Benefits and drawbacks of HR options and PESTLE study of A+ Education Group, Tuition Centre

This document discusses the benefits and drawbacks of HR options such as external consultant, outsourcing, internal HR service, internal non-human HR service, and merging business units. It also includes a PESTLE study of A+ Education Group, Tuition Centre.

Running head: MANAGING HUMAN RESOURCES
MANAGING HUMAN RESOURCES
Name of the Student
Name of the University
Author Note

1MANAGING HUMAN RESOURCES
Question 1 – Benefits and drawbacks of the following options
Answer - (a) External consultant
Benefits – The firms are able to save on the payroll based taxes and benefits that have
to be provided to the employees with the support that is gained from the external consultants.
The management and overhead costs are also reduced by using external consultants for
development of different projects.
Drawbacks – The major downside of the usage of external consultants is that they
have limited levels of knowledge based on the internal organizational processes. The
consultants are not able to make effective communication with the full time employees who
are already a part of the firm (Collings, Wood and Szamosi 2018).
(b) Outsourcing
Benefits – The major benefit that is gained from outsourcing of jobs is that the
organizations are able to gain freedom based on the improvement of core processes. The firm
is also able to share some amounts of the risks with the help of proper outsourcing operations.
Drawbacks – The risks related to security of data are reduced due to outsourcing
activities of the firms. Quality control is also always not possible in the process of
outsourcing (Albrecht et al. 2015).
(c) Internal HR service
Benefits – The on-boarding and induction based time required in the recruitment
process will be reduced due to implementation of internal recruitment. The costs of
recruitment incurred by the firms are also reduced due to internal HR based services.

2MANAGING HUMAN RESOURCES
Drawbacks – A major gap is developed in the existing workforce of the organization
due to internal recruitment activities that are performed by the firm. The pool of applicants
developed as a part of internal recruitment is quite limited (Guest 2017).
(d) Internal non-human HR service
Benefits – The internal non-human based HR services have an influence on the
analysis of needs and demands of employees and the HR based objectives that have been set
as well.
Drawbacks – The major disadvantage of internal non-human services is based on the
lack of importance it provides to the recruitment process (Albrecht et al. 2015).
(e) Merging business units
Benefits – Merging of the business units is able to reduce the levels of competition
that are faced by the firms. Diversification of activities is also considered to be a vital
advantage that is provided by the merger of different organizations.
Drawbacks – The integration of employees of merged organizations is not always
successful and this can cause a disadvantage to the firms (Collings, Wood and
Szamosi 2018).
Question 2 – PESTLE study of A+ Education Group, Tuition Centre
Answer -
Political aspects – Political drifts that have taken place in Malaysia have an impact on
different industries that are part of the country. The country is ethnically divided in nature
and various parties fight for their places in the government. However, political stability is
maintained in an effective manner in order to facilitate the operations of business

3MANAGING HUMAN RESOURCES
organizations. Educational institutions are also supported by the government in order to
maintain literacy rates in Malaysia (Lasserre 2017).
Economic aspects – Malaysia is third richest country and the GDP of the country has
amounted to around 11,000 Dollars in the year 2014. Devaluation of Malaysian currency
against Dollar has influenced the economy in an adverse manner. Labour force in the country
has become quite expensive in the last few years and this has been able to influence the
manufacturing sectors. The educational institutions have also been influenced by the
economic condition of Malaysia (Aguinis, Edwards and Bradley 2017).
Social aspects – The economic development and growth of Malaysia has been based
on the social issues and the dynamic leadership as well. Unemployment, poverty and
exploitation have a major impact on the social conditions that are formed in Malaysia. The
conflicts and racial discrimination can however affect the students who are a part of the
educational institutions like A+ Education Group (Hitt, Ireland and Hoskisson 2016).
Technological aspects – Outsourcing of the jobs based on usage of technology is
based on the manufacturing of various products and developing an effective infrastructure of
the organizations in Malaysia. The educational institutions have also implemented
technologies in order to improve the learning process. A+ Education Group is also using
modern technologies in order to make the learning process of the employee easy (Aguinis,
Edwards and Bradley 2017).
Legal aspects – The laws in Great Britain have a major impact on the legal aspects of
Malaysia. The various laws that have been established in the country are also affected by the
Australian and Indian laws. A+ Education Group has to follow the legal boundaries that have
been set by the government in order to maintain the operations.

4MANAGING HUMAN RESOURCES
Environmental aspects – Air pollution and deforestation have a negative impact on
the environment of Malaysia. A+ Education Group thereby needs to operate in such a manner
so that the environment and its condition is not influenced in a negative manner (Hitt, Ireland
and Hoskisson 2016).

5MANAGING HUMAN RESOURCES
References
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods, 20(4), pp.665-685.
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 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.
Collings, D.G., Wood, G.T. and Szamosi, L.T., 2018. Human resource management: A
critical approach. In Human Resource Management (pp. 1-23). Routledge.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal, 27(1), pp.22-38.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.