Human Resource Management

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Contents
Introduction......................................................................................................................................3
LO1 Explanation of the purpose and scope of Human Resource Management in terms of
resourcing an organisation with talent and skills appropriate to fulfil business objectives.............4
P1: Explanation of the purpose and the functions of HRM, applicable to workforce planning
and resourcing an organisation....................................................................................................4
P2: Explanation of the strengths and weaknesses of different approaches to recruitment and
selection.......................................................................................................................................6
LO2 Evaluation of the effectiveness of the key elements of Human Resource Management at
Nike..................................................................................................................................................8
P3: Explanation of the benefits of different HRM practices within Nike for both the employer
and employee...............................................................................................................................8
P4: Evaluating the effectiveness of different HRM practices in terms of raising organisational
profit and productivity...............................................................................................................10
LO3 Analysing the internal and external factors that affect Human Resource Management
decision-making, including employment legislation.....................................................................11
P5: Analysing the importance of employee relations with respect to influencing HRM
decision-making.........................................................................................................................11
P6: Identification of the key elements of employment legislation and the impact it has upon
HRM decision making...............................................................................................................12
LO4 Apply Human Resource Management practices in a work-related context..........................14
P7: Illustrate the application of HRM practices in a work-related context, using specific
examples....................................................................................................................................14
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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Introduction
Human Resource Management is the process of acquiring, training, appraising and compensating
employee, and of attending to their labour relation, health and safety and fairness concern. HR
Management is a significant piece of the management of the association. This deal with the most
significant resources of association that is the individuals. HRM is the key way to deal with the
effective management of people in an association or organization to such an extent that they help
their business increase an upper hand or gain a competitive advantage. This assignment will give
us a comprehension of Human Resource Management at NIKE Inc. Nike, Inc. is an American
multinational corporation that is occupied with the design, development, fabricating, and overall
showcasing and deals of footwear, apparel, ornaments, and services ("Read Nike's Mission
Statement and find information about NIKE, Inc. innovation, sustainability, community impact
and more", 2020). They are the world’s largest provider of athletics shoes and a major
manufacturer of sports equipment.

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LO1 Explanation of the purpose and scope of Human Resource
Management in terms of resourcing an organisation with talent and skills
appropriate to fulfil business objectives.
P1: Explanation of the purpose and the functions of HRM, applicable to workforce
planning and resourcing an organisation.
Nike, Inc. an American multinational association headquartered near Beaverton, Oregon, in the
Portland metropolitan area. In 2018 the brand generated a revenue of $36.6 billion. Making it the
most significant brand among sports organizations. Nike positioned No. 89 in the 2018 Fortune
500 list of the largest United states association by all-out income ("Read Nike's Mission
Statement and find information about NIKE, Inc. innovation, sustainability, community impact
and more", 2020). Human Resource Management is the process of acquiring, training,
appraising and compensating employee, and of attending to their labour relation, health and
safety and fairness concern (Boxall & Purcell, 2016). HR Management is a significant piece of
the management of the association. HR practice in Nike can be characterized by multiple points
of view yet with regards to business, we can say that HR is the most vital and viable
administration of your most productive asset: people. A strategy is a cautious arrangement that is
set up to guaranteed achievement and the greatest outcome. Nike, Inc. also use HRM to recruit
and select an employee to gain maximum profit and to find out the impact of its business goal
on their employee (Chanda & Shen, 2010).
Purpose of HRM at Nike
The purpose of HR at organisations like Nike is gaining the sustainable manufacturing and
innovation and increasing profitability, brand value, and financial gain through their effective
workforce because HRM constructs the managerial capacity and causes them esteem and enabled
workforce (Dickmann, Brewster & Sparrow, 2018). While just a single part of Nike's work with
contract industrial facilities, it is a significant mainstay of Nike's system to manufacturing a
progressively lean, green, enabled and fair supply chain.
Main Functions of Human Resource Management
Functions of HRM at organisations like Nike include staffing, motivating workers, performance
management, training and development, compensation management and so on. Some of the main
functions of HRM are the following:
Staffing: Unarguably the most important function in the HR area, it expects organisations like
Nike to comprehend their talent requirement, design job descriptions, recording the opening on
different job portals. Conduct interview or evaluation tests and selects the most qualified
candidates. It is conducted by first determining the HR required and afterwards carrying out a
job analysis. At that point, the recruitment and selection process ensures that the association isn't
short of employees (Heery & Noon, 2017).

