BUSINESS ISSUES AND HUMAN RESOURCES
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Running Head: BUSINESS ISSUES AND HUMAN RESOURCES
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Business Issues and the Contexts of Human Resources
“The evolving role of HR in the contemporary business world”
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Business Issues and the Contexts of Human Resources
“The evolving role of HR in the contemporary business world”
Student Name:
Student University:
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BUSINESS ISSUES AND HUMAN RESOURCES
1
Introduction
In today’s competitive business world, companies are relying on effective human resource
management (HRM) practices to make sure that they generate a competitive advantage in the
market. The role of HR is evolving and the top level management has to focus on a number
of factors to make sure that a link is created between HR function and other operations to
achieve success in the company (Delery & Roumpi, 2017). The objective of this report is to
evaluate two different tools which are used by businesses in order to analyse their business
evaluate along with evaluation of four factors that affects organisation’s business and its HR
functions. This report will also focus on analyse two forces that share HR agenda and key
stages of business strategy formulation and implementation to assess the potential role of HR.
The contribution of HR in compliance with business ethics and accountability will also be
discussed in this report along with analysis of examples to understand how business
performance can be analysed and role of HR in change management and business planning.
Lastly, this report will assess three different sources of collection of business data to
understand how they can be used in business planning process.
Tools for analysing business environment
Business analysis models are referred to useful tools and techniques which are used by
companies since they assist them in understanding their business environment that is crucial
for them to think more strategically while developing business strategies. Some of these
common tools include PESTLE and Porter’s five forces framework. Both of these tools are
effective in ensuring that the top level management is able to assess key opportunities in the
market to exploit them while also tackling challenges which are faced by the organisation in
the market (Anton, 2016). PESTLE is an acronym for political, economic, social,
technological, legal and environmental factors; this tool assists companies in identifying how
their operations are affected by macro environmental factors. On the other hand, Porter’s five
forces framework focuses on identifying where power lies in a competitive situation. This
tool is used in order to assess the attractiveness of an industry by senior level executives to
determine the level of power suppliers and buyers have and assess the ability of new
competitors to enter into the market. Generally, financial professional use Porter’s five forces
model in order to evaluate five forces which shape an industry; these forces include the
bargaining power of buyers, threat of substitutes, threat of new entrants, bargaining power of
1
Introduction
In today’s competitive business world, companies are relying on effective human resource
management (HRM) practices to make sure that they generate a competitive advantage in the
market. The role of HR is evolving and the top level management has to focus on a number
of factors to make sure that a link is created between HR function and other operations to
achieve success in the company (Delery & Roumpi, 2017). The objective of this report is to
evaluate two different tools which are used by businesses in order to analyse their business
evaluate along with evaluation of four factors that affects organisation’s business and its HR
functions. This report will also focus on analyse two forces that share HR agenda and key
stages of business strategy formulation and implementation to assess the potential role of HR.
The contribution of HR in compliance with business ethics and accountability will also be
discussed in this report along with analysis of examples to understand how business
performance can be analysed and role of HR in change management and business planning.
Lastly, this report will assess three different sources of collection of business data to
understand how they can be used in business planning process.
Tools for analysing business environment
Business analysis models are referred to useful tools and techniques which are used by
companies since they assist them in understanding their business environment that is crucial
for them to think more strategically while developing business strategies. Some of these
common tools include PESTLE and Porter’s five forces framework. Both of these tools are
effective in ensuring that the top level management is able to assess key opportunities in the
market to exploit them while also tackling challenges which are faced by the organisation in
the market (Anton, 2016). PESTLE is an acronym for political, economic, social,
technological, legal and environmental factors; this tool assists companies in identifying how
their operations are affected by macro environmental factors. On the other hand, Porter’s five
forces framework focuses on identifying where power lies in a competitive situation. This
tool is used in order to assess the attractiveness of an industry by senior level executives to
determine the level of power suppliers and buyers have and assess the ability of new
competitors to enter into the market. Generally, financial professional use Porter’s five forces
model in order to evaluate five forces which shape an industry; these forces include the
bargaining power of buyers, threat of substitutes, threat of new entrants, bargaining power of
BUSINESS ISSUES AND HUMAN RESOURCES
2
suppliers and competitive rivalry (Arar, et al., 2017). Through these factors, companies are
able to determine their position in the market and understand their level of competitiveness.
By understanding these factors, companies are able to make sure that they maintain a balance
between these factors which enable them to generate a competitive advantage in the market.
On the other hand, PESTLE analysis is used by companies in order to determine macro
environmental factors that affect their operations. These factors create threats as well as
opportunities for companies which are necessary to be accessed by the management to make
sure that the organisations stay relevant in the market (Bonsu, 2019). These factors takes
place in a nation or marketplace based on which they also guide the operations of customers
and they include a wide range of factors such as customer demographics, buying patterns and
culture. These factors also evaluate changes in political and economic policies which are
outside the control of companies; however, they have a direct impact on their operations. As
per this model, the management is also able to evaluate adverse weather conditions and the
perception of sustainability among customers to make sure that they are able to formulate
policies which benefits them in the long run (Aithal, 2016). These differences show that both
of these tools can be used by the top level management of companies while formulating
business strategies to make sure that they stay ahead of their competitive while tackling their
key challenges and exploiting opportunities in the market.
