Role of Human Resources in Business Performance and Change Management

This document discusses the role of Human Resources in business performance and change management. It explores how HR supports business through business planning and change management, including talent recruitment, training employees, developing skills, motivating employees, organizational development, employee engagement, and promoting innovation. It also evaluates business performance and the role of HR in business planning and change management. The document provides insights into assessing and utilizing different sources of business and contextual data for planning purposes.

CONTEXTS OF HUMAN
RESOURCES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.Business Performance...................................................................................................................1
3.1 Evaluation of business performance and role of Human Resources in Business planning &
change management agenda........................................................................................................1
Role of Human Resource in change management and Business Planning..................................2
2 Business Data................................................................................................................................4
3.2 Assessing and utilizing different sources of business and contextual data for planning
purpose.........................................................................................................................................4
3 Knowledge and skills gained in assignment.................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human Resource Department has been playing an important role in the growth of the
organisation. In the performance of an organisation HR managers are having significant
contribution. Report will provide about contribution of HR in business performance.
1.Business Performance
Role of Human Resource in change management and Business Planning
The main responsibility of HR is to combine the strategies of business, process of re-
designing business and monitoring and control change. The main role which is being played in
order to make business plan and bringing change in organization is of HR. It has been analysed
that HR manager has to keep a check on the strategic plans which is being made organization
and also they must engage in tracking the requirements of business. HR manager must need to
implement change in firm properly, they must also get involved in checking out that
modification is being properly implemented. HR manager also needs to make employees aware
about changes which is being implemented, they must also get involved in implementing
different techniques so that goals and objectives of firm is being achieved.
Talent recruitment: HR manager of company must get engaged in recruiting efficient
talent and also search for those employees who are capable of doing the required job. This will
support hem in increasing the efficiency of workers and also the performance of firm will also be
increased. Business cycle can be effectively executed if candidates that are being selected are
efficient.
Training employees: HR manager must get engaged in giving training to workers so that
efficiency of employees can be improved. They also need to give workers education about the
changes which is being implemented by them. Firm must also get involved in increasing
knowledge of workers by giving them training, this will also help them in increasing productivity
of organization as well as workers.
Developing skills: HR manager must also involve in giving training to workers so that
their skills get increases. This will be very beneficial for them to manage change and also if skills
are being developed by organization then this can add as a value to personality of workers.
Motivating employees: HR managers must get involved in making sure that workers in
company are being motivated so that organizational goals are being achieved effectively. As it
1

has been analysed that motivation is one of the most effective tool that can be used in order to
increase the performance of workers. For motivating employees various monetary and
Organizational development: HR manager must get involved in implementing their own
culture and values so that organization can be developed. They must make sure that firm is been
involved in giving respect to values, beliefs and thoughts of workers so that efficiency of
organization get increased.
Employee engagement: In order to increase this HR manager must get involved in
making use of effective communication methods, so that needs and demands of workers can be
identified and fulfilled. This will support organization in engaging workers and also this will
support them in creating worker’s loyalty. It will also reduce turnover faced by staff.
Promoting innovation: In this company must get involved in motivating employees to
bring out innovation and creativity, so that they can attract large number of consumers towards
them. This will help firm in increasing profitability and also it will enhance good will of
organization. Firm can also increase their brand value and also they can reach out large number
of consumers.
3.1 Evaluation of business performance and role of Human Resources in Business planning &
change management agenda
How HR supports business through business planning
Evaluation of business performance
Assessment of business performance shall be ongoing process. Assessment is important
for reviewing areas where improvement is required before they turn out into major issues.
Evaluating and updating business is useful for responding to risks of economic downturn. For
evaluating business performance various methods such as SWOT analysis, Porter's five forces
and mission analysis. For analysing financial position of company ratios for three years are
calculated for using them as base for competitor and historical benchmarking. Methods will
include comparison of organisation's financial performance with previous years and with it
competitors. Like for example HR needs to engage in analysing the existing performance of
business, they can check upon the revenue and sales made by business. This will help them in
2

