The Evolving Role of HR in the Contemporary Business World

This document discusses the evolving role of HR in the contemporary business world. It analyzes key forces shaping the HR agenda, compares tools for analyzing the business environment, and assesses factors impacting an organization's business and its HR function. Topics covered include HR strategies, business ethics, Brexit and immigration, SWOT analysis, PESTLE analysis, and Porter's Five Forces model.

CIPD
The evolving role of
HR in the
contemporary business
world

Table of Contents
INTRODUCTION................................................................................................................................3
1.0 An analysis of some of the key forces which shape the HR agenda e.g. models of the HR
function, HR strategies, insights and solutions to support business performance, business ethics
and accountability............................................................................................................................3
2.0 Compare at least three different tools for analysing the business environment........................6
3.0 Assess at least four different factors which impact on an organisation’s business and its HR
function............................................................................................................................................8
4.0 Discuss the key stages in strategy formulation & implementation and explain role of HR and
contribution to ethics/ accountability.............................................................................................10
5.0 Present examples of how business performance can be evaluated and provide three
indicators. Also, examine role of HR in business planning & change management.....................12
6.0 Briefly explain how at least four various sources and contextual data of firm that can be
accessed and utilised for planning purposes..................................................................................13
CONCLUSION..................................................................................................................................16
REFERENCES...................................................................................................................................17
Books & Journal:...........................................................................................................................17

INTRODUCTION
The corporate world is dynamic in nature, and business organisations are on-going and
surviving in the changing environment of market. The HR plays an important role for the success
and growth of business organisation. There are various micro and macro environment factor which
imposes direct impact on the activities and function of the organisation. CIPD which is a proficient
association for managing the HR professional which is located in Wimbledon, London, England.
The charted institute of Personnel and Development deal in variety of products such as certification,
authorization, CDP HR as well as L and D training. This report shows the various issues related to
business as well as micro and macro factor that imposes direct impact on the business firm and also
shows the influence of HR on the operation and function of business organisation.
1.0 An analysis of some of the key forces which shape the HR agenda e.g. models of the HR
function, HR strategies, insights and solutions to support business performance, business ethics
and accountability.
In this section, I examined that HR is time consuming process and to make it
understandable David Ulrich model has been used so that investigator find easier to understand the
concept. The main aim of HR is optimum utilisation of resources in order to increase the
productivity of business organisation. There are different function which is performed by HR
Manager such as recruitment, selection, conducting training session as well as performance review,
subordinate investigation and many more. According to David Ulrich, the chief administration
person of HR has the capability to including the changes of human resource that is adopted in
present context.
1.1 Models of HR Function
In this, reason for mobility of HR personnel from traditional to Strategic partner is discussed.
BASIS Traditional Personnel Strategic Partner
Focus Main focus is on helping and
solving employee problems
In this, recruitment and
development of talent as well
as personnel are considered.
Stability To continue the operation
without any problems,
management and traditional
personnel do not accept the
change.
Strategic partner adopt and
adjust according to the change
and react accordingly. For
example- CIPD changes their
exams patter with changing
mode of educational criterias.
People This consider people as cost This considers people as asset

who only work and complete
their task without any
interaction to entity.
of firm and positive
relationship is maintained.
The above table depicts the difference between personnel tradition and strategic partner in
which I realised that main difference is that traditional personnel do not accept the change whereas
constant change is acquired by strategic partner which helps them to deal with uncertain situations.
1.2 HR Strategies
It is important for every firm and HR manager of the company to prepare strategies and
tactics so that competition is faced in appropriate manner. So, to understand this, model has been
divided into approaches and which are mentioned below-
Approaches of Effective HR strategies and improved performance-
Best Practice Approach- This states that whenever strategies are to be adopted and implemented,
HR has the right to adopt those tactics for organisational development at every phase. So, it is to be
done with proper research and consideration because governmental activities are also involved.
Best Fit HR: External Fit- In this, most suitable strategies and tactics are matched up with
business environment and according to organisational need as well as requirement.
Best Fit HR: Internal Fit- In this, it involves that strategy of HR depends upon structure
configuration of firm weather it deliver positive result or not. So, CIPD examine and analyse
internal environment of business properly.
Inside out Approach- This states that every firm have unique strategy and HR manager of
company keeps it confidential to defend them-selves from rivals.
Best Fit HR: Business life-cycle- Every organisation follow systematic procedures to carry out
functions and operations. So, this approach states that strategy of HR is to be done according to
business life cycle by step by step.
HR system: The HR manager of CIPD recruit, select as well as conducting effective
training session in order to increase their skill and knowledge to perform their work in better way.
HR system is essential so that tasks, roles and responsibilities are assigned to every in proper

