Human Resource Management

Introduction

            The assignment helps in analysing the different kinds of key forces which helps in shaping the HR agenda which is inclusive of the different strategies of human resource management along with different insights and solutions in order to support the performance of the business in an efficient manner. Furthermore, the comparison of the different tools for the business environment analysis is required to be done which is inclusive of SWOT, PESTEL along with Porter’s Five Forces Model analysis which will provide a brief overview on the different internal and external environmental factors.

            The Human Resource Management activities is inclusive of the different kinds of issues related to recruitment, selection along with the compensation and performance management of the organization in an effective manner. The HRM helps in playing a strategic role in managing the workplace culture and environment along with the people working in the environment as well (Albrecht et al. 2015).

The main aim and purpose of the assignment is the assessment of the range of factors which can create impact on the business along with the HR functions of the organization are required to be identified. The key stages in the formulation of the strategies is required to be analysed with proper reference of model. The examples of evaluation of performance of business is required to be identified effectively in taking the HR role into consideration. Lastly, the different sources of business along with contextual data is required to be assessed for the purpose of the planning.

Analysis of Key Forces which Shape the HR Agenda

Models of the HR Functions

            Creative HRM is the website which is devoted towards the agile human resource management related activities. This helps in covering all the different HR processes inclusive of talent acquisition, compensation and benefits, training and development and maintaining employee relations. Marchington et al. (2016), have commented that the HRM model of David Ulrich assists in analysing that the HR model connects with the HR objectives, goals and strategies which are essential for making the HR activities of the organizations successful.

            Additionally, with the help of the HRM related activities, the tasks related to HR will be delivered and this will help in enhancing the overall effectiveness of the organization in a positive manner. The respective model of David Ulrich is one of the major elements which is required to be analysed in analysing the right place for the new roles along with responsibilities. The contemporary model of SHRM helps in identifying the job roles along with job functions which will be effective practices in becoming a successful HR professional.

HR Strategies

            The different HR strategies play a major role in managing and shaping the HR agenda in an effective manner.  In the organizations, there should be proper inclusion of the talent management and the organizational development which will be beneficial for the overall success of the firm.

According to Helmreich and Merritt (2017), there should be inclusion of the activities related to CSR as this will help in engaging the employees in managing the different activities in an efficient manner. Furthermore, the human resource strategies help in unifying along with directing the actions along with behaviour of the people for the overall development in accordance to the different needs of individuals. The different strategies are inclusive of:

• Performance and Talent Management
• Corporate Social Responsibility
• Resourcing and Knowledge Management

HR Insights and Solutions in Supporting Performance of Business

            As commented by Chelladurai and Kerwin (2016), there are different kinds of motivational approaches which are required to be followed by the different organizations as this will be beneficial for making the employees in performing better and become more competitive in completing the different tasks. The recruitment along with training of the different employees are essential in nature which will help the company in hiring the right kind of individuals to become more competitive in nature. The maintenance of the work atmosphere along with managing the different disputes is essential in nature as this will be helpful in managing the disputes and this will be helpful in managing the HR agenda.

HR Contributions to Business Ethics and Accountability

            There are different contributions of the HR towards the business ethics and accountability which will lead to the success of the organization. Firstly, Bratton and Gold (2017), have commented that the different HR professionals must ensure that the ethics is the top priority of the organizations as the HR managers play a major role in ensuring that the monitoring the culture of the organization in terms of the ethical status is essential in gaining success of the organization.

            Furthermore, Brewster and Hegewisch (2017), have commented that the proper selection of the leadership and development is required to be inclusive of the ethical approach. At all levels, the leaders of the organizations need to model ethical behaviour and communicate the same kind of ethical standards to the different employees. The promotion of the gender diversity is the other aspect which will be beneficial for the overall success of the organization and this will help them in gaining competitive advantage in the overall market as well.

Comparison of Different Tools for Analysis of Business Environment

SWOT Analysis

            SWOT analysis is one of the main strategic analysis models which is inclusive of the different strengths along with weaknesses of the business capabilities. Furthermore, the different external threats along with opportunities are being identified which will be beneficial for the success of the organization. With the help of the SWOT Analysis, this will provide proper insight on the following aspects:

• Capitalizing the different strengths which can be beneficial for the organization
• Minimising the different kinds of weaknesses and the effects of the same
• Making the most of the different opportunities as this will be helpful in understanding their reach to attain the goals effectively

However, on the other hand, this has been seen that the SWOT does not necessarily prioritize the different results which have been generated and this can lead to the improper kind of strategies plan for the business.

PESTLE Analysis

            On the other hand, the PESTEL analysis is the technique which helps in understanding the different external influences on the business which is inclusive of political, economic, social, technological, environmental and legal aspects which will be helpful in gaining knowledge on the different external factors (Reiche et al. 2016).