Training and Development: T&D means giving new or current employees the skill that they
need to perform their jobs, such as showing new salespeople how to sell your product. Training
might involve having the current jobholder explain the job to the new hire, or multi-week

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classroom, or online classes. Training is important to all levels of employees at Nike and other
organisations. If even high potential employee doesn’t know what to do and how to do.

Staffi ng

Training and D evelopm ent

Labour Relation

H ealth and Safety

Com pensation

Perform ance M anagem ent

O nboarding

Figure 1: Functions of Human Resource Management

Source: (Chanda & Shen, 2010)
Labour Relation: HR is tied in with managing people and keeping them satisfied, the function
of employee relations increases even more unmistakable quality. It is not just at the professional
level that HR needs to think about an employee, yet additionally at improving their own lives. It
also includes reducing their workplace conflict and keep the working environment smooth at
organisations like Nike. Because of happy employee equal to the productive and happy
workplace (Hook & Jenkins, 2019).
Health and Safety: Health and safety is a cross-disciplinary area concerned with ensuring the
wellbeing and government assistance of individuals occupied with work or business. The
objective of all occupational health and safety program is to encourage a protective workplace
(Heery & Noon, 2017). Nike and similar organisations need to work about the health and safety
of their employees.
Compensation: It includes all forms of pay going to employees and arising from their
employment. It has two main components, direct financial payments (wages, salaries, incentives,
commission and bonuses) and indirect financial payments (financial benefits like employer-paid
insurance and vacations) at Nike (Jones & Martain, 2013).
Performance Management: This requires HR managers at Nike to build up objectives and key
responsibility areas for each job in the association and estimate the performance of employees
against them in an effective and efficient manner. It likewise includes giving feedback to
employees on their performance and also taking their feedback on what they expect from the
associations at organisations such as Nike.

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Onboarding: Onboarding is the way toward getting new candidates acclimated to the social and
performance parts of their new job rapidly and easily. It is the procedure through which
newcomer gain proficiency with perspectives, information, abilities, and practices required to
work adequately inside an association (Hook & Jenkins, 2019).
Induction: Induction implies acquaintance of new worker with the activity and the association. It
is the way toward accepting and inviting a worker when he first joins an organisation like Nike
and giving him the fundamental data, he needs to settle down rapidly and cheerfully start work
(Boxall & Purcell, 2016).
P2: Explanation of the strengths and weaknesses of different approaches to
recruitment and selection.
Recruitment and selection process is characterized as the procedure through which the best
candidates are chosen among a pool of candidates for a specific place of employment. Mostly
HR manager considers the selection process as one of their critical decision functions in the
association. In the selection process, the HR manager actually attempts to coordinate
information, aptitude, and abilities of the candidates with the requirements of the job. There is no
single selection process that can be considered as the standard one. Nike focuses more on their
recruitment and selection process to make it standard through various approaches such as best fit
approach, best practice approach, internal approach, external approach, the ethnocentric
approach, the geocentric approach and so on (Chanda & Shen, 2010).
Internal Recruitment: Internal recruitment is the point at which the business hopes to fill the
opportunity from inside its current workforce of Nike (Heery & Noon, 2017). It has various
advantages and disadvantages which include the following:
Advantages:
 Less expensive and faster to enlist.
 People effectively acquainted with the business and how it works.
 Gives open doors for advancement in business.
 The business already knows the qualities and shortcoming of candidates.
Disadvantage:
 Lack of new idea.
 Another vacancy needs to be filled.
 No variety of candidates.
External Recruitment: External recruitment is the point at which the business hopes to fill the
vacant place from any suitable candidates outside the association.
Advantages:
 Outside people bring new ideas
 A larger pool of candidate by which association will find the most suitable one.
 Candidates have a more extensive scope of experience
Disadvantage:

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  Time-consuming
 Expensive
 Not always effective
Best Fit Approach: The best-fit approach focusses on ensuring that the HR procedures are
suitable to the condition of the association, including its way of life, operational procedures and
outer condition. HR techniques need to assess the specific needs of both the association and its
individuals. The HR manager must have to ensure that the HR practice must fit with the context
and circumstance of the association (Chanda & Shen, 2010).
Advantage: It includes efficiency. The HR methodology is custom-fitted to the encompassing
and the setting of the business association. The efficiency allows the association like Nike, Inc.
to increase an upper hand (Heery & Noon, 2017). The HR of Nike, Inc. can implement the
system better because of the coordinating of the techniques with the circumstance of the
association. Likewise, there are fewer clashes between the departments when this approach is
implemented.
Weakness: The shortcoming of the best-fit approach is the changing idea of the approach. The
employees can’t completely get a handle on the approaches since they are rapidly evolving
(Long, 2012). Asides from that, the best-fit approach does not take employees to interest in
mind. Some likewise believe these models to be unreasonable.

International
Approaches
External
Recruitent
Internal
Recruitment
Best Practice
Approach
Best Fit
Approach

Figure 2: Approaches to Recruitment and Selection

Source: (Heery & Noon, 2017)
Best practice approach: Best practice approach in HR applied by the best association working
in comparative conditions and seeking after comparable objectives. They are applied to the
accomplished ceaseless improvement of association’s performance by the basic assumption of

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vital and fundamental practices in HRM of the best association in the explicit sector (Dickmann,
Brewster & Sparrow, 2018).
Advantage: These practices are logical. Association can use these practices according to their
sizes. Rethinking is not required in these approaches. Both the HR manager and employees can
easily understand these approaches. And this is also suitable for any kind of association.
Disadvantage: Because of this approach, employees may lose the right to express their thoughts
whenever they think of other practices to be better for the association (Long, 2012).
Other approaches to recruitment include the following:
Ethnocentric Approach: When an organization follows the system of picking just from the
residents of the parent nation to work in host countries it is known as the ethnocentric approach.
This approach is good for organisations that are taking the international approach of
globalisation (Hook & Jenkins, 2019).
Polycentric Approach: When an organization receives the technique of constraining
recruitment to the nationals of the host nation. This is an approach best used by organisations
that have a heterogeneous market where the company needs people from the country to
understand the market (Long, 2012).
Geocentric Approach: When an organization receives the technique of recruitment the most
appropriate people for the positions accessible in it, regardless of their nationalities (Hook &
Jenkins, 2019). This is an approach followed by Nike and is best suited to them because they
have a global market which requires the best people from all around the world.

LO2 Evaluation of the effectiveness of the key elements of Human

Resource Management at Nike
P3: Explanation of the benefits of different HRM practices within Nike for both the
employer and employee.
Nike conducts HRM practices in order to attract, employ, develop, motivate and retain their
employees in the organisation. Human Resource Management practices can be called as a system
which allows these results for the company. HRM practices such as the Best Fit Approach, Best
Practices Approach which includes recruitment, selection, employee training and development,
motivating employees, employee engagement and so on provide a wide variety of benefits to
both the employees and the employers at Nike. These benefits are as follows:
Benefits for the Employer:
The benefits of HR practices for the employers of Nike include aspects such as increased
productivity, employee satisfaction, reduced turnover, reduced costs due to production, conflict
resolution and so on (Long, 2012). These benefits are discussed in detail.
Increased Productivity: When organisations like Nike provide their employees with the good
working environment and ensures that they are properly trained to perform their jobs as well as
motivating them to increase satisfaction they enjoy higher productivity (Heery & Noon, 2017).

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Employee Satisfaction: Employee satisfaction and productivity are directly co-related. Many
studies have found that employee satisfaction results in higher productivity and employee
satisfaction is a result of HRM practices (Hook & Jenkins, 2019).

Increased Productivity

Employee Satisfaction

Reduced Turnover

Reduced Costs

Conflict Resolution

Figure 3:Benefits of HRM Practices to Employers

Source: (Dickmann, Brewster & Sparrow, 2018)
Reduced Turnover: When employees are happy with the condition of organisations such as
Nike, they will not switch jobs so often. This results in a reduced turnover in the organisation.
Reduced Costs: Even though HRM requires resources from the organisation it provides a great
deal of cost reduction. Costs from lower productivity, wastage, turnover, inefficient employees
and wrong employments are reduced due to HRM practices (Svetlik & Stavrou-Costea, 2017).
Conflict Resolution: In a company where employees are satisfied and motivated the seems to be
lesser conflict. This is true in the case of Nike as well where even though there was an incident
of conflict, better HRM practices have removed it as well (Alfes, Truss, Soane, Rees & Gatenby,
2013).
Apart from these other benefits such as motivated workforce, employee engagement, market
recognition is also enjoyed by employers at organisations such as Nike due to HRM practices.
Benefits for Employees:
The employees are also benefitted when they are provided with good HRM practices. Employees
are able to work in a better environment, have less stress about the job and do not face safety
issues to name a few. The benefits for the employees are-