Factors that affect organisation’s business and its HR function
There are a wide range of external as well as internal factors which affects the business
operations of a company along with its HR functions. These factors are necessary to be taken
into consideration by organisations to make sure that they effectively address them to avoid
negative consequences on the business. One of the key factors that affect business operations
and HR functions is governmental regulations. The government introduces new workplace
regulations in order to guide companies for conducting their business operations. It becomes
mandatory for companies to comply with these policies in order to make sure that they avoid
legal consequences (Ng & Sears, 2017). The HR department is also responsible for
complying with these factors to make sure that the company stays within the law. In case of
the company did not adhere to these regulations such as anti-discrimination laws, minimum
wage policies, workplace safety requirements and others, then they could face lawsuits which
hinders their productivity and it also create a negative work environment. Another factor is
economic conditions of the country in which the company manages its operations. These
2
suppliers and competitive rivalry (Arar, et al., 2017). Through these factors, companies are
able to determine their position in the market and understand their level of competitiveness.
By understanding these factors, companies are able to make sure that they maintain a balance
between these factors which enable them to generate a competitive advantage in the market.
On the other hand, PESTLE analysis is used by companies in order to determine macro
environmental factors that affect their operations. These factors create threats as well as
opportunities for companies which are necessary to be accessed by the management to make
sure that the organisations stay relevant in the market (Bonsu, 2019). These factors takes
place in a nation or marketplace based on which they also guide the operations of customers
and they include a wide range of factors such as customer demographics, buying patterns and
culture. These factors also evaluate changes in political and economic policies which are
outside the control of companies; however, they have a direct impact on their operations. As
per this model, the management is also able to evaluate adverse weather conditions and the
perception of sustainability among customers to make sure that they are able to formulate
policies which benefits them in the long run (Aithal, 2016). These differences show that both
of these tools can be used by the top level management of companies while formulating
business strategies to make sure that they stay ahead of their competitive while tackling their
key challenges and exploiting opportunities in the market.
Factors that affect organisation’s business and its HR function
There are a wide range of external as well as internal factors which affects the business
operations of a company along with its HR functions. These factors are necessary to be taken
into consideration by organisations to make sure that they effectively address them to avoid
negative consequences on the business. One of the key factors that affect business operations
and HR functions is governmental regulations. The government introduces new workplace
regulations in order to guide companies for conducting their business operations. It becomes
mandatory for companies to comply with these policies in order to make sure that they avoid
legal consequences (Ng & Sears, 2017). The HR department is also responsible for
complying with these factors to make sure that the company stays within the law. In case of
the company did not adhere to these regulations such as anti-discrimination laws, minimum
wage policies, workplace safety requirements and others, then they could face lawsuits which
hinders their productivity and it also create a negative work environment. Another factor is
economic conditions of the country in which the company manages its operations. These
BUSINESS ISSUES AND HUMAN RESOURCES
3
conditions directly influence the HR functions as well since the HR department has to make
sure that they create a plan for economic downturn (Joseph, 2018). They have to make sure
that their talent pool remains protected in adverse economic conditions which enables them to
stay relevant even in adverse market conditions. Economic conditions also affect the level of
unemployment, inflation and overall working conditions in a country which must be taken
into consideration by HR managers while implementing policies to make sure that they fulfil
their human capital requirements. Technological advancements also affect business
operations and HR functions in a company since introduction of these policies can change the
pre-existing policies used by an organisation. For example, companies can use robots that cut
down the requirements of workers in the company through automation of the process (Joyce,
et al., 2018). Similarly, it also assists HR managers in screening and conducting interviews
with new candidates. For example, Unilever uses Artificial Intelligence (AI) in order to
screen its job candidates through social media sites which save the time of its HR department
since they did not have to interview each and every candidate for work. Furthermore,
workforce demographics is another key factor which is necessary to be taken into
consideration by companies since an older generation retires and new generations enter the
workforce that have separate set of needs and expectations from their job (Booth, 2019). The
HR department has to take into consideration differences between types of compensation for
younger generations and their expectations to make sure that they retain them in the
workplace. For example, Generation Z and millennial workers prefer to work in positive
working environments where their rights are protected and they are motivated by their top
level management by recognition of their hard work. These factors are necessary to be taken
into consideration by companies since they directly affect their business and HR functions
(Gilchrist, 2019).
Forces shaping HR and its agenda
In today’s competitive business world, discussing about shaping the HR agenda describes
various forces where the major ones are technology and legislation. There is a massive
evolution in the role of HR (Human Resource) within this world of contemporary business.
Modern organisations are thinking of shaping HR agenda due to the reason of leading and
disadvantaging their competitors. If there will be increase in HR support, there will be
commitment, loyalty and productivity leveraging returns to the companies. Previously,
managers were controlling the aspects related to people through developing HR strategies
3
conditions directly influence the HR functions as well since the HR department has to make
sure that they create a plan for economic downturn (Joseph, 2018). They have to make sure
that their talent pool remains protected in adverse economic conditions which enables them to
stay relevant even in adverse market conditions. Economic conditions also affect the level of
unemployment, inflation and overall working conditions in a country which must be taken
into consideration by HR managers while implementing policies to make sure that they fulfil
their human capital requirements. Technological advancements also affect business
operations and HR functions in a company since introduction of these policies can change the
pre-existing policies used by an organisation. For example, companies can use robots that cut
down the requirements of workers in the company through automation of the process (Joyce,
et al., 2018). Similarly, it also assists HR managers in screening and conducting interviews
with new candidates. For example, Unilever uses Artificial Intelligence (AI) in order to
screen its job candidates through social media sites which save the time of its HR department
since they did not have to interview each and every candidate for work. Furthermore,
workforce demographics is another key factor which is necessary to be taken into
consideration by companies since an older generation retires and new generations enter the
workforce that have separate set of needs and expectations from their job (Booth, 2019). The
HR department has to take into consideration differences between types of compensation for
younger generations and their expectations to make sure that they retain them in the
workplace. For example, Generation Z and millennial workers prefer to work in positive
working environments where their rights are protected and they are motivated by their top
level management by recognition of their hard work. These factors are necessary to be taken
into consideration by companies since they directly affect their business and HR functions
(Gilchrist, 2019).