analysing whether business is doing satisfactory or not. Financial statements of business can be
reviewed in order check upon the performance.
Reviewing Business Plan
In evaluation process earnings and sales are used as key factors. Estimated sales are compared
with actual sales. Reviewing business includes analysing the basis of business plans which
includes vision, mission, cost analysis, mission statements executive summary etc.
SWOT Analysis
Analysis is used for evaluating the factors that can critically affect performance of an
organisation. It focuses on identifying strengths and weakness within the organisation and
opportunities and threats outside organisation. It helps company to frame strategies for
improving its performance (Noe and et.al., 2017). It helps company to prepare itself for new
opportunities and threats that may affect business. Like for instance this can assist them in
identifying weakness which can be converted into opportunities for organization growth. This
can help them in working upon gaps and improvising their quality of services.
Financial Analysis
It refers to analysis of financial position and future performance of company. Financial
analysis is important for analysing whether the activities and operations of company are giving
desired results or not. The position of the company in market in comparison with its competitors
is can be evaluated through financial analysis. These are analysed using statements of financial
statements such as income statement and balance sheet.
Financial Ratios
Financial ratios are used for analysing the position of organisation that by comparing
different item of the financials. Different ratios that are used for analysing the business
performance include profitability ratios, liquidity ratios, and efficiency ratios. Ratios enables
comparison with competitors.
Employee Satisfaction
Employee satisfaction in an organisation is important for success and growth. If
employees are not satisfied with their jobs success of the organisation will be sacrificed. For this
turnover of company shows the satisfaction rate of employees. Like for instance planning related
to providing employees with rewards and recognition can be done. This can assist them in
satisfying employees and also motivating them to perform better.
3

Customer Satisfaction
It is also important for the business to ensure that customers are satisfied with products of
company. Customers require fair treatment and expects to receive high quality goods and
services for their money (Van Beurden, Van Veldhoven and Van De Voorde, 2018, July).
Benchmarking
Information and data gathered from various sources are used for evaluating business
performance such as industry reports, market research and other sources. Benchmarking helps to
identify whether company has achieved the expected levels set for business.
HR supports in business planning
In business planning HR plays critical role. For effective planning it is essential for the
business enterprise to have unique strategies for ensuring that the highest level of productivity
and efficiency is achieved. They help in recruiting employees that are needed for the business
enterprise and its growth. They have various roles to play in the business such as recruitment of
talents, retention of talent and also providing the business with environment that is essential for
the productivity. HR tactics have evolved over the time and have new strategies for
implementing the corporate strategy. For strategic development corporate strategies are amended
by HR department. This helps HR department to take into account the requirements of every
employee of the company. It has also evolved new concepts by employing technology in its
processes. The change management process cannot be implemented successfully without human
resource department.
HR supports business through change management.
The fact about the importance of Human resource in implementation of change
management cannot be denied. In the organisation model of Lewin is analysed considering the
change and role of human resource department in the change management process. There are 3
phases propose by Lewin in change model. These are vital for organisations undergoing the
process of change management. New process for quality control is implemented by the
organisation and three phases have been used for success.
Unfreezing phase
The stage of unfreezing involves employees and key stakeholders of the business. It
makes the concerned prepared for the change process that will be implemented within company.
4

Senior managers and leaders guide employees by providing proper training about the quality
control system to be implemented in organisation. They make them realise the importance of the
quality control process & minimising the errors.
Transition phase
Transition phase refers to the stage where the change is implemented actually. All the
issues are faced mostly at this stage. Resistance of employees makes difficult for the senior
executives to implement the change successfully. Quality controls systems was implemented in
the enterprise.
Refreezing phase
At this phase, employees embrace the change implemented and companies tend to
refreeze the process. Signs showed that the quality ontrol system was implemented successfully
such as increased productivity and efficiency of the employees. Use of technology made the
employees made the work of employees much faster and also made them feel comfortable with
the change.
3.1 HR supports the business to maintain performance through business planning and change
management
It is the responsibility of Human Resource to work aligning the business strategies, re-
engineering business processes, responding to employees as well as managing change. Human
resource play key role in making business plan and change management. HR manager has to
analyse the business operations and then frame business plans as per the business requirement. In
order to make the process of change management to be successful, HR professionals have a vital
part to play when leading and managing change in dealing and handling conflict of interests
between the business and employees, and help the organization create long-term sustainability.
They will be engaged in maintaining employees aware about the changes which will be opt by
firm. They will also be involved in providing training to all workers on the same. Assistance can
also be provided to those who are unable to expect the changes. HR manager has to use various
methods, techniques and processes so that change can be made managed effectively. Manager
has to educate about the change and its benefit to employees and for organisation so that
resistance to change is avoided. For achieving the goal manager has to use different strategies
that will help company to gain success aligning the objectives of employees with that of
5

