Effect of External Factors on HRM Policies

The report provides an in-depth analysis of how effective HRM policies can increase brand value, market value, and achieve competitive advantages through strategic frameworks. It examines how external factors like political, social, and legal considerations affect HRM policies and practices. The study also discusses the importance of integrating HRM with strategic management to achieve organizational success.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Effective HRM policy and procedure delivering strategic effect to organizations.....................1
External environment factor has affected the HRM policies and HRM practice affected along
with any legislation.....................................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Easy jet is an airline company and it is operating in more than 30 countries. Easy jet has
established in 1995.it is a British airline headquartered at London. it is one of the most low-cost
airline company which schedule is flight over 820 routes. Company has marked its presence in
London stock exchange. It follows various business strategy that includes cost cutting in the
duration of flight Easy-jet motor car limited manufacture of branded motor car. It is a British
company. Company also makes of various use of marketing strategy like booking airline tickets
with the help of internet or social media platform. This has also helped easy jet in gaining
competitive advantage. HRM department is responsible for employee recruitment, managing,
training and developing, etc. It is made for handled all human resources in an organisation.
In task 1 will choose the company Easy-jet. Easy-jet is an airline company (Storey, 2014). This
task will justify HRM policy can effect on the company and process can help organisation
deliver strategic effect by contributing competitive advantage.
This report will give an example of the easy jet company that has achieved objective. The
report will also show in Task 2 of project will outline about internal or external factors of HRM
policies which affected on an organisation. In this project will also demonstrate that HRM
practised effect with any legislation. Task 2 will describe that the external factors that can
influence HRM policies. HRM purpose that achieve the goal through employee for the
organisation. In this project will include HRM policies provide guidance related to employment.
HR policies include factors identified from the organisation purpose and objectives. In this
project report will choose the company Easy jet for describe HRM policies and their effects.
TASK
1. Effective HRM policy and procedure delivering strategic effect to organizations
Organizations adopt specific HRM policies that generates strategic effect with
competitive advantage. These HRM policies includes- Compensation, benefits, heath, security,
safety, labour management relations, diversity among staff members Grievance Handling
Policies, Termination and employment practices(Armstrong and Taylor, 2014). These policies
and procedures helps HR management of “Easy-Jet” in accomplishing strategic plans and
coordination of employees. It is one of the largest UK airline services serving since last 15 years.
Easy-Jet adopts extensive HRM policies & procedures to facilitate its workforce with various
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generous advantages and also to achieve competitive advantage related to various aspect of the
organization and customer satisfaction.
The adopted HRM policies are formulated on the basis of evaluation of Porters Generic
Strategy which includes- Cost Leadership, Differentiation & Focus to achieve competitive
advantages and deliver strategic effect to the organization. This relation of HRM Policies and
Porters generic framework provide an effective module to the organization to achieve standard
organizational goals and objectives. HRM policies can be directly linked with strategic
framework in terms of the culture, workforce diversity and operational excellence.
Cost Leadership Strategy
Cost leadership emphasis either on reducing the cost of services compare to that of
competitors or to reduce the cost of production unit and applying moderate cost of services to the
customers. This strategy requires efficient HRM policies to monitor the employees, to deal with
external suppliers & distributors, efficient research & development practices, personnel policies
with legal compliance in the organization.
Easy-Jet airline service offers low cost services to its customers, this strategy increases
threats within the competitors. Its “Low cost model” totally based upon the involvement of
young and advanced fleet that reduces its maintenance cost. It provides leading offers and great
deals to loyal customers through innovative and creative manpower/team/executives. In this way,
Easy-Jet make the entrance of new competitors difficult in market.
For easy implementation of cost leadership, Easy-Jet has an efficient “REWARD
SYSTEM” to enhance the performance of employees. The wage of Easy-jet employees is higher
than UK living wage. Reward system of Easy jet accelerates productivity of employees to a
higher extent. By adopting such beneficiaries for employees, the organization receives better
brand value and talent pools. It also delivers strategic result to the organization by establishing a
unique and loyal workforce network. It also delivers different opportunities to attract the
employees and retain them by providing competitive reward packages, cash pay and opportunity
to be a part of shareholders in the company (Human resource policies, 2016).
Easy-Jet airline increase threats within the competitors with the involvement of young
and advanced fleet.
Differentiation Strategy
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Differentiation Strategy focus upon quality standards of services rather than its cost to
achieve competitive advantage. It requires skilled workforce to create a sense of continuous
innovation/creativity to services. This strategy delivers distinctive quality features to
services/products. Easy-Jet differentiate its services through new initiatives and adopt bottom up
and top down communication for great involvement and creative ideas (Armstrong and Taylor,
2014).