Forces shaping HR and its agenda
In today’s competitive business world, discussing about shaping the HR agenda describes
various forces where the major ones are technology and legislation. There is a massive
evolution in the role of HR (Human Resource) within this world of contemporary business.
Modern organisations are thinking of shaping HR agenda due to the reason of leading and
disadvantaging their competitors. If there will be increase in HR support, there will be
commitment, loyalty and productivity leveraging returns to the companies. Previously,
managers were controlling the aspects related to people through developing HR strategies
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BUSINESS ISSUES AND HUMAN RESOURCES
4
along with performance structures as defined (Shakil, et al., 2019). This implied a decrease in
the power of Union where most of the employees stopped sourcing for in-house advice.
However, HR function models, insights, HR strategies and solutions have seen to be the best
practice along with such primary forces shaping the HR agenda. This will support the
business ethics, performance and accountability. In organisations, HR strategies along with
its objectives and targets are constituted under designing of HR model comprising standards
and processes (Shuming, et al., 2019). In the skills and structure, it is essential to identify
gaps to benefit the HR agenda under the adoption of betterment process along with smooth
formulation of HR model consisting problem solving and decision making for the company’s
success and growth.
In business, the evolution across the globe involves social, economic, and political factors
where it becomes an essential agenda to re-shape HR’s role and profession. The future of HR
is impacted by the global trends due to the areas of demographics, speed of change, and
connectivity. Nowadays, there is increase of HR relying on technology where it still requires
having a human touch essential for driving success in business. So, here comes one force of
technology as concluded for driving fundamental changes considering personalisation in
practices and experience of employees taking place which shows that technology is just an
enabler and not a replacement (Churchouse, 2018). It is getting important for HR leaders in
terms of business leadership to look towards the organisational evolution and growth in
future through agile methodologies, new technologies, broader economic changes, and
demographic shifts.
Furthermore, it is essential to enforce legal regulations while adopting the concepts of HR
within the business in case of employees consisting federal and state laws. These cover the
governing of employment issues under the employment laws. There is governing of all
aspects of HRM (human resource management) under laws and regulations consisting
placement, recruitment, compensation, and development (Obedgiu, 2017). There are various
employment legislations which regulates the relationship between employer and employee by
making sure that their rights are protected. In the UK, the government has provided legal
requirements for different factors such as discrimination, health and safety, data protection,
working hours, minimum wage, whistle-blowing, terms of employment and others. A good
example is the “Equality Act 2010” which is introduced in order to make sure that female and
male employees receive equal pay for equal work. This act is targeted towards eliminating
4
along with performance structures as defined (Shakil, et al., 2019). This implied a decrease in
the power of Union where most of the employees stopped sourcing for in-house advice.
However, HR function models, insights, HR strategies and solutions have seen to be the best
practice along with such primary forces shaping the HR agenda. This will support the
business ethics, performance and accountability. In organisations, HR strategies along with
its objectives and targets are constituted under designing of HR model comprising standards
and processes (Shuming, et al., 2019). In the skills and structure, it is essential to identify
gaps to benefit the HR agenda under the adoption of betterment process along with smooth
formulation of HR model consisting problem solving and decision making for the company’s
success and growth.
In business, the evolution across the globe involves social, economic, and political factors
where it becomes an essential agenda to re-shape HR’s role and profession. The future of HR
is impacted by the global trends due to the areas of demographics, speed of change, and
connectivity. Nowadays, there is increase of HR relying on technology where it still requires
having a human touch essential for driving success in business. So, here comes one force of
technology as concluded for driving fundamental changes considering personalisation in
practices and experience of employees taking place which shows that technology is just an
enabler and not a replacement (Churchouse, 2018). It is getting important for HR leaders in
terms of business leadership to look towards the organisational evolution and growth in
future through agile methodologies, new technologies, broader economic changes, and
demographic shifts.
Furthermore, it is essential to enforce legal regulations while adopting the concepts of HR
within the business in case of employees consisting federal and state laws. These cover the
governing of employment issues under the employment laws. There is governing of all
aspects of HRM (human resource management) under laws and regulations consisting
placement, recruitment, compensation, and development (Obedgiu, 2017). There are various
employment legislations which regulates the relationship between employer and employee by
making sure that their rights are protected. In the UK, the government has provided legal
requirements for different factors such as discrimination, health and safety, data protection,
working hours, minimum wage, whistle-blowing, terms of employment and others. A good
example is the “Equality Act 2010” which is introduced in order to make sure that female and
male employees receive equal pay for equal work. This act is targeted towards eliminating
BUSINESS ISSUES AND HUMAN RESOURCES
5
gender pay gap from the UK. The “National Minimum Wage Act 1998” also provides
guidelines under which companies are enforced to ensure that they did not pay less than the
standard minimum wage to their employees (Bruns, 2014).
Key stages of business strategy
In broad-organisations, strategic planning helps in focusing on long-term plan of achieving its
future goals. There are different functions connected to the strategic planning consists of sales
and marketing, operations, finance and accounting, HR, and R&D altogether with their
performing activities to achieve organisational goals. This helps in identifying opportunities
for organisation and capitalizing internal strengths to avail them. There is better allocation of
resources for performing activities along with promoting proactively and encouraging
forward thinking within the culture. It also includes benefits related to better alignment of
decisions, managing change successfully, and clarification in individual and departmental
roles (Engert & Baumgartner, 2016). While implementing and formulating a business
strategy, the complexity of planning process is dependent on the company’s environment
considering its leadership nature, size, and the culture. Lastly, this process is mainly based on
the model of decision making and problem solving.
