This document provides an in-depth analysis of human resource management, including the factors that impact business and HR functions, the forces shaping HR agenda, and the tools for analyzing the business environment. It also discusses the key stages in strategy development and implementation and the role of HR in this process.
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1HUMAN RESOURCE MANAGEMENT Table of Contents Introduction....................................................................................................................2 1.1 Assessment of the factors that have an impact on the business and HR functions. .2 2.1 Analysis of the forces that shape HR agenda...........................................................3 2.2 Comparison of different tools for analysis of business environment.......................5 2.3 Key stages in strategy development and implementation and role of the HR.........6 2.4 Analysis of the contribution of HR on business ethics and accountability..............9 3.1 Evaluation business performance and role of HR in business planning................11 3.2 Assessment and utilisation of different sources of business and contextual data for planning....................................................................................................................................13 Conclusion....................................................................................................................11 References....................................................................................................................15
2HUMAN RESOURCE MANAGEMENT Introduction As discussed by Albrecht et al. (2015), human resource management can be defined as a strategic approach based on the process of effective management of the employees in the organization in order to help the business to gain competitive advantage. The process of human resource management is designed by the organization in order to maximize the performanceoftheemployees(Banfield,KayandRoyles2018).Humanresource management is concerned primarily based on the proper management of the employees in different organizations. Different organizationalfactors have an impact on the human resource management policies that are developed (Bakker and Demerouti 2017). The report will be based on the analysis of the different forces that are able to shape the human resource based agenda of an organization. The tools that can be used for the proper analysis of business environment will also be a major part of the analysis. The stages ofproperstrategyformulationandeffectiveimplementationofthestrategieswillbe discussed in detail. The analysis will be related to the role that is played by human resource management in the process of proper business planning and change management. 1.1 Assessment of the factors that have an impact on the business and HR functions As opined by Berman et al. (2019), the internal and external factors can have a huge impact on the success levels or the failure of different business organizations. The business owners are however not able control the external factors and changes that take place in the external environment as well. The owners of the organization however have a huge influence on the internal factors and operations of the business. The major internal factor that is able to affect the operations of modern organizations is the leadership (Bird and Mendenhall 2016). According to Bratton and Gold (2017), leadership mainly refers to the people who are able to make the decisions based on different organizational operations. The management
3HUMAN RESOURCE MANAGEMENT structure of an organization is also based on the leadership process that is developed. The structure of management is developed in such a manner that helps in the formation of a clear vision and empowering the employees as well. 2.1 Analysis of the forces that shape HR agenda As discussed by Brewster et al. (2016), the internal environment factors of an organization have a major impact on the human resource based activities that are performed. The human resource management process that is developed in the organizations has an impact on the work process of the employees. The levels of profitability of the organization are also increased with the help of effective human resources. The major forces or factors that have an impact on the HR based agenda are as follows, Mission – The mission that has been developed by an organization is based on the justification and purpose that is provided based on its existence in the environment. The tasks that are provided to the employees are considered to be important for reaching the goals and the mission that has been developed. The HRM functions are developed with respect to the mission that has been formed (Chuang, Jackson and Jiang 2016). Policies – The policies that have been developed and implemented in an organization are able to affect the direction that has been developed. The methods that are implemented by the organizations in order to achieve the objectives and goals have an impact on the proper planning of the human resources (Collings, Wood and Szamosi 2018). Organizationalculture–Theentireprocessthatisdevelopedinan organization based on the shared values, habits and beliefs that are a part of the process. The personality that has been developed by an organization is able
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4HUMAN RESOURCE MANAGEMENT to affect the human resource policies and strategies. The human resource managers of an organization need to adjust to the changes that have taken placeintheculture(Crane,MattenandSpence2019).Theproper understanding of organizational culture is considered to be important for the choice that needs to be made based on development of HR policies of the organization. The paths that are chosen by the organization are mainly based on the ways by which the attitudes and culture of people can be reflected (Deery and Jago 2015). Organizational conflicts – The conflicts that exist between the attitudes of employees and organizational culture are considered to be important factors that have an impact on the human resource management policies. The qualities of employees that are able to create organizational conflicts include, personal goals vs. organizational goals, personal ethics vs. organizational ethics, rights vs. duties, obedience vs. self-respect, discipline vs. autonomy, authority vs. responsibility (Donate and de Pablo 2015). Organizational structure – The two types of organizational structures that are implemented in different companies are, tall structure and flat structure. The organizations that are labour oriented in nature have to implement the tall structure This leads to the implementation of authority at the top levels (Engert, Rauter and Baumgartner 2016). The organizations that are technology oriented in nature implement flat organizational structure in order to distribute the power in different levels. The proper decentralisation of authority is mainly based on implementation of the flat structure in different organizations. The jobs that need to be performed by the HR managers of flat structure based
