Scope Of Human Resource Management Report

Runnig Head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the student
Name of the University
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Table of Contents
Task 1:.............................................................................................................................................2
1.1 Changes in the global environment and HR strategies..........................................................2
Identification and evaluation of the impact of changes in the global environment.................2
HR strategies, policies and practices of selected organizations..............................................4
1.2 Stakeholder Analysis and Environmental Audit of the selected organizations.....................5
Role of HR professional during stakeholder analysis and environmental audit........................10
Task 2:...........................................................................................................................................10
2.1(a) Contribution of leadership theories towards organizational strategy and goals..............10
2.1(b) HR leadership strategies for the management of change................................................13
2.2 Ethical strategies for HRM and HRD in selected organizations.........................................14
2.3 Self-development needs and learning styles........................................................................16
References......................................................................................................................................17

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Task 1:
1.1 Changes in the global environment and HR strategies
Identification and evaluation of the impact of changes in the global environment
The goals that act as primary objectives for many multinational companies are
profitability and brand identity. Among such companies are Microsoft and IBM. The influence
of global changes in the environment of Microsoft influences the macro and the remote setting of
the firms (Kah Chon, 2019). Microsoft’s investment and performance have increased due to the
opportunities created by the political stability of the market forces. The increasing support of the
government for the automation gives opportunities to Microsoft to enhance its computer
technology through government clients. The increment in international trade has developed a
macro environment, which has benefited the sales of Microsoft. The economic stability and high
growth of many developed countries create opportunities for Microsoft to boost its business
(Rothaermel, 2016). Due to the growth of the disposable income of middle-class crested
opportunity for Microsoft to increase its revenues. The growing attitude of the customer towards
leisure products creates opportunities for the company to develop such products that meet the
expectations of the customers. Increased cultural diversity has affected the environment of the
company because its product satisfies only the biggest groups.
The technological changes in the global environment is like a rapid increase in mobile
technology, online transactions, and increase business opportunities in the automation sector
gives a stable environment to Microsoft to increase its business. However, these changes also act
as threats to the company. The competitors take these as an opportunity to enter the market.

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Growing demand for sustainable products in the global market creates a chance for the company
to develop environment-friendly products and introduce green energy in business operations.
Nowadays, there is an increasing demand for the recycle products in the global market,
Microsoft should use those materials that can be recycled, in its hardware and software products
as well as in the packaging of the products (LIU, 2017). The changes in the global market give
plenty of growth opportunities for the company to achieve a competitive growth. Some of the
legal factors in the worldwide environment like patent laws, electronic waste disposable
regulation and energy consumption act as an opportunity as well as a threat to the company.
However, these regulations impose additional costs in fulfilling the environmental factors of the
business environment. At the same time, the improved patent laws facilitated Microsoft’s
development by eliminating several problems, for example, software piracy. Microsoft can adapt
diversification for its business to increase its potential growth. The company can achieve this by
increasing its hardware products to increase its revenues (Nguyen, 2017).
International Business Machine (IBM) continues to grow its business despite the changes
in the global environment through its organizational capabilities. IBM has succeeded in the
market by its developing competencies and by exploiting the opportunities and overcoming the
threats in the global environment. The movement of the government sector towards digitalization
has created a chance for IBM to bargain such material expertise products that cater to the needs
of the government organizations (Rubow, 2016). The company can take advantage of the
political support for the e-technologies in the macro-environment by enhancing its innovation
processes. The demand for online products in the market helps the company to target online
demand and market for its product and growth. Technological integration is one of the external
factors that IBM faces in the global environment. This act as a barrier to the growth of the