In business, strategy formulation consists of developing vision and mission statements along
with defining values where strategy implementation is defined as setting short-term goals,
allocation of resources within multiple activities, creation of action plans, and defining jobs
for employees. In formulation and implementation of business strategy, HR plays the role of
getting things done while attaining defined goals along with policy and particular HR areas of
practice and process (Sarvaiya, et al., 2018). It is essential to align HR strategy for its
development within the business and organisational culture through vertical integration. The
approaches identified are contingency, universalistic, and configurational that is using
bundles. Business strategy is a vertical integration need to be aligned with HR strategy for
development along with fitting it in organizational culture. HR factors impact business
strategies by making it work along with considering HR constraints and opportunities
(Moskalenko, 2018).
This implementation and formulation requires behaviour and skills knowledge of HRM
practices for eliciting them along with the ability of doing it rapidly as per the desired system.
The structure for business strategies and HR alignment provides a competitive strategy
5
gender pay gap from the UK. The “National Minimum Wage Act 1998” also provides
guidelines under which companies are enforced to ensure that they did not pay less than the
standard minimum wage to their employees (Bruns, 2014).
Key stages of business strategy
In broad-organisations, strategic planning helps in focusing on long-term plan of achieving its
future goals. There are different functions connected to the strategic planning consists of sales
and marketing, operations, finance and accounting, HR, and R&D altogether with their
performing activities to achieve organisational goals. This helps in identifying opportunities
for organisation and capitalizing internal strengths to avail them. There is better allocation of
resources for performing activities along with promoting proactively and encouraging
forward thinking within the culture. It also includes benefits related to better alignment of
decisions, managing change successfully, and clarification in individual and departmental
roles (Engert & Baumgartner, 2016). While implementing and formulating a business
strategy, the complexity of planning process is dependent on the company’s environment
considering its leadership nature, size, and the culture. Lastly, this process is mainly based on
the model of decision making and problem solving.
In business, strategy formulation consists of developing vision and mission statements along
with defining values where strategy implementation is defined as setting short-term goals,
allocation of resources within multiple activities, creation of action plans, and defining jobs
for employees. In formulation and implementation of business strategy, HR plays the role of
getting things done while attaining defined goals along with policy and particular HR areas of
practice and process (Sarvaiya, et al., 2018). It is essential to align HR strategy for its
development within the business and organisational culture through vertical integration. The
approaches identified are contingency, universalistic, and configurational that is using
bundles. Business strategy is a vertical integration need to be aligned with HR strategy for
development along with fitting it in organizational culture. HR factors impact business
strategies by making it work along with considering HR constraints and opportunities
(Moskalenko, 2018).
This implementation and formulation requires behaviour and skills knowledge of HRM
practices for eliciting them along with the ability of doing it rapidly as per the desired system.
The structure for business strategies and HR alignment provides a competitive strategy
BUSINESS ISSUES AND HUMAN RESOURCES
6
approach relating to distinct HR strategies such as performance or reward to the company’s
competitive strategies. The alignment between business strategy and HR is due to HR being
inter-departmental, extensive, and involvement within an organisation showing its nature of
interacting and understanding the processes overall. However, implementation demands
cooperation intrinsically with employee with skills and tools used. This planning helps HR to
motivate, appeal, and enrich individual’s contribution along with encompassing procedure
and changing demand at all levels while implementation of the business strategy (Xie &
Cooke, 2019). Thus, HR functions aligned with the business strategy sums up the potential
maximization to attain organisation’s advantage and return on investment (RoI) along with
guiding employees to perform tasks effectively.
Contribution of HR in business ethics and accountability
The importance of business ethics and accountability has increased in the modern era since it
allows companies to create a positive brand image which allow them to sustain their growth
in the market. Compliance with ethical principles enables companies in ensuring that they did
not create a negative brand reputation the market while engaging in business practices which
are unethical (Baldini, et al., 2018). In this regards, the HR department also plays a major role
since it enables companies in ensuring that they continuously comply with business ethics
and fulfil their accountability. Organisations are experiencing a wide array of pressures which
are creating potential ethical dilemmas and conflicts that lead to affecting their business
operations. Companies face challenges due to their internal and external factors that make it
difficult for them to conduct their operations without harming the interest of their
stakeholders. Employees are facing challenges in relation to sexual harassment and
discrimination that makes it difficult for them to retain in the workplace and perform at their
highest capacity (Smith, et al., 2018). In this regards, the HR department can ensure that
ethical conduct is followed in the workplace that is crucial for them to avoid unethical
practices.
The HR managers focuses on nurturing an ethical organisational culture by ensuring that they
hire qualities candidates that have a strong sense of moral and values. The HR managers
should screen the candidates at the time of their interview to make sure that they did not
employ any individuals who are unethical or likely to engage in similar actions. They should
hire those individuals that set the ethical tone in the company and enables them to uphold
6
approach relating to distinct HR strategies such as performance or reward to the company’s
competitive strategies. The alignment between business strategy and HR is due to HR being
inter-departmental, extensive, and involvement within an organisation showing its nature of
interacting and understanding the processes overall. However, implementation demands
cooperation intrinsically with employee with skills and tools used. This planning helps HR to
motivate, appeal, and enrich individual’s contribution along with encompassing procedure
and changing demand at all levels while implementation of the business strategy (Xie &
Cooke, 2019). Thus, HR functions aligned with the business strategy sums up the potential
maximization to attain organisation’s advantage and return on investment (RoI) along with
guiding employees to perform tasks effectively.
