaknesses


  • With the help of proper recruitment way of recruiting new employees, the companies can attract a large pool of talented applicants for the job profile of their organization.
  • The right media platform for advertising for the new job profile helps the companies to get the best person for the job open in the organization.
  • The proper Selection criteria help the companies to select the best employees for the job by properly analyzing their every skills and knowledge so that the HR manager can have a clear portfolio of the applicants and can have a clear decision as to whom they need to select (Cherif, 2020).
  • With the help of the Selection Criteria, the HR manager can check the aptitude and emotional and other capabilities of all the applicants which help in their decision of selecting the right person for the right job.

Weaknesses : 

  • Sometimes companies take their old employees for the new job profile which may be not effective in that new job profile which can reduce the effectiveness and productivity of the organization.
  • The low budget of the companies to adopt the best advertising media for recruitment reduces the number of talented applicants for the new job profile.
  • Selecting the applicant just based on group exercises can reduce the chances of selecting the best-talented person for the job.
  • Most of the time company does the Online screening of the applicants due to distance issues due to which the selection procedure effectiveness reduces and chances of mistakes can arise (Wikhamn, 2019).

Functions of HRM to fulfill organization objectives

  • Proper planning in advance about the empty job available and pointing down all the requirements and duties of the job and having clear thoughts of what type of skills and knowledge will be needed to complete those tasks and job they organization will be able to select the best-talented person for the job and this will help them to achieve their set goals and objectives.
  • Managing the performance of the employees will help the HR manager to find out who is performing good or bad and according to that they can shift or train those employees so that they can perform better so that they can achieve their set target of the organization (Yan et al, 2019).
  • Proper selection and hiring of the right person at the right job will help the manager to get their work done on time and ineffective manner so that they can make the employee use their full potential and achieve their organization's short or long-term objectives.

Evaluation of strength and weaknesses of selection and recruitment approaches


  • The print media and 3Rd party recruitment online website will be more effective for the companies to create a great pool of the applicants for their job profile and will be able to get the best-talented person for their job.
  • Internal recruitment is also an effective way to fulfill the empty positions which will save the overall cost of the company and help in the development of the employees.
  • Aptitude and ability examination of the applicants will help the HR manager to better understand the applicant's skills and knowledge and then selecting the best one.


  • All the time internal recruitment is not effective to fulfill the new job profile.
  • Examine each application will become time and cost consuming for the companies most of the time (Ahammad, 2017).

Critical Evaluation of strength and weakness of different approaches of selection and recruitment


  • With the help of the Ability test, the HR manager will be able to understand the applicant more briefly. For Example- Through this test, they will be able to know the mental ability of the applicant as if any situation occurs in the work then how they will deal with that so they can achieve their objectives.
  • Recruitment internally will help the organization to save their extra cost if they need to recruit just one person for a single job profile. For example- They need to recruit any accountant then they can recruit the internal person who is good in accounts and can be easily shifted to that new position (Otoo, 2019).


  • Print and Web advertising for the recruitment of only 2-3 people will cost very high for the companies. For example- If they need an accountant person they can use the references of their existing employee or use their old applications if that match best.
  • Sometimes companies don't follow all the selection procedures due to which they might select an unsuitable person for the job. For example- In selecting sometimes they ignore the ability and aptitude test of the applicant and due to which they are not able to know if they will be emotionally capable of controlling the different situations or not.

Benefits of HRM practices for both the employee and employer

  • Providing a happy, safe and healthy workplace for both the employer and employee will help them to focus on their work which they are assigned, and create a good work environment for all of them to focus on the work and completing the tasks on time and in an effective manner. As if the employees and employer both will be happy with the organization then they will work there for the long run.
  • Bonus according to their performance will help the HR manager to retain and improve the performance and productivity of their people in the organization as if they will be recognized and get rewarded for their good performance then they will do their best all the time (El-Ghalayini, 2017).
  • Evaluation should be fair, as this helps in creating a good mindset in the minds of the employer and employees that nothing wrong and bad will happen to them as their performance and work are always measured fairly by their superiors.
  • Sharing of knowledge between them will improve the performance and capability of their in doing in the type of the tasks which they have assigned as when manager shared the needed information about the work how they have to do and what will be the best way to do then they will get chance to improve their skills and perform better and good in their work.
  • Selecting the right person for the right job helps the employer and employee both as the employer will get the good person who is capable of doing the tasks of the job on time and for the employee, it will benefit as they will be assigned to that job only which skills and knowledge they have and this will help them to perform well (Khatri et al, 2016).