5HUMAN RESOURCE MANAGEMENT organizations are considered to be highly challenging in nature (Frynas and Mellahi 2015). Human resource systems – The quality of HR personnel have an impact on the development, survival and the effective performance that is depicted by the organizations. The modern organizations have started creating different human resource development based departments that are introducing the quality circles and the participative management styles. The free flow of the process ofupwardcommunicationisconsideredtobeimportantforproper enhancement of the status that has been developed by employees (Guest 2017). As discussed by Hitt, Li and Xu (2016), the proper development of HRM based functions are able to affect the ways by which changes take place in the internal environment of the organizations. The strategies based on HRM can also be developed effectively with the help of enhancement of the organizational operations. 2.2 Comparison of different tools for analysis of business environment According to Inkinen (2016), the business organizations apply SWOT and PESTEL framework in order to understand the levels of flexibility of the new products, expansion based activities and projects that are being planned as well. The two frameworks are mainly used in a combined manner in order to develop a better understanding based on the economic and the competitive environment in which the companies plan to operate (Jamali, El Dirani and Harwood 2015). The approaches that are however provided by the two frameworks are contrasting in nature and are able to provide the understanding based on internal and the external environment that is able to affect the operations in different industries. SWOT framework is considered to be highly flexible and is applied to the different business
6HUMAN RESOURCE MANAGEMENT functions that are a part of organizations. PEST is however not highly flexible and is able to provide information based on the entry of an organization in a new country (Knight and Liesch 2016). SWOT analysis frameworkPESTLE analysis framework SWOT analysis is the acronym for thestrengths,weaknesses, opportunitiesandthreats.This frameworkisappliedtothe products, projects or the businesses that can help in the assessment of competitivemarket(Kuratko, HornsbyandHayton2015).The analysis is mainly based on the ways bywhichtheproductsofan organizationareabletodevelop their positions in comparison to the others.Thestrengthsand weaknessesareconsideredto internaltotheorganization.The opportunitiesandthreatsare providedbytheexternal environment (Lee and Kim 2018). The marketers who aim at analysing the feasibility of the products are that are a part of the project use the SWOT framework. The SWOT framework is used by the organizations in order to analyse theinternalenvironmentand strategiesbeforeexpandingits operations in a different country or new market (Lin, Su and Higgins 2016). SWOTanalysisisusedbythe organizations in order to analyse the strategiesindifferentphasesand levelsoftheorganizational operations (Nankervis et al. 2016). ThePESTELframeworkusedin ordertoanalysetheclimateand environmentoftheindustryor country in which it operates. The PESTEL based factors are able to informthemarketersrelatedto politicalsituationofthecountry, economiccondition,social hindrances,technological capabilities,legalfactorsandthe environmental factors as well. This helpstheorganizationtomake expansionprocessmorecost- effectiveinnature(Kuratko, Hornsby and Hayton 2015). PESTEL framework is used by the marketers of an organization in order toanalysetheexternalmacro environment.Thesocioeconomic environmentisanalysedwiththe help of this framework. PESTLEframeworkontheother hand is used by the organizations before they plan to launch the new products. This helps the company to gain information based on the new country in which it plans to expand (Marvel, Davis and Sproul 2016). PESTframeworkcannotbe implemented effectively in order to analyse the strategies that have been implementedbytheorganizations thathaveinternationaloperations (Schaufeli 2015). 2.3 Key stages in strategy development and implementation and role of the HR According to Bratton and Gold (2017), the process of strategy formulation is mainly based on the ways by which appropriate actions are implemented for the proper achievement
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7HUMAN RESOURCE MANAGEMENT of the goals and objectives. The vision that has been set by the organization is able to affect the ways by which the strategies are formulated by different organizations (Shen and Benson 2016). The major steps that are a part of the strategy formulation process are as follows, Setting the organizational objectives – The most important component of the strategy statement developed by an organization is based on the ways by which long term objectives are achieved. The objectives are considered to be highly important for the strategies that are developed and implemented by the organizations. The strategy is considered to be a wide term that is related to the proper deployment of resources in order to achieve the objectives (Snell, Morris and Bohlander 2015). The organizational objectives can be fixed in order to influence proper selection of the processes. The human resource managersareabletoaffecttheobjectivesthathavebeensetbythe organizations. The objectives are based on the needs of the employees and customers of the organization as well (Stone and Deadrick 2015). Evaluation of the organizational environment – The effective evaluation of organizational environment is an important factor that is able to affect the operations and strategies that are developed by the organizations. This step is alsobasedontheproperreviewoftheorganizationsbeforeproper development of the strategies. The major purpose of the review is based on the ways by which the organizational is able to develop the competitive position in the industry (Stone et al. 2015). The strengths and the weaknesses of an organization are based on the ways by which it is able to track the competitors. TheHRmanagersareabletoinvolvetheemployeesindifferent organizational processes and functions. The competitive strengths are able to
