Unit 3 Management of Human Resources Pearson BTEC Diploma Assignment Brief 2025-2026

BTEC Level 5 Unit 3 Assignment Brief

Unit Learning Outcomes

LO1 Explain the impact of the role of HRM in creating sustainable organisational performance and contributing to business success
LO2 Produce a workforce action plan for recruiting and retaining talent to address skills shortages in an organisation
LO3 Examine how external and internal factors can affect HRM decision-making in relation to organisational development
LO4 Apply HRM practices in a work-related context for improving sustainable organisational performance.

Transferable skills and competencies developed

• Strategic & systems thinking
• Business acumen
• Data literacy & people analytics
• Labour-market research
• Project planning & execution
• Job design & competency modelling
• Assessment & selection design
• Onboarding & retention design
• Performance management & KPI setting
• Change management & organisational development
• Stakeholder communication & influencing
• Ethical, legal & DEI awareness
• Risk management & governance
• Professional writing & documentation
• Reflective practice & continuous improvement

Vocational scenario

You have been appointed HR Associate/Junior HR Business Partner in a medium-sized organisation facing digital-skills shortages and hard-to-fill vacancies. Turnover has risen, onboarding is inconsistent, and managers want clearer metrics to link HR practices to sustainable organisational performance. You will diagnose the situation, build a workforce action plan, and apply HRM practices to show measurable improvements, while evaluating external and internal influences on HR decision-making.

Assignment activity and guidance

Task 1 – HRM’s Contribution to Sustainable Performance

Write a report of max. 1200 words

• Explain the main areas of HRM and how each contributes to sustainable organisational performance. Use examples to justify your answer (P1).
• Review how the changing nature of organisations affects HR skills/knowledge (P2). Compare the above HRM areas in terms of their relative impact on sustainable performance. Conclude which mix best fits your scenario (M1).
• Examine how HRM must adapt to the modern organisation. Link to consequences for structures, roles, and policies (M2).
• Critically evaluate the strengths and weaknesses of your organisation’s current HRM as a foundation for a forthcoming workforce action plan (D1)

Task 2 –  Workforce Action Plan for Recruitment & Retention

Develop a workforce action plan of max. 1200 words

• Create a workforce action plan that addresses skills needs, skills gaps, and hard-to-fill vacancies (P3), cover:
• Current state: roles, headcount, skills inventory, gaps (by team/role).
• Attraction & recruitment: sourcing channels (internal/external), inclusive job ads, employer branding, selection methods (validity/fairness/compliance).
• Retention & onboarding: structured onboarding, manager check-ins, coaching/mentoring, wellbeing, career pathways/CPD.
• KPIs & monitoring: time-to-hire, quality-of-hire, 90-day retention, offer-acceptance rate, onboarding completion, engagement pulse scores.
• Governance & risk: data protection, equal opportunity, accessibility.
• Devise the plan strategically, referencing the labour market. Show how market dynamics shape sourcing mix, salary/benefit positioning, internal mobility, and L&D build-versus-buy decisions (M3).
• Finalise your critical evaluation from task 1: now re-assess HRM strengths/weaknesses in relation to your plan. Argue how the plan creates a sustainable workforce, where trade-offs exist, and how you’ll mitigate risks. Provide a prioritised roadmap (D1).

Assignment activity and guidance

Task 3 – Factors Shaping HR Decision

Develop a PESTEL of max. 1000 words

• Investigate external and internal factors that affect HRM decision-making to support organisational development. Include a concise PESTLE and an internal drivers map for your scenario (P4).
• Discuss the key factors with relevant organisational examples, showing how each factor supports Organisational Development (M4).
• Evaluate and prioritise the most material factors for your organisation and make valid recommendations. Link each recommendation to an expected KPI shift and Organisational Development outcome (D2)

Task 4 – Applying HRM Practices in Context

Develop artefacts of max. 1000 words

• Apply HRM practices in a work-related context to demonstrate improvement to sustainable performance (P5). Produce and attach:

• Job Description & Person Specification (competency-based) for one priority role.
• Recruitment artefacts: inclusive job ad, shortlist rubric, structured interview guide with scoring criteria; note legal/ethical safeguards.
• Performance & reward: draft goals/KPIs for the role; outline a balanced reward approach (financial & non-financial) and a Continupus
• Professional Development pathway/mentoring plan; include wellbeing supports.

• Illustrate how these specific practices improve sustainable organisational performance. Map each practice to at least one KPI and Organisational Development levers (M5).
• Determine strengths & weaknesses of the applied HRM practices and make recommendations to improve sustainability (D3).

Recommended Resources

Please note that the resources listed are examples for you to use as a starting point in your research – the list is not definitive. 

Recommended Resources

Armstrong, M. and Taylor, S. (2023) Armstrong’s Handbook of Human Resource Management Practice. 16th Ed. London: Kogan Page.
Leatherbarrow, C. and Fletcher, J. (2018) Introduction to Human Resource Management.
4th Ed. London: CIPD and Kogan Page.

Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou, A. (2020) Human Resource Management at Work: The Definitive Guide. 7th Ed. London: CIPD and Kogan Page.

Torrington, D., Hall, L., Atkinson, C. and Taylor, S. (2020) Human Resource Management.
11th Ed. London: Pearson.

Learning Outcomes and Assessment Criteria