Business Issues and the Context of Human Resources

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Business Issues and the Context of Human Resources

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Table of Contents
Introduction...............................................................................................................................2
Forces which shape the HR agenda...........................................................................................3
Internal Factors impacting organisational performance and HR function............................3
External factors impacting organisational performance and HR function............................4
Comparison of environmental analytical tools..........................................................................6
Stages of strategy formulation and implementation.................................................................8
Role of HR in business ethics and accountability...................................................................9
Evaluation of Business Performance........................................................................................10
Role of HR in business planning and change management.................................................11
Evaluation of different sources of business and contextual data in planning purpose...........12
HR metrics............................................................................................................................13
Industry information............................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

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Introduction
In today’s competitive business world, corporations are struggling to generate and sustain a
competitive advantage due to fierce competition. Effective human resource management
(HRM) strategies assist companies in ensuring that they hire an adequate number of staff
members who are skilled and qualified in order to achieve their corporate goals (Albrecht et
al., 2015). However, there are many contemporary human resource challenges which are
faced by corporations that resulted in making it difficult for them to build a strong and
talented workforce to conduct their business operations. The HR manager has the
responsibility to form HRM strategies to make sure that the staffing requirements of the
company are fulfilled based on the requirements of the company (Albrecht et al., 2015). This
report will evaluate different factors that impact the organisational business and its HR
functions. This report will also focus on analysing factors that shaped the HR agenda and
compared different tools that assist the HR managers in analysing the business
environment. The key stages which companies have to follow in order to formulate and
implement the role of HR will also be analysed in this report along with an evaluation of the
HR’s contribution to business ethics and accountability. This report will compare the PESTLE
and SWOT framework and identified the ways in which business performance is measured
in organisations. This report will also evaluate how different sources of internal and external
data should be considered while planning for HR strategies in organisations.

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Forces which shape the HR agenda
Internal Factors impacting organisational performance and HR function
There is a wide range of internal factors that affect the HR agenda of organisations by
creating challenges and opportunities for them. The impact of these factors is necessary to
be assessed by the HR manager to make sure that the company remain prepared for these
factors in order to reduce their negative impact and create an overall positive impact on its
operations (Marler and Fisher, 2013). Following are the key internal forces that shape the
HR agenda of organisations.
 HR Strategies
The HR strategies implemented by organisations in order to manage their human capital
requirements affect their business operations as well. Through these strategies, companies
focus on identifying their human capital requirements to identify the number and skills of
the employees which are necessary in order to achieve its corporate objectives (Stone and
Deadrick, 2015). These strategies assist in building the gap between the strategic plan and
HRM in the corporations; thus, companies have to consider a wide range of factors while
developing these strategies. The agenda prepared by the HR manager focuses on ensuring
that an adequate number of skilled and qualified members must be present in the
organisation to make sure that they focus on promoting the success of the enterprise (Stone
and Deadrick, 2015). These strategies not only focus on analysing and filling the human
capital requirements, but they also focus on creating a positive workplace culture in which
needs of employees are fulfilled so that they are motivated to work with high productivity.
 Strategic objections
The strategic objectives or goals set by the top level management are necessary to be
fulfilled by the company in a particular timeframe. It is the responsibility of the HR
department to make sure that it hires an adequate number of staff members which are
crucial to achieve the strategies goals in the organisation in an efficient manner without
wasting resources (Marler and Fisher, 2013).
 Stakeholder expectations