5CHR Assignment Example

Business Issues and the Contexts of Human Resources

2.1 Analysis of Forces which shaping HR Agenda

The dynamics in business operations require the HR to relate with changes that the specialists have to address towards ensuring that they improve their nature of work and also improve HR functions.

Among the forces shaping HR agenda are the HR models, strategies, insights and solutions. The Ulrich model is a model used in transforming the HR functions, and it basically identifies with the aspect of shared services. According to CIPD (2018), shared services within organisations relate to the nature of organising the HR activities within the centralised HR function. This means that the HR activities are commonly shared in the organisation, with the purpose of ensuring that the costs of the businesses are reduced, and also ensure that the organisations focus on the organisational HR strategies. According to Ulrich (1995, p. 12), the model determines how the employees collaborate in teams to implement the HR agendas.

HR strategies are internal forces shaping HR agendas, and an example is the organisational culture, which is very important in determining how the HR would meet the agendas towards creating a competitive culture in the organisation. HR professionals have the ability to develop an organisation culture; depending on the functions they carry out to ensuring that organisational value is achieved. Another internal strategy is stakeholder demands, which is significant in determining the different needs of the employees, customers, suppliers, managers, the government, and the community. In order for the HR agendas to be met, the HR professionals in the organisation have to ensure that all the needs of the stakeholders are considered and effectively addressed.

Insights and solutions are additional forces shaping the HR agenda, and these determine performance of business based on the decisions made by the organisations to consider the insights that will have positive impacts to the well-being of the employees. Some of the insights according to CIPD (2019) include the decisions to allow employees to work from home, as well as developing opportunities that should be given to the ageing population.

1.1 External factors impacting organisations performance and how they affect HR function

The external factors are those that the organisation has no control of, and they exist outside the organisation. Examples of these factors are social, economic, technological, and environmental factors.

Social factors

The performance and normal ways of running businesses is influenced by the social factors, which are identified from the perspective of how the businesses relate with the people and the society. The social ways of life among the business stakeholders determines the decisions made by the HR. For instance when considering the well-being of the employees, it is important for the HR to take into consideration their social aspects, and work towards making sure that they create a platform where work-life balance is achieved. According to Bui, Liu, and Footner (2016), when employees experience imbalance in the work they do in organisations, and their personal lives, they are likely to become demotivated, an aspect that affects the performances of the employees.

Sometimes organisations get to experience work disruptions, which affect the social way of life for the employees and also for the customers. For instance as this year was hit by the coronavirus pandemic, organisations have to engage in strategies to change the nature of work in order to accommodate the social needs of the employees. The COVID-19 pandemic is an external factor that the organisation cannot deal with, and the decision in this case would be to implement strategies to ensure that the organisation gets to survive amidst the challenge. Thus, some of the decisions that the organisation may make to enhance good performance include allowing employees to work from home, providing treatment to them when need arise, and even create work conditions with social distancing to help ensure that the employees and customers are kept safe. In order to achieve all these, the organisational leaders have to take responsibility and support the organisational stakeholders (Bartsch et al., 2020).

Economic factors

The changes in the economic environment are external to the organisation, but they highly affect the nature of business operations and performance. Economic changes occur as a result of global interactions and market changes, and these impacts the extent to which organisations get to relate with the stakeholders, towards ensuring that business success is achieved. Economic changes have significance impacts to the HR, and this therefore requires the HR professionals to gain an understanding of the various aspects that relate to the extent to which they promote good operations among employees to promote organisational performance. For example, the economic changes affect the labour market in a big way, and this also affects the HR decisions to recruiting the right candidates for the job. The HR has the responsibility of implementing different HR strategies to deal with the problems and challenges that may be brought about as a result of economic changed. They should also be keen to identify the opportunities so that they can take advantage for them for the purpose of achieving business success (Marler and Boudreau, 2017).

The decisions made by the HR may be influenced by the global economic changes. For example, the global economic changes may occur as a result of the changes in the oil prices, and this specifically affects the countries in the United Arab Emirates, and also affects the prices of other products and services. The COVID-19 pandemic is also an example of a factor that affects the economic conditions in the global market. In dealing these changes, Marler and Boudreau (2017) argue that the HR should analyse the economic impacts and make the right decisions regarding the nature of stakeholder operations, and ensure that they provide the needed support to enhancing good organisational performance.