Contribution of HR in business ethics and accountability
The importance of business ethics and accountability has increased in the modern era since it
allows companies to create a positive brand image which allow them to sustain their growth
in the market. Compliance with ethical principles enables companies in ensuring that they did
not create a negative brand reputation the market while engaging in business practices which
are unethical (Baldini, et al., 2018). In this regards, the HR department also plays a major role
since it enables companies in ensuring that they continuously comply with business ethics
and fulfil their accountability. Organisations are experiencing a wide array of pressures which
are creating potential ethical dilemmas and conflicts that lead to affecting their business
operations. Companies face challenges due to their internal and external factors that make it
difficult for them to conduct their operations without harming the interest of their
stakeholders. Employees are facing challenges in relation to sexual harassment and
discrimination that makes it difficult for them to retain in the workplace and perform at their
highest capacity (Smith, et al., 2018). In this regards, the HR department can ensure that
ethical conduct is followed in the workplace that is crucial for them to avoid unethical
practices.
The HR managers focuses on nurturing an ethical organisational culture by ensuring that they
hire qualities candidates that have a strong sense of moral and values. The HR managers
should screen the candidates at the time of their interview to make sure that they did not
employ any individuals who are unethical or likely to engage in similar actions. They should
hire those individuals that set the ethical tone in the company and enables them to uphold
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BUSINESS ISSUES AND HUMAN RESOURCES
7
their values and ethical climate (Harris, 2016). They should strictly prohibits discrimination
and harassment in the workplace and empower them to learn about their rights to make sure
that they are followed throughout the workplace. The HR department also focuses on
resolving ethical conflicts in the workplace when they occur between the employees and
employer. They should also deal with the aftermath of the ethical conflicts to make sure that
employees did not work in a negative workplace environment since it reduces their overall
productivity. This approach also enable companies in ensuring that they sustain their
profitability in the market which can be understood by the example of leading companies
such as Apple, Starbucks, Zara, Google and others (Smith, 2013). The HR department in
these organisations make sure that individuals that can follow ethical values of the company
are hired which lead to better delivery of products and services to customers that ultimately
increase the profitability of the business. These companies fulfil their accountability by
complying with their corporate social responsibility (CSR) to make sure that they maintain a
balance between the interests of their stakeholders which leads to better outcomes (Herrera &
de las Heras-Rosas, 2020). This HR department plays a major role in this area which resulted
in benefiting the organisations in remaining ethical in their business operations.
Business performance evaluation
In business, performance can be evaluated through HRM initiated in companies for analysing
employees’ performance. The evaluation is linked with competencies consists of written
ability and proactivity along with other outcomes and activities. Here, performance
evaluation is based on employees of the company by using tools when aiming at analysing
the performance of an individual within an organisational environment. Evaluation of
business performance is based on an individual’s performance which is possible by
motivating them for development. Also, there can be questionnaire or form applied for
evaluating that is need to be completed by employees for better operational work and
achieving desirable goals (Ávila, 2015). Thus, evaluation helps in making decision increment
wisely along with providing competitive advantage where HR plays a leading role while
reducing problems and challenges faced in business affecting its performance.
The role of HR with its practices, functions and procedures is increasing continuously within
an economy while relying more on knowledge. It is necessary to take care of using and
allocating labour force in management along with ensuring and achieving the efficiency
7
their values and ethical climate (Harris, 2016). They should strictly prohibits discrimination
and harassment in the workplace and empower them to learn about their rights to make sure
that they are followed throughout the workplace. The HR department also focuses on
resolving ethical conflicts in the workplace when they occur between the employees and
employer. They should also deal with the aftermath of the ethical conflicts to make sure that
employees did not work in a negative workplace environment since it reduces their overall
productivity. This approach also enable companies in ensuring that they sustain their
profitability in the market which can be understood by the example of leading companies
such as Apple, Starbucks, Zara, Google and others (Smith, 2013). The HR department in
these organisations make sure that individuals that can follow ethical values of the company
are hired which lead to better delivery of products and services to customers that ultimately
increase the profitability of the business. These companies fulfil their accountability by
complying with their corporate social responsibility (CSR) to make sure that they maintain a
balance between the interests of their stakeholders which leads to better outcomes (Herrera &
de las Heras-Rosas, 2020). This HR department plays a major role in this area which resulted
in benefiting the organisations in remaining ethical in their business operations.
Business performance evaluation
In business, performance can be evaluated through HRM initiated in companies for analysing
employees’ performance. The evaluation is linked with competencies consists of written
ability and proactivity along with other outcomes and activities. Here, performance
evaluation is based on employees of the company by using tools when aiming at analysing
the performance of an individual within an organisational environment. Evaluation of
business performance is based on an individual’s performance which is possible by
motivating them for development. Also, there can be questionnaire or form applied for
evaluating that is need to be completed by employees for better operational work and
achieving desirable goals (Ávila, 2015). Thus, evaluation helps in making decision increment
wisely along with providing competitive advantage where HR plays a leading role while
reducing problems and challenges faced in business affecting its performance.
The role of HR with its practices, functions and procedures is increasing continuously within
an economy while relying more on knowledge. It is necessary to take care of using and
allocating labour force in management along with ensuring and achieving the efficiency
BUSINESS ISSUES AND HUMAN RESOURCES
8
increment while using the production process of services and goods guaranteeing welfare
growth and increasing the society’s living standard. Within the scope of HRM, the companies
are able to develop and apply for procedures and policies along with considering structure
and sixe to enhance their business performance while developing basic HRM functions. The
evaluation is done to know the use of human resources efficiently and effectively and for
success in the market competition (Abduli, 2013). The evaluation of business performance is
possible by evaluating behaviours while using competencies under the role of HR.