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industry because it attracts competitors from other industries. For example, some manufacturing
computing multinationals customize their products to compete with IBM. Cybercrime is another
factor that affects the online infrastructure of the company. The demand for renewable energy,
reusable products and sustainability in the market creates opportunities for the company to grow
its commercial business in the global marketplace. The fluctuations in the interest rates have
brought stability in the worldwide market, which has lowered the interest rate of credit to the
customers of IBM. The increase in the expenditure of the customers and uplift in the economic
slowdown after the recession allowed the company to gain new customers and increase market
shares (Rubow, 2016).
HR strategies, policies and practices of selected organizations
Every organization has some HR policies, strategies and practices that are based on certain
principles to play the game fairly. This includes the fair rules and the decisions that affect each
member of the organization in an equal manner. In every organization, the manager implements
HR policies with the help of HR consultants. The executives practice performance management
system to develop the strategies for the organization and evaluate the ability of the team to form
a positive environment, climate and relationship inside the organization (Yano, 2017).
Microsoft is one of the successful organizations worldwide. From the point of view of
human resource, the company is employee-driven enterprise. Since, most of the company’s
success depends upon technological advancement, innovative products and different
manufacturing techniques (Buckley, 2019). Apart from these key factors, Microsoft’s success
depends upon the efficiency of its employees. The company values the workers and knows the
importance of the workforce. Since the company values its manpower, it seeks to preserve,
recruit and retain the talented and huge workforce. The company has around 93000 employees

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from all over the world (Warner, 2019). To sustain such a huge labor force, the company is
composed of around 1500 experts in human resource from over 100 countries around the globe.
The human resource generalist assists the business regularly, and the center of excellence by the
company designs the programs of the human resource generalists. The company takes advantage
of low-cost technical labor, and it recruits both fresher’s and experienced graduates in the IT
sector. Some of the important HR practices and policies in Microsoft are career management,
flexible work shifts employee retention, leap year acceleration programme and many other such
practices for the well-being of the employees (Warner, 2019).
IBM recruits those employees who are hardworking and can add value to the
organization. HR resource responsibilities include counseling multiple initiatives of workforce
optimization and recommend solutions for employee relations and HR issues. For the company,
human capital plays a vital role in gaining competitive advantage. The HR practices like strategic
deployment and motivation is a part of the human resource strategies of IBM. Some of the HR
policies of the company are compensation, research and development plans, operational
flexibility, staffing and many more. IBM has implemented many innovative HR programmes,
practices and policies that help in sustaining the employees (Jörn, 2016). Some of them are the
open-door policy of the organization, employee opinion surveys, interpersonal communication,
and think magazines, announcements on the daily bulletin board, intranet and many other
programmes. Its HR policy goes through some transformation like the policy of the job sharing,
flexibility in the working hours, global teamwork, around thousands of human resource
procedures, part-time employment, mass collaboration and many more.

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1.2 Stakeholder Analysis and Environmental Audit of the selected organizations
A stakeholder is an distinct or a group that takes an awareness in a project or an
organization and are directly affected by the occupational processes and its consequences.
Stakeholders of an organization can be either internal or external. The stakeholders that are
affected by the business procedures and its consequences are employees, customers,
stockholders, communities and suppliers. The stakeholders who provide guidelines and influence
the business operations of the organization are government and non-government organizations,
regulatory authorities and the civil societies (Buckley, 2019).
Microsoft has developed sustainable relations with its stakeholders; both internal and
external. Customers are valuable shareholders at Microsoft organization as they are the major
source of revenue generation and a driving force for sale in the organization. The organization
should develop those products that meet the expectations of the customers. Microsoft fulfils its
customer's demands and expectations regarding the quality service products. The enterprise is
continuously improving its efficiency to serve its customers better. To safeguard the rights of the
depositors, it is the responsibility of the Panel to sustain their privileges like the right to vote,
right to obtain the facts on time, right to receive payments, pre-emptive right, and the right to
assessment. The Board of the company should make sure that the organization should timely
disclose the quantifiable evidence and dealings that affect the market value of the organization’s
dividends (Buckley, 2019).
Microsoft is fully dedicated towards the growth and the well-being of its personnel. To
build a high-performance culture in the organization, employees are trained regularly, and
development programs are carried so that they achieve excellent performance. These profession
growth programs are developed to safeguard continuous growth of the employees through job