Organizational Profit and productivity rise with the help of HRM practices

  • Selective hiring will help the organization to select the best person for the job who meet the skills and knowledge which is required for the performance of the job and this will help the companies to increase the overall productivity of their work and will help them to increase their profit as if their work will be done on time and effectively they will earn more.
  • Proper training to the employees will help the organization to build up the new skills and knowledge which will be required for the performance of the job then they will be able to improve the productivity of the low performer and help in increasing their profit also as there will be no delay in the work and no mistake in the work (Anju, 2020).
  • Effective and self-managed teams are the key to the success of the organization as when the employees will work together as a team then they will be able to complete their task and target of the money on time, as everyone will get help and learn from each other then they will be able to make more sale and this increases their profit.
  • Rewarding the best performer will help the organization to boost up the morale of the good performer and also increase the chances of improvement of the performance of the low performer as when they see the rewards and this will automatically increase their productivity and profit both (Slavkovi? et al, 2018).

Methods used in HRM practices

  • Internal communication helps the manager to share the knowledge and information between all the employees of the organization due to which they can make the work understandable in a more perfect way by the employees. Example- As when employees share their views on doing a particular task then they all will be able to know the best way of doing their task and this will improve the quality of the work.
  • Performance evaluation is the best HRM practices which the HR manager uses as with the help of this they can know how well their employees understand their work and how well they are doing. For Example- When the manager evaluates the performance of the employees on a timely basis then they will be able to know that who are the good performer and who is the bad performer (Stachová et al, 2019).
  • Teamwork is also a best HRM practices as with the help of this all the employees get chances to work together and understand and learn from each other this improve their performance and productivity. Example- When the marketing manager makes a good sales team then they all learn from each other how they need to deal with their clients and in how best ways they make a sale and they also learn new skills and knowledge from that.

Critical evaluation of HRM Practices and Applications

  • The HRM practices can help the organization in retaining the talented employees which work as the good assets of the company, for example- As when the good performance will be rewarded for their best performance then they will feel belongingness with the organization and they will feel it like a home and they will never think of leaving the organization.
  • When the recruitment and selection of the applicant will be done effectively then it will help the organization in improving their overall productivity and performance of the employees, For example- As when the right person with the right qualification will be selected for the job then they will give their full potential in doing their job and this will increase the growth and profit of the company.
  • Sometimes some HRM practices and applications not able to improve the performance and productivity of the organization and the employee if they are not selected and used properly. For example- If the organization recruits the employee from their internal source just to save the cost of the company and that person don't have need qualification and skills to do that job then this will reduce the productivity and will bring delay in the work (Pesik et al, 2019).

Employee relation importance in influencing the HRM decision making

A good employee relation helps the organization and the employee to make a good working environment at the workplace and it helps in improving the performance of the employees and which also leads to the increase in the success rate of the organization by achieving their goals and objectives.

  • With the help of good employee relations, the big tasks or projects can be shared between the employees and they all together can make that task complete on time and with the quality in the tasks which they will do. This makes the HRM decision-making to do more in favor of the employees so they all get motivated for this all the time.
  • The workplace becomes happier when every employee will understand each other and behave in a good manner with each other and support them, this will help in solving an individual problem related to work and this lead to the increase in the productivity of the employees.
  • It will reduce the conflicts between the employees when there will be a good relationship between them. They all will try to adjust with each other and try to reduce the conflicts between them by just finding fault in each other work (Essa et al, 2019).
  • Involving employees in the decision making related to the work and other work-related issues builds the confidence and good understanding in the minds of the employees and this help the HRM making decisions in building up good work relation.
  • Work will become easy as when it will be shared between the employees and everyone will do their best to coordinate with each other and solving the problems together they will be able to achieve their target on time.

Key elements of Employment Legislation impact on the HRM decision-making

The labor law or employment elements of legislation meant to safeguard the rights of employees of the organization. There should be a safe and healthy workplace for the employees so they can be safe from any miss happening.

  • Remuneration and wages should be given according to their work and should be given equally to every employee of the same department who are working, the employees should get timely wages and remuneration and there should be no discrimination there. This impacts the HRM decision which they take about the wages of the workers, as they should give in the right way.
  • Health and safe workplace for the employees so that while doing work there will be fewer chances of accidents, as the organization must provide a safe and healthy workplace so they can improve their productivity and quality of their work.
  • There should be Equality in the organization, as there should be no discrimination there in terms of caste, gender, religion, etc. This is providing a good work environment for every employee and they can help each other in problem-solving and can work as a team (Liebregts et al, 2019).