Source: (Lauby, 2017).
In change management, the role of HR within the business planning process is conducted for
transformation with the evolvement to gain within competitiveness. It requires providing the
right structure along with making the leadership impact easy while supporting the change to
individuals of an organisation. For instance, Barack Obama in their election campaign,
initiating change which is inevitable while embracing it. There is a necessity to acknowledge
the presence of nature complexity faced as a multi-faceted challenge for HR. Change is
unpredictable and non-linear with hard reproduction but companies take difference
approaches through its management while thinking of offensive or defensive styles (Perrin,
2020). To adapt change is the decision of companies they need to make along with
anticipating it where the role of HR plays among the importance of leadership in leveraging
such opportunity within the era of agility in organisations at the time of driving change.
Change management along with role of HR in business for the evaluation of performance
8
increment while using the production process of services and goods guaranteeing welfare
growth and increasing the society’s living standard. Within the scope of HRM, the companies
are able to develop and apply for procedures and policies along with considering structure
and sixe to enhance their business performance while developing basic HRM functions. The
evaluation is done to know the use of human resources efficiently and effectively and for
success in the market competition (Abduli, 2013). The evaluation of business performance is
possible by evaluating behaviours while using competencies under the role of HR.
Source: (Lauby, 2017).
In change management, the role of HR within the business planning process is conducted for
transformation with the evolvement to gain within competitiveness. It requires providing the
right structure along with making the leadership impact easy while supporting the change to
individuals of an organisation. For instance, Barack Obama in their election campaign,
initiating change which is inevitable while embracing it. There is a necessity to acknowledge
the presence of nature complexity faced as a multi-faceted challenge for HR. Change is
unpredictable and non-linear with hard reproduction but companies take difference
approaches through its management while thinking of offensive or defensive styles (Perrin,
2020). To adapt change is the decision of companies they need to make along with
anticipating it where the role of HR plays among the importance of leadership in leveraging
such opportunity within the era of agility in organisations at the time of driving change.
Change management along with role of HR in business for the evaluation of performance
BUSINESS ISSUES AND HUMAN RESOURCES
9
requires time for communicating, designing and facilitating new processes along with
monitoring, establishing agenda, motivating employees, training managers, and adapting
solutions as proposed for success, expansion and growth of organisations (Browning, 2015).
Sources of business data and their use to inform business planning
There are different sources which are used by businesses and their HR department during the
process of business planning in order to make informed business decisions. These sources
enable businesses in ensuring that they collect relevant information from both internal as well
as external sources that results in improving the overall effectiveness of their strategies
(Angrave, et al., 2016). Internal sources are effective way to collect business data by
companies during business planning process. They can collect information about employee
headcount, demographics and financials to make sure that they understand the key areas in
which they are lagging behind. The companies can evaluate their current human resource
strengths to determine whether they have to hire new candidates for efficiently conducting
their business operations (Foley, 2014). This is also important in talent management planning
as well as providing motivation to employees to make sure that they discharge their duties in
an effective manner. For example, the details regarding financial provides a bird eye view to
the top level management to determine whether the performance of the company is as per
their expectations or not. This helps them during the business planning process to make sure
that they take corrective actions to sustain the profitability of the company (Van den Heuvel
& Bondarouk, 2017).
Another source of business data is related to collection of information regarding customers of
the company to understand their demands and expectations from products and services.
Organisations can collect data regarding the demographic of their customer segments to
understand their demands that enables them to improve their products and services. For
example, a recent study showed that 73 per cent of millennial customers spend additional on
products which are sustainably sources. Based on this information, companies such as
Starbucks have created an empire by offering sustainable products and services to its
customers since majority of them include millennial customers (Curtin, 2018). The company
ensures that it reduces its carbon emissions, use recyclable packing, help coffee farmers and
engage in the development of local communities which lead to proliferating sales. Another
source of business data is conducting both online and offline surveys to learn about market
9
requires time for communicating, designing and facilitating new processes along with
monitoring, establishing agenda, motivating employees, training managers, and adapting
solutions as proposed for success, expansion and growth of organisations (Browning, 2015).
Sources of business data and their use to inform business planning
There are different sources which are used by businesses and their HR department during the
process of business planning in order to make informed business decisions. These sources
enable businesses in ensuring that they collect relevant information from both internal as well
as external sources that results in improving the overall effectiveness of their strategies
(Angrave, et al., 2016). Internal sources are effective way to collect business data by
companies during business planning process. They can collect information about employee
headcount, demographics and financials to make sure that they understand the key areas in
which they are lagging behind. The companies can evaluate their current human resource
strengths to determine whether they have to hire new candidates for efficiently conducting
their business operations (Foley, 2014). This is also important in talent management planning
as well as providing motivation to employees to make sure that they discharge their duties in
an effective manner. For example, the details regarding financial provides a bird eye view to
the top level management to determine whether the performance of the company is as per
their expectations or not. This helps them during the business planning process to make sure
that they take corrective actions to sustain the profitability of the company (Van den Heuvel
& Bondarouk, 2017).
Another source of business data is related to collection of information regarding customers of
the company to understand their demands and expectations from products and services.