company (Amarakoon, U and et.al., 2019). Human resource manager has to ensure various
functions such as
Talent Recruitment
Managers should employ candidates after taking interviews so that candidate who are
capable fort the job are only selected. Manger should clearly define job roles while recruiting
employees which they are required to perform in organisation. For effectiveness of the
recruitment process they should keep levels where manager can analyse the efficiency of
candidates. So that candidate who can help company in effectively executing business cycle.
Like for example talented can be recruited by making use of external recruitment methods like
social media platform. By this company can engaged in hiring highly efficient employees who
can assist them in achieving their goals and objectives. They can also help firm in becoming
more productive.
Training employees
HR manager are required to train employees by giving proper training and keeping
seminars for educating them about change. Training is essential as they help employees to
understand the change and work efficiently and effectively managing change. It enhances their
skills and knowledge which improves the productivity of employees. Like for example training
can be given through various methods like they can provide them with online tutorials to learn
new skills and abilities. This will assist them in enhancing efficiency of employees and also
organizational productivity will be improved. It will also assist them in achieving organizational
gaols and objectives.
Motivating Employees
HR managers should ensure that employees are motivated for adding their contribution to
the organisations. Motivation encourage to improve their performance and work more efficiently
for the organisations. Motivation is the most effective tool for increasing the efficiency of
employees. Like for example motivation can be done by providing employees with rewards. It
can be monetary or non-monetary. It will boost morale of employees and will also make them
more capable.
Organisational Development
6

Organisation should be able to develop their own culture and values depending on its
core values. Framing values and developing culture based on core values of the organisation
gives company different standing. Also company is judged by values perceived by it.
Employee Engagement
It is responsibility of manager to ensure that employees are feeling engaged in business.
Employees who are adding value to the business should be retained. For retaining employees it is
essential for the managers to value their contributions, motivating them so that they develop
feeling of recognition.
2 Business Data
3.2 Assessing and utilizing different sources of business and contextual data for planning
purpose.
Manager along with data analyst’s frames plans for doing something in business and using
data analytics for accessing the results. Results are assessed by management with guidance from
management. Results of the analysis are used by the management for guiding and subsequent
planning for the business. Based on the guidance’s data is acquired, processed and summarized
by managers. Business data analysts manages the quality assurance department of data scraping,
querying the databases on regular basis on stakeholder’s request and trialling issues of data for
coming on timely resolutions and to provide understandable insights in visual or narrative form.
Internal sources of information includes employees ans shareholders of company (Rowley,
Nankervis and Salleh, 2016). External sources of data include books, printed materials like
journals, magazines newspaper etc.. it is the responsibility of data analysts to collect, analyse and
deliver information to decision making authorities.
Internal and External Data Sources
Data derived in this survey has been used for constructing series of variables on internal
((competitive strategy, managerial dimensions, human resource management methods and
methods to prevent expropriations))and external factors (ownership, industry competitiveness).
Ownership is hypothetical and competitive variables of industry comprises published Herfindahl
concentration index for each 1 digit industry ( for manufacturing 2 digit) in 2000-2001. In past
insurance data was only internally available. Over present times benefits can be gained by
combining internal and external sources of data. On doing so data could be increased or data
could be enriched for including additional information. At the end data loses it value by itself.
7

Organisation are required to become more effective in leveraging data and analytics for
powering their business models. Various types of data can be utilized for shaping the strategy as
per requirements. Data examples are :
Primary – data that is collected by researcher himself
Secondary – Data gathered by secondary sources means which is collected by other people
Qualitative – Opinion of people is considered
Quantitative - Results are generated in numerical form.
Internal sources of data
Human Resource Metrics
HR metrice is used for measuring effectiveness to quantify human resource initiatives
comprising of labour costs, turnover, training, expenses and development purpose. Success or
failure of HR initiatives are evaluated in an effective way. Metrics allows organisation to keep
track records of annual trends and to modify variables when necessary changes are required.
CIPD indicates HR metrics helps to analyse associated costs of employee absenteeism including
overtime expenses, absence rates and productivity index. Key HR metric include learning and
development and metric on retention. Potential benefits assist organisation in keeping track over
the performance and evaluating the HR performance and of different departments without any
constraints. This information should be made available to business leaders so that actions can be
taken. Decisions for marketing strategies, introducing new products in market & investment are
made by leaders. Disadvantages are also associated with using metrics (Kayl and et.al., 2017).
Data collected from metrics is misleading sometimes that may produce negative results. Other
disadvantage of using metrics is that it does not calculates the risk. Risks are required to be
mitigated by HR departments at every cost.
Industry Competitiveness
In industry where individual behaviour and technological trends are changing fastly and
companies with new advanced products line up for directing each winnable segment of market. It
is challenging aspect to maintain competitive advantage in market. Developing technological
accessibility at low prices enable new entrants having efficient products to compete huge players
such as Samsung who us having strong presence in cell phone market. Competing with big giants
like apple is difficult task. In such situation they have to come up with new strategies that is
more effective compared with others.
8