Critical evaluation of employee relation and HRM practices and influence decision making

  • If the organization will create and have a good relationship between the employees and have a good relation with them then it will help them to build up good coordination between the activities of the employees which helps them to build a good team and work together.
  • The employee relation will also help in better understanding of each other and when they learn to work together then the manager can delegate the work between them and this help in increasing the productivity of the organization and this will reduce the conflicts and issue which may arise in the workplace and it also helps them to learn good organization ethics and culture.
  • HRM practices help the HR manager to select and hire the best suitable employee for the right job in the organization so that the employee has the required skills and knowledge about the job and the job can be completed on time with good quality of work (Ahammad, 2017).
  • When the HR manager gives rewards to the employees on the bases of their performance at the workplace then it will motivate all the employees to give their full potential in the work and encourage the low performer to perform better next time this will create a good healthy competition between the employees which lead to the success of the organization goals and objectives.
  • Proper training and development decision-making helps the organization and the employees to build up their skills and knowledge about the work and this gives them a path towards their future goals and objectives.
  • This has a direct influence on the HR decision-making as the HR manager will take decisions so that they can align the organization and employees' goals and objectives together so that they can work together with the motive of achieving both their objectives and goals.
  • The HR will take the decisions related to the retention of the talented employees in the organization so that they can have a good quality workforce for the business who can give their full potential to achieve the goals and objectives of the organization and who can turn into an asset for the future organization who can take the place of new higher profile in the organization (Anju et al, 2020).
  • The HR also makes the decisions to coordinate and building a good relationship between the top and lower management so that they can easily share their problems and issues and can find out the best solution it together with the motive of success of the organization and successfully achieving of goals and objectives.


From the above report, it can be concluded that HRM is very important for every organization makes and have a good and happy workplace for the employees. It is important to retain talented employees in the organization and recruit and select the right person for the right job which can be done with the help of the HRM practices. Having good relations with the employees is also important so with the help of this the organization can fulfill their and employees both goals and objectives on time. HRM is also focused on creating safe and healthy workplace for the employees and reduce any type of discrimination and harm to the employees in the organization.


  • Ahammad, T, 2017, 'Personnel Management to Human Resource Management (HRM): How HRM Functions', Journal of Modern Accounting and Auditing13(9), pp.412-420.
  • Anju, K, and Avanish, K, 2020, 'An advanced approach to the employee recruitment process through genetic algorithm', International Journal of Information Technology, pp.1-7.
  • Cherif, F, 2020, 'The role of human resource management practices and employee job satisfaction in predicting organizational commitment in Saudi Arabian banking sector', International Journal of Sociology and Social Policy.
  • El-Ghalayini, Y, 2017, 'Human resource management practices and organizational performance in public sector organization', Journal of Business Studies Quarterly8(3), p.65.
  • Essa, M, and Wadi, R,A, 2019, 'The Role of Employee Relations Management in Improving Employee Performance', In ECKM 2019 20th European Conference on Knowledge Management 2 VOLS (p. 321), Academic Conferences and publishing limited.
  • Khatri, J,K, and Metri, B, 2016, 'SWOT-AHP approach for sustainable manufacturing strategy selection: a case of Indian SME', Global Business Review17(5), pp.1211-1226.
  • Liebregts, W, and Stam, E, 2019, 'Employment protection legislation and entrepreneurial activity', International Small Business Journal37(6), pp.581-603.
  • Otoo, F,N,K, 2019, 'Human resource management (HRM) practices and organizational performance', Employee Relations: The International Journal.
  • Slavkovi?, M, Pavlovi?, G, and Simi?, M, 2018, 'Employee recruitment and its relationship with employee satisfaction: Verifying the mediating role of the employer brand', Ekonomski horizonti20(2), pp.127-139.
  • Stachová, K, Stacho, Z, Papulová, Z, and Jemala, M, 2019, 'An effective selection process is the key to quality job positions occupation conditional for long-term competitiveness', Production Engineering Archives24(24), pp.5-9.
  • Taamneh, A, Alsaad, A.K. and Elrehail, H, 2018, 'HRM practices and the multifaceted nature of organization performance', EuroMed Journal of Business.
  • Wikhamn, W, 2019, 'Innovation, sustainable HRM and customer satisfaction', International Journal of Hospitality Management76, pp.102-110.
  • Yan, J, Luo, J, Jia, J, and Zhong, J, 2019, 'High-commitment organization and employees' job performance', International Journal of Manpower.
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