manner. Thus it is systematic approach and needed to be adopted everyone in organisation. This
helps in achieving goals as well as objectives in appropriate manner.
1.3 HR Insights
The HR manager focuses on recruiting highly skilled, knowledge as well as competent
employees in order to perform the business function in an effective manner. In CIPD, the HR
manager focuses on hiring the capable, competence employees in order to carry out different task in
an effective manner. It helps the company in increasing their efficiency as well as effectiveness
level.
Evolution of Human Resources and transformation
This comprises of four phases which are discussed below:
 Personnel Department- Control
In this stage, HR mainly focuses on control of employee to get the work done within a time
period. Also, aggressive behaviour is imposed on personnel so that control is present in
organisation.
 Operational HR (Serve Staff Automate) - In this aspect, automation is required which
means to increase the efficiency of operations and to complete the tasks in a given period of
time effective measures are used by human resource.
 Enable decisions & management- Further comes the aspect in which main focus is to
increase effectiveness of work and employee. In this, personnel enjoy freedom of
expressions in appropriate manner.
 Support business ( Business driven HR) – HR role is not only recruiting and selecting
candidates but also they support business and planning is done to achieve the future goal &
objectives.
1.4 Business Ethics
Ethics play vital role in business and are also responsible for running organisational
activities smoothly. HR manager of CIPD make ensures that all the policies and procedures are
being followed by everyone and with ethics. For example- CIPD conduct their policies and
procedures for exams by following ethics in business which also increases goodwill of the firm.
1.5 Brexit and immigration – Brexit has deep impact on firm and HR functions. So, to identify
which UK law affect the HR function most proper analysis and market research is to be adopted
by CIPD so that problems do not arise.

Immigration- HR development is affected by immigration and slow down the growth of
business. Policies of immigration and HR functions are carefully considered so that resources
are used in optimum manner. For example- when students form different countries approaches
CIPD, checking system of firm of students background and documents become more complex
and lengthy.
2.0 Compare at least three different tools for analysing the business environment.
There are various tools which are used to assess the business environment in an effective
manner. In relation to CPD, the SWOT, PESTLE is used to analyse the internal and external factor
in order to increase the performance level of the organisation. The manager of the company adopt
Porter’s five force model in order to achieve competitive advantage over rival firm.
2.1 SWOT Analysis
It is a framework which is used to analyse the strength, weakness, threat and opportunities
which imposes direct impact on functioning of business organisation. In context of CIPD, the
manager focuses on grab the opportunities in order to minimize the threat at workplace.
Strength: The strength of CIPD is that they provide superior quality services to its customer
that helps them in increasing their trust and loyalty level towards business organisation (Pham,
2019).
Weakness- Sometime, the customer attract towards the substitute product which is sold by
competitive firm can be considered as a weakness for company. Moreover, rumours from
competitors make it difficult for entity to acquire customers or end users. So, company growth and
development in market become slow.
Opportunity-The main advantage of CIPD is to implement the latest technology in order to
bring innovation in the company (Sheehan, 2016). Other than this, with use of technology firm can
access global market easily and which results in enhanced growth opportunities for product.
Threat: In CIPD, the cost of execution of technology is too high so it add cost to the
product and service of company. Also, they have the threat of getting affected by current lockdown
situation due to which it is becoming for business to generate the profit.
2.2 PESTLE analysis
Market is wider and business sector is rising and booming which has also given rise in
competition. So to deals with such situations, entities use marketing tools and techniques/
frameworks. It is a framework which is used for analysing the external factor which imposes
positive and negative impact on the performance of business organisation. So, CIPD’s manager