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enrichment opportunities, performance management, learning and growth and appraisal system.
Microsoft takes initiatives for the development of the community and improves the lives of the
people of the communities (Gürel, and Tat, 2017). The company fulfills it through its corporate
social responsibility scheme and engages their employees through volunteers initiatives. To be a
responsible citizen of the society, Microsoft contributes towards building a sustainable society
with the partnership of the government establishments, non-government organizations and many
public administrations. They work on a project that promotes education, entrepreneurship and
development of surroundings.
Microsoft built a volunteer programme “save a soul for better tomorrow”. The enterprise
maintains a mutually beneficial relationship with the suppliers those perform with fairness,
integrity, accountability and transparency while conducting business. Microsoft maintains the list
of those suppliers who serve the requirement of the company from expenditure to the operating
expenses and the service requirements. Before doing business with Microsoft, the supplies
undergo through the accreditation process to become an authorized member for doing business
with the company. The criteria used for the authorization are capacity for continuous business
operations, legitimacy in the business operations, quality and prices of the commodities, track
record, complying with the legal laws and maintenance of transparency in the relationship while
conducting business with the enterprise (Eyring and Consuegra, 2017). The purchases of
Microsoft are made based on bidding through the support of recognizable and qualified
suppliers.
The responsibility of Microsoft towards the environment starts by accepting rules,
practices and standards to create a better workplace, and not just for the development of the
company but a place that has some responsibilities towards the improvement of the environment.

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Figure: Stakeholder Mapping
Source: (https://www.ibm.org/responsibility/policies)
The above figure is a stakeholder-mapping tool that is used by the organizations to
measure the level of curiosity of different sponsors engaged in a project or an association. This
helps the managers prioritize certain opinions that are needed in the project. The mapping
displays the interest of different stakeholders that are a part of the project, and it also indicates
that whether the opinions and the interests of the stakeholders are positive or negative. Every
stakeholder has a different expectation from the company, so the manager has to meet the
expectations of every stakeholder, and if there is any conflict, it should be resolved
diplomatically so that the processes of the organization should run smoothly and if the opinion of
the stakeholders are same, then it proves beneficial for the company.
International Business Machine(IBM) is a business giant among information technology
companies. The company has many investors from different parts of society. The stakeholders of
the company include communities, environment, investors, suppliers and employees. These
stakeholders ha different aspects in different aspects of the business. Therefore, they require a
corporate social responsibility scheme. For example, the company’s approach should contain the
strategies for the stockholders as well as the surroundings, such as programs for sustainability

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(Den Hartigh et al., 2016). IBM considers the location as its most important shareholder because
the company is dependant on the natural environment or its supply chain. The interests are
related to the preservation of the environment and reducing the effect of business operations on
the environment. Therefore, the company’s strategy of corporate social responsibility should
focus on sustainability. IBM’s strategy for CSR activities towards the environment includes
climate protection and energy conservation. IBM has an environmental management system for
the protection and conservation of environmental goals. It fulfills its responsibility towards this
stakeholder recycling, waste reduction, energy preservation and other related issues.
The impact of the communities on corporate social responsibility is based on the
perception of the customers. This stakeholder shows interest in the company’s inventiveness that
help in the development and other needs of the community. The company aims to support the
community through enterprise and entrepreneurship. The corporate social responsibility is taken
at IBM tackle several interests of the community. The company’s CSR strategy also involves the
policies and standards for citizenship in the supply chain of the environment. So, the dealers are
considered as a significant stakeholder in the business of information technology. The company
provides technical support for the improvement of the operational efficiencies of the supplier.
The involvement of the depositors in corporate social responsibility is the consequence of the
wealth of the industry (Jain and Jain, 2017). The investor being one of the stakeholders of the
company shows interest in investing more through the company’s profitability and growth in the
industry of information technology. The investors are attracted towards the company through the
corporation’s CSR methodology that includes functioning with the government to succeed in the
digital marketplace as well as the databases that endorse renewable energy methods for the
enterprise. The company satisfies the interest of its stakeholders through the generic strategy that