Technological factors

Globalisation and industrialisation has resulted to technological changes that have affected the general nature of business operations. Communication is one of the business areas that have been affected by technology. Different communication platforms have been established to enhance the nature of interactions between the business stakeholders. Traditionally, communication was often face-to-face, but this has changed because of the technology advancements that have led to the use of phones and mostly the use of internet where exchange of information is made through e-mails, and other social media platforms such as Facebook and Whatsapp. The HR should support the employees and encourage them to use these communication platforms so that they can interact and connect with the other employees. This according to Chan and Lai (2017) enhances employee involvement and engagement, and also promotes organisational citizenship behaviour, which is significant in enhancing organisational performance.

The HR functions have also been promoted as a result of technology advancements. For instance, the recruitment and selection process has been significantly been improved as the HR professionals get to use online platforms to get the right candidates for the job. Through the internet, the HR professionals may post jobs adverts that are received by many audiences as opposed to the traditional platforms where jobs were advertised on newspapers. In addition to this, the internet provides a simpler way where candidates can apply for the jobs instead of having to go the physical location. The HR in this line also gets to sort out the applications using an online database, and this makes it possible for the HR to remain with candidates who have qualified for the job. The whole process therefore becomes fast, simpler, and very convenient to bothy the application and the organisation (Fenech, Baguant, and Ivanov, 2019). Although all these are positive attributes, it is clear that technology may sometimes be overwhelming to the HR as they get to relate with too much information. This means that the possibility of making wrong decisions when using the new technologies is very high (Levenson and Fink, 2017). This therefore calls for the HR professionals to be keen to ensure that they do not use technology to bring about negative impacts to the overall performance of the organisations.

Environmental factors

The environments to which organisations operate determine the actions taken by the management to boost performance. In completing the normal business operations, organisations should ensure that they promote corporate social responsibility and facilitate business sustainability. These are issues that affect the HR, based on the fact that critical decisions have to be made in support of these aspects. As a result of technology and digitisation of work in businesses, it has become possible for performance to be improved and for businesses to achieve sustainability. These are aspects that affect the normal HR work, an example being the changes from the use of manual work where papers were used, to the use of technology in storing information (De Stefano, Bagdadli, and Camuffo, 2018).

International organisations have also promoted sustainability by reducing carbon emission and environment polluting. This has been made possible through the HR, who takes responsibility in ensuring that the right strategic decisions are made to ensuring that work is being performed by the employees, while they are in their current locations. For instance, the ARUP Corporation is an example of a company that has been able to reduce negative environmental emissions and impacts, but has still been able to deliver value in the building industry in different countries. This has been made possible through virtual communication to ensuring that working conditions are well developed in the organisation.

In promoting CSR, businesses have the responsibility to ensuring that they come up with strategies to support the communities in the most challenging times. As communities are being affected by the COVID-19 pandemic, organisations should focus on ensuring that they provide the needed support and welfare programs to the communities. This will have a positive impact on the organisation and thus boost its performance and its relationships with the community.

2.2 Comparing environmental analytical tools

The environmental analytical tools are meant to analyse the environment with which businesses operate. There are different environmental tools, including SWTOT analysis, PESTEL analysis, and the Porter’s five forces analysis model. All these are different, and in this case, the differences between PESTEL and Porter’s five forces model will be analysed.

Similarities between PESTEL and Porter’s five forces

Both tools analyse the external environment in the business. This means that the elements of analysis cannot be controlled within the business, but rather are external to the business, but affect the normal business operations. The HR in this perspective has the responsibility of ensuring that they learn the most important attributes associated to the external elements, in order to understand the decision making process, and its impact to the normal running of the business.

The other similarity is that both tools of analysis help determine the extent to which businesses relate with organisational changes, which impact the normal nature of business operations. This means that businesses through the management have to engage in the analysis of the external environments through the PESTEL and Porter’s Five Forces, for purposes of getting to understand the business changes and their impacts to the normal functioning of the businesses. In addition, the analysis of the tools help management understands the positioning of the business in the market. This means that they get to understand the strengths of the businesses and their impacts to enhancing business success and development. Based on the fact that the elements help identify with the business changes, the HR should always be ready to understand the impacts of the factors of analysis, and in return be able to make the right HR decisions that are in line with the organisation operations and positioning.