adopts PESTLE analysis which is mentioned below:
Political Factor: CIPD is affected by political factors because of due to stable political
condition of London which affect the performance of organisation in positive manner. Brexit has
affected enterprise at broader level because of which rules and regulations of government forces
Company to maintain those laws.
Economic Factor: Due to decrease in inflation rate, it imposes positive impact on the
profitability of the business organisation. Economic factors have a deep impact on business
because of uncertainty of market situations, activities and trends. Thus, it is essential to focus on
such factors so that operations and functions do not get affected. For example- current crisis of
COVID 19 has affected the CIPD and due to which profit and sales revenues has been decreased at
higher scale.
Social Factor: The supervisor of CPD focuses on providing high quality services such as
authorisation, certification which imposes favourable impact on the productivity of company.
Social factors are important because they include standard of living, attitude, behaviour, disposable
income etc. Thus, to deliver product and services in market it is crucial to consider such factors for
success of business.
Technological Factor: By a deep research I found that CIPD implement advanced
technology in order to conduct the difficult task in easy manner. This assists them in reaching to
customers in easier manner. Digital platforms such as e-commerce websites, Facebook, YouTube
etc. can be used by entity in order to develop business at faster rate.
Legal Factor: The company follow laws and legislation for continuously perform the
business functions in better way. Selected firm provide the information and knowledge about
legislations and which also help them in maintaining their own company’s legal issues.
Environment Factor: They provide the product which is not harmful for the business
environment (Çitilci, 2020). This leads to increase in goodwill of firm and profit is generated at
wider level. Such type of factors includes temperature, pollution, green agenda, waste management,
climate change etc. Thus, in marketing such elements are necessary to carry out business without
hurdles and obstacles.
2.3 Porter’s Five Force model
This model is adopted by the manager of CIPD in order to gain competitive advantage over
rival firm. It is mostly used for strategies and tactics implementation. Porter five force model states
that to deal with uncertain situation of market, it is firstly to analyse and identify the situations
which can affect the business growth. This assist corporation in facing the challenges as well as

problems appropriately. So, it has several stages which has been discussed below-
Threat of New Entrants: The threat of new entrant is high. There are ample of business
firm who bring innovative ideas in order to satisfy the customer. Therefore, it is important for the
manager of CIPD is to offer unique and specific products and services in order to increase
productivity as well as profitability level.
Threat of Substitute products: There are ample of competitors who provide the substitute
products in order to increase the revenue as well as profitability level. The threat of substitution is
high in this sector.
Bargaining power of Supplier: I found that the manager of CIPD provide high quality
authentication and certification services to its customer. And they have control over the price of
business firm (Lakshmi, 2020). Bargaining power of supplier is low due to availability of
alternative in the market.
Bargaining power of Buyer: The bargaining power of buyer is low because there are large
numbers of buyer than the supplier who provide the authentication and certification services to its
customer.
Competitive advantage: There are different competitor of CIPD which included SHRM,
Euro verge and more. Therefore, the manager provides quality product and services to its customer
in order to gain competitive advantage over rival firm. For example- CIPD offers admission at
affordable prices and with better offers as compared to SHRM.
Therefore, the SWOT Analysis is used for grab the opportunities in order to minimize the
risk. And PESTLE is used to analyse the internal and external factor which imposes favourable and
adverse impact on performance of company. Apart from this, Porter’s five force model is used to
achieve competitive advantage over rival firm.
3.0 Assess at least four different factors which impact on an organisation’s business and its HR
function.
There are different function of human resource management which imposes direct impact
on day to day functioning of business organisation. These are various type of internal and external
factor which imposes the direct impact on the performance of business organisation. So, I deeply
conducted research& realised that CIPD consider various external as well as internal factor which is
going to be mentioned below:
External factor
Technological advancement: It is important for the organisation to implement latest

