HR's Contribution to Organisational Performance

 Assignment – 5CHR - Part B
This assignment must be submitted through Online Services
Part B (A.C. 3.1 & 3.2) (2,000 words)
As an experienced HR Manager, you have been asked to produce a discussion paper to be
delivered in support of a seminar at a Leadership Development Forum. The seminar is entitled
‘HR’s contribution to organisational performance.’ In order to facilitate discussion in the right
direction, your paper should cover the following 2 key areas:
1. BUSINESS PERFORMANCE (3.1)
 How business performance can be evaluated using ‘tra
 ditional’ and ‘modern’ indicators.
 Examples of how HR contributes to business planning and change management with some
examples to illustrate HR’s key role.
2. BUSINESS DATA (3.2)
 An explanation of how different sources of business and contextual data can be assessed
and used for planning purposes e.g. internal information within the organisation including
HR metrics and industry information such as trends in HR, competitive information and
government information.
 Please also comment on how you will transfer the new knowledge and skills gained during
this assignment into working practices. You may also use this reflection for your CPD.
 You should also include 3-5 references from up to date and relevant sources in order to
support your findings. This assignment must be submitted through Online Services.
NAME: Mohammed Alhaddi COHORT: HRM13D
COMPANY: Sharjah National Oil Corporation WORD COUNT 2039
1. BUSINESS PERFORMANCE
Evaluating Business Performance using traditional and modern indicators (approx. 500 words)
Business performance is the indicators of business success over the time, within the context of organizational strategy
and business goals, and can be measured by long and short term through different indicators.
Measuring the business performance can provide indicators over the organization success and measure achieving the
action plans and to have clear vision on future plans as well as strategies, it also a tool to achieve the following:
To monitor and control.
To drive improvement.
To maximize the effectiveness of the improvement effort.
To achieve alignment with organizational goals and objectives.
To reward and to discipline
To ensure profitability
According to Northhous (2016), the balancing act entails creating a balance between the company needs and the
employee needs. Not all problems faced in an organization can be solved by only following employee needs. There
must be a consideration for the company needs. This balance helps to create a conducive and productive environment
between the employees and the company. For example, when the company wants to implement new changes in its
management system it should involve the employees. This will not only aid in successful implementation of the
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 Assignment – 5CHR - Part B
This assignment must be submitted through Online Services
program but also give insights on some aspects which can be changed for increased productivity. the employees
would not be straining to work with the new changes. Therefore, there would be increased productivity and a good
organisational image due to their concern for the employees in addition to the low levels of employee turnover and
increased job satisfaction. The HR must maintain an appropriate balance between company's needs and those of the
employees so as to ensure its success in the long-run (Kaplan, 2009).
There are number of traditional and modern indicators have been used to evaluate business performance, below are
some examples of them:
Traditional:
Financial statement, profits.
Customer Satisfaction.
How many new customers organization get.
Retention
None Traditional/ Modern
Organization image on media.
Customer Loyalty.
Good governance
Employee’s engagement.
Employees development
Both traditional and modern indicators are essential in analyzing the progress of a business. The HR department aids
in this analysis by formulating various policies which may be used in improving these indicators. Progress of an
organization can be sustained through proper planning.
Organizations need to consider factors that are affecting their long-term performance, minimizing the blockers and
maximizing the enablers. Sustaining high levels of performance in the long term can be achieved through empowering
people at all levels of the organization to innovate, embrace change and identify with the organization’s purpose
(Sustainable organization Performance, Aug 2016, CIPD). Therefore, the process of implementing managerial change
programs would be quick and effective. This can be achieved by creating an enabling environment for the employees
to grow their skills, encouraging high levels of employee participation and provision of quality services. According to
Robins (2017), high levels of employee empowerment and participation will motivate them to be productive. This in
turn will lead to provision of high quality services which would ensure the company is very competitive with a
considerable proportion of the market share. A high market share will result in increased revenues of the organization
thus its success.
HR’s Contribution to business planning and change management (approx. 500 words)
HR has a significant role to business planning and change management. HR professional should deeply
understands the business and become a business savvy to make sure that his contribution will create
maximum added value. He does this by making the human capital more productive and competent in
achieving organisational goals and long-term objectives.
The organizational change becomes very common practice during the last period specially when economy
has shifted and becomes uncertain. Many things cause organizational change. These include:
challenges of growth, especially global markets
economic downturns and tougher trading conditions
changes in strategy
technological changes
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 Assignment – 5CHR - Part B
This assignment must be submitted through Online Services
competitive pressures, including mergers and acquisitions
customer pressure, particularly shifting markets
learning new organization behaviors and skills
Government legislation/initiatives (Change Management, Oct 2017, CIPD).
A major challenge that as per the recent researches, 18% of the business managers don’t understand the
contribution of HR in the business strategy (HR Magazine, How HR Can master Strategy, Joy Persaud, July
2013). They tend to ignore the Human Resource Department which holds an essential element in the
achievement of organisational plans. Highly skilled and competent personnel can aid in quick realisation of
organisational objectives. The HR department can help the organization overcome and accept changes
more quickly. According to Robins (2017), involvement of employees in the decision making process
enables the to quickly accept and respond positively to decisions made. Their involvement raises their
morale hence high productivity as they feel that the organization values their opinions.
In recent years, much concern has been shown for the strategic involvement of the Human Resource (HR)
and its effect on firm’s performance (Lahteenmaki et al, 1998). It has been even suggested that there is a
link between a firms’ performance and the utilisation of its human resources (Lahteenmaki et al, 1998;
Baird and Meshoulan, 1998). Many successful organizations have a highly skilled and competent personnel.
This reduces the supervision costs as well as wastage. As a result, there is production of high quality goods
and provision of quality services. This results in increased market share thus high revenues.
The literature on human resource development argues that there are two ways in which HRD plays a
central role in managing organisational change. First, by responding to a succession of externally driven
changes at an organisational level, and to subsequent shifts in strategic direction, each of which has
significant effects on development-orientated practices in the workplace. Second, HRD can have an
influential role internally by developing and shaping the appropriate competencies, practices and attitudes
that will help the organisation deliver its products and services. The key role of HRD is, therefore, to link
HRM systems and policies to the competitive capability of the organisation (Taylor, 2011).
As per the researches, most management change fail due to poor involvement of the human personnel in
the change program(Taylor,2011). This leads to high impact results, such as loss in market position, loss of
credibility, etc.
2. BUSINESS DATA
How different sources of business and contextual data can be assessed and utilized for planning purposes (approx.
1000 words)
The process of data analysis is the process of turning data into meaningful information which can be used to make
informed decisions. This process involves collection of data, organization and analysis.
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