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is designed for intensive growth and competitive advantage. Thus, it is clear that the corporate
social responsibility of the company satisfies the interest of the investors through sound business
operations.
Employees are the major stakeholder group of IBM due to the corporate citizenship
program. Since the employees expect a high salary and wage for their cooperation in the
company and they also seek career development programs. The corporate social responsibility of
IBM must report these needs of the employees by keeping in mind that the staffs are important in
determining the competences of the organization. For example, innovation capabilities to gain a
competitive advantage in the field of information technology. The strategy of the enterprise
comprises rational engagement practices, reimbursement, diversity and enclosure databases that
boost the self-esteem of the employees and prove beneficial in reducing the conflicts (Guenole
and Feinzig, 2018).
The environmental audit enables a company to examine the operations of the business
and how well they comply with the local, state and the federal regulations of the environment.
The audit let the organizations correct the problems that are identified during the process. The
audit at Microsoft is done through the SEA program. SEA stands for social and environmental
accountability. Through this program, Microsoft wants all the supplier doing business with the
organization to support the environmental, health, safety and ethical practices described in the
company’s code of conduct. The audits and assessments by the company take place annually to
access the conformation with the customer requirement and also compliance with the legal
entities related to the environmental issues (Buckley, 2019).

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The environmental audit of IBM is reviewed against both the external and internal
requirements. Therefore, the company takes prompt actions if any issues are identified. The
company manages the operation to minimize the impact on the environment. The environmental;
audits at IBM are conducted through energy management programmes under ISO 14001
standard (Jörn, 2016). During these audits, the consumption of energy records are tested by
comparing the consumption values on the energy bill and verification of the energy management
programme by the company is tested and implemented. The results of these audits and self-
assessment are communicated to the top management of the company for further improvement in
the process and resolving any issues that persist during the auditing. The testing results are used
further for third party validation audit of greenhouse gas emissions management by the company.
Role of HR professional during stakeholder analysis and environmental audit
The effective Human Resource department must make a balance between the internal as
well as external stakeholders. To generate worth for the line managers and the employees of the
company, the HR professional should carry out the human resource practices that integrate and
influence each other. To support the business in generating worth for the external stakeholders,
the human resource department must identify, access and supply important external information
to the stakeholders. The HR department should focus on optimization of its popularity with the
internal stakeholders with less impact on the external stakeholders (Jörn, 2016). The HR strategy
is said to be successful if it involves and engages both the stakeholders, for example, internal and
external to succeed in the business goal. The HR professionals of every conglomerate,
implement the global model and sets rules, policies, procedures to make sure that the business
interests are met across the company. The HR chooses the tactics that encourage the stakeholder
to express their views and get feedback for the global practices.

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Task 2:
2.1(a) Contribution of leadership theories towards organizational strategy and goals
The fate of any organization is dependent on the type of leadership and management of
the style. The management and leadership styles are revealed through both long term and short
term policies of the establishment. There are many leadership theories suggested by the theorists
for the success of the organization. Some of them are trait and behavioural theory, contingency
theory, participative theory, transformational and transactional theory. Some of the leaders
consider teamwork as the best solution for the company, and some prefer the charismatic
personality of the leader for the success of the organization.
Every organization has some objectives to succeed and gain a competitive advantage.
The leaders set directions and goals to lead the organization on the right path. By keeping in
mind the aims to achieve, different management theories are adopted by the leaders to support
the vision and mission that defines the style of the administration in an organization.
The leadership theory followed via the leader of Microsoft and IBM is the
transformational leadership that defines four things creativity, clarity, energy and success of the
organization. This theory has four components encouragement, charismatic personality,
intelligence and personalized attention.
The leaders are aware that the organizations respond to the inner and outer dynamics of
the environment that can also affect the strategies and policies of the organizations to change.
The factors may include economic slowdown, increased competition, inflation, demand,
technological change and many more (Winn, 2018). These changes can turn the organization
upside down or lead to success. Therefore, it can be transformational or incremental. For