technology in order to bring innovation within company. In addition to this, they also focuses on
providing innovative services to its customer at affordable cost. For instance, Due to the speedy
growth of social networking need to consider the quick way in which the manager of CIPD
communicate with its staff member and employees (Pan, 2019).
Government regulations: The HR manager of CIPD focuses on recruiting, selecting and
conducting training session in order to increase their performance level of business organisation.
The government regulation imposes direct impact on the performing the different functioning of HR
department. For Example- Brexit and EU policy affect the CIPD management and distract them
from their core activities.
Internal Factor
Marketing Strategies: It is necessary for the manager of CIPD is make effective strategies,
policies as well as procedure in order to perform the function and activities of the company in an
effective manner. For example, It is necessary to alter the organisation structure in order to bring the
innovative product as well as taking entrance into new marketplace.
Financial Strategies: The HR Manager of CIPD focuses on conducting effective training
and development session in order to increase the skill, knowledge and ability of employees within
business organisation. For example, the manager take effective decision to eliminate the cost
providing outsourcing training that leads to alter the training program (Sarvaiya, 2019).
SWOT Analysis-
STRENGTH
 Main strength of CIPD is that they have
strong network in business sector which
helps them to acquire resources and
customers.
WEAKNESS
 Due to impact of Brexit, it becomes
difficult to expand business.
OPPORTUNITY
 CIPD has the opportunity to extend
business on digital platforms for higher
profit and sales revenue.
THREAT
 CIPD is unable to deal with rising
expectations of customers because of
new entry of businesses.
Change management- This is a tool used by entities to deal with change properly. CIPD

use this model so that positive outcomes are achieved. This includes three phases which are
preparation, management and reinforce. The first phase in which planning is required by every
business to identify the change. Second stage states that in management communication is to done
in proper way for accurate information about the change. The final phase in which reinforcing is
involved which means HR manager of CIPD should examine the change which is adopted and
continuous feedback is to be provided to management.
HR in change management play vital role and prepare effective policies and strategies so
that changes adopted in entities are acceptable by everyone. This helps in maintaining balance
between firm as well as employees in appropriate manner.
4.0 Discuss the key stages in strategy formulation & implementation and explain role of HR and
contribution to ethics/ accountability
In organisation, HR is a key to success of the business. In market, competition is increasing
and resources are becoming rare in nature. To overcome with uncertain situation & activities firm
use strategies and tactics in appropriate manner. Strategies are defined as course of action plan to
achieve the long and short term goals. Thus, CIPD branch use these strategies and use them in
effective manner to deal with their rivals as well as competitors such as World at Work, ICS Learn,
ASTD, etc. Strategy formulation refers to process in which the chosen strategies are developed and
are brought forward so that outcomes and positive results occur. In this, various types of stages are
involved which are discussed below-
Strategy formulation aspects:
Define and setting organisation objectives-mission- The first stage in which it is
important to identify the factors or say elements which affect the business and customers switching
behaviour. Such as technology, end benefits, target market etc. is considered as priority of
enterprise. Then objectives and mission of the strategy is also crucial because these help in
accessing the market in proper manner. The chosen firm main mission is to provide people with
better work and lives so that value is created in the society (Tiwari, 2019).
Setting targets and aiming divisional plans- Further comes the second aspect in which
targets are set by entities and different departments are involved in the process to achieve those
quantitate targets and numbers. With help of secondary research I analysed that CIPD also have
numerous types of departments such as for students, business, organisation etc. and they comprises
of finance, sales and marketing, customer support etc. Thus, all the units progress and performance
level are determined and evaluation is done between old as well as new customers.
Performance analysis and Choice of strategy- Every organisation analyse and examine