The aspects are inclusive of the following:

• Duration of the Overall Impact- Short term or long term
• Kind of Change- Unknown, positive or negative in nature
• Rate of the overall impact- Unchanged, Increasing, Decreasing or Unknown
• Importance or Crucial Aspects- Important, Unimportant or Unknown

Porter’s Five Forces Model Analysis

            On the other hand, the Porter’s Five Forces Model Analysis is helpful for determining the different kinds of competitive business environment of the company in the entire competitive environment. These are the different factors which can affect the overall profitability of the organization in the competitive business environment. The different elements of the Porter’s Five Forces Model Analysis are inclusive of the following:

• Threat from the new entrants – This can be low, medium or high in nature and this can affect the overall profitability of the company in a negative manner (Armstrong and Taylor 2014)
• Threat from the different substitutes– This can be medium, low or high as there are different customers in the market who prefer the other alternatives in the market which are providing similar kind of quality to them in a cheap pricing aspect
• Bargaining Power of the Suppliers– This can be inclusive of the respective three aspects and this can affect the overall generation of the revenue in a negative or positive manner
• Bargaining Power of the Customers– This is inclusive of the different kinds of competitive strategy which is inclusive of the different kinds of increase in the competition and gain more competitive advantage in the market as well (Riley 2015)
• Competition or Existing Rivalry among the Competitors– This is the last aspect which provides the different kinds of knowledge on the rivalry of the firms as this will be helpful in reducing the same effectively (Storey 2014)

The main importance of the respective model is to analyse and determine the competitive advantage which can be provided by the company in comparison to the other competitors in the market.

Scenario Planning

            The scenario and the contingency planning are the structured manner for the different organizations in order to think about the future. This will be beneficial for the overall success of the firm in an effective manner and this will help in developing the small number of scenarios as this will help in analysing the different impacts of the issues which will help in confronting them in an effective manner (Tyson 2014).

            Therefore, from the above, this can be concluded that these are the different tools which are being used in managing the business environment in a positive manner. The PESTEL analysis is basically including the different kinds of external factors, on the other hand, the SWOT analysis is inclusive of the different strengths, weaknesses along with the external opportunities and threats. The Porter’s Five Forces Model analysis is inclusive of the analysis of the different kinds of profitability and the revenue aspects. Lastly, the scenario planning is inclusive of the different kinds of future strategies which can help in managing the future prospects in a positive manner.

Different Factors Which Affect the Business of Organization and HR Function

            There are different factors which are essential in nature in affecting the business of the organization along with the different functions of the Human Resource Management. There is inclusive of both external and internal factors which are responsible for the overall efficiency of the organization in a positive or negative manner (Purce 2014).

External Factors

The different government regulations are the first aspect which will affect the human resource management wherein with the introduction of the different compliance of the workplace standards, the human resource department will be constantly under pressure in order to stay within the law.

            Economic Conditions is the other biggest external influence in the shape of the current economy. This affects the talent pool along with the ability to hire the individuals in the organization as well and there will be economic downturn which can create combat for the entire environment in a negative manner (Jackson, Schuler and Jiang 2016).

            Furthermore, there is huge competition in the environment which can affect the overall efficiency of the organization in negative manner. The extent of the competition in the market affects the overall ability of the organization to recruit the qualified employees and this will create negative impact on the entire environment as well (Bailey et al. 2018).

Internal Factors

            Harassment and discrimination in the workplace are one of the internal issues which can affect the overall workplace culture in a negative manner. This is the internal factor wherein it has been seen that the employees are being mistreated and there is no such balance between the different employees working in the organization. The harassment and the discrimination are the major aspects which creates huge negative impact on the overall working environment and culture (Gatewood, Feild and Barrick 2015).

            The workplace culture and the diversity in the workplace are the other internal factors wherein this has been noticed that the different employees in the workplace are not being treated in an equal manner. Furthermore, this was being seen that there can be constructive rivalry between the firms and the culture is not suitable for the employees in order to generate productivity of the organization. It is the duty of the HR professionals in the organization to take care of the different needs and demands of the organization as this will be beneficial for the success of the organization, however this has been noticed that the employees are not being treated equally and this is the major fault of the HR department as well.

            Lastly, the organizational conflicts are the other aspect which is considered as the internal factor in which there are clashes between the personal and the organizational goals. There are other issues which is inclusive of the change along with stability in which the conflicts can lead to negative workplace culture of the organization in an ineffective manner.

            From the above internal and external factors, this can be considered that the HR managers need to take care of the job welfare along with selection and the training and development of the employees which will be beneficial for the success of the organization.

Key Stages in Formulation and Implementation

            There are different stages which are essential in the formulation and implementation of the different kinds of effectiveness of the HR activities in business implementation and formulation. According to the Mintzberg’s Model, this has been noticed that there are different stages which are being followed in order to become more efficient in conducting the different activities efficiently (Brewster 2016). The respective model helps in managing the different aspects in such a manner which will be helpful in formulating the strategy and gain more competitiveness.

Figure 1: Mintzberg’s Model of Strategy Formulation and Implementation

(Source: Shields et al. 2015)

Role of Human Resource Manager

            The human resource manager needs to set the different objectives of the organization in such a manner which will be beneficial for the overall success of the firm in an appropriate manner (Kavanagh and Johnson 2017). The recruitment and the training of the employees are required to be done in such a manner which will be beneficial for the overall success of the organization. Attracting the right talents for the different posts is the main approach which will be helpful in gaining competitive advantage.
Proper evaluation of the Organizational Environment is the second step in which the HR needs to identify the moves of the other competitors in the market. This is essential in nature for the HR manager to identify the strengths and weaknesses in which the HR needs to keep track of the competitor’s moves and this will be helpful for them in gaining more competitiveness in the market as well (Wehrmeyer2017).

