The Human Resources management is the main aspect in the working of the organisation. It refers to the process of the management of the human resources in the organisation effectively so as to enhance the working efficiency of the organisation. It includes a number of activities such as the selection or the recruitment of the staff, paying perquisites and other benefits to motivate them, measuring their performance, dismissal of the employees etc. It refers to motivate the collective effort of the members for achieving the targets of the business effectively. This essay contains the link between the human resources functions and the goals of business. The return on Investment is to be evaluated but the main problem is that it cannot be evaluated in numerical form so it is complicated to determine the investments in HR.(Darwish, 2013)

Essay on human resource management

In this paper, Travelodge hotel of the United Kingdom has been taken for analysing the roles of the HR in the success of the business. It is one of the leading budget hotels in UK. The impact of HRM practices will be evaluated on the performance of the hotel. According to Legge (1989), the policies which are formed by the HR department of the organisation should result in the ultimate profits of the organisation and its environment.  These practices should be framed in alignment with the objectives of the organisation. The return on investment is to be measured but as it cannot be measured in numerical terms, it is complicated to measure the same.(Rao, Krishna, 2015)

As I am a Human Resource Director at Travelodge in the United Kingdom, the human resource management is effectively analysed in the organisation for evaluating its impact on the outcomes of the organisation. The return on investment is calculated on the current spending on HR because the CEO of the hotel wants to know the impact of HR activity on the outcomes of the organisation which is very complicated to measure as humans are different from each other and it is not possible to measure them in numerical values.(Fitz-Enz, 2013)


It is very complicated and difficult to analyse the impact of HR activities on the performance of the organisation and the return of its investment. The relation between HR practices and organisational performance is positive. It is seen that in the organisations, the skills of the workers help the functions of the business and the HR activities also helps the workers in providing motivation to perform better. The high performance of the employees is motivated by creating a better understanding of the goals of the organisation to be achieved in the near future and the process of achieving those predetermined goals efficiently.(Fitz-Enz, 2013)

There are some key factors which play a major role in adding value to the organisation and also these are

  • Performance Management
  • Organisational capability (Weiss, 2013)

The performance management plays major role in the effective management of the activities of the organisation and it operates in a cycle which involves 4 stages which includes Planning, Acting, Monitoring and Reviewing. The planning stage in which the overall goals of the company are set; the activity stage in which the working of the organisation is evaluated; the monitoring stage in which the activities and the performance of the members of the organisation are evaluated; and the reviewing stage in which it is measured that to what extent the objectives of the business are achieved. The high performance of the HR manager enhances the probability of the reliable and effective outcomes of the organisation. The Staff of the Travelodge is very efficient and the performance of the overall organisation can be increased by effective guidance and performance appraisal acts of the strategic HR manager. (Weiss, 2013)

The overall organisational capability is also assessed by the efficient working of the strategic human resource management. The competencies of the employees and the staff can be increased by establishing a good relationship with the HR manager. The Travelodge is one of the top leaders in the hotel industry and one of the main reasons is the increased organisational capability due to the hard efforts of the strategic human resource management. Proper strategies should be formulated by the HR manager for managing the work of the organisation and improve its capabilities. The HR management should be regarded as the investment in the organisation and the value of the business can be raised by adopting effective human resource management. (Imber, 2008)

The human resource activities have its impact on the performance of employees but there is not sufficient knowledge and information provided on it.Human Resource practices make an organisation efficient enough to achieve its business goals. These practices must be made in alignment with the business objectives so that the performance of the business can be enhanced and profitability increases. The performance of employees is also important to be measured in terms of their behaviour, loyalty towards organisation and the productivity they are delivering. Organisational performance is to be measured in terms of the productivity and quality of work. The performance of organisation can be measured with the help of financial ratios which can be calculated by the help of financial data of the company. These factors show and establish link between the Human Resource management and the performance. The performance of organisation can be affected because of the variations in organisation culture, the rules, laws and policies by the government of the country, technology, etc.(Rao, Krishna, 2015)

‘Hard’ and ‘Soft’ HRM

According to (Legge, 1995), There are two models of HRM- Hard and Soft. In Hard HRM, the employees are treated as a resource for theorganisation just like other resources of business like machinery, labour or capital. The resources are recruited who match the needs and requirements of the business whereas in Soft HRM, the most important factor or resource is employee. The company takes care of the needs of employees and keep them satisfied so that they can provide efficiency and competitive advantage can be gained by business. It includes on providing motivation to the employees in the form of rewards and recognition. Whether to use Hard or soft HRM depends on organisation to organisation.(Katou, 2013)

Importance of Bundling

According to Boxall (1996), Bundling refers to the building up and the employment of different practices of Human Resource to have an effect of the combined services and practices together so that they interrelate and provide advantage to the organisation. It is a combination of different practices so it eliminates the risk posed from one single practice of HR. A group of HR practices have better impact on the performance of the organisation. The success of the organisation is affected by the configuration fit of the human resources practices. The different patterns and strategies of the human resources management practices and activities are identified and configured to influence the overall efficiency of the organisation. The turnover and the results may be influenced but the growth in the sales rate is not affected much. The HR configuration should be integrated with the strategies of the business which leads to the enhancement of the performance of the business. The effectiveness of the organisation is affected by the interaction between the HRM practices and the strategies implementation of the business.  (Weiss, 2013)

Return on Investment

Return on Investment is an important tool to measurethe impact of HR activities on the performance of organisation in the form of profits. This is important for the CEO and other higher authorities of the organisation so that they can evaluate the significance of the Practices. It shows that what profit or benefit company is getting or earning by investing a particular amount. For e.g. if a new policy is implemented by HR department that every employee has to work out in gym for at least 30 minutes a day, then this will impact the health of the employees. Employees will become healthier mentally and physically which will help in reduced absenteeism and the costs of the organisation will also be reduced while the productivity will be increased. (Fitz-Enz, 2013)

The impact of the HRM activities like motivation, training, development, employee involvement, etc. increases the Return on investment of the business of Travelodge because it will bring efficiency in the business and the overall profits will increase.


From the above paper, it is concluded that the Human Resource Manager plays a crucial role in the development of the effective working environment and achieving organisational goals. The performance of the staff of Travelodge can be raised by implementing an efficient human resource management in the organisation. The overall revenue and profitability structure of the organisation can be influenced by the guidance of the HR manager. The performance of the staff is measured by calculating the return on investment in the human resources and its effect on the overall outcomes of the organisation is evaluated. The criticisms of the human resources management are also identified. It is clear that the relationship between the contributions of HR in the performance of the organisation is difficult to measure but by evaluating the performance of an employee an idea of the ROI impact on the organisation’s performance can be made. It is important to calculate ROI so that the worth of HR can be judged.

Word Count- 1560


  1. Darwish, T. K. (2013). Strategic HRM and Performance.
  2. Fitz-Enz, J. 2009;2013;, The ROI of human capital: measuring the economic value of employee performance,2nd;2;2nd; edn, Amacom, New York.
  3. Imber, S. (2008). ‘Think outside the square: HR and innovation’. Human Capital Magazine .
  4. Katou, A.A. 2013, “The link between HR practices, psychological contract fulfilment, and organisational performance in Greece: An economic crisis perspective”,Journal of Industrial Engineering and Management,  6, no. 2, pp. 568-594.
  5. Legge, K. (1995). Human resource management : rhetorics and realities. Basingstoke, England : Macmillan Business.


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