2.3 Stages of Strategy Formulation and Implementation

Strategy management is important in determining the extent to which organisations get to achieve their goals and objectives. It is through this that the management gets to see the current standing of the organisation, and get to understand the future of the organisation as well. Rothaermel (2016) identifies with the following stages in strategy formulation and implementation;

Goal setting

This is the first stage that allows the management make organisational goals, which should be short-term and long-term. The management has to ensure that these goals are shared with the organisational stakeholders in order to create a sense of purpose as to why the businesses are in operation. The most important group of shareholders who share the values of the organisation and who works to ensuring that the goals are achieved are the employees. These are members who are considered to be the organisation’s assets. The HR has the responsibility of ensuring that they help the employees, both individually and in teams to understand their roles in business, and support them to ensuring that they achieve the long term and short term goals as well.

Strategy formulation

This is the most important stage where the management uses data gathered to help in the achievement of organisational goals and objectives. The data helps the management formulate important strategies that should be followed to delivering solution to the organisational issues. The HR has to work with the line managers in the business to develop strategies that are in line with the need of the employees. This is important towards making sure that the employees get the needed support from the HR, who guide and direct them to the achievement of the set goals.

Strategy implementation

This is the third stage where all stakeholders get to understand the strategy and the plan set to ensuring that the organisational objectives are met. Here, the employees make sure that they play parts in delivering value and putting into action the strategies set. The HR is very important in this stage because they ensure that they provide the needed support to the employees, who work in delivering organisational value. This therefore means that the HR is obligated to ensuring that they help the employees work individually and together in teams to ensuring that strategies positively impact the achievement of the set goals.

Strategy monitoring

This is the fifth stage, where the strategies set are implemented and the employees are taking the actions to ensuring that every part of the strategy works to the advantage of the business. The HR in this stage seeks to ensure that they understand the impacts that the strategy has on the business, and ensure that the actions taken by the employees are in line with the organisational goals. In this stage, the HR works with the management to ensure that they make adjustments where necessary, and at the same time make sure that the plans set are effectively achieved.

2.4 HR Role in Business Ethics and Accountability

Integrity is a concept in ethics and accountability, which determines the extent to which the employee behaviours and attitudes are governed. The HR plays a very big role in ensuring that the levels of integrity among the employees is promoted, for purposes of making sure that the behaviours and conducts of the employees are effectively considered. The CIPD (2020) on the codes of professional conduct is considered to the voice that governs the employees on the standards of behaviours that they are expected to adhere to. The HR is obligated to ensure that the employees follow the CIPD code of professional conduct, which is important in governing the integrity and standards of behaviour, towards making sure that the employees engage in effective delivery of organisational goals, as well as in the development of their professions. It is through integrity that the HR is able to influence the employees towards making the right decisions that positively impact their personal professions and the organisations that they work for. This then enhances the degree to which they are able to deal with dilemmas and challenges that they experience in their line of work within the businesses.

HR supports ethical behaviour by ensuring that they promote the right forms of corporate governance. Aras (2016) argues that the board of directors within the organisation takes the responsibility of ensuring that they oversee the operations of the businesses towards promoting levels of accountability and transparency in the business. The many issues arising from the businesses need to be addressed by the right people in order to promote accountability. In this perspective, Lindebaum, Geddes, and Gabriel (2017, p. 648), confirms that corporate governance helps determine the levels to which the different interests of the shareholders are addressed. The HR in promoting accountability also plays a role in getting to understand the behaviours of the employees, and report on how those behaviours are influenced by the decisions made by the board and the organizational management. The HR thus makes major contributions on making positive decisions that have positive impacts to the employees, for purposes of ensuring that employees’ behaviours are improved.

Being ethical and accountable is an important aspect that determines the policies and practices that are taken by the management in the organisation to impact on the attitudes and behaviours of employees. In line with this, the HR has to ensure that the right disciplinary procedures and actions are taken to promote fairness. This means that organisations have to develop the right organisational policies and procedures towards ensuring that they become ethical in the decisions they make to address the disciplinary issues among the employees. The code of professional conduct in this case also plays important roles in determining how the HR addresses issues of harassment and discrimination among the employees. Relevant policies and laws should be followed, and the HR has to ensure that the procedures are ethical and will have a positive impact from the decisions made.