            Proper setting of the different quantitative targets is the other aspect which is required to be taken care by the HR manager. In this respective step, the HR manager needs to fix the quantitative targets which will be valuable for gaining the organizational objectives. The main idea behind the same is to compare and evaluate the contribution which will be beneficial for the success of the organization.

            Performance Analysis is the other aspect in which this can be seen that there are different kinds of performance measurement aspects which will be helpful in managing their effectiveness in the respective organization. The HR managers are required to analyse the gap between the planned along with the desired performance as this will help the HR professionals in motivating the different employees in performing better in order to gain more competitiveness.

Role of HR in Business Ethics and Accountability

            The ethics play a major role in the business which helps in performing the right things as this will help in saving the reputation of the organization in a positive manner. The HR plays a vital role in facilitating the ethical culture wherein this will help in supporting the ethical standards in an efficient manner and this will increase the ethical awareness as well. Taylor, Doherty and McGraw (2015) have commented that the integration of the ethical standards in the operations of the organization play a major role as this helps in influencing whether the ethics are being practiced in an efficient manner or not.

            Additionally, Bolman and Deal (2017), have commented that the principal purpose of ethical standards of the organizations help in providing a clear guide to the behaviour which will help in constituting towards the supporting of the policies which will be effective in nature. Moreover, Arvanitis, Seliger and Stucki (2016), have commented that the HR is being able to initiate the process or make proper recommendations to drive the process forward and this will be helpful for the company to gain competitive advantage as well.

Examples on Evaluation of Business Performance

            The role of the HR in the process of the change management is wherein the organizations will be responsible for the change and HR department has to ensure that the employees are motivated to program in a positive manner. The HR acts as the watch dog wherein the change management is being addressed properly and this allows them to communicate the similar kind of information to the different employees working in the organization as well.

 For example- Yahoo and Google are the companies wherein the candidates are being hired for the right kind of jobs, they will be motivated as they can act as the change agent and this will be beneficial for the success of the organization as well (Kramar 2014).

There are few HR related KPIs which will be beneficial for analysing the rate of satisfaction provided to the employees working in the organizations effectively. The KPIs and the examples are being analysed as follows:

            Rate of Absenteeism is the first KPI wherein the companies can analyse the overall knowledge on the absent rate of the employees in comparison to the other employees.

            For instance- In Amazon, this can be seen that the absenteeism rate helps in analysing the absent rate of the employees and there is different penalty awarded to the employees to reduce the same.

            Effectiveness of the training is the other KPI wherein this helps the organization in understanding the feeling of the new employees who have been hired after the training provided to them. For instance- In Google, this can be analysed that the effectiveness of training rate has been more than 70% and this means that the employees are satisfied with the working environment.

Different Sources of Business and Contextual Data Used for Planning Purpose

            There are different sources of business along with the contextual data which are being used for the planning purpose. Furthermore, the different kinds of information which can be taken into consideration for the overall process of planning which are discussed as follows:

Internal Information Within the Organization

HR Metrics is one of the major aspects which can be used for the process of planning wherein there are different inclusion of the following:

            Learning and Development is the first aspect in which the participation rate in the training process can be identified. The readiness of the organization can be analysed in an efficient manner as this will help in analysing the readiness of the organization from the human capital perspective in order to execute the strategy of the business is essential in nature.

            Performance Management is the other aspect wherein the average rating on the performance is essential in nature which will be helpful for the analysis of the benefits participation rate in an effective manner.

            Organizational Effectiveness is the aspect in which the employee engagement is the aspect wherein the degree to which the different employees are engaged and committed towards the strategy. The compensation claims of the workers helps in measuring the safety of the workplace which will be helpful in maintaining work environment which is positive in nature for the employees.

External Information Outside the Organization

Trends in HR- This is the first external information regarding the industrial aspects wherein the main focus is on the productivity is the first aspect which will help in the process of planning in an effective manner. There is end in the fixed kind of jobs in which this helps it in making more flexible in nature (Donate and Guadamillas 2015).

Competitive Information- The competitive information will be helpful in analysing the moves of the other competitors in the market which will provide the HR a brief overview on their aspects and this will help them in gaining competitiveness.

Government Information- The information will be helpful in managing the different reports and the other aspects which will be helpful in analysing the past few years annual reports to gain more knowledge on the same and perform more competitively.

Conclusion

            Therefore, this can be concluded that the HRM plays a major role in the different organizations wherein the different aspects of the strategy formulation and implementation have been taken into consideration. Furthermore, the different kinds of business environment analysis strategies have been identified in order to help the organization in becoming competitive in nature. Additionally, the different business sources along with contextual data for the purpose of the planning will be beneficial for the overall success of the organization in an efficient manner.

References

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