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Less Stress: Employees who work at organisations like Nike where they are met with good
HRM practices do not face stress regarding their work. They are provided with better working
conditions and have their needs taken care of (Hook & Jenkins, 2019).
Increased Security: This is not only the security or the working environment where they need
not face accidents this also includes job security. Training and development programs ensure that
the employees have the skills to stay at the job and are easily employable as well (Dickmann,
Brewster & Sparrow, 2018).

Increased
Less Stress
Security

Work-Life
Motivation
Balance
Figure 4: Benefits of HRM practices to Employees
Source: (Hook & Jenkins, 2019)
Motivation: Motivation is also important for employees as well. This helps them to live a life
that is stress-free and they can enjoy life better with this. HRM practices look to motivate the
worker as well based on various motivational theories.
Work-Life Balance: Life is not all about working. But sometimes work does get in the way of
leading life and vice-versa. Good HRM practices look to reduce these problems and ensure that
the employee is able to live a healthier life (Alfes, Truss, Soane, Rees & Gatenby, 2013).
P4: Evaluating the effectiveness of different HRM practices in terms of raising
organisational profit and productivity.
Nike Inc. is an American Multinational business organisation which operates all over the world.
The company has been operating for more than 56 years and currently employs about 73000
people. A vast number of employees who are spread over the globe means that the company
needs to have state-of-the-art practices when it comes to Human Resource Management. Even
though there were some incidents regarding the HR practices of the organisations the company
has gotten good results from their HRM practices in terms of profit and productivity.

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In 2018 the company earned a revenue of $36 billion dollars and had a net income of $1.93
billion. This is a result of managing their workforce who need to be properly skilled in order to
produce quality shoes and other products such as clothing, sportswear and so on ("Nike: number
of stores worldwide 2019 | Statista", 2020). The company puts HRM practices at their top
priority and they invest in HR professionals in order to select the people with the right skills
and train these people. They even have HRM consultants for their suppliers who provide them
with HRM consolations. The company also won various awards for the best company for perks
and benefits, the best company for compensation in 2018. Based on 4,772 ratings and 286
participants, employees are satisfied with their work experience at Nike (Parker, 2020).
Furthermore, the company has a cultural rating of 71/100 which shows that Nike does have
good HR practices. The company also won the award for best CEO in 2018 (Parker, 2020).
Nike also trains its employees properly and this results in higher productivity and higher quality
of products. This results in a total market share for footwears of 27.4% and this makes Nike
the number one brand in footwear. The Asia Pacific market is going to be the largest market of
footwear in the future where Nike looks to increase its sales. The company had a total of 1152
stores all over the world. This is almost double from 674 stores in 2009 ("Nike: number of
stores worldwide 2019 | Statista", 2020).
The brand value of Nike is the highest in the sector at $32 billion which is double that of their
competitor Nike. These statistics in their profit and production are a result of properly training
employees and providing them with benefits and incentives to keep them motivated. Without a
motivated workforce, this would not have been possible (Long, 2012). It is known that Nike
focuses on recruiting the best employees and training them as well to ensure proper growth of the
employees. This has made the company as big as it is and has allowed it to grow as well.