Employee Survey
It is regarded as one of the important internal data source that may prove out to be
beneficial to measure effectiveness and improving the survey will assist to explore issues
associated to human resources. These can assist significantly to determine opinion of employees
regarding organisation and policies. Drawback of employee survey is that conducting survey and
receiving feedback from each employee is time consuming process (Amarakoon, U and et.al.,
2019). It is noteworthy to consider that trends of employees can fluctuate from the market, that
will lead to wrong and inaccurate discussions and that is not accurate for all cases.
External sources of Data
Human Resource Trends
HR should be able to balance the situations associated with working economic pressures
and challenging market & unstable economy. Over the recent past impact of automation is seen
in each and every field in marketplace. Skills are required for operating and using such
requirements. Constant efforts are made by human resource departments for recruiting
employees that are skilled and will add value to the company.
Competitive Information
Competitive information is to be analysed by HR department son that essential
improvements can be made by company for maximising the profits of company. Market face
challenges everyday with continuously changing trends, innovation in workings and adopting
new technology. Methods of operating business and conducting business are required to be
changed as per the current and modern trends. It is essential for HR managers and companies to
understand kind of competition prevailing in market (Sheehan and et.al., 2016). They should also
identify the effects on operations so that factors which are affecting organisational performance
can be known. After identifying the factor that are affecting the business operations need to be
changed by companies.
Government Information
Government information’s refers to introduction of different regulations on businesses that
Human Resource department are required to manage just for ensuring that these regulations are
not having negative impact over corporations. They are also required to manage targets and goals
of the company are met. For effective functioning of market, it is essential that government is
good as some activities of government are not effective and they may give negative outcomes.
9

3 Knowledge and skills gained in assignment
Every company face problem for which efficient and timely solution are required. Human
resource departments are responsible for performing the roles such as managing and organizing
administrative performance and functions. To achieve business objectives strategic planning may
be used for formulating steps. Company should take sessions for development and training of
employees for acquiring latest trends prevailing in market. Development process followed in
firm is essential for developing the organisational culture. Human resource department play a
crucial part in implement the change management successfully and the business plans are made
after different factors are analysed.
To become part of organisation's HR team actively has helped in gaining knowledge.
Topics, content & research outcomes in this project assignment has given valuable knowledge
and fair chance to implement and execute strategies after appropriate evaluations by following
right steps for making functions of HR more effective and efficient in organisations.
Continuing' Professional Development prospective project assignment was very useful in
enhancing the knowledge through implementing below possible factors.
Defining KPIs and benchmarking
Designing of and managing development and training programs.
Ratio analysis giving the idea about future business needs.
Creating rewarding and competitive policies to motivate and engage employees.
CONCLUSION
The above report concludes that the HR development have an important role in growth
and success of the organisation. This is important for the business planning and defining the
strategies for the organisation. The change management process cannot be implemented
successfully without the effective strategies of HR Department.
10

REFERENCES
Books and Journals
Noe, R.A and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Van Beurden, J., Van Veldhoven, M. and Van De Voorde, K., 2018, July. When are HR
Practices Effective for Job Performance? The Role of Employee HR Effectiveness
Ratings. In Academy of Management Proceedings (Vol. 2018, No. 1, p. 14185). Briarcliff
Manor, NY 10510: Academy of Management.
Amarakoon, U and et.al., 2019. Entrepreneurial behaviour: a new perspective on the role of the
HR professional. Personnel Review.
Mamman, A and et.al., 2019. Employee advocacy in Africa: the role of HR practitioners in
Malawi. Employee Relations. 41(1). pp.2-15.
Sheehan, C and et.al., 2016. Strategic implications of HR role management in a dynamic
environment. Personnel Review.45(2). pp.353-373.
Rowley, C., Nankervis, A. and Salleh, N.M., 2016. Conclusion: The human resource
management–organisational effectiveness link: overview and the role of HR
practitioners. Asia Pacific Human Resource Management and Organisational
Effectiveness: Impacts on Practice. p.231.
Kayl, I.I and et.al., 2017. Effective hr management as the most important condition of successful
business administration. In Integration and Clustering for Sustainable Economic
Growth (pp. 23-30). Springer, Cham.
11