Organisations can collect data regarding the demographic of their customer segments to
understand their demands that enables them to improve their products and services. For
example, a recent study showed that 73 per cent of millennial customers spend additional on
products which are sustainably sources. Based on this information, companies such as
Starbucks have created an empire by offering sustainable products and services to its
customers since majority of them include millennial customers (Curtin, 2018). The company
ensures that it reduces its carbon emissions, use recyclable packing, help coffee farmers and
engage in the development of local communities which lead to proliferating sales. Another
source of business data is conducting both online and offline surveys to learn about market
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BUSINESS ISSUES AND HUMAN RESOURCES
10
trends and changing preferences of customers to make sure that the organisation is able to
make necessary changes in its operations to stay relevant in the market (Marr, 2018). For
example, companies such as Google and Facebook conducts survey on their platforms to
understand how their users rely on these services and what changes they want these
companies to include in their services. These feedbacks and surveys provide relevant data to
these companies that are not available to their competitors which resulted in providing them a
competitive advantage in the market by ensuring that their business planning process remains
effective (Marrs, 2019).
Conclusion
Based the on the above analysis, this was understood that their major contemporary issues in
business where it is essential for HR to play its role. There are various external factors
affecting the companies due to which HR evolution is taking place. Also, presence of distinct
practices and strategies of HR along with organisational tools were compared along with the
agenda of developing and shaping. This report also considered the discussion based on
identifying and responding to changes with the help of management in the business
environment of companies. It is essential to analyse the issues in business along with the HR
context where it is necessary to attempt formulation and implementation of strategy
appropriately through potential role of HR. Moreover, there is a contribution of HR in
accountability and ethics of business as well where the performance is also evaluated
considering its role. In business, it is easy to plan with the help of HR practices, strategies and
procedures for informing along with using the business data sources helpful in success of
companies.
10
trends and changing preferences of customers to make sure that the organisation is able to
make necessary changes in its operations to stay relevant in the market (Marr, 2018). For
example, companies such as Google and Facebook conducts survey on their platforms to
understand how their users rely on these services and what changes they want these
companies to include in their services. These feedbacks and surveys provide relevant data to
these companies that are not available to their competitors which resulted in providing them a
competitive advantage in the market by ensuring that their business planning process remains
effective (Marrs, 2019).
Conclusion
Based the on the above analysis, this was understood that their major contemporary issues in
business where it is essential for HR to play its role. There are various external factors
affecting the companies due to which HR evolution is taking place. Also, presence of distinct
practices and strategies of HR along with organisational tools were compared along with the
agenda of developing and shaping. This report also considered the discussion based on
identifying and responding to changes with the help of management in the business
environment of companies. It is essential to analyse the issues in business along with the HR
context where it is necessary to attempt formulation and implementation of strategy
appropriately through potential role of HR. Moreover, there is a contribution of HR in
accountability and ethics of business as well where the performance is also evaluated
considering its role. In business, it is easy to plan with the help of HR practices, strategies and
procedures for informing along with using the business data sources helpful in success of
companies.
BUSINESS ISSUES AND HUMAN RESOURCES
11
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Human Resource Management Journal, 26(1), pp. 1-11.
Anton, R., 2016. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis. Munich Personal RePEc Archive, 4(1), pp. 21-
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SWOT Analysis in Porter s Five Forces Model by DANP. Journal of Business Research-
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Management Process.. Journal of Economic Development, Management, IT, Finance &
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Case of Republic of Macedonia. International Journal of Academic Research in Business
and Social Sciences, 3(4), pp. 223-236.
Aithal, P. S., 2016. Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems.. International Journal in Management
and Social Science, 4(1), pp. 98-115.
Angrave, D. et al., 2016. HR and analytics: why HR is set to fail the big data challenge..
Human Resource Management Journal, 26(1), pp. 1-11.
Anton, R., 2016. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis. Munich Personal RePEc Archive, 4(1), pp. 21-
26.
Arar, T., Yurdakul, G. & Önören, M., 2017. Developing Competitive Strategies Based on
SWOT Analysis in Porter s Five Forces Model by DANP. Journal of Business Research-
Türk, 9(2), pp. 511-528.
Ávila, R., 2015. Performance Evaluation: what it is, how to do it and types and methods.
[Online]
Available at: https://blog.luz.vc/en/What-is/performance-evaluation/
[Accessed 20 March 2020].
Baldini, M. et al., 2018. Role of country-and firm-level determinants in environmental,
social, and governance disclosure.. Journal of Business Ethics, 150(1), pp. 79-98.
Bonsu, S., 2019. Integrating Community Involvement Programs into the Strategic
Management Process.. Journal of Economic Development, Management, IT, Finance &
Marketing, 11(1), pp. 12-27.
Booth, R., 2019. Unilever saves on recruiters by using AI to assess job interviews. [Online]
Available at: https://www.theguardian.com/technology/2019/oct/25/unilever-saves-on-
recruiters-by-using-ai-to-assess-job-interviews
[Accessed 20 March 2020].
BUSINESS ISSUES AND HUMAN RESOURCES
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[Accessed 20 March 2020].
Bruns, H.-J., 2014. HR development in local government: how and why does HR strategy
matter in organizational change and development?. Business Research, Volume 7, pp. 1-
49.
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competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), pp. 1-21.
Engert, S. & Baumgartner, R. J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production, Volume 113,
pp. 822-834.
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[Online]
Available at: https://www.cnbc.com/2019/03/05/how-millennials-and-gen-z-are-
12
Browning, S. M., 2015. Four Steps to Effective Change Management for HR. [Online]
Available at: https://www.tlnt.com/four-steps-to-effective-change-management-for-hr/
[Accessed 20 March 2020].
Bruns, H.-J., 2014. HR development in local government: how and why does HR strategy
matter in organizational change and development?. Business Research, Volume 7, pp. 1-
49.
Churchouse, B., 2018. The Future of HR – Trends and Forces Re-shaping the Profession and
the Role of the CHRO [Session Summary]. [Online]
Available at: http://blog.hr-congress.com/the-future-of-hr-trends-and-forces-re-shaping-
the-profession-and-the-role-of-the-chro-session-summary/
[Accessed 19 March 2020].