their progress and growth of business sop that needed changes are done and adopted by everyone.
Performance analysis refers to comparing and analysing current and previous performance gap to
achieve the desired results. Further, after examining all the above stages best alternative is chosen
and strategy is adopted. Selected entity’s managers and leaders make ensures that best decisions are
made in the firm (Patel, 2019).
Strategy implementation:
This is defined as process in which organisation convert their plans and strategies into final
course of action. In this, chosen strategy is executed into reality ad within business functions as well
as operations. This process comprises of various aspects which are mentioned below
Initiatives- After formulation of strategy, the most suitable strategies are to be implemented
and also activities in firm need to be flexible so that changes and new strategies are easily adopted
and business runs smoothly Thus, CIPD structure of management is flexible and dynamic which
makes them unique from their competitors.
Budget and performance- Implementing new strategies is challenging task and require
skills and knowledge to execute in proper manner. Other than this budget and huge amount of
capital is needed to adopt the strategy and also performance is analysed in relevance with selected
strategy so that efficient and effective alternative is chosen and budget of the entity does not exceed.
Aligning Structure- Then comes the structure which states that adopt the meaningful
strategy it is necessary that enterprise must change and acquire new structure accordance
with the strategy so that problems and issues does not occur in near future (Nursiani,2019).
Monitor and adopt- This depicts that the type of strategy which is being selected should be
flexible and dynamic so that it is able to respond to changing business environment and deal with
external as well internal factors in appropriate manner.
Role of HR and contribution towards ethics/ accountability
Various roles are performed by HR and are described under-
 Recruiting
 Screening
 Interviewing
 Payroll
Accountability- It refers to process in which responsibility for individual or organisation
actions is considered at workplace. So, chosen enterprise HR manager of the company make

ensures that people who are accountable to their responsibilities should manage and maintain all the
tasks and activities properly (Mamman, 2019).
Ethics- These are defined as value and beliefs of particular individual in the society. In firm,
ethics play crucial role and it is duty of HR to track and monitor management and employees that
all the functions as well as operations are performed with proper following policies and procedures.
Hence CIPD’s all the work, activities and services are performed by considering ethics as first
priority.
Change management- After strategies has been made and selected it is crucial to analyse and
examine weather changes are done properly and they are being followed or not by employees. So,
to understand this change management cycle has been used in which several stages are involved
which are mentioned below-
 Identify the change- In this step, senior manager of company identify weather change is
needed or not. It is crucial to identify the change before its adoption.
 Engage- Further is engaging people or say employees in changing process so that working
stage get started.
 Implement- In this, strategies are developed for the change which has been adopted to get
the positive outcome and results.
5.0 Present examples of how business performance can be evaluated and provide three indicators.
Also, examine role of HR in business planning & change management
In business sector, ample numbers of competitors and rivals are present. This leads to
formulation and implementing of strategies within the enterprise. Frameworks and techniques are
used to deal with such situations. Also, managers and leaders of the entity examine as well as
determine the progress & performance level of firm. So, CIPD track and evaluate their business
performance by various indicators which are discussed as follows-
5.1 Key performance indicators:
Client retention rate (CRR) - This indicators depicts number of clients/customers that have
been retained during the given time period. It is most used method of evaluating KP. Retention rate
refers to loss of customers by the firm within a period of time. CIPD use this method to identify the
impact of products as well as services on clients and end users.
Product Margin- Another method to determine business performance is product margin in
which main focus is on money that has been invested in business for revenue generation.
Investigator founded that in chosen firm, weekly and monthly reports are prepared about the
services as well as products & with help of finance and audit team profit margin/ loss statement