LO3 Analysing the internal and external factors that affect Human
Resource Management decision-making, including employment
legislation
P5: Analysing the importance of employee relations with respect to influencing
HRM decision-making.
The relation that is concerned with the fair pay, grievance, conflict, unions, collective bargaining
and so on between employees and employers is known as employee relations (Ivancevich &
Konopaske, 2013). This is important for organisations such as Nike because employee relations
have an impact on the HR management process at the organisation. Nike has one of the happiest
employees according to CarrerBliss and this is a result of good HR practices that keep employee
relations as their focus.
For the organisational success of Nike, employee relations is important and because of that, the
company needs to ensure that the company selects the right people and provides the proper
training necessary. Because Nike has more than 70000 employees at the organisation and to keep
all of them satisfied and working, they need to take care of their employees ("Nike: number of
stores worldwide 2019 | Statista", 2020). Apart from that, the company needs to maintain their
operations in over many countries where they have to make sure that they are respecting the
culture of the employees in these societies and to keep them motivated to work at the

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organisation the HR policies at Nike ensures better pay and working environment at the
organisation.
Also, the company is legally bound to take care of the employees and this means that Nike
should provide them with equal benefits, permission to form unions and equal opportunities for
the employees at the organisation. Various laws such as the Equal Pay Act, Racial Relations Act
and others ensure this.

Increased Productivity

Motivated Workforce

Compliance with Laws

Improved Financial Performance

Figure 5: Benefits of Employee Relations

Source: (Ivancevich & Konopaske, 2013)
Moreover, good employee relations mean that Nike has no stoppage of work due to strikes or
from despair by the employees. Because of this the company has earned a huge revenue of $36
billion and can operate in many countries as well. The company is also seen as a good place to
work because of their HR practices. These practices are shaped due to the fact that Nike wants to
attract the top talent and to retain these people.
Employee relations have shaped Nike HR where they plan their job description and specification
based on the responsibility that each employee will perform. Furthermore, Nike also provides
wages based on that where they make sure that employees are not underpaid at Nike. They also
ensure that their suppliers perform similar practices with their employees. Nike also recruits and
selects employees if they feel that their internal source cannot fill-up the vacancy. Even the
training and development of Nike ensures that the employees are not missing out on
opportunities regarding their career development (Svetlik & Stavrou-Costea, 2017).
P6: Identification of the key elements of employment legislation and the impact it
has upon HRM decision making.
Employment legislations are the rules, regulations and the laws that govern the employment of a
person in an organisation. They exist in order to regulate the relationship between Organisations

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such as Nike and their employees. It also ensures that the employees are not unduly exploited or
discriminated by the organisation. Since HRM is a task performed by the top management the
decision making regarding HRM at organisations such as Nike are influenced by various rules
and regulations here in the UK. These are mostly similar in other countries as well (Shakirov,
2016). The laws include the Equal Pay Act, Data Protection Act, Dismissal Law, Health and
Safety at Work Act, Sex Discrimination Act, Employment Act and so on. They influence the HR
decision making on regards to recruitment and selection, compensation decisions, retirement
decisions, employee data decisions and other decisions made by the organisation (Richardson,
2010).
Employment Act 2002 states that organisations will first try to settle any dispute of employee
and the organisation withing themselves and then they will go to the employment tribunal. This
also provides employees with maternity leave, paternity leave and pay, regulations on equal pay
and so on. Organisations need to adhere to them before they take on any decisions regarding
these aspects (Kam, Jeong-Ki, 2010). Furthermore, the Equal Pay Act 1970 ensured that no one
shall be discriminated on their pay based on the race, religion, gender and so on. The provisions
of this act have been added to the employment act now. Pension Act of 2014 also impacts the
retirement decisions of organisations like Nike as well (Shakirov, 2016). This makes sure that the
pension of an employee is jointly funded by the employee and the employer. The HR manager
needs to keep this in mind before making decisions as well.
Table 1: The employee legislations and their impact on HRM decision making
Source: (Richardson, 2010)
Elements of Employment Decision-making areas
Legislation
Sex Discrimination Act, Race Impacting Recruitment decisions
Relations Act, Disability
Discrimination Act &
Employment Act
Data Protection Act Impacting Data management decisions
Dismissal Law Impacting Performance management
decision
Equal Pay Act Impacting Compensation decisions
Health & Safety at work Act Impacting Health & Safety decisions
Pensions Act Impacting Retirement decisions

Apart from that, the Data Protection Act 2010 makes sure that the employee data are used
ethically by organisations such as Nike. These data obtained cannot be provided to another party
and data that are irrelevant to employment cannot be stored due to the act (Parry, Strohmeier &
Nickson, 2014). It makes sure that the data of the employees are used to harm them. Health and
Safety at Work Act 1974 also ensure that the HRM of the company provides a working
environment that is free of any dangers to the employee and if there is any then they need to
solve the problem (Kam, Jeong-Ki, 2010). Other acts such as the Sex Discrimination Act, Race
Relations Act, Disability Act are part of ensuring the equal treatment of employees at Nike

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(Richardson, 2010). Also, the employment act ensures the employee contract and the dismissal
act of the employee.