To execute this strategy, Easyjet Airlines continuously emphasis on its “TRAINING and
DEVELOPMENT SYSTEM” by monitoring, evaluation and performance management of
employees to maintain its image, customer satisfaction and brand value. Easyjet services provide
three week training to new employees and online training courses to develop creative ideas
within them. It provides core training facilities to its crew on aviation security, customer service,
cabin services and safety procedures. It conducts highly innovation talent training programmes to
improve productivity of working crew thus creating strong competition to new entrances and
existing competitors by adopting differentiation strategy.
Easy-Jet has strategic “RECRUITMENT SYSTEM” with efficient team of recruiters
for talent acquisition and to attract talent pool. Also, it has been working on its goal of recruiting
460 new female pilots in 2019 and continuously gaining support from British Women Pilot
Association for its initiative regarding the selection of female pilots during last 3-4 years.
It has designed strategic recruitment elements like compensation policy, attrition rate,
termination policy to achieve competitive advantage by attracting talent pools. Till 2017, Easy-
Jet has recruited about 12,300 to highlight its recruitment policy and practice to different
boundaries (Storey, 2014). This strategic recruitment procedure provide it a strong, talented
employees to execute all the differentiation strategy required by it.
Focus Strategy
It deals with the focus of organization either on Cost Leadership strategy or on
Differentiation strategy to reach to a specific direction. This strategy becomes harder for
significantly larger and limitless company/industry/organization because of stratified interests
and HRM policies(Beardwell and Thompson, 2014).
Easy-Jet have reputed HR policies for research purpose. It has talented personnel for
market research, financial and organizational analysis that boost its competitive advantages. It
provides adequate motivation and support to its workforce by adopting EQUITY THEORY OF
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MOTIVATION. It has a principle of Pay equity and non-discrimination, it delivers comfortable
and positive culture to its employees with the help of equal pay to equal degrees. In this way, HR
policy of motivation of Easy-Jet increases individual's interests and motivation towards
workplace.
Easy-Jet has keen observations on operational performance, efficiency of workforce and
internal strengths of organization. It also has advanced implementation of HRM practices and
policies to overcome various issues related to pricing, quality and legal compliance (Armstrong
and Taylor, 2014). Its HR policies are totally aligned with the UK governance corporate code
provides it an authenticated service platform. The airline services drive focus towards the legal
compliance to overcome the governmental issues (Brewster and Hegewisch, 2017).
EVIDENCES-
There are various evidences of Easy-jet success that has been achieved by effective HRM
policies and practices. The implementation of this strategic HRM policies and practices has
contributed a lot in growth and development of the company. Easy-Jet airlines ensure secured
and safe environment to its workforce (Beardwell and Thompson, 2014). It has strong safety
regulations with government regulatory authorities to evict the vulnerable situations.
Easy-Jet involve functional committees on Finance, Remunerations, Audit, Nominations,
Safety other provisions of financial statements to attain competitive advantage in terms of
finance and other external affairs. HRM policies and practices at Easy-Jet are in sync with the
legal obligations and has systematic HR policies for regular evaluation and monitoring that
deliver it continuous strategic, formulated and desired results.
Its “Human Welfare Policy” ensures better workplace environment, free of conflicts,
discrimination and misconducts. By adopting technological support an automated system
APTCAS is embodied with its aircraft to manage to avoid traffic collision hence, providing
secure environment for passengers and crew members. To strengthen its safety, it is having
partnership with Airline UK's code of practice to rectify the problems created by any passenger.
Hence, the employees at Easy-Jet feel secured and supported and contribute more under
challenging circumstances too.
“Workplace Policies” of Easy-Jet such as various configurations of International Labour
Organization Declarations to safeguard its workforce, implementation of MODERN SLAVERY
ACT, 2015 and introduction to various policies of non-discrimination, health & safety,
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corruption, whistle blowers and bribery increases employees loyalty. Due to its raising
employees excellence, over 5% of world's population has enjoyed its services in past 15 years.
The strategic HR policies increased customers' satisfaction with delivered services that
includes high quality standards (Brewster and Hegewisch, 2017). It adopts innovative new plans
to cater its services like introduction to its digital application to facilitate customers. Easy-Jet has
adopted HR policies regarding other global aspect such as environmental issues and community
support to comply its value-based principles and commitments (Marchington and et.al., 2016).
