Business Issues and the Contexts of Human Resources

Business Issues and
the Contexts of Human
Resources

Table of Contents
INTRODUCTION...........................................................................................................................3
1.1 Different factors that impact HR function and organisation businesses..........................3
2.1 Forces shaping HR agenda...............................................................................................5
2.2 Comparison of different tool for analysis of business environment.................................8
2.3 Key stages in formulation of strategy and its implementation in role of HR.................10
2.4 Examination of HR contribution towards accountability and business ethics...............12
3.1 Evaluation of business performance along with role of HR in business planning and
change management.............................................................................................................13
3.2 Different sources of business and contextual data for planning purposes......................14
CONCLUSION..............................................................................................................................15

INTRODUCTION
Human resource is one of the most important functions of every organisation as it is
concern with managing employees and how are they contributing towards functions assigned to
them in the course of achievement of business objectives. Present report is based on discussion
of various factors that posses a impact on the way organisation's business is operating and its
human resource functioning. Further there is discussion of different forces that are shaping the
human resource agenda and a comparison is made for analysing the external business
environment (DeCenzo, Robbins, and Verhulst, 2016). There are certain key stages that are
related to strategy formulation and its implementation according the role played by human
resource managers. There is discussion of the significant contribution that is made by human
resource department towards accountability and business ethics. There is evaluation of business
performance and the role played by human resource department in planning of business and
changing the Management agenda. Lastly, there is evaluation of different sources and contextual
data used for the purpose of effective planning in organisations. With this information there is
assessment and utilisation of various business sources of data that can be used for planning
purposes by organisation.
1.1 Different factors that impact HR function and organisation businesses
The nature and the scope of human resource Management in all organisations have gone
through a serious type of transformation in pats recent years. Now, the role of human resource
managers in organisations have completely changed because of the way employees are treated as
resource or assets for a organisation (Sparrow, Brewster and Chung, 2016). The employees in a
organisation are now being considered as most important resource for purpose of creation of a
competitive advantage for a organisation.
Back office personnel in organisation have completely developed a strategic bond where now a;l;
functions are considered to b e part of new age HRM.
All the factors that are part of external environment has a complete impact on way
organisations are perceiving their human resource functions. In present scenario this impact can
be understood with help of PESTLE analysis as a macro environmental model:
Political factors:

There are certain political factors that has a impact on way organisation are perceiving
their human resource department performance (Brewster,and Hegewisch, , 201). There are some
political laws like regulations that have been developed with time by government of countries
posses a impact on their functioning. Such as, there has been a laws like Disabilities Act and anti
discrimination Act formed by government in UK. Different human resource functions like hiring
of employees, training, disciplining and compensating activities of this department are affected
by these prevailing laws.
In case of Tesco, a retail brand of UK above mentioned legal laws create a need for organisations
to modify their configurations and all reasonable accommodation policies for employees who
are having any type of disabilities.
Economic:
Economic factors are those that are outside the control of human resource department of
organisation but they are very important as they are related to various economic policies that are
part of countries economic policies. In case of situation of economic boom there is requirement
to form policies of hiring employees as there is necessity to hire more employees & in case of
recession there are situations of lay off that are prevailing in a organisation. So, it can be said
that in case of all retail organisation like Tesco, external environmental conditions decide
whether there will be hiring of employees
Legal:
Legal laws consist of various legislations that are affecting human resource functions of
organisations. Laws like health insurance act, accountability act, disability act. Equality act
create a pressure on human resource department of organisations a need to design their policies
for employees according to adequate consideration given to all these legal laws (Tung, 2016). In
Tesco, these legal laws create a obligation on management and human resource managers to
ensure that they are having all their functions and operations within overall confines of these
legal laws. All HR professionals in this organisation are working towards breast of legislation
and providing training to managers to understand their responsibilities.
Unemployment rate is also a economic factors that has a impact on the market rate for
deciding policies related to salaries and employee compensation. If unemployment rate is very
high then it leads to creation of a situation of paying low wages to employees and on other hand
if there is very low rate of unemployment then it creates a competitive situation for organisation