8HUMAN RESOURCE MANAGEMENT play a major role in the ways by which the organizations are able to maintain their profitable position (Stone and Deadrick 2015). Setting the targets – The targets of an organization are set with respect to the strategies that are formulated. The quantitative targets are considered to be important parts of the process that is implemented for the development of targets (Vance and Paik 2015). The development of targets of the organization is affected by the employees and their work process. The HR managers are able to provide the responsibilities to employees so that they are able to achieve the targets (Wilton 2016). Aiming of development of the divisional plans – The contributions that are made by different departments of the organizations are able to play a major role in the development and formulation of strategies. The trends in the market arealsoconsideredinordertoformulatethestrategiesthatcanbe implemented (Vance and Paik 2015). The divisional plans that have been formed by the organization have an impact on the ways by which the human resource managers are able to divide the employees into different groups (Stone and Deadrick 2015). Performance analysis – The analysis of the performance of an organization is considered to be highly important for the proper analysis of gaps that exist. The past performances that have been depicted by the organizations are considered to be important for the development of future operations in the respectiveindustries(ShenandBenson2016).Theanalysisofthe performance of an organization is based on the effective study that is made of the performanceof employees.The human resource managershave the
9HUMAN RESOURCE MANAGEMENT responsibility to analyse the performance of organizations (Snell, Morris and Bohlander 2015). Choice of the strategy – The last step that is a part of the strategy formulation process is based on the choice of an effective strategy that can be implemented in order to achieve the goals of the company. The most appropriate strategies are chosen by the organizations in order to development the human resource management activities that are performed (Knight and Liesch 2016). 2.4 Analysis of the contribution of HR on business ethics and accountability As discussed by Donate and de Pablo (2015), human resource management is mainly responsible for the ways by which the work force of an organization can be managed and manpower planning activities can be implemented in an effective manner. Ethics is able to play a major role in the ways by which organizations are able to develop human resource management based programs. The major issues that are based on the HRM activities of organizationsinclude,theindustrialrelations,development,compensationandproper management of the HRM issues as well. According to Jamali, El Dirani and Harwood (2015), the different types of market systems are also able to affect the ways by which HR ethics are implemented in the modern organizations.Manydifferentissuesfacedbythehumanresourcemanagersinthe organizations. The ethical considerations are however considered to be the most difficult part of the issues that are faced by the human resource managers. The HR managers are able to play a major role in the ways by which ethics can be maintained in the operations (Stone and Deadrick 2015). Some of the major clusters that are based on the relationship develop between ethics and HRM are as follows,
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10HUMAN RESOURCE MANAGEMENT Compensation and cash plans – The ethical issues are faced by organizations are based on the salaries of the employees, compensations and the executive perquisites. The HR based department of the organization is under huge levels ofpressurebasedonproperimplementationsofthefunctionsandthe incentives that are provided to the employees. The ethical issues mainly arise when the human resources deal with the long term incentive and compensation plans are developed by the organizations (Knight and Liesch 2016). Disability, gender and race – The different examples of the organizations can be seen in which the employees are treated in a different manner with respect to the gender, origin, disability and race. The regulatory frameworks that are developed by the human resource managers are able to play a major role in the standardization of employee work processes (Kuratko, Hornsby and Hayton 2015). Employment based issues – The dilemmas that are faced by the organizations based on the hiring process of the employees are able to play a major role in providing hindrance to the recruitment processes. The fake documentation of employees is also considered to be a major factor that is able to affect the training process (Lee and Kim 2018). Privacy issues – The employees who are a part of the organizations can also face the privacy issues. The human resource managers are able to provide major support in the development of high levels of privacy for the employees so that they have a comfort level within the organization (Stone and Deadrick 2015). Trust issues – The levels of trust that exist between the employees and management of an organization are considered to be important factors that
11HUMAN RESOURCE MANAGEMENT have an impact on the human resource department and the employees as well (Vance and Paik 2015). As discussed by Snell, Morris and Bohlander (2015), accountability is considered to be an important factor that is a part of the corporate culture of the organizations. However, the organizations tend to come up with accountability only when something goes wrong or issues take place. The balance that can be formed between the accountability and culture is based on the ways by which human resource managers are able to provide their contribution. Accountabilityisabletoplayamajorroleinthewaysbywhichgreaterlevelsof transparency can be developed in the organizations. According to Stone and Deadrick (2015), the effective enhancement of transparency in organizations is able to provide support in the development of trust and teamwork in the modern organizations. The accountability based activities of an organization are led by the efficient HR managers who are able to provide major levels of information based on the organizational processes and culture as well. The commitments that are made by the organizations to the stakeholders are able to play a major role in the ways by which the transparency levels can be maintained in an effective manner. As discussed by Donate and de Pablo (2015), the mission of the organization is supported in a huge manner by the proper development of accountability and high levels of transparency. The culture of an organization is also able to affect the ways by which accountability can be developed and further maintained. The HR of an organization is thereby able to become a culture based coach to the CEO and the employees (Chuang, Jackson and Jiang 2016). The proper evaluation of culture is considered to be highly important for the waysbywhichaccountabilitycanbemaintained.Theproperaccountabilityinthe organizations is able to play a major role in the ways by which the stakeholders can be