Curtin, M., 2018. 73 Percent of Millennials Are Willing to Spend More Money on This 1 Type
of Product. [Online]
Available at: https://www.inc.com/melanie-curtin/73-percent-of-millennials-are-willing-
to-spend-more-money-on-this-1-type-of-product.html
[Accessed 13 March 2020].
Delery, J. E. & Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), pp. 1-21.
Engert, S. & Baumgartner, R. J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production, Volume 113,
pp. 822-834.
Foley, P., 2014. Ethics and HR Departments need to work together. [Online]
Available at: http://www.ethicalcorp.com/people-careers/ethics-and-hr-departments-need-
work-together
[Accessed 20 March 2020].
Gilchrist, K., 2019. How millennials and Gen Z are reshaping the future of the workforce.
[Online]
Available at: https://www.cnbc.com/2019/03/05/how-millennials-and-gen-z-are-
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BUSINESS ISSUES AND HUMAN RESOURCES
13
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[Accessed 20 March 2020].
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Available at: https://www.hrmagazine.co.uk/article-details/what-is-hrs-role-in-ethics-1
[Accessed 20 March 2020].
Herrera, J. & de las Heras-Rosas, C., 2020. Corporate Social Responsibility and Human
Resource Management: Towards Sustainable Business Organizations. Sustainability,
Volume 12, pp. 1-24.
Joseph, C., 2018. Internal and External Factors Affecting Human Resources. [Online]
Available at: https://bizfluent.com/info-8612477-internal-factors-affecting-human-
resources.html
[Accessed 20 March 2020].
Joyce, C., Fisher, J., Guszcza, J. & Hogan, S. K., 2018. Designing work environments for
digital well-being. [Online]
Available at: https://www2.deloitte.com/us/en/insights/focus/behavioral-economics/
negative-impact-technology-business.html
[Accessed 20 March 2020].
Lauby, S., 2017. HR Competencies: Turning Knowledge Into Action. [Online]
Available at: https://www.hrbartender.com/2017/leadership-and-management/hr-
competencies-turning-knowledge-action/
[Accessed 20 March 2020].
Marr, B., 2018. Why Data Is HR's Most Important Asset. [Online]
Available at: https://www.forbes.com/sites/bernardmarr/2018/04/13/why-data-is-hrs-
most-important-asset/#27542a6f6b0f
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Hr-Related Decision-Making. Academy of Strategic Management Journal, 17(4).
Ng, E. S. & Sears, G. J., 2017. The glass ceiling in context: the influence of CEO gender,
recruitment practices and firm internationalisation on the representation of women in
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Obedgiu, V., 2017. Human resource management, historical perspectives, evolution and
professional development. Journal of Management Development, 36(8), pp. 986-990.
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Between HR Roles and HR Effectiveness: A Conceptual Review. Management Research
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Smith, S. S., Rohr, S. L. & Panton, R. N., 2018. Human resource management and ethical
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Van den Heuvel, S. & Bondarouk, T., 2017. The rise (and fall?) of HR analytics.. Journal of
Organizational Effectiveness: People and Performance, 4(2), pp. 157-178.
14
Moskalenko, A. A., 2018. Methodological Characteristics of the Use of Strategic Analysis in
Hr-Related Decision-Making. Academy of Strategic Management Journal, 17(4).
Ng, E. S. & Sears, G. J., 2017. The glass ceiling in context: the influence of CEO gender,
recruitment practices and firm internationalisation on the representation of women in
management.. Human Resource Management Journal, 27(1), pp. 133-151.
Obedgiu, V., 2017. Human resource management, historical perspectives, evolution and
professional development. Journal of Management Development, 36(8), pp. 986-990.
Perrin, O., 2020. The Role of HR in Managing Change in the Workplace. [Online]
Available at: https://www.employeeconnect.com/blog/hr-role-change-management/
[Accessed 20 March 2020].
Sarvaiya, H., Eweje, G. & Arrowsmith, J., 2018. The roles of HRM in CSR: strategic
partnership or operational support?. Journal of Business Ethics, 153(3), pp. 825-837.
Shakil, R. M., Hassan, M. A. & Qureshi, M. I., 2019. Understanding the Relationship
Between HR Roles and HR Effectiveness: A Conceptual Review. Management Research
Spectrum, 9(1), pp. 78-82.
Shuming, Z., Min, Z. & Yixuan, Z., 2019. A Review on the Past 100 Years of Human
Resource Management: Evolution and Development. Foreign Economics & Management,
41(12), pp. 50-73.
Smith, J., 2013. The Companies With the Best CSR Reputations. [Online]
Available at: https://www.forbes.com/sites/jacquelynsmith/2013/10/02/the-companies-
with-the-best-csr-reputations-2/#12a773be34ff
[Accessed 20 March 2020].
Smith, S. S., Rohr, S. L. & Panton, R. N., 2018. Human resource management and ethical
challenges: building a culture for organization success.. International Journal of Public
Leadership, 14(2), pp. 66-79.
Van den Heuvel, S. & Bondarouk, T., 2017. The rise (and fall?) of HR analytics.. Journal of
Organizational Effectiveness: People and Performance, 4(2), pp. 157-178.
BUSINESS ISSUES AND HUMAN RESOURCES
15
Xie, Y. & Cooke, F. L., 2019. Quality and cost? The evolution of Walmart's business strategy
and human resource policies and practices in China and their impact. Human Resource
Management, 58(5), pp. 521-541.
15
Xie, Y. & Cooke, F. L., 2019. Quality and cost? The evolution of Walmart's business strategy
and human resource policies and practices in China and their impact. Human Resource
Management, 58(5), pp. 521-541.
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