The HR in promoting ethics and accountability should purpose to promote levels of corporate social responsibility. Through the HR departments, it becomes easier for the organisation to develop CSR strategies, and make sure that they are effectively implemented to enhance success of the organisation. For instance, the case of ARUP Company, the HR departments works to ensuring that the CSR programs are implemented to support the employees and the community, and also works to reduce the carbon footprint and ensure that they develop sustainability practices that benefit all the business stakeholders. At a standpoint, the HR ensures that ethics and accountability practices are promoted to creating both short term and long terms gains to the business and its stakeholders. This in turn enhances development of a culture that is ethical and focuses of developing good relationships to developing high levels of accountability to the business stakeholders.

3.1 Ways in which Business Performance is Measured

There are various tools and models used to measure performance of businesses

Profit and loss statement, income statement, and cash flows

These are financial indicators that measure business performance based on the profits or losses that the business makes. Rather than reporting on cash transactions, the income statements seek to measure the inventory of the firm, thus helps determine the profitability of the business. Cash flows measure the effectiveness of the businesses in generating cash needed to run the business operations. The need to use these financial measures is to determine the financial growth of the company, and finding the balance in the business operations. These are important in determining the growth and development of the firm, and its effectiveness in reporting high productivity and performance (Fatihudin and Mochklas, 2018).  

Balanced scorecard and Value chain analysis

The Balanced Scorecard is a measure of performance that was developed by Kaplan and Norton (1998). This is an indicator of the business vision and strategy, and seeks to find out the relationships between important elements of business processes, customers, learning and growth, and the financial aspects of business performance. It is a non-financial indicator that explains the role of the management in determining the successful implementation of business objectives to achieve the vision and strategy in the organisation.

The value chain analysis is another non-financial indicator that identify with the different activities that the business operations should be engaged in to ensuring that value is delivered to the business stakeholders. The performance indicator measures the characteristics of the industry in operations with consideration of the business value chain. Human Resource managers have the responsibility of supporting the organisational activities to develop the most important plans needed in promoting organisational success and development.

Role of HR in business planning

Business planning is important in enhancing the performance of the organisation. Through planning, the vision and strategy of the organisation is achieved, and the HR has the responsibility to ensure that the actions and activities carried out in the organisation are in line to the vision. The Walton and Burgoyne model is significant in determining how the HR gets involved in the execution of the business values. HR promotes resource planning, enhances organisational design and development, and also promotes training and development among the employees to enhance strategic growth of the business (Armstrong, 2016).

Role of HR in change management

Change management is very important to determining how the organisation deals with the dynamics in and outside the business. Organisations tend to relate to factors of change and the HR has to ensure that the changes are effectively implemented towards enhancing organisational success. The Lewin’s model of change explains the steps followed in change process, and follows three stages including unfreezing changing and refreezing. Unfreezing is the first stage that requires the employees to understand that change is necessary, and the HR works on making sure that they change the mind-set of the employees to appreciate the need for change. Changing is the second stage where actual change is implemented. Unfreezing is the third stage that seeks to determine the extent to which employees embrace change (Brown et al., 2017).

3.2 How different sources of business data should be considered and used when planning

Business data can be either external or internal, and it is considered important in the planning process to enhance improvement in the business operations. External data is public and available to all people. An example of external data is social media, and the HR collects data from the social media users on the different social media platforms. The information obtained by the HR and line managers help in the decision making process, to which the right strategies are developed from the data. With the social media, it becomes possible for the HR and managers to communicate directly with the public, and in this case, they are able to identify with the feedback obtained from the business stakeholders. Internal data is from within the information, and may be collected by the employees, the HR or line managers. Businesses use customer data, which is obtained from the organisational records to ensure that they understand the characteristics and needs of the customers. Customer information helps in the planning of how businesses would be managed to meet the demands of the customers. In addition, customer data determines the kind of transactions business makes with the customers. The third source of data is internal, and an example is compensation and reward data, which helps the HR, make necessary plans on the compensation packages to be given to the employees. The compensation and reward data may also be external from the industry compensation regulations.

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