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organizations like Microsoft and International Business Machine, every strategy toward the
management of change requires transformational leadership. Every project in an organization
leads to some changes in the company. Therefore, the leader must know how to lead the change
by avoiding the pitfalls. In the field of informational technology, the success of the
transformational projects is dependant primarily on the people rather than the technology. The
major challenges reported in the application of the transformational leadership are the changing
mindsets of the employees, attitudes, beliefs and corporate culture are the major challenges that
come in the path of managing a change in the organization (Bratton, 2020).
The leader of Microsoft defines three things that every leader should possess-clarity,
energy and success. The leader of Microsoft, Nadella, has a mindset of growth philosophy. The
leader explores how the individuals and the teams can grow and thrive, rather holding them back.
This is the only philosophy that Microsoft believes that success and the key learnings can be
found in any situation inside the organization. The philosophy of the company’s leader is to
practice positive leadership tools and techniques, which will create extraordinary results. The
change at Microsoft is achieved through the transformational leadership that inspires the
employees and increases its productivity. To follow this strategy, the leader has to decide to get
the start and figure out what are the strategies and interventions that can be designed for the
process.
Similarly, transformational leadership at International Business Machine (IBM) can be
seen at all the levels of the establishment. With the efficacy, influencing power and the capability
to motivate the employees helped the company reinvent its processes that could lead to the era of
development and assist in driving the company towards the new business value. The
International Business Machine develops leaders from managers to senior executives.

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Transformational leadership and authoritative style help the information technology giant create
innovative, practical and experiential resources and learning opportunities that develop an
understanding of the role and the purpose of change in the organization (Kunnanatt, 2016).
Transformational style leadership helps the members align with the goals of the organization by
preparing the members for the change that will be collaborative, agile and self-directed. Through
this, the company introduces man landmark innovations in the development of leadership. In the
year 2015, International Business Machine defined the means of being a transformational leader.
The leaders used thought leadership of the senior leaders, the trends of the specialists from the
leadership and supervisory development teams and defined the behaviours that helped IBM in
redefining its strategies and goals. The company decided to step away from the competency
model that was used in the past by the company and adopt a model that is dynamic and fits into
its new transformational change journey.
The world is changing at a faster pace, and the organization are affected by global
changes. So they need to be adaptive and transform itself into a global leader by applying the
leadership model that is well suited for the current scenario of the organization, as the companies
will progress the behaviour changes. For such organizations, transformational leadership
framework plays a significant role in aligning and building an agile culture inside the
organization and pivot the company for cognitive and cloud solutions. With the support of the
top executives, the two IT giants launched the leadership model within and across the
organizations. The companies embedded the leadership theory into the existing and new
development programmes to be adaptive and gain competency in the market. The companies are
energized by the rapid progress due to the leadership and change management and also the

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leadership development programmes through the use of the transformational leadership
framework.
2.1(b) HR leadership strategies for the management of change
Any change that is introduced in the organization faces the problem of resistance.
However, the resistance to change is a natural phenomenon by the employees towards the
widespread organizational changes human resource department can overcome with these issues
by applying certain strategies like the implementation of the changes in stages, engaging the
teams in the change process, communicating the change and the after-effects of the
transformation. The driving forces behind every transformation are the organizational need and
the leadership but to make sure that the changes will be positive; the transformation has to start
from the bottom. The human resource strategies must be rooted at every level if the organization
wants the strategies to be successful. One key role of the human leadership tactics selected
establishments for the administration of transformation is to ensure that both the organizational
strategy and the culture has to be aligned together with the goals and objectives of change
because without aligning these two, no matter how better the inventions are it will likely to cause
failure in the leadership programme.
2.2 Ethical strategies for HRM and HRD in selected organizations
The human resource management looks after the manpower planning of the organization
while the development related activities are looked at by the human resource development. Both
are major parts of the human resource of any organization.
The ethical strategies and the HR department should recognize the importance of
collaboration and work together. The ethical strategies human resource help the organization