LO4 Apply Human Resource Management practices in a work-related

context
P7: Illustrate the application of HRM practices in a work-related context, using
specific examples.
In order to learn about the HRM practices at Nike, we can look at their recruitment process
which starts with the respective department that wants to employ a person (Long, 2012). For
example, the sales department at Nike will assess whether they need new sales representatives or
not (Heery & Noon, 2017). If they do so then the HR of Nike will start to create a job description
and Job Specification of a sales representative which looks like the following:
Job Description
Job Title Sales Representative
Job Location Wardour Street, Soho, London
Job Purpose and the Supporting the Store Management team at London, to achieve the
Period of the Job store's goals through providing a positive shopping experience to our
customers, through the effective execution of the selling and service
culture of Nike.
Position in the Reports to Store Manager
Organisational Staff Responsibility None
Hierarchy Sales Responsibility To provide the customer with the help that
they need to understand Nike and what the
products can do for them.
Duties and The duties and responsibilities include-
Responsibilities 1. Achieving/Exceeding personal sales goals and performance
metrics while working as a team member to contribute to the
overall store’s total revenue goals.
2. Providing a world-class shopping experience to customers by
connecting with them through meeting and anticipating their
needs.
3. Supporting the store management team to achieve all financial
and operational objectives regarding the expense control and
loss prevention standards of Nike.
4. Maintaining visual merchandising standards consistent with
the brand strategies of Nike.
5. Partnering with the management team on the implementation
of monthly visual directives.
Person Specification Proper Educational background includes a high school diploma and
the ability to wok in a flexible schedule. Also, the applicant must be
physically fit to lift, carry and push 25 pounds regularly to help the
movement of goods. Computer Skills are necessary as well.
Advancement The sales representative can be promoted to be a store manager based
Opportunities on performance.

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 Key Contacts Store Manager

After the job specification is posted at various newspapers and online media to attract applicants,
they will be invited to send their CV which looks like the following:
James Bond
30 Wellington Street, London
Telephone: 007007
Mobile: 221007007
e-mail: bondjamesbond@gmail.com

Education:
2006-2017
Scotland Yard High School
Job Experience:
Sales Assistant at McDonald's
2017-2019
Interests/Achievements:
I enjoy playing football and played at the junior team at Arsenal FC. I also won the regional
championship with my high school
References:
Available on request

After screening the CV’s, the applicants will be asked for a structured interview which will ask
them various questions to gauge their abilities. The questions include the following:
1. What is your previous job experience?
2. Describe your Job title and duties?
3. Describe your ideal working environment?
4. Provide examples of one of your failures and how you dealt with it?
5. What do you want to do at Nike?
Questions such as these will gauge the working mentality of the applicant and how they can cope
with the stress of working at Nike. And finally, when the applicant is selected, he or she will be
provided with an appointment letter which looks like the following:

March 21, 2020

Mr James Bond,
We are to have you work here at Nike with us. After assessing your credentials, we came to the
conclusion that you possess the kind of skills that Nike needs in improving their sales and
provide customers with a happy experience. We will also be able to provide you with training
and the growth opportunities you deserve in your life.

15
Let us know about the possible date if you are on board from when you will be able to
commence working with us. The best possible date for us is on 15th April 2020.
With Regards,
The Human Resource Manager
Nike Inc

Also, the employee will have to go through a background check by Nike which will assess why
he left his previous job and whether the applicant has any criminal records or records that Nike
should be aware of but the employee is hiding.

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Conclusion
Human Resource Management practice provides a company with a competitive edge that cannot
be matched by any other resources of companies. This is why organisations such as Nike are top
of their game. The innovation at Nike is shaped by their HR management practices. This report
has discussed the functions of HRM such as planning, recruitment and selection, employee
development and training, employee onboarding and induction and so on. Apart from that, the
benefits of HRM practices such as less turnover increased productivity, work-life balance and
others are described. The report also shows the laws and regulations that affect HR decisions as
well as how relations impact the decision making of HR managers.

17
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