HR POLICIES FOR ENVIRONMENT AND COMMUNITY BENEFITS-
Easy-jet focuses on dwelling communities through various partnerships. It has a
partnership with UNICEF, conduct donations and other activities that influence the interests of
public, customers, investors and hence improving the quality of the brand name and receive
values in marketplace. It has adopted pleasing HRM policies and practices to increase its value-
based practices that involve efficient team work and efficient projections of the workforce
throughout its journey.
It has adopted effective HRM policies for environmental benefits with huge support of team
members. Its air crafts are embedded with the latest technology that has reduced the emission of
CO2 over last 10 years. Easy-Jet Airlines continue to be a leader in terms of services they
provide and generous HRM policies aligned with generic Strategy/framework to attain
competitive advantages.
2. External environment factor has affected the HRM policies and HRM practice affected along
with any legislation
Macro factors have influenced on the organisation goals and objectives. External factors are like
social factor, political factor, legal factor, technological factor, economic factor which has
outside of the organisation and they impact from outside.
First of all, HRM policies has affected by government regulations. HRM department of
Easy-jet work under the pressure of law of government. HRM of Easy-jet processed all activities
like hiring, training, compensation and much more according to the government rules. It is
necessary to follow government regulations. HRM putting policies related to law. This regulation
impact on every process of HRM department. Central and state law defined rules of employee’s
protection. For example, HRM of any company cannot be partial with any employees according
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to the government rule. HRM cannot reject any employee for the Colour, gender, religion etc. In
a labour case government set the daily wages then it is the responsibility of the organisation to
give proper wages to the labour (External factors affecting business, 2016).
Social factor : HRM of Easy-jet should make policies according to the society. In a
society includes employees, their friends, families, relatives etc. social factor can affect to HRM
policies related to the employees. Management of the company have to understand that their
business should social manner. HRM of Easy-jet can provide resources of health and wellness. It
is the responsibility of HRM that they manage all issues related to the social like make good
corporation, human right protection. HRM of Easy-jet needs to aware for social issues. HRM
policies should be make related to employee rights because it is depended on company growth.
In a Easy-jet company employee comes from different cultures. Then HRM of the company
responsible to treat everyone in same way.
It is the responsibility of the company to give health and security to their employees.
People also manage their personal life and they are also focused on job. Every employee plays
the double role first at the job and second at home. Even small & short companies also provide
this type of securities (Chelladurai and Kerwin, 2017). For stress and depression free
environment HRM of Easy-jet should do some activities for entertainment.
In a social factor culture is also impacted on HRM functions. It is important that where
company located, internal and external environment and safety is the biggest thing for any
employee. Sometimes HRM policies affected by the culture issues. Culture elements linked with
HRM activities. All cultural activities are happened by HRM. HRM functions influence by the
Internal and external culture.
Economic factor : Economic factor also influences to HRM policies of Easy-jet.
Presently customer wants comfortable journey but in reasonable price. That is why company
ensure that every customer should comfortable with the journey. Then company faced economic
issues Because company cannot sale their tickets at high range. HRM policies also affected from
the competition. In a competitive world technology increasing day by day. That thing influence
to HRM policies of Easy-jet because technology created economic issue. Company had to
change their technology on time to time. That is why economic factor affect on organisation.
Sometimes company changed their policies due to competitor. Presently business environment is
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very highly volatile that can also affect the HRM policies of Easy-jet. Customers wants to
change anytime in the services Therefore HRM policies has affected from the economic factor.
Sometimes union goes on strike because of HRM policies and function like HRM pay
low cost which is not according to their work. Then representative discuss the problems with the
unions. And then sometimes HRM may have to change their policies. HRM of Easy-jet may
have to pay sufficient salary to the employees for motivate employees. HRM of Easy-jet should
make sure that all policies are good for the company and also good for the employees.
Easy-jet needed professionalism employees but it is too difficult to motivate those
employees because they only motivate on opportunity of growth. It is up on HRM to make
policies that could help to motivate employees (Marchington and et.al., 2016).
It is necessary to do changes in the services because of being stable in the market.
Company need to highly skilled employees who help in technical issues. Today's big companies
become fully automated computerized that is why human employment and also economic factor
affected and that thing affect HRM function.