from every product is analysed properly (Maté, 2017).
Revenue per Client- Further comes the RPC, also known as revenue per client which helps
business to know the position and performance level of entity. Hence, selected enterprise use this
indicator because it assist them in providing credentials about the clients/ customers who are
generate more revenue in the organisation. Through this, corporation make more new ideas to keep
targeting those clients for longer period of time (Mat, 2017).
5.2 Role of HR in BP and Change management:
Business planning- Every firm wish to expand their business for longer period of time and
this is only possible when proper planning is implemented. In business planning, role of HR is
crucial because they are source through which right manpower is hired and resources are used at
optimum level. Time and level of expertise knowledge is essential while deciding for business plan
in venture. So, CIPD conduct their BP with help of HR and manager of enterprise.
Change management- This refers to process in which adopting and evolving with change
according to systematic manner. It is essential for corporation to be flexible and dynamic so that
change is accepted by everyone in the entity so that business runs smoothly and effectively. In
relation with chosen firm, they focus on evolving with change management in appropriate manner.
For example- new services and offers are delivered by entity time to time to stable the business in
market.
After a brief analysis of above matter, it is stated that every organisation use different
measures and techniques to determine the degree of performance of the business. Market research
and with deep understanding of market leads to effective decision making & which results in
knowing the evaluation of progress properly. Role of HR manager in business planning and change
management is vital.
6.0 Briefly explain how at least four various sources and contextual data of firm that can be
accessed and utilised for planning purposes
In business, data and information is important when accessing the planning concept. Without
them, decision making cannot be done effectively and chances of conflicts may arise. So, in CIPD
various types of business sources such as external/ internal and contextual data are used for
planning purpose so that reliable and positive outcome occurs. Such sources are mentioned below-
Sources of contextual data:
Contextual data refers to understanding of specified information at deeper level in relevance
with particular field or area. Mostly these are used by academic institution and organisation or

consultancies for accessing depth data about individual or person.
Social and media- In today’s world, social media is trending and emerging both as
entertainment and in business sector. They are also used as business platform so that profit is
generated in easier manner. Thus, HR manager of CIPD uses social and media to gather as well as
collect credentials for planning, growth and development (Wu, 2016).
Outsourcing- To collect data, some of the entities also hires outsourcing party through
information is gathered without wasting time of firm. So, selected entity have hired small
consultancies so that relevant credentials are used in planning (Beaudon, 2019).
Sources of business:
In enterprise, for effective planning it is crucial to use market research and tools so that
errors do not occur and process of planning is carried out in effective manner. CIPD’s management
of the firm remain active and aware about market trends and change. This helps them in analysing
the competition and rivals which might affect the business productivity at wider degree (Sheehan,
2016).
Internal Source- These are the type of sources which are used by entity and HR manager
by using references, referral, etc. In relation with selected firm, manager as well as leaders uses
internal sources so that time and cost of enterprise is saved for other activities.
External Source- In this, data is collected for planning by using word of mouth, surveys,
etc. This is method is time consuming but effective because accurate and reliable information is
gathered. So, CIPD use this source when more customers or clients are needed to be acquired by the
firm (Christian, 2019).
BALANCE SHEET

CIPD uses balance sheet so that financial positions and performance of business is known.
Thus helps in allocation of resources in proper way.
MARKET DATA
Market data refers to trade related data such as stock exchange. This is used by CIPD so that
price and value of shares are determined and examined.
PEOPLE DATA
It is a data in which information is available within the firm system such as payroll, talent
and workforce management system. So, CIPD with help of HR collect and gather data whenever
there is need and requirement.

ENVIRONMENTAL SCANNING-
It is a process through which credentials are collected by entities related to events, parties,
clients etc. It is the most effective method which is used CIPD for success and growth.

CONCLUSION
After a brief analysis of above report, it is concluded that it is important for HR to adjust and
evolve in changing business environment and world. This helps in running the business smoothly
and effectively. With understanding of key forces such as HR strategies, models and function,
decision making the firm is done in appropriate manner. Also, it is necessary to use tools and
consider the factors which affect the business environment. Strategy formulation and
implementation in enterprise is also crucial to overcome with challenges ad problems. Further,
analysing business performance helps entity to improve and enhance their weaker as well as
stronger section. Then, to effectively used strategies, gathering and collecting contextual data is
required for planning purpose. This is done by using various sources such as external, internal etc.
Hence, HR of corporation assist business in maintaining and managing the functions as well as
operations in appropriate manner.

REFERENCES
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