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embed the valuable culture in the organization. For the ethics that is to be followed inside
Microsoft is followed by certain ethical programs like the Microsoft’s compliance programme,
code of conduct for the business, the standards, values and cultural programs, commitment
toward the employees, government and communities, programs against corruption and bribery
and environmental compliance. To prevent the issues sing from the compliance, the human
resource department focuses on promoting the culture of integrity and ethics in the organization
(Jain and Jain, 2017). The HR department achieves this by building a compliance culture
throughout the organization and implementing the business conduct of standards, training and
policies inside the organizational environment. The HRM and HRD also implement data
analytics, risk assessment, investigations of the processes, third party vetting and many other
compliances to minimize the risk of failure. The department detects the risk through several
methods including audit group, monitoring the process through the compliance analytics
programme an analyzing the trends by the legal compliance. The Human resource department is
accountable for the ethics and upholding the standards of the Microsoft team and its reporting
concerns. The HRM and HRD assess the root cause of the problem and implement the processes
that minimize the risk of failure. The department disciplines the employees who are responsible
for the violation of the policies and standards and the company stops doing business with those
suppliers and partners who do not fulfil the ethical standards of the company. The ethical
practices like applying the culture and values for building and preserving the trust with the
government, customers, partners, investors and other partners who are directly or indirectly
associated with the company (Anderson, 2017).
Disciplinary actions are taken by the HR department against those employees who do not
comply with the rules and violates the strategies or the code of conduct of the organization. This

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can even lead to the termination of the employment of the employees. The standards of the
company reflect its culture and values and even the principles that guide this behavior. The
employees make use of the standards and decide what is required of them. The department
provides help to the employees when needed and builds trust that empowers the employees and
the stakeholders to achieve more productivity towards the organization. Microsoft’s commitment
towards building a culture of integrity, ethics and trust not only depends on the human resource
department but also on the employees. The human resource department provides multiple ways
to report concerns. Whenever a concern is reported to the department, the department treats it
fairly and seriously and actions are taken promptly. For its fair code of conduct ad HR practices,
Microsoft was honored with positive recognition for the work in ethics, compliance and its
corporate social responsibility.
The major reason for changing the HR strategies at IBM is that the older one does not fit
with the labor force. In the twenty-first era, the corporation bought many companies that helped
it to flourish and sold those divisions that were not fruitful to the organization any more. This
indicates that half of its employees are with the corporation for fewer than three years. To uphold
high self-esteem, output and trustworthiness among the employees in the diversity conditions,
IBM’s human resource has adopted many directions and strategies. The company provides equal
benefits for all the employees regardless of the case, county of origin, race, sex or ethnicity. By
implementing the strategy of same-sex benefit campaign, the company has earned 100%
evaluation from the human rights campaign and also from the women’s employment groups. The
HR department emphasizes reward and recognizes the volunteer work in the company
(Anderson, 2017). To be among the global giants and maintain its leadership position, the HR

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department experiments with bold methods. The department has found innovative ways and
builds strategies to enhance productive interaction and collaboration in the company.
Therefore, ethical strategies are responsible for the promotion and implementation of
fairness and justice among employees and organizations. The human resource strategies help the
organization come out of the ethical dilemma faced by the modern organizations of today. It
helps the organization and the employees reach their fullest potential productively and positively.
2.3 Self-development needs and learning styles
For personal success and growth, it is essential to recognize the strengths and weaknesses
of oneself that can be managed from the daily activities. Identifying the threats and overcoming
it that can affect the potential of progress and act as a barrier in self-development. Learning is a
long term process and can be challenging. Self-development and learning include stages like
assesses readiness to learn and develop, the setting of the learning goals for personal
development, getting oneself engaged in the learning process and implementing an evaluating
the learning. There is a need for various skills and attributes that I have to gain towards
developing myself. Firstly, I will conduct a self-analysis of my current situation and determine
the internal and external strengths and weaknesses. Development of the communication skills
would be my priority because it is the only medium through which activities takes place in
almost all the places. Conflict management, risk management and stress management would be
my key areas of development. Because a good hold on these areas always makes the individual
succeed in all the areas of life.
I would choose three different types of learning styles, namely cognitive, affective and
physiological. The cognitive style will help me in retaining the information and also help me in

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learning from past experiences. The affective style will help me shaping my attitude and
motivations and how these can impact my learning. The physiological style will let me gain
knowledge of the environment in which we learn and grow, health, well-being and also help in
building relationships with everyone.

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