12HUMAN RESOURCE MANAGEMENT satisfied and they can information based on the operations that are being conducted as well (Stone and Deadrick 2015). 3.1 Evaluation business performance and role of HR in business planning Tesco is a major retail organization in the United Kingdom and the company has gone through many changes based on the implementation of self-service check out based system in different stores. The implementation of new payment system is considered to a major strategic plan based change that is applied by Tesco. The self-checkout system is quite different in comparison to the normal payment based system. The transactions that are carried out by Tesco are an important part of the procedures that are able to facilitate the customers (Lin, Su and Higgins 2016). The customers are facilitated with the help of new methods or procedures that are implemented by Tesco PLC. The shopping experiences of Tesco are improved in an effective manner due to the implementation of self-checkout system in different stores of the organization (Nankervis et al. 2016). The products are selected by the customers from different stores of Tesco and then they can scan and pay for various items. The major intention of the management of Tesco is based on the proper synergy of cashier checkout with the self-checkout based activities. The model of Lewin’s change management can be implemented in order to analyse the change that has been implemented by Tesco (Shen and Benson 2016). Lewin’s change management model is based on three major levels or steps that include, Unfreezing –The first stage of the model is termed as unfreezing which is based on the ways by which the organization and employees are provided with training before the actual implementation of changes. Tesco provides training to the employees based on different aspects of the change that will be implemented based on the automated payment
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13HUMAN RESOURCE MANAGEMENT systems (Brewster et al. 2016). The training will prove to be helpful for the organization in order to maintain the position of Tesco in the retail industry of the UK. The time that is requiredbythecustomersinordertocompletetheshoppingprocessandlevelsof convenience are also increased as a part of this level (Marvel, Davis and Sproul 2016). Change implementation –The change implementation based step is based on the ways by which the change is applied in the organization and the employees are also made a part of the change process. Tesco has implemented change in self-checkout system in order to improve the levels of operations and convenience that is offered to the customers. The training that is provided to the employees is used by them in an effective manner in order to maintain the operations in a profitable manner. The speed of services has been increased and customer satisfaction levels have also been increased (Crane, Matten and Spence 2019). Refreezing –The refreezing stage is based in maintaining the operations of the organization after the change has been implemented. Tesco has also aimed at developing the operations of the organization with the support that is provided by the employees and the levels of participation that have been formed. The employees can increase their effectiveness in the organization with the help of improved services that have been offered to them (Shen and Benson 2016). The change implementation process in the non-financial business aspect of Tesco has been able to play a major role in the development of operations with the help of self-checkout system. 3.2 Assessment and utilisation of different sources of business and contextual data for planning As discussed by Albrecht et al. (2015), the assessment and proper utilisation of various sources of contextual and business data are mainly used for the proper planning
14HUMAN RESOURCE MANAGEMENT process in organizations. Tesco PLC has also used different types of data in order to manage planning process of the organization in an efficient manner. HR data is considered to be an important factor that is considered to be the key to the different strategic business based decisions. The HR executives and the practitioners have to face major levels of challenges related to different decisions that are made by them. HR analytics have become highly improved in nature and the alignment of decision making with the HR data is also considered to be an important factor (Banfield, Kay and Royles 2018). According to Vance and Paik (2015), the competitiveness levels of the organizations are also increased with the support that is provided by the analysis of HR data in an effective manner. The different usage of HR data in order to improve the levels of operations include, turnover, retention, risk, talent and future casting. Tesco has used the data of customers in order to improve the organizational operations and maintaining the different functions that have been performed (Schaufeli 2015). Technology is used by Tesco in order to develop communications and connections among the employees and various members of the board as well.Thefutureoperationsandfunctionsofhumanresourcemanagementandtalent management department are based on the usage of data and HR analytics in an effective way (Shen and Benson 2016). Conclusion The report can be concluded by stating that the human resource planning based process of an organization is able to play a major role in the ways by which the organizations areabletomaintaintheoperations.Theinternalandexternalenvironmentofthe organizations are able to affect the ways by which human resource based strategies are developed and implemented in an effective manner.
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