Legal factor : Legal factor is a part of external factors. In political and legal factor HRM
do all process but they cannot avoid legal factor. Legal factors can affect positively and
negatively on the organisation. Legal factor is different from political factor. Legal factor related
to all law and legislation which is made by government. Legal factor effect the company stock
and also interact between customer and organisation. All the policies of the HRM should
according to Legislation. Legislation defined as law which made by government. They influence
all activities of HRM. For example company has not the right to get done their work forcefully
from the employers. Legal factors are decided to which type of services can sale by the company.
General examples are available which affect the HRM policies of Easy jet company.
Consumer right act 2015 became law replacing three consumer legislation. It is the
consolidated act. This act also gives more rights to the consumer. The act come in to the force on
1 Oct. 2015. Now consumer have a lot of rights. Consumer satisfaction is more important for
HRM of Easy-jet. Through the act consumer can take the claim if consumer took the faulty
service by mistake. In any condition HRM of Easy-jet has bounded to give satisfaction to the
customer through free services or other way. Consumer has the right to receive refund amount
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After 30 days if they did not satisfy by their services. This act cannot help the company. They all
the things impact on the HRM policy of Easy-jet.
Health and safety at work act 1974 protect health, safety at the workplace. According to
the act employees claim to the company for health issues and safety purpose. Company are
responsible for the claim because employer’s safety must be required for the company. This act
minimisation of the risk at the workplace. A healthy employee always does their best
performance. HR plays most important role between management and employee. Sometimes
HRM changes a part of their policy due to health issues of the employee (Albrecht and et.al.,
2015).
Consumer protection law is made for protect consumers rights. Job security is important
for every employee and this act is very helpful for that. It is very helpful for Consumer complain.
Business owner also known about this act. Consumer protection act applied every type of
organisation like self-regulating business, government organisation. According to the
government rule HRM of Easy-jet made policies for consumer and sometimes it may have to
change policy.
Employment law included all the employee relationship. All employees have some rights
at work place like freedom, fair compensation. It is the common condition when sometimes
employees fired for no reason or illegal reason like gender, age, disability (Storey, 2014). That
time employment law is very beneficial for employee Because nobody can fire employees
without any legal reason. Employment law included issues like paid leave, health care law,
wages and hours law. It may have to influence upon HRM policies of Easy-jet. Company need to
aware from employment law.
Anti-discrimination law is based on colour, gender, age, religion. This law prohibited
discrimination by state government. At the work place company should take care for employees
related to discrimination. HRM of Easy jet should make policies for females safety and rights.
According to the act company can not misbehave to the female employers. In a private sector
this law is not direct apply but its apply in direct on government employees. HRM of Easy-jet
should make policy related to anti-discrimination because where environment does not good
there employees can not work with happily. And this type of environment affected HRM
policies. HRM policies does not work in this environment.
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CONCLUSION
From the above study it has been summarised that, the HRM policies & practices has
been effectively linked with strategic framework to increase the competitive advantage, strategic
effect and organizational capabilities. The study included “Easy-Jet” a leading service provider's
HRM policies to understand explain the given tasks. It has incorporated significant HRM
policies & practice raising its brand value, brand name and market value.
Effective HRM policies & practices have been explained and its relation with Porters
strategic framework to achieve competitive advantages have been presented in the context of
“Easy-Jet airlines”. Along with it, the effect of external environmental factors on HRM policies
& practices have been analysed through Political, Social and Legal factors affecting its HRM
policies delivery.
The study has explained the basic HRM policies & practices followed in organizations. It
also showed that how Easy-Jet have linked its HRM policies with strategic framework to achieve
competitive advantages. The report has used relatable facts and figures regarding the company in
the form of evidences to increase its credibility.
It also showed that the external factors like Political, Social and Legal have a strong
impact on HRM policies & practices with relevant legislation/legal considerations.
Hence, the study described that the HRM policies & practices of any organization have
an interdependency on external factors as well as the strategies used to achieve competitive
advantages. It has justified the fact that organizational success has increased by the application of
Strategic Human Resource Management and strategic analysis of external factors.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers
Albrecht, S.L. And et.al., 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance. 2(1). pp.7-35.
Beardwell, J. and Thompson, A., 2014. Human resource management: a contemporary
approach. Pearson Education.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis
Brewster,and et.al 2016. New challenges for European resource management. Springer.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Marchington, and et.al., 2016. Human resource management at work. Kogan Page Publishers.
Marchington, M. and et.al., 2016. Human resource management at work. Kogan Page Publishers.
Sparrow, and et.al, 2016. Globalizing human resource management. Routledge.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Online
External factors affecting business. 2016. [ONLINE] Available Through:
<https://www.managementstudyhq.com/external-factors-affect-business-
environment.html>
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